EFFECT OF FINANCIAL LEVERAGE AND RISK MANAGEMENT ON PROFITABILITY OF COMMERCIAL BANKS LISTED AT THE NAIROBI SECURITIES EXCHANGE (NSE) KENYA

This study sought to establish the effect of financial leverage and risk management on profitability commercial banks listed at Nairobi Securities Exchange (NSE). The theoretical framework encompassed a review shift ability theory theory. used longitudinal research design. target population comprised 11 NSE. sampling technique this was drawn from eleven NSE hence census sampling. Secondary data collected website Central Bank Kenya published annual between 2016 2020. analyzed using descriptive statistics techniques: standard deviation, means, minimum, maximum, multiple regression analysis, correlation analysis t test value analysis. STATA 15 software in found that had positive statistically significance profitability. also established concluded have significant recommended regulators should introduce capital buffers above minimum statutory requirement shield any unforeseen economic shocks likely arise their operating environment. Managers firms maintain proper proportions structure. Key Words: Financial Leverage, Risk Management CITATION: Angima, C. M., Miroga, J., & Otinga, H. N. (2022). Effect (NSE) Kenya. Strategic Journal Business Change Management, 9 (1), 585 – 599.