Partial fulfillment for the award of Master of Business Administration

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In the recent past, the banking industry in Kenya has experienced a sharp increase in competition among the players. It is therefore a paramount important that a bank operating in this environment is able to complete successfully in order to secure its future. This paper seeks to understand the reasons behind choice of a bank(s) by Nairobi SACCOs and relate these reasons for choice to the competitive advantage of the chosen banks.
Questionnaires were used to collect data from the managers in Savings and Credit Cooperative Societies (SACCOs).Managers of selected banks were also interviewed to establish what the competitive advantages of the banks they operate are.
A good understanding of SACCO business was identified as the most important factor when SACCOs were selecting a bank. This was then competitive advantage of the cooperative bank which was the most popular bank among the SACCOs that participated in this study. Quality and cost of services were also identified as other important factors.
The topic was selected because there is a need for banks to be informed on the competitive advantages that will ensure their survival. In an increasingly competitive environment, this information and understanding is crucial for the sustained survival of the banks. This topic is of interest as it adds value to the body of knowledge on the topic of competitive advantage as it relates to banking in Kenya.