Simelane, Bongiwe

The Banking Survey is an annual publication that publishes the overall ranking of banks, bank performance ratings and annual financial statements for all banks in Kenya covering a period of ten years. The data was analyzed using multiple linear regressions method and resulted were presented in tables and graphs. The results showed that foreign banks assets and foreign bank loans have a negative impact of domestic performance. The findings suggest that foreign presence is associated with greater efficiency and domestic banks have to give up a portion of their profits so as to maintain their market share. However, there are other factors that contribute to bank performance which might lead to banks realizing profits even though they operate in a competitive industry. Due to the competition in the sector domestic banks have employed different revenue generating strategies to try and lessen the decline in profits. Hence, the study propose further policy reforms aimed at having a proper legal framework for operation of foreign banks and all banks in general.