K. Kaire K’Odongo, Elson K. Kirui, George M. Nduruchi


Everybody working seriously to implement Lean Accounting concept in their company eventually bumps up against their accounting systems. It soon becomes clear that traditional accounting systems are actively anti-lean. Lean accounting refers to the concepts designed to better reflect the financial performance of a company that has implemented lean service processes. These may include organizing costs by value stream, changing inventory valuation techniques and modifying financial statements to include nonfinancial information (Alves, Vieira Neto, de Mattos Nascimento, de Andrade, Tortorella, & Garza-Reyes, 2022). The study sought to establish whether Lean Accounting influences the financial performance of Commercial Banks in Kenya. The study was guided by the Lean Philosophy model. The study used a cross-sectional research design and targeted employees working in all t8 commercial banks in Eldoret town, Kenya. A census of the study population was conducted. Questionnaires were used as data collection instruments. The data was analyzed using both inferential (multiple regression and correlation) and descriptive statistics (frequencies, percentages, mean and standard deviation) and was presented by the use of tables and charts. The study findings indicated that the study variables Lean Accounting β = 0.209, p < 0.05 were significant to financial performance. The results showed that Lean Accounting was a positive and significant predictor of financial performance with (t = 3.250; ρ < 0.05). The study recommended that the management of commercial banks in Kenya should strive to maintain the current lean accounting practices and further increase or improve them in order to enhance the banks’ value. They should also train staff on the use of Lean Accounting techniques in order to be able to improve their performance. 

JEL: G20; G21; M40


commercial banks, financial performance, Lean Accounting, Muda

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