Doctor of Philosophy in Business Administration and Management

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Antecedents of Technology Adoption and Financial Inclusion among Micro Enterprises in Machakos County, Kenya
(KeMU, 2018-08) Mwania, Paul Mutwiwa
The increased levels of mobile and internet banking has enabled the Micro Enterprises (MEs) to save, undertake transactions and access low cost credit without necessarily having security for their loans. Many micro-enterprises are not included in the mainstream financial system and hence they cannot access credit. However, with the increased level of antecedents of technology adoption (mobile and internet banking), the micro enterprises have not fully adopted this new innovation to increase their levels of financial inclusion. The aim of the study was to examine the antecedents of technology adoption (mobile and internet banking) on financial inclusion among the micro enterprises in Machakos County. The study adopted a descriptive research design since it seeks to build a profile about the relationship between antecedents of technology adoption (mobile and internet banking) to financial inclusion in Kenya. The study was targeting micro enterprises operating in Kenya with a special focus to Machakos County. Purposive sampling technique was used to select the sample for the study. Questionnaire was used for data collection as it was cost effective as opposed to other instruments. Pilot testing involved60 businesses which were not included in the final sample. To enhance validity in this study, content related validity of the questionnaire was used. On the other hand, reliability was assessed using the test-retest method and was done alongside the pilot study. The researcher selected a pilot group comprising 10% of the sample. The research instruments were tested for reliability using the split half method. This was done by collecting data from 60 respondents. Data was verified and edited for completeness and consistency. Content analysis and descriptive analysis was employed. Regression analysis was applied to establish the relationship between the variables. Regression results showed that convenience and financial inclusion are positively and significantly related (β=0.201, p<0.001). Transaction cost and financial inclusion were also found to positively and significantly related (β=-0.091 p<0.002). Perceived value and financial inclusion are positively and significantly related (β=0.233, p<0.001).Collateral and financial inclusion are positively and significantly related (β =0.154, p<0.002) while technology adoption and financial inclusion are positively and significantly related (β=0.573, p<0.001). The study further found that financial services technology innovation moderates the relationship between transaction cost, perceived value and convenience and financial inclusion of micro enterprises. The study concludes that collateral, transaction cost, convenience, perceived value and technology adoption have a positive and significant relationship with financial inclusion of micro enterprises. It was further established that mobile and internet banking have improved the access to financial services by micro-enterprises. This is seen through improved business growth among the enterprises as they can access low cost credit for business growth. The low cost of credit for the micro-enterprises has improved the level of financial inclusion. It’s recommended that owners of micro enterprises should use mobile banking since it makes it easier for them to carry out their businesses operations. According to the study, use of internet banking makes it easier for owners of micro-enterprises to carry out their businesses operations. The study recommends that owners of micro enterprises should adopt use of internet banking since it does not require a lot of technical knowledge for it is simple to use hence convenient for business owners. The owners of micro-enterprises should use mobile and internet banking to accomplish their banking tasks anytime and anywhere since it is efficient for them.
Board Characteristics and Financial Distress of Deposit Taking Savings and Credit Cooperatives in Kenya
(KeMU, 2021-08) Nguta, Munene Halldess
Savings and Credit Cooperatives (SACCOs) have evolved over time from mobilizing savings and granting loans to become established entities that provide banking services to their customers. According SASRA, SACCOs have experienced financial distress and some of them have been shut down or issued with operating licenses to operate under stringent measures. This aimed at establishing influence of board characteristics in the financial distress suffered by Deposit Taking SACCOs in Nairobi County. The influence of related party transactions and intervening influence of firm revenue on this relationship was established as well as the control influence of external borrowing. The study is anchored on Stewardship theory with a view of managers as stewards of members’ funds, Agency Theory, Stakeholder theory, and Upper echelons theory. Longitudinal Descriptive research design was adopted on a sample size of 43 SACCOs from a population of 174 SACCOs licensed to operate in Kenya for the year 2019. Nairobi County was purposively chosen and a census was carried out on deposit taking SACCOs in the county. Secondary data was collected from SASRA using a data collection sheet and a panel data analysis performed using STATA software and findings were presented using tables. The study came to a conclusion that an association exists between board characteristics and financial distress of Deposit Taking SACCOs where board composition, board education and board tenure have statistically significant and negative influence on financial distress while RPTs and the size of the board statistically significant and positive impact on financial distress. Firm revenue does not significantly intervene the relationship between board characteristics and financial distress and external borrowing has no control influence on this relationship. The study made recommendations to this effect as follows: SACCOs need to have lean boards, Board composition should also be improved by including more women on boards, there should be more inclusion of members with high and relevant education credentials, and SACCOs should have term limits for their members. Related party transactions should be kept at a bare minimum since it is significant, when it is jointly considered with board characteristics. External borrowing may be relied upon to ease financial distress in SACCOs since it has no significant control influence on SACCO’s level of financial distress. The regulator may come up with a tool based on Altman’s Z score models to establish financial distress in SACCOs in order to offer timely advice to alleviate more distress and consequent bankruptcy which may lead to closure of SACCOs. Another research may be carried out to establish other factors causing financial distress and how to turn around the SACCOs already in distress.
Capital Adequacy Framework, Funds Allocation Strategy and Financial Performance of Deposit Taking Sacco’s in Kenya
(KeMU, 2019-09) Ng`eno, John Cheruiyot
This study was aimed at establishing the relationship between capital adequacy framework and financial performance of deposit taking savings and credit cooperatives societies in Kenya. There is a declining trend of deposit taking SACCOs in Kenya. In 2016,164 SACCOs were licensed to operate as deposit taking SACCOs in Kenya. The study intention was to conduct a census survey but the responses were less. Only 111 deposit taking societies responded. The government had introduced various legislations attempting to streamline the operations of cooperative entity. Sustainability of cooperative movement depends on various factors one of which being capital adequacy. In this study the influence of six dimensions of capital adequacy framework namely: internal financing, external financing, portfolio selection, credit management, risk management and managerial capability was examined. A descriptive survey was conducted using questionnaires to collect data from the respondents. Pilot survey was conducted on 12 deposit taking SACCOs to ensure that questionnaire serve the intended purpose. Data analysis was carried out using both descriptive and inferential statistics with the aid of statistical package for social sciences (SPSS 23). Correlation and regression analysis were used to establish the relationship between research variables. It was found that internal financing, credit management; portfolio selection, risk management and managerial capability had positive effect on financial performance of deposit taking SACCOs in Kenya. This means that as the five variables increase then financial performance will be increase. External financing had negatively influenced on the financial performance. With prudent external financing, deposit taking SACCOs will attain favourable outcome. Funds allocation was found to have a significant moderating influence on the relationship between capital adequacy framework and financial performance. Hypotheses were tested at 5 percent significance level. The null hypotheses were rejected and it was established that capital adequacy framework and moderating variables influenced significantly financial performance. It is recommended that focus on capital adequacy framework will enhance financial performance of deposit taking SACCOs in Kenya.
Comprehension of External Environment, Decision Making, Strategy Implementation and Performance of Micro, Small and Medium Enterprises in Kinshasa - Dr Congo
(KeMU, 2020-11) Nongolola, Kasanga Junior
The ability of managers to comprehend the environment in which they operate and make decisions about strategy implementation which in turn affects performance of organisations is scarcely documented in empirical studies. The purpose of this study was to examine the relationships between comprehension of external environment, decision-making, strategy implementation and performance of micro, small and medium enterprises in Kinshasa, Democratic Republic of Congo. This study tested the nexus between comprehension of external environment and performance, the effect of comprehension of external environment on both decision making and strategy implementation, the influence of decision making and strategy implementation respectively on performance, the moderating role of decision making and mediating role of strategy implementation on the relationship between comprehending the external environment and the performance of micro, small and medium enterprises (MSMEs) operating in different industries in Kinshasa. A positivist paradigm with deductive approach and a cross-sectional survey design were used. Primary data was collected using a drop-and-pick later questionnaire which was distributed to 643 respondents from MSMEs that were officially registered and operating in Kinshasa. Secondary data was collected from the MSMEs’ past financial documents such as balance sheets, statement of cash flows, and profit and loss statements. Both financial (return on asset, increase in sales and profit) and non-financial (managers’ qualitative assessment of customer satisfaction, employee satisfaction, growth in number of employees and improvement in number of customers) measures were used to measure the performance of the MSMEs. The findings were that comprehension of external environment had a statistically significant effect on performance (B = 0.748, t = 9.873, p < 0.05), on decision making (B = 0.105, t = 13.406, p < 0.05) as well as on strategy implementation (B = 0.80, t = 35.214, p < 0.05). Further, both decision making and a strategy implementation had statistically significant influence on performance (B = 0.762, t = 8.46; B = 0.45, t = 5.962 p < 0.05). While decision making significantly moderated the relationship between comprehension of external environment and performance, strategy implementation significantly mediated the relationship between comprehension of external environment and performance. These findings contribute to theory, policy and management practices. The study recommends that MSMEs should enhance managers’ intuitive and rational decision making skills, ensure that cultural norms of the community are well understood, and embrace technology to enhance creativity and innovation. Lastly, the government should create a centre for capacity building of MSMEs through seminars, workshops and conferences. This study also recommends further studies on more factors affecting the performance of MSMEs in Kinshasa.
Corporate Entrepreneurship Strategy and Competitive Financial Performance of Deposit Taking Saccos in Kenya
(KeMU, 2024-10) CHESIGOR, FELIX KIPTOO
Achieving superior performance is the primary objective of every organization. This pursuit of excellence is central to management practices, driving organizations to seek diverse opportunities for improvement. Corporate Entrepreneurship is the practice by which established organizations decide to pursue competitive advantage through sustainable innovation and entrepreneurial behavior. Its key parameters are strategic renewal, strategic organizational architecture and corporate venturing. The objective of this study was to establish the influence of strategic renewal, strategic organiational architecture as well as corporate venturing on the competitive financial performance of Deposit Taking Saccos in Kenya. The study also sought to ascertain how environmental dynamism moderates the relationship between Corporate Entrepreneurship Strategy and competitive financial performance. The study anchored largely on the ambidexterity theory of leadership for innovation but was also supported by stakeholder theory, achievement motivation theory of entrepreneurship, the theory of systematic innovation, and Dynamic Capabilities Theory. The study used the positivist philosophy, hence using quantitative research methods. The study applied a blend of multistage sampling, purposive sampling as well as stratified sampling methods having been a survey of Deposit Taking Saccos operating in more than one county in Kenya by the year 2022. The unit of analysis was 63 out of a total 175 licensed Deposit Taking Saccos were operating in more than one county Deposit Taking Saccos and the unit of observation was 715 Senior Head office staff and 159 branch managers, a total population of 915. A sample size of 278 participants was derived from Yamane’s formula for sample size determination. A structured questionnaire was used to collect primary data from the respondents, and secondary data from the Sacco Societies Regulatory Authority (Sasra’s) Annual Sacco supervision reports 2017-2021. A pilot study was conducted in two Deposit Taking Saccos, namely: Kenya Achievas Deposit Taking Saccos in Kisii County and Vision Afrika Deposit Taking Saccos in Nakuru County yielding a Cronbach’s alpha coefficient of 0.917, that was very high and greater than the 0.7 threshold. The validity of the instruments was done by Lawshe’s Content analysis method using five Subject Matter Experts and a Content Validity Ratio of more than 95%, hence accepted. Data was analyzed using inferential and descriptive statistics, with the hypotheses being tested using binary logistic regression at a confidence level of 95%, (α=0.05). The study found that Strategic Renewal, Strategic Organizational Architecture, and Corporate Venturing were positive and significant predictors of the probability of competitive financial performance in Deposit Taking Saccos. Environmental Dynamism did not have a significant moderating effect in the relationship between these variables. Overall, Corporate Entrepreneurship Strategy was a positive and significant predictor of competitive financial performance of Deposit Taking Saccos in Kenya. Further, the moderating effect of Environmental Dynamism in this association was not significant. The study recommends that Deposit Taking Saccos should apply strategic renewal initiatives; emphasize on building strategic organizational architecture, and pursue Corporate Venturing in their quest for competitive financial performance. Further, as Deposit Taking Saccos pay vi vii attention to customer tastes and preferences, changes in technology and competitor strategies they should be careful not to deviate from their traditional cooperative business model as enshrined in the Cooperative Principles and advocated for by the ambidexterity theory of leadership for innovation. These findings inform the Sacco industry on how best to implement the Corporate Entrepreneurship strategy in the quest for competitive financial performance.
Credit Risk and Lending Performance of Commercial Banks in Kenya
(KeMU, 2019-08) Karanja, John Gakuu
Credit risk poses substantial exposure both to the banks and the economy; a scenario evident in East Africa financial crises; this in part owing to the fact that the banking sector is vital in any economy. The decline of profitability within the banking industry and financial losses can be attributed to credit exposures that went awry. This underscores the significance of management of credit risk within the banking sector. While lending is profitable for the banks especially on account of the interest paid on the amount borrowed, it also has disadvantages which results from delays or default in loan repayments. This study was purposed to evaluate the credit risk and lending performance of commercial banks in Kenya. Descriptive survey research design was employed whilst the target population for this study was employees of the 42 commercial banks in Kenya as at 1st January, 2018. Purposive sampling was used to pick 42 credit managers and simple random sampling invoked to determine the other 301 respondents from the target population of 1260 employees. Both structured and unstructured questions were used to collect primary data. Thereafter, the data was analyzed using descriptive statistics including frequency distribution tables, measures of central tendency and standard deviations. In addition, advance statistical techniques including logistic regression analysis and Pearson correlation were used to establish relationships among variables and provide description of the data while qualitative data was analyzed in narrative form. The results were then presented in tabular representations supplemented by relevant explanations. The results of the study revealed that the combined effect of credit risks positively influenced the lending performance of banks. The study concluded that credit risk activities significantly influenced the lending performance of commercial banks; and as a result the operating capital of commercial banks had gone down to very low levels since lending is a source of income for the commercial banks and this has affected the performance of the entire banking sector. The study recommended that Government of Kenya through the National Treasury and in collaboration with Central Bank of Kenya and Kenya Bankers’ Association should formulate policies that will help the commercial banks reduce the level of credit risks and improve the lending performance which was currently affected to a great extent.
Debt Collection Strategy, Industry Rivalry and Customer Satisfaction in Financial Institutions in Somalia
(KeMU, 2023-08) Sultan, Ahmed Ali Ahmed
Customer satisfaction is an important indicator of an organization's performance. Customer satisfaction with financial institution’s products, services, and procedures is crucial because performance is central to strategic management. However, while customer service in financial institutions in Somalia is generally high, the customer satisfaction is very low as per the existing service statistics. Banks in Somalia have been experiencing low bill collection and increase in bad debts. Although the problem of customer satisfaction and increase in bad debts continue to persist in financial institutions in Somalia, Studies focusing on customer satisfaction and debt collection strategies are scanty. The purpose of this study therefore was to determine how a debt collection component of an operational strategy affects customers' satisfaction within Somalia's financial institutions. Although the operations strategy of the financial institution is operationalized through the use of debt collection practices, it was unknown how these strategies affected customer satisfaction in Somalia's financial institutions. This study looked at how the relationship between customer satisfaction and financial institutions in Somalia was moderated by debt collector behavior, proactive and reactive debt collection strategies, and industry competition. A cross-sectional survey research design was employed in this study. Primary data were gathered from 215 Somalian employees of a financial institution through the use of a structured questionnaire. To determine the relationship between the debt collection strategy and customer satisfaction, all hypotheses were tested using inferential statistics derived from correlation and regression analysis at the 5% level of significance (p=0.05). Inferential statistics involved the use of binary logistic regression. Descriptive statistics involved the use of frequencies percentages and cross tabulations. Reactive debt collection and the behavior of debt collectors were significantly correlated with customer satisfaction, but not with a proactive debt collection strategy. In logistic regression analysis, it was also found that the behavior of debt collectors and reactive debt collection positively influenced customer satisfaction (p 0.05). However, proactive debt collection did not significantly affect customer satisfaction (p>0.05). In addition, competition in the industry had little effect on the relationship between debt collection strategy and customer satisfaction. In light of the findings of this study, it is recommended that financial institutions in Somalia improve their responsive obligation collection procedures and practices for better execution. Future studies should focus on other strategies that can enhance customer satisfaction in financial institutions in Somalia other that debt collection strategies.
Determinants of Uptake of Mortgage Financing for home ownership in Kenya
(kemu, 2022-09) Kigomo, Juliah Ruguru
Since mortgage financing is a valuable method of funding real estate investment, inadequate housing and the proliferation of slums in cities remain a crucial developmental issue that countries continue to contend with in most developingcountries. However, little is known about what limits home ownership throughthismode of financing in Kenya. This study examined the influence of economic, demographic, social, and technological factors on uptake of mortgage financingfor home ownership, and how government policy affected this relationship. The positivist philosophy with descriptive survey design was adopted. Data collection sheets wereused for collection of secondary data from published sources. Frequencies, means, standard deviations and inferential statistics were calculated from the collecteddata. Upon analysis of data collected, findings showed that economic factors did not haveastatistically significant effect on uptake of mortgage financing for home ownershipinKenya. The demographic factors, social factors and technological factors had a positiveand significant effect on uptake of mortgage financing for home ownership in Kenya. However, results from published secondary data showed that while some economicfactors (GDP and population growth rate) had a significant relationship with uptakeof mortgage financing for home ownership, some (lending rate and inflation rates) didnot. The findings from the regression analysis were that GDP per capita and inflationratehad a statistically significant positive influence on uptake of mortgage financingfor home ownership, while lending interest had insignificant effect on uptake of mortgagefinancing for home ownership; population growth rate had a significant negative effect on uptake of mortgage financing for home ownership. Lastly, government policies hadasignificant moderating effect on the relationship between the four factors (economic, demographic, social and technological) and uptake of mortgage financing for homeownership. It is therefore recommended that mortgage providers finance ownershipof low-income houses which the majority of Kenyans with low incomes can afford. Moreover, the public should formalize their informal incomes as proof of their credit worthiness when they seek mortgages and ability to pay for the mortgage. Further, thestakeholders in the mortgage market including Capital Market Authority, and Nairobi Securities Exchange should develop a secondary mortgage market to improve access. Mortgage liquidity facilities to benefit the entire sector and development of a Mortgagecovered bond systems aimed at institutional investors should indeed be embracedbylarger lenders. This will necessitate an evaluation of pension scheme and insurancecompany investment policies in order to able to match them with housing needs.
Distribution Models and Performance of Private Health Insurance Sector in Kenya
(European Journal of Business and Strategic Management (EJBSM), 2020) Kang’e, McDonald,; Eng. Dr. Thomas, A. Senaji; Dr. Risper, Orero.
Purpose: Health insurance firms continue to compete for the same client base without registering any significant improvement in either penetration levels or performance. This study sought to establish the influence distribution models as a transient advantage on performance of private health insurance sector in Kenya. Methodology: Descriptive survey design was adopted in the study targeting a population comprising managers, assistant managers and supervisors. Four respondents were drawn from each of the five departments, namely sales, strategy, finance, operations and customer service departments in the 19 private health insurance companies where data was collected from a sample of 308 out of the 380 that were targeted. The data were analyzed and both descriptive and inferential results obtained and interpreted. Results: It was found that distribution models (β=-0.77, exp (B) =0.563, p=0.036<0.05) significantly predicted performance. Since the distribution models negatively predicted performance, it is recommended that these models be re-examined to determine their weaknesses with a view to improving them since as currently deployed, the distribution models have a negative impact on health insurance performance. Contributions to theory, policy and practice: The study recommends the employment of multiple channels of distribution of insurance product rather than relying on traditional channels of agent/broker and bancassurance. Mobile applications and internet technology could be used to make access to insurance products more convenient to access, reaching potential customers where and when they can be found while at the same time cutting on the cost of availing these services. To be able to achieve this, there will be need to invest in R&D. It is then imperative that insurance companies must have budgets for R&D. New distribution avenues like Saccos should also be pursued. Distribution channels selected must be those that enable insurance companies to achieve their profitability and penetration objectives.
Effect of Corporate Governance on the Determinants of Financial Sustainability of Community Conservancies in Northern Kenya
(KeMU, 2022-10) Lekaldero, Evans Riat
Financial sustainability is critical to the survival and growth of organizations all around the world. Community conservancies in Kenya struggle to survive and grow financially. The main objective of the study was to investigate the effect of corporate governance on the determinants of financial sustainability of community conservancies in northern Kenya. The research was led by the following specific objectives: to determine the impact of management competency, staff capacity, community participation, and revenue diversification on community conservancies' financial sustainability. Furthermore, it was determined whether corporate governance has a moderating effect on the relationship between determinants and the financial viability of community conservancies. The resource dependency theory, agency theory, and dynamic capacities theory served as the study's pillars. An explanatory research design was used. The target respondents comprised of 199 respondents from 31 community conservancies in Northern Kenya. A census of the 199 respondents was conducted. A questionnaire that was semi-structured was used to gather primary data. To evaluate the instrument's reliability and validity, pilot testing was done. The findings indicated that jointly and when combined, management competency, staff capacity, community participation, and revenue diversification had a favorable and substantial influence on community conservancies’ financial sustainability. Revenue diversification best explains financial sustainability, followed by management competence, followed by community participation, and lastly staff capacity. The R square increased from 63.3% to 66.6% when the R square with moderation was compared to the R square without moderation, indicating that corporate governance generally had a favorable moderating impact on the connection between the determinants and community conservancies’ financial sustainability. The study concluded that management competency, staff capacity, community participation, and revenue diversification positively contribute to enhanced financial sustainability. The research recommended that community conservancies management should ensure proper delegation of duties aimed at empowering employees. The staff should go through proper induction on what is required in their job. There should be regular training of staff in line with emerging trends. There should be timely and effective knowledge sharing between management and staff. The community should be involved in the decision-making process. The number of community members working in the conservancies should be increased. There is a need to identify and adopt alternative revenue sources such as membership fees, dividends from shares, and stocks and assets. Board meetings should be held regularly to deliberate on the current state and emerging matters. Board structure should be properly stipulated and roles for each member clearly outlined. Board membership should facilitate efficiency, especially on matters of decision making and there should be sub-committees with clear roles. Future studies could focus on determinants of financial sustainability in other sectors such as agriculture, health among others. Future research could also take into account additional variables that affect financial sustainability. Additionally, future studies could focus on other moderating variables such as government regulations, organization size, and age. In the subject of finance, the research significantly advances theory, policy, and practice.
The Effect of Financial Sensitization and Internal Audit Practices On Financial Performance in Public Universities, Kenya.
(KeMU, 2024) Karigi, Richard Nganga
Kenyan public universities have been performing dismally financially for several years resulting to closures of campuses and an ever-increasing pending bills. The universities have not been able to engage adequate scholars to meet the instruction capacity in the delivery of curriculums. The research looked at correlation between financial sensitization, internal audit practice and the financial performance of public universities in Kenya. The study was guided by a number of theories namely Resource based theory, prospect theory, motivation theory, with agency theory being the anchor theory. General objective of this study was to carry out evaluation of correlation between financial awareness, human capital competency, procurement process, project appraisal, technology adoption, internal audit practices and finance performance in public universities, Kenya. Independent variables were financial awareness, human capital, procurement process, project appraisal and technology adoption. The moderating variable was internal audit practices. Dependent variable wasfinancial performance in public universities from the sampled universities. Targeted population were the public universities in Kenya with a purposive sample of 155 managers selected from three categories of universities according to their age and when they were chartered. The data was sourced by use of questionnaires and pilot survey was done to test the instrument. The data was analyzed through statistical inference. Statistical Package that is popularly used for Social Science (SPSS) software was also during the analysis of data including multiple regression and other measures of central tendency. The study findings revealed that financial awareness, human capital competency, procurement process, project appraisal, and technology adoption posted positive and high relationship with finance performance. Study also found that internal audit practices had significant positive moderator influence on relation between financial sensitization and financial performance of public universities. Study concluded that financial sensitization contributes significantly to financial performance in public universities. Study also concluded that introduction of internal audit practices enhances how it influences the financial sensitization on how public owned Universities, Kenya perform financially. Study recommends that university managers should ensure that employees understand financial risk as well as saving culture. The management should also equip employees with knowledge on financial procedures and debt policy. There is need to review staff training policy with the aim of achieving better outcome. There is need to ensure that quality of goods and services purchased are up to standard. There is need to ensure that projects are implemented as per schedule in the contract. There is need to invest in information technology infrastructure. Financial innovations such as mobile banking and internet banking to be adopted in collection of fees. There is need for frequent internal audits in the institutions. Management should build the capacity of internal audit team in terms of personnel and training. Internal audit team should be given necessary space to operate with no interference. The study recommends that future studies should consider investigating relationship between financial sensitization and how Private Universities in Kenya perform financially.
Effects of Financial Literacy Delivery Channels and Central Bank Regulations on Financial Inclusion of Commercial Banks in Kenya
(KeMU, 2022-09) Boldar, Joseph D.S.
Kenya features a high financial services availability and accessibility. However, the usage of those services is low and remains a challenge for the full-service banks who are the suppliers and the main players for inclusion within the financial markets. Against this backdrop, the study evaluated financial literacy delivery channels and CBK regulations on financial inclusion of banks involved in commercial activities in Kenya. The predictor variables were financial education partnership, digital financial platforms, consumer awareness, and financial advisory services while the response variable was financial inclusion. The moderating variable was central bank regulations. The study was guided by resource-based theory, diffusion of innovation theory, motivation-needs theory, Prospect theory, and institutional theory to hypothesize the connection between the selected variables. The research adopted a descriptive survey design and the 10,717-management staff of the 40 banks engaged in commercial activities in Kenya was the study population. The sample size was 384 respondents obtained using the Cochran model. The study adopted stratified probability sampling to get a sample of 384 respondents comprising 199 from large banks, 120 from medium-size banks, and 65 from small banks. The study collected and analyzed primary data using semi-structured questionnaires. For data analysis, descriptive statistics were utilized to compute means, frequencies, and standard deviation while inferential statistics involved regression and correlation was applied to work out the connection between the study variables using advanced SPSS computer software version 23. The results of the multivariate analysis showed that financial education partnership, digital financial platforms, consumer awareness, and financial advisory services as delivery channels of financial literacy had a positive effect on financial inclusion. The findings further showed that CBK regulations significantly moderated the relationship between digital platforms, financial advisory services, and financial inclusion. The moderating effect of CBK regulations on the connection between financial education partnership, consumer awareness, and financial inclusion was found to be insignificant. The study concluded that financial literacy activities significantly influence financial inclusion of commercial banks, but due to low financial education partnership among the banks to sponsor financial education schemes and low financial advisory services the usage of monetary products and services by financial consumers remains low and this has reduced the general performance of financial inclusion. Additionally, the influence of the existence CBK regulations on the adoption of the financial literacy delivery channels was low which also affected the low usage of financial services. Based on these findings the study recommends that Central Bank of Kenya, the Kenya Bankers Association, and the full-service banks management work collaboratively to formulate policies that will help the banks improve their financial literacy delivery channels for the users of monetary services, which might, in turn, enhance financial inclusion already constrained by low usage of monetary products, and services. The study recommends that further studies should concentrate on other financial literacy delivery channels not factored in this study to bridge the conceptual gaps.
Effects of Regulatory Reforms on Security Market Returns: Evidence from Nairobi Securities Exchange
(2014-04) Gillian, Wambeti Mwaniki
Capital markets are key to the economic development of any economy. Most governments have invested immensely on the capital markets through regulation to ensure that the investors are protected and making the market more efficient. The responsibility of regulation of the capital market in Kenya rests with the Capital Market Authority. Since its establishment the authority has created a regulatory framework that is aimed at creating orderliness, fairness and efficiency in the capital market. This study aims at examining the effect of reforms, guidelines and regulations enacted by the capital market authority on stock market returns. This was achieved through carrying out an event study methodology on specific regulation independently. The causal research design was used on each event to find out whether there was any significant difference between pre and post regulation by observing the behaviour of abnormal returns and stock returns volatility. Data was collected from a sample of 39 companies out a population of 55 companies which traded continuously from 1998 to 2010. NSE and stock returns were subjected to market model to determine alpha and beta to calculate abnormal returns. The GARCH model was used to find the significant difference between the pre and post regulation through stock market volatility. The study results indicate that each regulation analysed had evidence of abnormal returns that accumulated slowly over the event period for each of the regulations under analysis. The analysis of regulation on insider trading shows high level of abnormal returns ranging from O to 8. The analysis of the information disclosure regulation, corporate governance and licensing requirements regulations indicates reduced abnormal returns ranging from -02 to 0.7,-0.4-0.6 and -0.4-0.06 respectively. The regulation on the Central Depositories (operational rules) had abnormal returns ranging from -1 to 4 but much was after the regulation was enacted. This could be attributed to the December 2002 general election which constituted the pre regulation period. All regulation indicated reduced volatility during the post regulation measured using the GARCH model. This is an indication of the positive effects of the regulation on Stock returns. The volatility of the mean, standard deviation and variance indicates that the market efficiency has improved as new regulations were being enacted by CMA. Each regulation created shock in volatility of the stock returns which was not persistent over time. The results indicate that investors viewed the regulation as good news to the market. There was anticipation among the investors before each regulation was enacted by CMA as reflected by stock volatility during the pre -regulation period. The study concludes that regulation of the capital market bring about efficiency through reduced volatility and reduced abnormal returns as successive regulations are enacted by the government. These results create attention to policy makers on the implementation of reforms, regulation and guidelines targeting market operations and institutional development in Kenya.
Effects of Situational Factors and Packaging Characteristics on the Outcome of Purchase Behavior in Kenyan Supermarkets
(2014-06) Hannah, Wanjiku Wambugu
Previous studies on shopping behavior have paid considerable attention to the effect of situational factors in explaining the outcome of consumer's buying behavior in the supermarkets. Other studies have limited the explanation of consumer's shopping behavior to the influence of packaging elements. However, no study has considered the effect of the two sets of factors on the shopper's behavior at the supermarkets in same framework. Moreover, despite the growing number of supermarkets in Kenya, customer shopping behavior in supermarkets in Kenya has received very limited attention. This study investigates the effect of situational factors and packaging characteristics on the outcome of behavior (amount of processed milk bought from supermarkets in Kenya). The knowledge generated by this study could help retailers and other marketing practitioners to formulate and undertake more efficient marketing strategies. Several hypotheses were tested against cross-section data collected from 1230 shoppers in supermarkets in three towns in Kenya. Data was collected using self-administered questionnaires. It was analyzed using quantitative techniques. Descriptive statistics were used when analyzing shopper's characteristics. Regression analysis was used to test hypotheses concerning the effects of situational factors and packaging characteristics on the amount of fresh processed milk bought. The results showed that except for purpose for drinking directly from the pack reason for buying, all the other situational factors had significant effect on the amount of milk purchased. They include: supermarket atmospherics, store density/crowding, presence of companions, time of the day, being cash-constrained state and long stay at milk stand in the supermarket. However, being cash-constrained state, time of the day when shopping was done (morning), crowding at the milk stand and the purpose for drinking directly from the pack had negative effect on the amount of processed milk bought. Perceived importance for milk packaging characteristics had positive and significant effect on the amount of processed milk bought from supermarkets. After the controlled factors (individual characteristics) were included in the regression model, the effect of perceived importance for packaging characteristics and all situational factors (except for drinking purpose of buying) on the amount of processed milk bought remained significant. Shopper's age, education, income, gender (male) and family size had a positive effect on the amount of fresh processed milk purchased. However, price had a negative effect on the amount of processed milk purchased.
Factors of Production, County Government Policies and Financial Growth of Commercial Real Estate Investment in Machakos County, Kenya
(KeMU, 2022-10) Katiti, Augustine James
There has been a slow growth in the commercial real estates in Kenya as compared to the demand of the houses. Demand for housing units continues to outstrip the supply; and property developers in Kenya have in the recent years considerably scaled down their construction activities, pointing to a struggling property sector. The purpose of the study was to establish the influence of factors of production and County Government policies on financial growth of commercial real estate investment in Machakos County, Kenya. The research was guided by the following specific objectives; to determine the influence of land profile labor characteristics, capital characteristics and entrepreneurship characteristics on financial growth of commercial real estate investment in Machakos County. The study also sought to establish the moderating role of County Government policies on the relationship between factors of production and financial growth of commercial real estate investment in Machakos County. The research adopted a crosssectional study research study style. The target populace for this study was made up of 374 registered residential property programmers with Kenya Building Developers Organization operating in Machakos County. The research study used demographics strategy to research all the 374 registered property programmers. The target respondents for the research were the senior managers of the 374 registered building development companies. Before beginning of the actual research, 40 participants from Kajiado, were used in a pilot research study to pre-test the study tool. The researcher triangulated both structured sets of questions as well as open-ended meeting overview to collect and fill both measurable and qualitative data from the respondents. Qualitative information was assessed using detailed stats while quantitative data was examined using inferential data. Statistical Bundles for Social Sciences (SPSS) variation 25.0 software application was made use of for greater statistical calculations. The outcome disclosed that there is; a favorable and also substantial partnership between land profile as well as monetary growth of industrial realty investment in Machakos County; a positive and substantial connection between labour characteristics as well as monetary growth of industrial real estate financial investment in Machakos County. Additionally, the results disclosed that there is a positive as well as considerable relationship in between resources attributes and also monetary growth of business realty investment in Machakos County. Lastly, the outcomes show that there is a favorable and also considerable relationship between entrepreneurship characteristics as well as financial growth of commercial realty investment in Machakos County. The study in addition revealed that region government policies had a regulating effect on the connection between elements of production and monetary growth of industrial realty investment in Machakos County. Based on the findings, the study concluded that all the factors of production used in this study have positive and significant effect on financial growth of commercial real estate investment in Machakos County. The study therefore recommends that before considering investing in commercial real estate in Machakos County, investors should consider, land profile location, land profile size, soil condition, labour characteristics cost and availability, capital characteristics structure and capital characteristics cost, innovation and flexibility and local laws and legislations.
Financial Resource Mobilization Strategies, Intellectual Capital And Financial Sustainability Of Universities In Kenya
(KeMU, 2025-10) Murugu, Humphrey Mwenda
Universities in Kenya, both public and private, are increasingly facing financial distress arising from declining government capitation for public universities, delayed or non-remittance of funds for government-sponsored students in private universities, rising operational costs, growing debts, and deteriorating infrastructure. These challenges have made financial sustainability a central concern in the higher education sector. Achieving this sustainability requires universities to diversify revenue sources while maintaining educational quality and institutional stability. This study examined the influence of financial resource mobilization strategies on the financial sustainability of universities in Kenya and the moderating effect of intellectual capital. The specific objectives were to determine the influence of business units, financial management practices, endowment fund mobilization, and investment in technology-enhanced learning on financial sustainability. Anchored in Resource Mobilization Theory and supported by Modern Portfolio Theory, Resource Dependency Theory, and Intellectual Capital Theory, the study adopted a positivist philosophy and employed a mixed-methods approach. A sample of sixty-four universities comprising of thirty-four public and thirty private was drawn from seventy-six chartered universities in Kenya using Yamane’s formula and stratified sampling. Data were collected from two hundred and ninety senior university officers through structured questionnaires and from audited financial statements covering the period 2018–2022. Instrument reliability was confirmed with a Cronbach’s alpha coefficient above 0.9, exceeding the acceptable 0.7 threshold. Data were analyzed using descriptive and inferential statistics, with hypotheses tested through binary logistic regression at a 95% confidence level (α = 0.05). The findings revealed that business units, financial management practices, endowment fund mobilization, and investment in technology-enhanced learning each had a positive and significant effect on financial sustainability (p < 0.05). Intellectual capital significantly moderated these relationships, enhancing the predictive strength of financial resource mobilization strategies. The study concludes that integrating financial resource mobilization with intellectual capital development is vital for institutional resilience and long-term financial stability. It recommends that universities should strengthen entrepreneurial ventures, adopt prudent financial governance, institutionalize endowment management, and invest strategically in technology and knowledge assets to ensure sustainable growth and competitiveness within Kenya’s higher education sector.
Financing Sources, Institutional Governance and Performance of Technical and Vocational Education and Training (Tvet) Institutions in Kenya
(KeMU, 2025) Mutembei, Kigige Anderson
Performance of Technical and Vocational Education and Training (TVET) institutions in Kenya has remained a persistent concern, as many institutions continue to record low completion rates, inadequate training outcomes, and limited graduate employability. Technical and Vocational Education and Training is increasingly recognized as a critical sector for equipping the youth with the requisite skills for employment and economic development, both globally and within Kenya. Despite its strategic importance, the sector’s performance has been constrained by inadequate and inconsistent financing. The main objective of this study was to examine the influence of sources of financing, institutional governance and TVET institutions’ performance in Kenya. Specific objectives included: to establish the influence of government financing, influence of donor financing, influence of self-financing, and influence of public-private partnerships on performance of TVET institutions in Kenya. The study further analyzed the moderating effect of institutional governance on the relationship between financing sources and performance of TVET institutions. The study was anchored on Resource Dependence Theory, Human Capital Theory, Institutional Theory, and Stakeholder Theory. A descriptive research design was employed, utilizing a mixed-methods approach that incorporated both quantitative and qualitative data. The target population for the study comprised of 1464 key stakeholders in the TVET sector, including institutional administrators, teaching staff, and selected government officials from the Education Ministry department in charge of TVET management. Stratified random sampling was used to select a sample of 314 respondents from the target population and 297 valid responses were obtained. Data collection involved the use of structured questionnaires alongside a key informant interview guide. Quantitative data were processed and analyzed using SPSS (version 25), whereas qualitative information was examined through thematic analysis. The findings revealed that all four financing sources had statistically significant positive effects on the performance of TVET institutions, with government financing (β = 0.799, p < .001), donor financing (β = 0.829, p < .001), self-financing (β = 0.787, p < .001), and public-private partnerships (β = 0.750, p < .001) demonstrating strong predictive power. Additionally, institutional Governance manifested as a critical contingent variable profoundly modulating the dynamic interplay between financing and institutional performance. The study concluded that strengthening both financing mechanisms and institutional governance was essential for enhancing the performance of TVET institutions. It recommends policy reforms that prioritize adequate, timely, and sustainable funding, alongside improved governance practices, to maximize institutional effectiveness and long-term impact. Future studies should investigate the long-term effects of different financing models related to graduate employability and the quality of training in TVET institutions.
Firm Characteristics and Performance of Private Health Insurance Sector in Kenya
(Journal of Business and Strategic Management (JBSM), 2020) Kang’e, McDonald; Eng. Dr. Thomas, A. Senaji; Dr. Risper, Orero
Purpose: This study sought to establish the influence of firms’ characteristics as determinants of transient advantage on performance. Specifically, the study looked at the influence of firm age and firm size on the performance of insurance firms in Kenya. Methodology: This study employed descriptive research design targeting all the 19 insurance companies that offer health insurance products as at end of December 2017. Secondary data was collected on the firm characteristics (firm age and firm size) and the performance of health insurance (Gross Weighted Premiums and Underwritten Results). Descriptive and inferential analysis was conducted to show the relationship between the variables. The analyzed data was presented by use of bar charts, graphs and frequency tables. Inferential statistics were done including correlation regression and ANOVA. Results: The study revealed that firm size had a positive relationship between age and firm performance that was statistically significant. The study also revealed that firm age had a positive relationship between age and firm performance that was statistically significant. Conclusion: Age of a company is a quality that has been identified in this study as a factor which enables a company to gain capabilities which enable it to exploit transient advantage. It has been observed that the age of a company enables it to gain experience and learning which makes it able to overcome the effects of a rapidly changing business environment. With time these companies also gain a reputation placing them above their competitors. Age, alone, may not guarantee the performance of a company. Other factors have to accompany longevity for the firm to be able to exploit transient advantages and improve its performance. This can be proven by the fact that there are firms that had been in the sector for over three decades yet they control a small portion of the market share. This may be because the benefits of accumulated knowledge can be overcome by the inertia, inflexibility and bureaucracy brought about by routine, rules and organizational structure. Contributions to theory, practice and policy: The study recommended that firms should form partnerships with other firms to enhance cheaper resource outsourcing and offset the disadvantage which comes with firm age and firm size thus increasing firms’ profitability. It was also recommended that strategic partnerships should be adopted to enhance new market penetration and faster growth due to pooling of resources. It is further recommended that the age and size of an organization must be well supported by agility to enable the firm exploit transient advantages and that firms must use the financial muscle and experience gained over the years to take advantage of waves of opportunity
Forensic Accounting and Fraud Control in County Governments in Kenya: Evidence from Counties in Mt. Kenya Region
(KeMU, 2020-11) Karuti, Jephitha Kirimi
In the 21st century fraud is becoming an issue that top management of many organizations is struggling to control. Globally most companies do not admit they are vulnerable to fraud. Studies have shown that fraud can occur internally or externally and may involve employees, client or other relevant stakeholder’s in an organization. The result of past studies indicates that fraud can occur amidst policies, tools and models that have been put in place. In Kenya fraudulent acts have been witnessed almost in the entire sectors of economy. The purpose of the current study was to investigate and come up with conclusive results on how policies on forensic accounting, fraud management tools, degree of awareness on methods of forensic accounting and how application of skills on forensic accounting influenced fraud control in County Government in Kenya. Ten counties in Kenya were involved in the study and a total of 415 staff members were the target population. Pilot test was done within two other counties in Kenya not included in the final study. Descriptive research design was used with quantitative and qualitative data applied for analyses. Inferential statistics were obtained from regression analysis which entailed normality test, multicollinearity test, model fitness, model specification and test of hypothesis done at 95% confidence level. These assisted in making the decision on whether to reject or accept null hypotheses. All the study’s null hypotheses were rejected. Forensic accounting skills was the resilient variable followed by fraud management tools, forensic accounting policies and the least was the level of awareness on methods of forensic accounting. The conclusions were based on the study findings and recommendations derived. The research established that policies on forensic accounting were not properly enforced by county government employees to fight threat of fraud. County governments requires to be vigilant in reporting cases of fraud as the study concluded that reporting of the cases could be hampered by lack of fraud control plan and inefficient fraud reporting mechanism. Another important conclusion was that county governments should incorporate external fraud experts to deter perpetration of fraud. Likewise, reporting of incidences of fraud has not been very effective in many organizations across the globe; therefore, additional study can be done to establish whether fraud reporting policy can assist in eradication of fraud incidences as the management improve on use of traditional and modern tools to detect and prevent fraud. The study, recommend that accounting experts and consumers needs more information on the importance of forensic accounting and how it can be used to eradicate fraud.
A Health Systems Approach To Sexual And Reproductive Health Service Utilization By Adolescent Girls In Kajiado County, Kenya
(KeMU, 2025-01) Aluda, Wilfrida Kadenyi
Adolescent girls in Kenya face significant barriers in accessing sexual and reproductive health (SRH) services, particularly in pastoralist communities such as Kajiado County, in the subcounties of Kajiado Central, Kajiado South, Kajiad East, Kajiado West and Kajiado North, where cultural norms, stigma, and weak healthcare infrastructure exacerbate these challenges. This study aimed to assess the factors influencing SRH service utilization among adolescent girls in Kajiado County and to identify actionable strategies for improving adolescent SRH outcomes. This study adopted a cross-sectional study design, utilizing both the qualitative and quantitative data. Exploratory design was used for the objectives setting and deducing the findings from Objective results. Specifically, the study sought to: (i) evaluate adolescents’ level of SRH knowledge, (ii) identify individual and socio-cultural factors affecting service utilization, (iii) examine the practice of patient-centeredness in SRH service delivery, (iv) assess the role of financial interventions in access to care, (v) explore the influence of health referral systems on service uptake, and (vi) propose a digital health platform for enhancing service utilization. A cross-sectional design with a mixed approach was employed, integrating quantitative surveys with 422 adolescent girls aged 10–19 years and qualitative insights from key informant interviews (KIIs) ,In-Depth Interviews and focus group discussions (FGDs) to strengthen on the Qualitative Data. Stratified random sampling ensured socio-demographic representation. Quantitative data collected from the 422 adolescents were double entered into STATA at the Data Management Centre of Kenya Methodist University to ensure accuracy and qualitative interview transcripts were managed and coded in Nvivo software for thematic analysis. Quantitative data was analyzed using descriptive statistics, correlation, and logistic regression, while qualitative data was thematically analyzed and triangulated with quantitative findings. Ethical approval was obtained from the Institutional Scientific and Ethics Review Committee (ISERC). For participants below 18 years, informed consent was obtained from parents/guardians alongside adolescents’ assent, ensuring compliance with child protection and ethical research standards. The results revealed that while 67.3% of adolescents had basic SRH awareness, only 41.8% demonstrated comprehensive knowledge, especially regarding contraceptive use and reproductive rights. Key determinants of service utilization included age, education, and socio-economic status, with older adolescents and those with secondary education more likely to access services (p < 0.05). Barriers included financial constraints (72.5%), privacy concerns (56.7%), and judgmental provider attitudes. Despite existing referral systems, only 38.2% of adolescents had ever been referred for SRH services. The study co-created innovative solutions with community stakeholders, including strengthening adolescent-friendly clinics, scaling up community-based SRH education, providing financial support mechanisms, and proposing a digital health platform to improve accessibility. The Digital Health Platform has actually made huge strides towardsthis development,with the website and an Instagram page resulting to a 15% increase in it's utilization by the Adolescent age.With more than 2,000 followers on the Instagram page,it has had more than 2500 visits over the past six months, resulting in a considerable impact.The link to further information around the digital health system(Youth Wellness Connect) is herein attached:https://www.youthwellnessconnect.co.ke/ These findings highlight the urgent need for system-level interventions and community-driven strategies to enhance SRH service uptake among adolescent girls in Kajiado County, offering practical lessons for similar pastoralist settings in Kenya and beyond.