Aligning Internal Communication and Innovative Leadership Strategies for Successful Mergers and Sustainable Growth

Abstract

Mergers and Acquisitions (M&A) are widely pursued as strategies for organizational expansion and competitiveness, yet evidence consistently shows that many fail to achieve their intended outcomes. In Kenya’s financial sector, where mergers have become increasingly common, these failures are often linked to ineffective internal communication and leadership misalignment. Such shortcomings undermine organizational integration and threaten the achievement of Sustainable Development Goal 8 (Decent Work and Economic Growth), which emphasizes inclusive and sustainable economic progress. This study examined how the synergy between internal communication and innovative leadership strategies can enhance merger success and sustainable growth in the financial sector. The research examined two significant cases: KCB Group’s 2019 acquisition of the National Bank of Kenya and Equity Group’s 2020 merger with Banque Commerciale du Congo (BCDC). A qualitative descriptive research design was employed, drawing on 15 semi-structured interviews with senior leaders and communication managers, complemented by analysis of internal documents covering the period 2019–2025. Thematic analysis provided insights into how communication reinforced leadership intent and how leadership lent strategic authority to communication practices. Findings revealed that synergy between leadership and communication produced four key outcomes: reduced uncertainty through transparent messaging, stronger trust through alignment of words and actions, enhanced employee engagement through participatory dialogue, and sustained culture through communication-led sensemaking. When communication occurred without strong leadership support, it lacked authority, and when leadership acted without communicative depth, it created disconnect. Effective mergers required the two dimensions working in tandem to maintain continuity and foster confidence. The study advances communication theory by highlighting synergy as a determinant of leadership effectiveness in change contexts. Practically, it recommends embedding communication-leadership taskforces in M&A processes. For policy, it calls for integrating communicative competence into leadership training within financial institutions.