Bank’s Ownership and Performance in Kenya and Tanzania. Does the size matter? Evidence from Cost and Profit Efficiency of Commercial Banks in Kenya and Tanzania

This paper looks on ownership structure of the banks in Kenya and Tanzania and how it affected by the size of the banks as described big and small size depending the size of the assets banks owns. A non-parametric technique, data envelopment analysis (DEA) and General Least Square Method (GLS) for data from 1998 to 2022 were used to investigate the banks’ cost and profit efficiency and examine the influence of ownership, bank profile and size. The generally results show that commercial banks in Kenya and Tanzania are relative more cost efficiency than profit efficiency though the margin is small, which is consistent with other studies. Foreign banks outsmart local banks in both cost and profit efficiency and big banks perform well compared with small banks.