Total Factor Productivity In The Kenyan Banking Sector And How It Is Affected By Technological Innovation

ABSTRACT  Technological changes and innovation in any economy play a pivotal role in reducing operational expenses and increasing total factor productivity. The Kenyan banking sector is characterized by operational inefficiency in the factors of production as evidenced by high operational expenses. The inefficiency in the factors of production can be reduced through adoption of new technology and innovation. This study examined how technology and innovation can remedy the inefficiency by investigating the level of total factor productivity for the banking sector in Kenya after adopting new tec…