Master of Science in Finance and Investment

Effect Of Socioeconomic Dynamics on Financial Inclusion of Business Women in Isiolo County, Kenya

Wed, 01 Oct 2025 00:00:00 GMT

Effect Of Socioeconomic Dynamics on Financial Inclusion of Business Women in Isiolo County, Kenya Constance, Mwaro Financial inclusion has increasingly been recognized as a central driver of economic empowerment, poverty reduction, and inclusive growth, particularly among marginalized and underserved groups. In the Kenyan context, and more specifically in Isiolo County, business women continue to face notable challenges in accessing and fully utilizing financial services, despite the rapid spread of mobile banking technologies and the government’s formulation of policies aimed at supporting inclusion. These persistent barriers are largely attributed to a range of socioeconomic factors that either limit or enhance women’s ability to participate in the financial ecosystem. This study was designed to investigate how specific socioeconomic variables namely employment opportunities, cultural norms, financial literacy, and infrastructure availability affect financial inclusion among business women in Isiolo County. The research was anchored in four theoretical perspectives: the Resource-Based View, Institutional Theory, Financial Literacy Theory, and Diffusion of Innovation Theory. Methodologically, the study adopted a descriptive cross-sectional design, with a target population of 920 female entrepreneurs operating in Isiolo County. From this group, a sample of 279 respondents was drawn using a cluster sampling approach to ensure adequate representation across different business segments and localities. Data were collected through structured questionnaires and analyzed using both descriptive and inferential techniques to generate a comprehensive understanding of the relationships involved. The findings demonstrated that each of the four socioeconomic factors had a substantial influence on women’s financial inclusion. Employment opportunities were found to enhance women’s financial independence and capacity to interact with financial institutions, while cultural norms shaped attitudes, expectations, and levels of economic engagement. Financial literacy played a crucial role by equipping business women with the knowledge and skills needed to navigate financial systems, and infrastructure development, such as transport networks and digital connectivity, proved indispensable in facilitating access to financial services. The study concludes that financial inclusion for business women in Isiolo County depends significantly on aligning these socioeconomic factors. It recommends policy interventions focused on expanding employment opportunities, implementing culturally sensitive reforms, scaling up financial literacy programs, and investing in infrastructure to foster inclusive economic growth.

Effect of Costing Models on Financial Performance of Cement Manufacturing Industry in Kenya

Mon, 01 Jul 2024 00:00:00 GMT

Effect of Costing Models on Financial Performance of Cement Manufacturing Industry in Kenya AHMED, MAHAMUD In East Africa, particularly in Kenya, the cement industry holds a prominent position both in production and consumption. Kenya boasts approximately eight cement companies, three of which are publicly traded on the Nairobi Securities Exchange (NSE): East Africa Portland Cement Limited, ARM Cement Limited, and Bamburi Cement. The rest of the businesses are privately held and include Mombasa Cement, Savannah Cement, and National Cement. The real estate industry's increasing dynamics of supply and demand have made the competitive scene within the cement manufacturing sector more intense. As a result, in order to maintain or grow their market share, businesses are concentrating more and more on assessing their financial positions. Unlike in the past when Kenyan cement manufacturers were able to make good profits now they are struggling to make a profit due to the low demand for building materials and the high levels of importation of cheaper cement from Asian countries. The purpose of this study is to establish the impact of various costing techniques on the financial planning of the manufacturing sector in Kenya. The specific research question of the study is therefore; what is the comparative effect of Activity-Based Costing (ABC), standard costing, and target costing and marginal costing on the financial performance of the Kenya’s cement manufacturing industry? The study employs both quantitative and qualitative research methods to ensure the credibility of the findings. The target population is comprised of 100 middle-level management personnel. The method of data collection is survey interviews, and the data collected is of a quantitative nature, analyzed using descriptive statistic and presented in the form of percentage, Mean Standard Deviation and frequency using SPSS. The research thus concludes that there is a positive correlation between financial performance and the various costing techniques namely, the activity based costing, the target costing and the marginal costing while the standard costing has little or no impact on the performance. Notably, ABC, target costing, and marginal costing are found to positively impact performance. In conclusion, standard cost accounting proves valuable for managers seeking precise budget planning. ABC is particularly beneficial for cement manufacturing firms, as it facilitates cost reduction, thereby contributing to increased profits and overall organizational performance. Further research is recommended across manufacturing firms in different regions and sectors to generalize these findings. Additionally, exploring the frequency of adoption of management accounting practices in diverse industries would enrich future studies.

Effects of Financial Profitability on Profitability of Domestic Commercial Airlines in Kenya

Sat, 01 Jul 2023 00:00:00 GMT

Effects of Financial Profitability on Profitability of Domestic Commercial Airlines in Kenya NJOROGE, SAMUEL NGINYA This study was undertaken with the sole intention and purpose of establishing whether there is a significant relationship between levels of profitability and four main components of the financial structure of domestic commercial airlines in Kenya. The researcher undertook to establish how share capital finance, lease finance, debt finance and retained earnings related with the profit levels of domestic commercial airlines in Kenya, measure the strength and magnitude of the variables’ relationships while establishing if the relationships are significant and negative/positive. Three theories founded the basis of literature review in this study, i.e. agency theory, the pecking order financing model and the trade-off theory of capital structure. The study adopted a causal-effect research design. The study targeted eleven commercial domestic airline companies registered by AFRAA’s approval that were in operations between 2012 and 2021. Annual average secondary data was collected using a secondary data collection sheet, and the data covered a period from 2012 to 2021. This study used numerical financial data that was retrieved from respective airlines’ annual and audited financial statements posted on their respective airlines’ websites. The data was obtained from the airlines’ audited annual financial statements from respective company’s website. Both inferential and descriptive statistics were used. Data were analyzed using STATA version 15 alongside Microsoft Excel. Various diagnostics tests including normality, multi-collinearity, heteroscedasticity, serial correlation, stationarity and Hausman tests were performed prior to running the regression analysis. Analysis of the collected data showed that there was a positive correlation between share capital finance and net profit margin, (r = 0.4226; P< 0.05), positive correlation between lease finance and profitability (r = 0.4520; P< 0.05), debt finance and net profit margin were positively correlated (r = 0.5231; P< 0.05), and lastly, retained earnings and net profit margin were positively correlated (r = 0.4905; P< 0.05). Data analysis by use of simple linear regression analysis found that there was a significant relationship between share capital finance and profitability (β = 0.3778; P< 0.05), the relationship between lease finance and profitability was significant, (β = 0.4066; P< 0.05), the relationship between debt finance and profitability was significant, (β = 0.3758; P< 0.05), and lastly, the relationship between retained earnings and profitability was also significant, (β = 0.4458; P< 0.05). When study applied multiple linear regression analysis method, results indicated a significant relationship between share capital finance (β = 0.402; P< 0.05), lease finance (β = 0.737; P< 0.05), debt finance (β = 0.904; P< 0.05), and retained earnings (β = 0.244; P< 0.05) with the Net Profit Margin, i.e. profitability of domestic commercial airlines in Kenya. This research concluded that at bivariate level, retained earnings was the most significant variable among the four variables under study. However, at multivariate level, debt finance was the most significant variable among the four variables under study followed by lease finance, share capital finance and lastly retained earnings. This study recommended a greater need for efficient and effective policies which a firm can use and apply to determine and monitor its financial structure. The study further recommended to the domestic commercial airlines in Kenya to have a good and performing financial management team that will make the correct decisions about financing mix and the resultant relevant policies, while matching various sources of funds to the goals and objectives of the firms. Further, in order to reduce the risks and costs associated to debt finance, local airline companies should make more use of shareholders’ sources of funds as the preferred option of financing, compared to borrowing. However, if it becomes mandatory for the firms to borrow, commercial airlines must first borrow in short term rather than long term.

Effect of Competitive Strategy on Financial Performance of Commercial Banks in Kenya. A Case Study of Nairobi County, Kenya

Tue, 01 Aug 2023 00:00:00 GMT

Effect of Competitive Strategy on Financial Performance of Commercial Banks in Kenya. A Case Study of Nairobi County, Kenya Njue, Leonard Mugendi Competitive strategies are critical in the bank’s financial performance. The banks that have effective competitive strategy are likely to achieve better competitiveness in terms of financial and non-financial performance. The study sought to determine the effect of competitive strategy on the financial performance of commercial banks in Nairobi County Kenya. The specific objectives were; to determine the effects of product differentiation strategy on the financial performance of commercial banks in in Nairobi County Kenya, to establish the effect of innovation strategy on the financial performance of commercial banks in Nairobi County Kenya; to analyze the effect of the post-COVID-19 recovery strategy on the financial performance of commercial banks in Nairobi County Kenya; and to establish the effect of human capital strategy on the financial performance of commercial banks in in Nairobi County Kenya. The study was guided by porter's generic competitive strategies theory resource-based theory, knowledge-based view, and agency theory. The study adopted a cross-sectional survey design, targeting the branch managers of licensed commercial banks operating in Nairobi County. A total of 564 banking branch managers were targeted. A sample of 234 branch managers were selected using random sampling. Data was collected using an online questionnaire administered through the Qualtrics survey portal. The data was analyzed using Statistical Package for the Social Sciences version 29. The data was presented in tables and graphs. The pilot study was conducted in Murang’a County, using 20 branch managers in commercial banks. The ordinal logistic regression was used to analyze the relationship between the variables. The result of the regression indicated a positive statistical relationship between product differentiation, COVID-19 recovery strategy, human capital strategy and innovation on financial performance. It was also established that the overall competitive strategy had a statistically significant effect on the bank’s financial performance. It is recommended that the banks should establish strategies aimed at improving the product quality and review strategies to improve product quality to meet the customers’ expectations and focusing on refinancing and restructuring of loans to assist the customers who are unable to pay the loans on time due to the financial challenges. The recommendation for future research includes using the qualitative approach, comparative analysis across different regions in Kenya and using the longitudinal approach.

Effect of Process Innovations on Financial Performance of Microfinance Institutions in Nairobi County, Kenya

Tue, 01 Aug 2023 00:00:00 GMT

Effect of Process Innovations on Financial Performance of Microfinance Institutions in Nairobi County, Kenya Mwirichia, Christine Makena Micro-Finance Institutions in Nairobi County have experienced intense pressure to adapt to new developments during the past ten years because of market rivalry, advancements in computer technologies, and varying employee demographics. Micro-Finance Institutions that do not innovate run the risk of being surpassed by rivals. The financial sector has been affected by globalization and technological advancement. Locally in Kenya the performance of MFIs has declined. The study's objective was to define the process innovation effects on the financial performance of microfinance institutions in Nairobi County, Kenya. The process innovation variables used were remote data processing, digital cards, point-of-sale terminals, real-time gross settlement, and their effects on the financial performance of MFIs. Task-technology fit theory, diffusion of innovation theory, and theory of financial innovation are the theories on which the study is based. Cross-sectional survey research approach was em`1ployed. The current study concentrated on the head employees of finance, information technology, operations, and credit control from 12 MFIs in Nairobi County that are registered with AMFI. Stratified random sample technique was used. An initial sample of 44 individuals was selected using the Yamane statistical technique. Structured questionnaires were used to gather in-depth data. Pre-testing was conducted to assess validity and reliability of the data collection techniques. Version 26 of the SPSS was used to evaluate the data and guarantee its accuracy. Mean and standard deviation were used to determine descriptive analysis, whereas model brief, ANOVA, and coefficients of regression were used to determine regression analysis. According to the correlation analysis, real-time gross settlement, digital cards, point-of-sale terminals, and remote data processing were all positively correlated with financial performance. The outcomes of the regression showed that every predictor had a favourable, significant effect on financial success. The research concluded that the processes of the MFI have been automated to improve MFIs operations. The study concludes that digital cards introduction in to the Microfinance institutions has attracted more retail depositors to the MFIs. Also the Microfinance institution offers debit cards to its customers. Further, it is concluded that the MFI has sufficient POS infrastructure and the MFIs have put in place security measures on point of sale transactions. The study concludes that the Microfinance institution uses Real time gross settlement to minimize risk related to high value payment settlements. The findings of the study endorsed that in addition to automating core processes, the Microfinance institutions should make it possible for the clients to open and operate accounts remotely. In order to ensure maximum benefits through digital cards use, the Microfinance institution should encourage their customers to use digital cards.

Effects of Internal Audit System on Financial Performance of SACCOs in Meru County, Kenya

Tue, 01 Aug 2023 00:00:00 GMT

Effects of Internal Audit System on Financial Performance of SACCOs in Meru County, Kenya Kiambi, James Kaimenyi In today’s business world, the major interest is to enhance accountability, profitability and enjoy competitive advantage. As a way of achieving this, SACCOs employ internal auditing, to enable them monitor the monetary activities to enhance financial performance. Despite the fact that the majority of SACCOs (around 70%) have implemented either an in-house or outsourced audit system, their financial performance remains below expectations, with instances of fraud, poor fund management, and inadequate budget development and utilization. Given these circumstances, the purpose of this research was to examine how the internal audit system affects the financial performance of SACCOs in Meru County. The study concentrated on four primary goals: evaluating the influence of compliance, risk assessment, control function, and monitoring on the financial performance of SACCOs in Meru County. The study's theoretical foundation was built on the agency, legitimacy, and capture theories. To accomplish the research objectives, a descriptive research design was employed, targeting 42 SACCOs that had operated in Meru County for a minimum of ten years. The study adopted a census approach, including all 42 eligible SACCOs in the study. The respondents consisted of the chief executive officers of the respective SACCOs, totaling 42 participants. Data collection involved the use of a structured questionnaire, which was pre-tested in four SACCOs from Tharaka-Nithi County, selected purposively. The collected data were accurately coded based on the responses to various items. In the analysis of data, this study employed SPSS (Version 24) and utilized descriptive and inferential statistics. Multiple linear regression models were used to investigate the connections between the dependent and independent variables. The study's findings uncovered a noteworthy correlation between compliance and the financial performance of SACCOs in Meru County, rejecting the hypothesis that the compliance slope is zero (b = 0). Similarly, a noteworthy relationship was observed between risk assessment and financial performance, rejecting the hypothesis that the risk assessment slope is zero (b = 0). However, no noteworthy impact on financial performance was found for control function and monitoring. The study concluded that compliance plays a vital role in ensuring SACCOs adhere to regulations and guidelines, thereby fostering transparency, accountability, and good governance. Furthermore, effective risk assessment can assist SACCOs in reducing operating costs, enhancing efficiency, and improving financial performance. The study recommends that SACCO management strive for full compliance with relevant regulations to enhance accountability and financial performance. Additionally, implementing robust risk assessment policies is advised to mitigate risks, reduce operational costs, and boost financial performance. Finally, the study suggests expanding the research to encompass other financial institutions to explore potential variations in the correlations between the internal audit system and financial performance.

Effect of Restructuring on Financial Performance of Commercial Banks in Meru County, Kenya

Tue, 01 Aug 2023 00:00:00 GMT

Effect of Restructuring on Financial Performance of Commercial Banks in Meru County, Kenya Jepleting, Kipkorir Janet Banking industry is section of financial sector. Its role in economy development cannot be overemphasized. Globally, it facilitates financial intermediation process. In Africa however, the commercial banks have been decreasing owing to tightening regulations, mergers, acquisitions, liquidations and collapses. On the same vein, profitability trend of commercial banks in Kenya have been fluctuating for the past eight years .This could be linked to raising inflationary pressure, emerging risks, concerns of public debt sustainability, fragile economic recovery among others. However, in an effort to enhance performance, commercial banks have been restructuring but it is not clear which restructuring strategy is most successful in doing so. The subject study therefore sought to examine effect of restructuring on financial performance of commercial banks in Meru County. It assessed the effect of technology adoption, downsizing of employees, business process reengineering and outsourcing on financial performance of commercial banks. The study was anchored on financial intermediation theory, resource-based view, technology adoption model and transaction cost theory. It employed descriptive research design, target population of sixty branch management staff and adopted census approach. It made use of structured questionnaire which was reliable for use in actual data collection since Cronbach's Alpha coefficient for each variable was greater than 0.7. The content validity of the questionnaire was enhanced by ensuring questions were formulated based on the objectives. Criterion validity was utilized to test how well results were relevant to measuring the effect of restructuring on financial performance. Additionally, it utilized both qualitative and quantitative data. Pilot testing was carried out in Fina Bank, Nanyuki branch, Laikipia County and Ecobank Kenya Karatina branch, Nyeri County to enhance reliability of questionnaire. Data was coded using SPSS and analyzed using descriptive statistic correlation and multiple regressions. Further, it was presented using charts and tables. The study discovered that downsizing, technology adoption, outsourcing and BPR positively and significantly affected the financial accomplishments of commercial banks in Meru County. The study concluded that downsizing of employees constructively and significantly influenced financial achievements of commercial banks. In addition, technology adoption is essential on financial performance of commercial banks. Likewise, outsourcing of services positively and significantly influenced fiscal performance of commercial banks. Furthermore, it was inferred that BPR enhanced financial accomplishments of commercial banks. Therefore, the study recommended that commercial banks should establish training programs to boost morale and instill commitment spirit among the employees left behind after downsizing process. In addition, they should employ entertaining language to capture the potential market available in social media. They should also outsource services that are expensive to nurture and has declining function. Last but not least, future researchers should consider exploring impact of innovation related risks on financial performance of commercial banks; challenges and opportunities posed by outsourced fintech services on financial performance goals of commercial banks; relationship in between BPR, organizational culture and organization performance. Eventually, the study may be replicated by future researcher in savings and credit societies in Kenya to establish whether the results realized would hold

Effect of Financial Technology Adoption on Performance of Commercial Banks in Meru County, Kenya

Tue, 01 Aug 2023 00:00:00 GMT

Effect of Financial Technology Adoption on Performance of Commercial Banks in Meru County, Kenya Wilter, Mwigereri Munyua This study aimed to probe the effect of financial technology (Fintech) on the performance of Commercial banks in Meru, Kenya. Fintech had surfaced as a disruptive force in the financial industry, offering new ways of delivering financial services to customers. The study explored the extent to which commercial banks in Meru had embraced Fintech and the impact it had on their performance. By concentrating on lending, deposit mobilization, payments and customer acquisition of using fintech on commercial banks revenue streams in Meru County, Kenya. The study was anchored on three theories mainly: diffusion of innovation, technology acceptance model and theory of financial intermediation. The study adopted a mixed-styles approach, combining both quantitative and qualitative data. The study involved a check of commercial banks in Meru County, Kenya, to gather information on their use of Fintech as well as their financial performance. The study was anticipated to give perspective into the benefits and challenges of Fintech use in the commercial banking sector in Meru County, Kenya. The findings would be useful to commercial banks, policymakers, and other stakeholders in the financial industry in developing strategies to enhance financial performance and use of Fintech in the region. Results on regression study designated that there was a robust optimistic association (R=0.998, p- value of 0.000) between adoption of financial technology and financial performance of commercial banks. The findings further indicated that fintech payment, lending and deposit mobilization have significant influence on financial performance while fintech customer acquisition does not have a significant influence on financial performance of commercial banks. It is important to outline the need to adopt fintech payment to improve the efficiency of banking operations and to increase the accessibility and convenience of banking services for customers. Fintech lending need to be adopted by the commercial banks to increase the accessibility of credit for small and medium- sized enterprises (SMEs) and enable banks reach to a broader customer base, including underserved individuals or businesses. The study further recommends adoption of fintech deposit mobilization to create new business opportunities for banks and increase the efficiency of banking operations. Similarly adoptions of fintech customer acquisition enhance the convenience of banking services for customers and improve banks' ability to offer personalized financial products and services. The commercial banks in Meru County were the only ones included in this study. It is advised that more research be done that includes financial data from other Kenyan counties, as this could offer new perspectives. Additionally, the study failed to recognize and look into the influence of moderating factors on financial performance. The researcher suggests that future studies examine how modifiers affect the implementation of technology for finance and financial performance.

Influence of Asset Management Strategies on Financial Performance of SACCOS in Imenti North Sub-County, Kenya

Tue, 01 Aug 2023 00:00:00 GMT

Influence of Asset Management Strategies on Financial Performance of SACCOS in Imenti North Sub-County, Kenya Rahima, Atikiya Sora The consistency of offering asset management products by Saccos enables them to easily settle their obligations when they fall due. Nevertheless, Kenyan Sacco’s have been experiencing low liquidity ratios concerns. The general objective of the study was to examine the influence of asset management strategies on financial performance of Saccos in Imenti North Sub-County, Kenya. The specific objectives were to determine the influence of cash flow management strategy, mortgage loan management strategy, treasury bills management strategy and stock control management strategies on financial performance of Saccos in Imenti North Sub-County, Kenya. The study used pecking order theory, contingency theory and resource based-view theory. Descriptive research design was adopted to collect data from 7 deposit taking Saccos located in Imenti North Sub- County. Further, the selection of representatives from the entire population was done using simple random sampling method to have 13 accounts department officers, 34 tellers, 28 back-office staff and 36 loans officers hence a total of 111 respondents. Quantitative data inform of closed-ended questionnaires and financial statements was collected and measured using SPSS version 24. The study conducted a pilot study in Unison Sacco located in Isiolo county. Descriptive statistics such as frequency, percentage and mean were analyzed while at the same time inferential statistics line Pearson Coefficients and multiple regression were similarly analyzed. The study found out that there was a positive influence of asset management strategies on financial performance of Saccos in Imenti North Sub-County, Kenya. This was because the p-value was 0.000 hence less than 0.05. Notably, the overall r was 0.779 and r-square was 0.607 with a Durbin Watson value of 1.392. Therefore, asset management strategies had a 60.7% influence on financial performance with a positive correlation. The conclusion made regarding cash flow was that the investment department was still undeveloped in many Saccos therefore limiting on the authorization of incorporation of funds in investment options like capital markets. On mortgage loan, there were high cases of default and inconsistent payment of interest, which was brought about by poor communication and follow-up skills applied by the staff when reminding the clients to pay their dues. On treasury bills, the Saccos had not adequately created awareness to their clients on the opportunities that they could generate from investing in treasury bills. On stock control, the Saccos had not invested resources towards acquiring latest stock management software that would offer real time data on the current inventory. Therefore, the study recommends that on cash flows, the BOM should create policies and provide adequate funds to establish an investment department, if there is none, or strengthen it if in existence. On mortgage loans, the management should introduce communication in-job training whereby the staff equipped with basic etiquette, and negotiation skills. On treasury bills, the marketing managers should ensure that they have developed treasury bills campaigns such as having a sensitization week in the branch. where clients get access to information regarding the T-bills. On stock control, the senior management should allocate funds to purchase various stock management software that would be used within the branches to manage their stock levels.

Influence of Investment Risk Hedging on Performance of Real Estate Firms in Meru County- Kenya

Tue, 01 Aug 2023 00:00:00 GMT

Influence of Investment Risk Hedging on Performance of Real Estate Firms in Meru County- Kenya Mburugu, Kenneth The real estate investments outperform most asset classes for over a decade and thus attracting many investors. It is one of the sectors contributing greatly to the gross domestic product of many nations. However, risks such as market risk, liquidity risk, leverage risk and interest rate risk may largely affect the performance of real estate firms. These risks affect the real estate investments globally, but Kenya experiences high uncertainty of returns due to market volatility and economic fluctuations. This study aimed to assess the influence of Investment risk hedging on the performance of real estate firms in Meru County. The objectives were to examine the influence of Market risk, interest rate risk, leverage risk and liquidity risk hedging on the performance of the real estate firms. The study adopted three theories, that is; Modern Portfolio Theory, the Market Interest Rates Theory and the Classical Theory of Interest Rates. The descriptive survey design was utilized to collect data using questionnaires. The sample size of 131 officers was arrived at using Krejcie and Morgan. Stratified random sampling method was used to select number of participants in each stratum identified by Krejcie and Morgan formula. The senior managers, financial officers, operations officers, risk officers and sales officers were the units of observation who gave the information required. To test the instruments’ reliability and validity 14 questionnaires were pretested at 3 real estate firms in Tharaka Nithi County using random sampling method to select the participants. SPSS version 23 and Excel were used to examine the data. This study made use of descriptive statistics including frequencies and percentages tables and figures to present the study findings. In addition, inferential statistics such as Regression, and ANOVA were used to present the results. The results indicated that market risk had a significant influence on revenues growth but low influence on ROE, ROA and NOI. Most firms failed to apply financial innovations such as currency swaps and futures to hedge against risk. Interest rate risk hedging had a statistically significant influence on ROE. Hedging strategies such as swaps were very uncommon. Liquidity risk hedging had the highest positive influence NOI and ROE and less influence on ROA. Leverage risk hedging had a significant high positive influence on ROA and revenue growth but and very low influence on ROE. The researcher developed a risk hedging appraisal tool and proposed special, homemade derivatives (Straw belly swaps, and Vanilla futures) for hedging financial risks in real estate in Merucounty, Kenya and developing countries. The study recommended training of real estate firms about financial innovations such as currency swaps and futures to hedge against risk. Maintenance of a well-balanced capital structure as well as diversification was also recommended. A further study on the effectiveness of hedging strategies such as straw belly swaps, and Vanilla futures,on real estate firm’s performance was recommended. It contributed to the existing body of knowledge, the theory and in the practice of Investment risk hedging