Organisational factors influencing the maturity of business continuity in commercial banks in Kenya

Abstract

Empirical evidence underscores the critical role of Business Continuity Management (BCM) in fostering organisational resilience amid increasing disruptions. In Kenya, the Central Bank of Kenya (CBK) mandates BCM frameworks for financial institutions through Prudential Guideline No. CBK/PG/14. However, gaps remain in understanding how specific organisational factors and stakeholder perspectives influence the maturity of BCM practices within the Kenyan banking sector. This study, grounded in Contingency and Resilience theories, aimed to: examine the influence of corporate governance on business continuity maturity in commercial banks in Kenya, examine the effect of financial performance on business continuity maturity in commercial banks in Kenya, and evaluate the role of stakeholder perspectives in shaping business continuity maturity. This study was grounded in both positivist and constructivist research philosophies and adopted a convergent parallel mixed-methods approach. The study targeted all 38 licensed commercial banks in Kenya as the unit of analysis. Primary quantitative data were collected via an online semi-structured questionnaire administered to senior managers responsible for business continuity. The survey yielded responses from 67 participants across 33 banks. In addition, secondary data on organisational characteristics such as financial performance and governance structure were sourced from banks’ annual reports for the year 2022. Quantitative data were analysed using descriptive statistics, correlation analysis, and multiple regression, while qualitative responses were thematically analysed. The study concludes that while organisational factors showed some associations with BCM maturity, none were statistically significant predictors. This suggests that BCM maturity may be driven more by contextual and behavioural dimensions such as leadership commitment, organisational culture, and strategic alignment than by static organisational attributes. Stakeholder engagement emerged as a pivotal component, reinforcing the need for inclusive and participatory BCM development. Finally, several operational challenges- technological risk, financial constraints, limited BCM expertise, and executive disengagement- were identified as barriers to maturity.