Strategy formulation and development is the development of long term plans for the effective management of opportunities and threats in light of the organization’s strengths and weaknesses. On the other hand, strategy implementation is the process that turns the formulated strategies and plans into actions to accomplish the intended objectives. For successful strategy implementation, the strategy must be supported by decisions regarding the appropriate organization structure, reward system, organization culture, resource and leadership. The objectives of this study were to establish challenges facing KCB in the implementation of the micro financing strategy and to determine measures that have been put in place by KCB to overcome challenges. This was a case study since the unit of analysis is one organization. Primary data was used for the study through use of interview guides that were administered to senior managers at Kenya Commercial Bank. Content analysis was used in analyzing the collected data. The findings of the study indicate that KCB encountered challenges in the process of implementing the micro financing strategy. These challenges included internal conflicts between sectors, inadequate human resource, monitoring, control and coordination, feedback mechanism, the organization structure and non-performing loans. The study also found out that the organization has come up with ways to counter these challenges. They include monthly evaluations through the dashboard tool and encouraging feedback through “your voice” program. As part of the recommendation, the researcher suggests the need to review the organization micro structure so that more supervision is put at the grassroots level. This will go a long way in cementing the processes of monitoring and coordination so that deviations from the original strategy are minimized. The researcher has also recommended the need to increase the human resource directly dealing with micro banking especially at the branch levels.

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