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Technical Efficiency Evaluation of Kenyan Sample Banking Sector

Abstract

Isaiah Onsarigo Miencha, Seline AO, Francis KK, Anane E and Twum A

The Kenyan financial institutions structure has changed for the last two decades. The commercial banks have undergone incredible development. The study attempts to investigate technical efficiency of Kenyan commercial banks during 2004-2013 by using a Data Envelopment Analysis (DEA). The results suggests that the degree of technical efficiency was found to be lower which indicates that the inefficiency is due to producing at an inefficient scale level rather than producing below the production frontier.

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