Citation:

Solomon Ngari Muriuki. "The Effect of Career Development on Employee Performance in the Banking Sector in Kenya" International Research Journal of Economics and Management Studies, Vol. 4, No. 4, pp. 275-278, 2025.

Abstract:

The study examines the career development-employee performance relationship in Kenya's Tier 1 commercial banks, utilizing Homans' (1948) Social Exchange Theory as a foundational framework. A descriptive research design was used to collect data from 164 banking employees through structured questionnaires, which were then analyzed using SPSS. The findings revealed that career development is significantly and positively linked to employee performance, with training programs and promotion systems being the most effective career development factors for performance enhancement. Further, employee engagement and productivity increase with structured training and clear promotion opportunities, suggesting Kenya's Tier 1 banks should prioritize training and transparent promotion frameworks for performance and career growth. The study suggests that banks should establish structured career paths, improve mentorship programs, and align training with organizational goals to boost employee productivity. Ultimately, the study enhances the theoretical understanding of human capital development and practical HR strategies in the financial sector.

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Keywords:

Career Development, Employee Performance, Banking Sector, Resource-Based View, Kenya.