Factors Influencing Capital Growth of Investment Banks in Kenya

Investment banks play a crucial role in provision of financial services such as equity and debt underwriting, mergers and acquisitions and financial restructuring for government corporations, private companies and individuals. They contribute significantly to the Gross Domestic Product particularly in developed countries. Despite this contribution, investors in the investment banking industry continue to portend great risks associated with stagnated capital growth. To be successful in the aforementioned functions, they have to maintain a sustainable capital growth. However, Kenyan investment banks have experienced scanty capital growth while operating in infant and inefficient financial and capital markets. Therefore, it was necessary to carry out a study on the factors influencing capital growth of investment banks in Kenya. The study was guided by cost management, risk management, and Capital Markets Authority regulations as independent variables and capital growth as dependent variable. Systematic review research design was adopted. Data was collected from previous research studies and published peer reviewed journals. These sources were selected through purposive sampling technique. Meta-analysis analysis was applied in data analysis to establish the determinants of capital growth in Kenyan investment banks. Findings indicated that capital growth in investment banks was dependent on cost management, risk management, and Capital Markets Authority regulations.