Contribution of Financial Services Quality on Financial Performance of Banking Sector in Rwanda: A Case of Bank of Kigali Limited (BK)


  • Mediatrice Tuyisenge Mount Kenya University
  • Claude Rusibana Mount Kenya University



The study examined the contribution of financial services quality on financial performance of banking sector taking Bank of Kigali (BK), Rwanda. Specifically, this study assessed the effects of saving quality on financial performance of Bank of Kigali Limited-Rwanda, ascertained effects of loan quality on the financial performance of Bank of Kigali Limited-Rwanda and analyzed effects of e-banking service quality on financial performance of Bank of Kigali Limited-Rwanda. The research used a cross-sectional design using both qualitative and quantitative approaches. The study target population was 320 staff members and clients of the bank of Kigali operating in the City of Kigali. The sample size was 178 respondents determined using the Slovene formula. Simple random sampling technique was used for sample selection. The findings revealed there is positive relationship between saving services quality and the financial performance of the bank of Kigali as indicated saving service quality and market share (r=.759, p =.000), increase return on investment (r=.401, p= .000); increase earnings per share (.702**; p=.000) increase customer retention (r=.708**, p=.000). It was concluded that saving service quality can explains 72.7% of the variations in financial performance and that improvement in saving service quality by one unit leads to an increase of financial performance by 0.557 units in the Bank of Kigali. Further, it was concluded that majority of the respondents appreciated the quality of loan services provided at the bank of Kigali, and that there is a strong positive relationship between loan services quality and financial performance as indicated by  loan service quality and  return on investment (r=.631; p=.000); earnings per share; (r= .528*, p=.000) and customer retention (r=.644*; p=.045), it was also conclude that the combined effect of the loan service quality explains 55.3% of the financial performance of the Bank of Kigali, and that increase in quality of loan provided at the BK by one unit lead to the improve 0.194 unit on the financial performance of the Bank of Kigali. It was established there is strong positive relationship between e-banking services quality and market share increase (r=.694; p=.000); return on investment (r=.729; p=.000), earnings per share (r=.121; p=.008), and that the combined effects of e-banking service quality explain 75.3% of the variations on financial performance of the Bank of Kigali. The study recommended that other commercial banks should put more emphasis on electronic banking in order to perform well. More features of electronic banking should be introduced in commercial banks to attract more customers and perform well. The government of the republic of Rwanda through the national bank of Rwanda should help commercial banks by training their staff and clients on the benefits of electronic banking.

Keywords: Saving quality, loan quality, banking service quality, financial performance, Bank of Kigali-Limited, Rwanda.

Author Biographies

Mediatrice Tuyisenge, Mount Kenya University

Master’s student, Schools of Business Administration (Finance option), Mount Kenya University

Claude Rusibana, Mount Kenya University

Lecturer, School of Economics, Mount Kenya University


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How to Cite

Tuyisenge, M., & Rusibana, C. (2021). Contribution of Financial Services Quality on Financial Performance of Banking Sector in Rwanda: A Case of Bank of Kigali Limited (BK). Journal of Finance and Accounting, 5(3), 94–110.




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