Competitive Strategies and Growth of Fintech Lending Institutions in Nairobi County, Kenya

Beth Njeri Kariuki; Paul Kariuki

doi:10.61108/ijsshr.v2i3.127

Competitive Strategies and Growth of Fintech Lending Institutions in Nairobi County, Kenya

Authors

Beth Njeri Kariuki Scholar, Jomo Kenyatta University of Agriculture and Technology, Kenya
Paul Kariuki, (PhD) Senior Lecturer: Jomo Kenyatta University of Agriculture and Technology, Kenya

DOI:

https://doi.org/10.61108/ijsshr.v2i3.127

Keywords:

Competitive Strategies, Cost Leadership Strategies, Focus Strategies, Growth Of Fintech Lending Institutions

Abstract

This study explored the relationship between competitive strategies and the growth of fintech lending institutions in Nairobi County, Kenya, amidst a rapidly evolving digital lending landscape. With approximately 20% of the Kenyan population relying on digital lending platforms, the sector has experienced significant expansion driven by innovation and increased financial inclusion. The research specifically focused on two competitive strategies cost leadership and focus strategies utilized by major players like Fuliza, M-Shwari, and KCB M-Pesa, which collectively dominated over half of the market. Utilizing a descriptive research design, the study collected data from 114 respondents across 32 fintech lending institutions, achieving a response rate of 86.3%. The findings indicated a strong positive correlation between cost leadership strategies (r = 0.774) and focus strategies (r = 0.784) with the growth of these institutions. Regression analysis revealed that these strategic approaches accounted for 75.2% of the variance in growth, underscoring the critical role of strategic choice in enhancing organizational performance. The study concluded that fintech lending institutions should prioritize operational efficiency and adapt their strategies to evolving market conditions. Recommendations for future research included examining the effects of regulatory frameworks and technology adoption on competitive strategies, as well as conducting longitudinal studies to assess their long-term impact on growth

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Vol. 2 No. 3 (2024) of the International Journal of Social Science and Humanities Research (IJSSHR)

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Published

2024-09-28

How to Cite

Kariuki, B. N., & Kariuki, P. (2024). Competitive Strategies and Growth of Fintech Lending Institutions in Nairobi County, Kenya. International Journal of Social Science and Humanities Research (IJSSHR) ISSN 2959-7056 (o); 2959-7048 (p), 2(3), 60–71. https://doi.org/10.61108/ijsshr.v2i3.127

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Vol. 2 No. 3 (2024): International Journal of Social Science and Humanities Research (IJSSHR) ISSN 2959-7056 (o); 2959-7048 (p)

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