摘要：This paper aims to examine the effect of human capital on performance of East African commercial banks. Given increased competition and regulatory pressure, commercial banks must understand the intrinsic value of human capital as a key success factor. With extraordinary growth in financial innovations, firms are gradually focusing on knowledge resources as a source of competitive advantage and superior performance. Human capital lies at the heart of knowledge resources. Therefore, firms should strive to develop and use human capital for sustained superior performance. The study population consists of 42 commercial banks licensed by the Central Banks of East Africa. Data was analyzed using descriptive and inferential statistics. The study had three control variables such as firm size, firm age, and market share. The independent effect of human capital on firm performance was examined. Thus, this study is more objective and superior. It is focused on the East African banking sector. Therefore, future research should consider other sectors of the economy. Besides, all the variables were measured quantitatively, which allowed considering the use of qualitative measures. This can shed more light on the human capital and performance nexus. The results of the study are of strategic importance to managers and regulators, given the important link between banks and macroeconomic factors. Accordingly, these findings will help develop strategic decisions and policies that support the growth of a robust African banking sector.
