Effect of Financial Innovations on Banks’ Loan Portfolio: A Case of Commercial Banks in Kenya

Abstract

The study sought to investigate the effect of financial innovations on loan portfolio of Commercial Banks in Kenya. The main problem was that even though banks have implemented financial innovations, the level of loans uptake in terms of volume and quality remains unclear as indicated by opposing findings by different studies. Most past studies on Kenya have covered relatively shorter study periods which may not reliably capture the financial trends, more so given the short shelf life of financial studies caused by rapid changes in the financial sector.