School of Business and Economics

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MORTGAGE RATES IN KENYA:
(International Academic Journal of Economics and Finance (IAJEF), 2016-05) Kigomo, Julia
The mortgage market in Kenya is relatively small compared to international standards having only 15,803 loans. The growth rate has been low since 2006 though with a steady growth of 14% annually but still the growth is below 50%, therefore the loan portfolio remains small. In terms of mortgage debt to GDP ratios, Kenya’s ratio is low by international standards. the mortgage debt to GDP ratio is around 50% in Europe and over 70% in US. Kenya’s mortgage debt compared to its GDP is better than its East African neighbors, Tanzania and Uganda at just under 2.5% this is an indication that there is still a room to grow for East African countries and more so Kenya which has low mortgage uptake. While the mortgage markets in the United States and Europe have been studied extensively by academics and other researchers around the world, markets outside the U.S. and Europe generally gain much less attention. Particularly, the structure and other institutional aspects of the mortgage markets outside the U.S. and Europe attain a very attention. This study intended to establish the factors behind the low mortgage uptake. The study had the following specific objectives: to determine the influence of mortgage interest rates on the uptake of mortgages; to establish the effect of incomes on the uptake of mortgages; to identify the effect of credit risks of borrowers on the uptake of mortgages, and; to establish the effect of availability of mortgage financiers on the uptake of mortgages. The study design was descriptive survey. This involved surveying various respondents to find out the factors which contributed to uptake of mortgages. In this study, the population was customers who had taken or was in the process of taking a mortgage from one of the Kenyan mortgage lenders. The sampling technique employed was snowballing which started with a few mortgage borrowers who introduced others. The primary data was collected by means of self-administered questionnaire. The collected data from the questionnaires was analyzed using descriptive statistics for quantitative data and content analysis for qualitative data. Presentation of the analyzed data was in form of tables and graphs. The findings from the study indicate that income levels had the greatest effect on uptake of mortgages followed by interest rates and other mortgage costs. The third most important factor affecting uptake of mortgage was unavailability of credit data and high credit risks. The least important factor affecting mortgage uptake was availability of mortgage facilities and institutions. From the findings of the study, the following recommendations are made. First, low cost housing should be developed to cater to those who cannot afford current mortgages. Mortgagees should also lower mortgage costs to incorporate more customers into the bracket of those who can afford. The study also recommends the mortgagees and the credit risk bureau to improve risk management and efficiency in their operations. Lastly, it is recommended that the players in the market including CMA, NSE and the various stakeholders should develop a secondary mortgage market.
Mortgage rates in Kenya: Implications for homeownership.
(International Academic Journal of Economics and Finance (IAJEF), 2016-05) Kigomo, Julia
The mortgage market in Kenya is relatively small compared to international standards having only 15,803 loans. The growth rate has been low since 2006 though with a steady growth of 14% annually but still the growth is below 50%, therefore the loan portfolio remains small. In terms of mortgage debt to GDP ratios, Kenya’s ratio is low by international standards. the mortgage debt to GDP ratio is around 50% in Europe and over 70% in US. Kenya’s mortgage debt compared to its GDP is better than its East African neighbors, Tanzania and Uganda at just under 2.5% this is an indication that there is still a room to grow for East African countries and more so Kenya which has low mortgage uptake. While the mortgage markets in the United States and Europe have been studied extensively by academics and other researchers around the world, markets outside the U.S. and Europe generally gain much less attention. Particularly, the structure and other institutional aspects of the mortgage markets outside the U.S. and Europe attain a very attention. This study intended to establish the factors behind the low mortgage uptake. The study had the following specific objectives: to determine the influence of mortgage interest rates on the uptake of mortgages; to establish the effect of incomes on the uptake of mortgages; to identify the effect of credit risks of borrowers on the uptake of mortgages, and; to establish the effect of availability of mortgage financiers on the uptake of mortgages. The study design was descriptive survey. This involved surveying various respondents to find out the factors which contributed to uptake of mortgages. In this study, the population was customers who had taken or was in the process of taking a mortgage from one of the Kenyan mortgage lenders. The sampling technique employed was snowballing which started with a few mortgage borrowers who introduced others. The primary data was collected by means of self-administered questionnaire. The collected data from the questionnaires was analyzed using descriptive statistics for quantitative data and content analysis for qualitative data. Presentation of the analyzed data was in form of tables and graphs. The findings from the study indicate that income levels had the greatest effect on uptake of mortgages followed by interest rates and other mortgage costs. The third most important factor affecting uptake of mortgage was unavailability of credit data and high credit risks. The least important factor affecting mortgage uptake was availability of mortgage facilities and institutions. From the findings of the study, the following recommendations are made. First, low cost housing should be developed to cater to those who cannot afford current mortgages. Mortgagees should also lower mortgage costs to incorporate more customers into the bracket of those who can afford. The study also recommends the mortgagees and the credit risk bureau to improve risk management and efficiency in their operations. Lastly, it is recommended that the players in the market including CMA, NSE and the various stakeholders should develop a secondary mortgage market.
THE INFLUENCE OF CREDIT HANDLING ON SAVINGS MOBILIZATION IN CO-OPERATIVES IN NYAMIRA COUNTY
(International Academic Journal of Economics and Finance (IAJEF), 2017-08-11) Nyatichi Mauti, Jeremiah; Gichunge, Evangeline; Orero, Risper
The purpose of the research was credit handling and savings mobilization in co-operatives in Nyamira County. It was conducted using descriptive research design among co-operative members in savings and credit co-operatives. The statistical sample consisted of 220 members who were randomly selected and studied through questionnaire. The questionnaire was used and its reliability was ascertained by the Cronbach’s alpha coefficient which was at 0.991. The data was analyzed using STATA 13 software. The data was collated using the Likert scale. The results showed that credit handling highly influenced saving mobilization through co-operatives among the people of Nyamira. Therefore, it is recommended that credit handling which significantly influences savings mobilization in Nyamira County should be taken seriously when dealing with savings mobilization, government policies and programmes. The findings of the study will be useful for the County and National Governments in formulating coherent Policies that address developmental challenges in co-operatives.
RELATIONSHIP BETWEEN STRATEGIC AGILITY AND ORGANIZATION PERFORMANCE
(Africa International Journal of Management Education and Governance (AIJMEG), 2017-10-04) Ogolla Atieno, Judith; Senaji, Dr. Thomas A
Strategic decision-making theories suggest that organizations that pool strategic Agility and its constructs are likely to perform better than those that emphasize on traditional strategic planning. To assess whether these arguments apply to the public sector; This study explores the Strategic agility construct and their influence on performance through organizations perceived service effectiveness, efficiency and equity of State corporations in Kenya; hence the main objective of this study is to explore the relationship between strategic agility and performance of organizations (considering the components of both concepts and contextual variables). The population of the study included top managers and senior staffs working at the state corporations in Kenya. Results showed a significant positive correlation between strategic agility and organizational performance. All components of organizational performance had a positive significant relationship with Strategic agility. The relationship between the individual components of strategic agility and organizational performance is positive and significant. Variables of Age, work experience, and organizational position, had a positive significant relationship with the strategic agility of the organization, while about sex and educational level, no significant relationship found. The study recommend that strategic sensitivity (It is about an organization’s ability to move all personnel up the strategic agility spectrum from ‘Individual totally unaware to the potential changes that might impact the company’ to perceiving it and be prepared to do something about it’must be considered.
NUTURING TACIT KNOWLEDGE THROUGH A KNOWLEDGE CENTERED CULTURE FOR ORGANIZATIONAL AGILITY
(International Journal of Management and Applied Science, 2017-11) RIBUTHI, JANE NJOKi
Organizations are battling with unending demand for improved and quality service delivery from her customers. This requires new approaches a knowledge culture that facilitates sharing of tacit knowledge among all the stakeholders. Service delivery has been one of the major focus areas of organizational transformation and public sector reforms in Kenyan Government. Service delivery has been one of the major focus areas of organizational transformation and public sector reforms in Kenyan Government. Competition among the players pushes the organizations to come up with strategies of becoming and remaining agile. Organizations are realizing the importance of knowledge centered culture to enable them share knowledge efficiently and effectively as knowledge that is not well managed and shared corrodes easily. The concern of this paper is that existing tacit knowledge may be lost if not tapped. Failure of tapping into tacit knowledge affects organizational agility negatively. How to retain or tap tacit knowledge remains an area of interest to researchers. This paper foresees an urgent need of coming up with the most effective mechanisms for tapping tacit knowledge within the organization.
The Relationship between Credit Reference Bureau Services and Financial Performance of the Commercial Banks in Kenya A Survey of Commercial Banks in Meru County
(International Journal Of Advanced Research in Engineering& Management (IJAREM), 2018) Kaugi, Samwel
This study sought to establish the relationship between credit reference bureau services and financial performance of the commercial banks in Kenya. Banks’ financial performance is compared against customer information sharing, credit scoring, market research, and information capital. The study adopted a descriptive research design which was suitable to answer the questions concerning relationship between credit reference bureau services and financial performance of commercial banks in Meru County. The study was a census and focusing on all the eighteen banks operating in Meru County. Self - administered questionnaires were employed to collect data. The data was processed and analyzed using statistical package for social sciences (SPSS). Descriptive statistics and linear regression analyses were used to examine the relationship between credit reference bureau services and financial performance of commercial banks in Meru County. The results are presented in summary reports, charts and tables. The study established that there is a significant relationship between customer information sharing and performance of commercial banks in Meru County.Credit scoring is imperative in the success of commercial banks and significant in sustaining a competitive advantage and assessing of borrowers credit worthiness. It was hence concluded credit information sharing and credit scoring were significantly associated with financial performance of commercial banks in Meru County.
Policy Interventions to Contemporary Challenges and the Performance of Insurance Companies in Kenya a Case Study of Jubilee Insurance Company
(International Journal of Economics and Financial Research, 2018) Abongo, Benjamin O
The article sought to review the contemporary challenges and their policy interventions in the Kenyan insurance industry in terms of the external and internal challenges affecting the insurance business and which require leadership and managerial actions. The researcher reviewed the contemporary challenges and the performance of insurance companies in Kenya by looking at the external business environmental challenges and how they affect the management of Insurance companies. Secondly, the study considered how Kenyan insurance companies adapt and adjust their internal practices and processes to satisfy the changing customer expectations. The article goes further to review the critical policy issues which are required to address: changing consumer dynamics, enforce strict compliance with the stringent regulations, constant product innovations, and greater need for communication, technological disruptions, on-demand marketplace, and compensation. Using peer-reviewed literature and the published integrated annual reports of Jubilee Insurance Company Ltd; the study discussed and highlighted the policy interventions in relation to the demands of business and customers. Using Jubilee Insurance as a model insurance company in a case study, the researcher found that by combining performance driven behaviour and regular use of management control systems, Insurance Companies were able to post improved results. The Choice of Jubilee was driven by its size and stability among the Kenyan insurance companies. Jubilee has adopted an integrated reporting system which enabled the researcher to obtain the empirical information required from a secondary source. The researcher reviewed the data from the company‟s integrated annual reports for the ten years from 2007 to 2017. The study looked at the control systems, including informal and formal controls and subjected these controls to a more comprehensive analysis to establish the impact of management control systems and strategy on the insurance company performance. The study suggested further empirical research to find the linkage between the policy interventions to various challenges and the performance of the insurance companies in Kenya.
Relationship between Financial Structure and Financial Performance of Listed Firms in Nairobi Securities Exchange in Kenya
(International Journal Of Advanced Research in Engineering& Management (IJAREM), 2018) Ngure, Erastus G; Mutea, Fredrick; Muema, Wilson
Firms have alternative ways of raising their funds. Corporate financing decisions made by the management leads to a financial structure and improper financing behaviour and decisions can lead to corporate failure. A quagmire exists in the mind of stakeholders and researchers as to whether there exists an optimal financial structure that maximizes shareholders’ wealth. Thus when making financing choices there is need to consider evaluating the effect of the available financing alternatives on the firm’s financial performance. The aim of the study was to examine the relationship between financial structure and financial performance of listed firms in Kenya,by determining the effect of internal financing, equity financing, short term debt and long term debt on financial performance. Descriptive and historical research design was adopted. The study was a census, featuring all the listed companies that were operational from the year 2009 to 2016. Primary data collected by questionnaires and secondary data obtained from NSE handbooks and published financial statements of the firms listed in the NSE were utilized. Descriptive statistics and multiple linear regressions were used to analyze the data which was presented in form of tables and charts. It was revealed that the mean internal financing of the companies listed at the NSE had consistently increased from 5.346 billion shillings in the year 2009 to 14.7 billion shillings in the year 2016. However, the study did not establish a significant relationship between internal financing and financial performance of listed firms in Kenya. A statistically significant relationship between equity financing and financial performance of listed firms in the NSE was established. The relationship between short term debt financing and financial performance of listed firms in Kenya was not significant. The mean long term debt financing for the firms listed at NSE had greatly increased from 3.367 billion shillings in 2009 to 15.587 billion shillings in 2016. The relationship between long term debt financing and financial performance of listed firms in the NSE was found to be statistically significant. It was concluded that two out of the four financial structure components included in the study were significantly associated with financial performance of listed firms in the Nairobi Securities Exchange in Kenya. A firm that utilizes equity finance is able to excel financially since the equity holders are the residual claimants and they have to ensure that resources are allocated efficiently to be able to maximize shareholders wealth. Affordable long term debt assists a firm to access productive technologies that it would not have otherwise achieved using internal financing. It was recommended that the board of directors of the listed firms should always give priority to funding options with no compulsory returns to avoid financial distress associated with difficulties in meeting financial obligations. Besides, the management of the listed firms should always perform accurate forecasting on projects they intend to venture into, against the cost of debt and taking into consideration the payback period, in the event they want to source for long term external funding. Since the study focused on firms listed in the NSE, it is suggested that the study be extended to other firms and institutions not listed to assess whether different findings may be reached regarding relationship between financial structure and financial performance.
Relationship between Financial Structure and Financial Performance of Listed Firms in Nairobi Securities Exchange in Kenya
(International Journal Of Advanced Research in Engineering& Management (IJAREM, 2018) Ngure, Erastus G; Mutea, Fredrick; Muema, Wilson
Firms have alternative ways of raising their funds. Corporate financing decisions made by the management leads to a financial structure and improper financing behaviour and decisions can lead to corporate failure. A quagmire exists in the mind of stakeholders and researchers as to whether there exists an optimal financial structure that maximizes shareholders’ wealth. Thus when making financing choices there is need to consider evaluating the effect of the available financing alternatives on the firm’s financial performance. The aim of the study was to examine the relationship between financial structure and financial performance of listed firms in Kenya,by determining the effect of internal financing, equity financing, short term debt and long term debt on financial performance. Descriptive and historical research design was adopted. The study was a census, featuring all the listed companies that were operational from the year 2009 to 2016. Primary data collected by questionnaires and secondary data obtained from NSE handbooks and published financial statements of the firms listed in the NSE were utilized. Descriptive statistics and multiple linear regressions were used to analyze the data which was presented in form of tables and charts. It was revealed that the mean internal financing of the companies listed at the NSE had consistently increased from 5.346 billion shillings in the year 2009 to 14.7 billion shillings in the year 2016. However, the study did not establish a significant relationship between internal financing and financial performance of listed firms in Kenya. A statistically significant relationship between equity financing and financial performance of listed firms in the NSE was established. The relationship between short term debt financing and financial performance of listed firms in Kenya was not significant. The mean long term debt financing for the firms listed at NSE had greatly increased from 3.367 billion shillings in 2009 to 15.587 billion shillings in 2016. The relationship between long term debt financing and financial performance of listed firms in the NSE was found to be statistically significant. It was concluded that two out of the four financial structure components included in the study were significantly associated with financial performance of listed firms in the Nairobi Securities Exchange in Kenya. A firm that utilizes equity finance is able to excel financially since the equity holders are the residual claimants and they have to ensure that resources are allocated efficiently to be able to maximize shareholders wealth. Affordable long term debt assists a firm to access productive technologies that it would not have otherwise achieved using internal financing. It was recommended that the board of directors of the listed firms should always give priority to funding options with no compulsory returns to avoid financial distress associated with difficulties in meeting financial obligations. Besides, the management of the listed firms should always perform accurate forecasting on projects they intend to venture into, against the cost of debt and taking into consideration the payback period, in the event they want to source for long term external funding. Since the study focused on firms listed in the NSE, it is suggested that the study be extended to other firms and institutions not listed to assess whether different findings may be reached regarding relationship between financial structure and financial performance.
TRANSFORMATIONAL LEADERSHIP AND ORGANIZATIONAL PERFORMANCE OF STATE CORPORATION IN KENYA.
(Africa International Journal of Multidisciplinary Research (AIJMR), 2018-05-08) Ogolla, Judith; Senaji, Thomas A.
Leadership is vital in the overall performance of any organization. The leadership chosen is dependent on various contingent factors. The environment influences the link between leadership and performance. The combination of the various factors contributes to the leadership selected which influences the performance of the organization. Over the past three decades, transformational leadership has emerged as one of the predominant paradigms to understand leadership efficacy. Transformational leadership theory is based on the concept that certain leader behaviors transform followers' values, needs, preferences, and aspirations, and motivate them, “to perform above and beyond the call of duty”. Transformational leadership has gained extensive attention in the literature research because of its potential proposition for the performance of the organizations. Research indicates that this type of leadership can collectively influence workforce performance and loyalty leading to improvements in the workers motivation and creativity. In consideration to the past decades research findings and strength this forms the foundation for this study research on the importance of transformational leadership through its four constructs; idealized influence, inspirational motivation, intellectual stimulation, and individual consideration and their influence on organizational performance in fifty five state corporation in Kenya with commercial and strategic functions. A total of 257 surveys instrument questionnaires were distributed with 235 retuned and 215 were suitable for use. The data was analyzed using multiple regressions method with a significance level of p < 0.05. The measurement instrument used was on five likert scale ranging from strongly disagree as 1 to strongly agree as 5. The results indicate that while transformational leadership and three of its constructs; inspirational motivation, intellectual stimulation, and individual consideration contributed to 78.6 percent of the variation in organizational performance; idealized influence was moderately a significant factor contributing to the study outcomes. Top Leadership management may need to focus on these constructs of transformational leadership to improve performance of the organizations understudy.
Analyzing the Course of Turmoil in Kenya’S Retail Sector
(THE INTERNATIONAL JOURNAL OF BUSINESS & MANAGEMENT, 2018-08) Chesula, Osman Wechuli; Nkobe, Kenyoru Dennis
Purpose - The retail sector in Kenya is one of the main drivers of the Economy. This paper sought to empirically analyze the factors leading to the collapse of some of the major Supermarket chains and also to understand why some of them are struggling to operate. Design/methodology/approach -The conceptual paper is based on the critical analysis of important data from internal and external industry publications, published interviews, and Regulatory Authorities reports. Findings –It was evident that mismanagement and competition especially from online shopping are some of the main factors that have affected the retail chain sector. Supplier’s failure to facilitate continuous stocking and scrupulous employees has also contributed significantly to the failure of the retail chain sector in Kenya. Originality/value – This paper is the first to propose and provide a comprehensive insight into understanding the reasons for struggling and collapse of the major players in the retail chain industry. The paper also proposes scientific research to statistically explain the effect of each variable on the retail chains.
INFLUENCE OF FINANCIAL LITERACY ON FINANCIAL MANAGEMENT PRACTICES: A SURVEY OF DAIRY FARMERS MANAGED BY K-UNITY SACCO IN LIMURU SUB COUNTY, KIAMBU COUNTY
(International Journal of Finance, Accounting and Economics, 2018-08-13) KUBAI Ngina, Nancy; Dr, BAIMWERA; MUNGA, Jane
The purpose of this research was to investigate the influence of financial literacy on financial management practices; a survey of dairy farmers managed by K Unity SACCO in Limuru sub county, Kiambu county. The objective of the study was to investigate how financial literacy affects financial management of persons operating in the informal sectors in this case looking at dairy farmers. The researcher sought to find out whether investment practices, saving culture, budgeting practices loan management and the planning of unexpected expenses does affect financial management practices. The field of financial literacy has been understudied more so in the developing economies, and especially in the informal sector. The researcher targeted dairy farmers managed by K Unity SACCO. The researcher adopted descriptive research design to study 375 dairy farmers drawn from a population of 6000 dairy farmers. The study used structured questionnaire which were administered with the help of 5 research assistants using structured interviews. The researcher conducted a pilot test of 20 questionnaires in order to ensure that the questions to be asked were relevant, valid and reliable. Data analysis was done using Statistical Package for Social Scientists (SPSS) to generate descriptive statistics (frequencies, percentages, cross tabulations) that were presented on figures and tables. Further analysis was done using inferential analysis. The study revealed that there was positive relationship between investment practices and financial management of dairy farmers in Kenya. Financial management of dairy farmers in Kenya was found to be significantly influenced by saving culture. The study established that budgeting practices positively influence financial management of dairy farmers in Kenya. The study found that debt management practices will positively influence financial management of dairy farmers in Kenya. The study recommends that the management of K Unity Sacco should considered offering investment training to their members before disbursement of loans. The study recommends that employees should use their financial literacy knowledge and experience gained in the Sacco society to develop a saving culture. The study therefore recommends that the management of K Unity Sacco should create awareness to its members in the effects of debts on their finances and how they can manage their debt in a realistic manner and understand the cost of their.
FORENSIC ACCOUNTING POLICIES AND FRAUD CONTROL IN COUNTY GOVERNMENTS IN KENYA: EVIDENCE FROM COUNTIES IN MT.KENYA REGION
(International Journal of Business Management and Economic Review, 2019) Kirimi Karuti, Jephitha; Mwaniki, Gillian; King’oriah, George
In the current century, fraud has become an issue that management and other stakeholders are aggressively trying to bring to a sustainable level. Fraud instances have been increasing in many organisations amidst continuous fight by governments and other agencies. The purpose of the study was to establish how forensic accounting policies would influence fraud control in County Government in Kenya. Seven counties in the Mount Kenya region were considered as the target population as well as the study sample size constituting of 351 staff members. To establish the level of statistical significance between the practical and predictable value, Analysis of variance (ANOVA) was used. Pearson coefficient of correlation was used to establish the strength of association among the variables while Regression analysis was used to approximate the model coefficients. Moreover, test of hypothesis was also carried out to define the relationship between the variables. In General, the study concluded that there was a positive linear relationship between Forensic Accounting policies and fraud control. It was evident that forensic accounting policies influenced fraud control by a coefficient of (0.219). The study therefore concluded that adoption of forensic accounting policies in county governments in Kenya would enormously contribute to fraud control in the public entities.
Technology Influence on Performance of Cash Transfer Programmes in the Public Sector in Nairobi County, Kenya
(International Journal of professional Practice, 2019) Njoroge, Beth Wanjiku
Cash transfer program has been identified by most developing countries as an important component of social protection however; the program has experienced challenges in the implementation process. This study aimed at establishing the relationship between technology and performance of cash transfer program in Nairobi County- Kenya with an intention of helping the Government of Kenya and other stakeholders involved in the implementation of the cash transfer program to establish policies and framework geared towards social protection rights. The study was grounded on two theories namely, general systems theory, and the McKinsey 7s model. Descriptive research design was used on a target population size of 102 respondents: that is, 9 sub-county children officers, 34 nominees of both the Member of Parliament and the county woman representative, and 592 complainants. Purposive sampling technique was applied in sampling sub county children officers and the nominees of both the Member of Parliament and the county woman representative, while, simple random sampling was used on complainants. The overall sample size was 102 respondents. Data was collected using questionnaires whose reliability was tested using Cronbach alpha test. Experts’ opinion was sought in addressing validity of the instruments. Data was analyzed using SPSS version 22. A simple linear regression model was established in order to determine how technology influenced the performance of the cash transfer programme. The study revealed that technology has a positive and statistically significant relationship with the performance of the cash transfer programme. The results further revealed that performance of the cash transfer programme in Nairobi County can be explained by 40.5% of technology. The study recommends that organizations should continuously adopt new technologies to improve performance in the implementation process of their programmes to ensure that their objectives and goals are efficiently and effectively achieved.
Effect of Cash Management Automation on Financial Management in Meru County Government
(International Journal of Finance, 2019) Mugambi, Bonface Mutuma; Gichohi, Paul; Kambura, Susan
The main purpose of the study was to find out if ICT adoption has a significant effect on financial management in the Meru County Government. Effective public financial management has attracted attention of many scholars in identifying the best practice and how to install fiscal disciplines. In search of good governance and sound financial management, the World Bank has been at the fore front in championing this aspect. Lack of effective financial management practices hinders effective service delivery. Technology Acceptance Model (TAM) theory is one of the model used to explain how technology is accepted by the users. Descriptive survey research design study was used. The population for this study composed of the Meru county government staff. The sample size was 70 respondents in total, questionnaires were used as the research tool whose validity and reliability was measured accordingly. Mean and regression analysis was computed when analyzing data. The findings established that Cash management automation enables county leadership to understand the true cost of service delivered by the county per activity; that Through Cash management automation, the county finance department is able to reconcile transactions data in real-timeOn Cash management automation the study concludes that successful cash management automation in any institution is essential due to difficulties that come with accessing credits whenever an organization is facing liquidity several constrains. From the findings on cash management automation the study recommends that automation systems should be fully implemented as it increases cash management. For Meru county Government to realize growth, investment in technology should be made in order to enhance service delivery and transparency in cash management.
Factors Contributing to the Growth of Cereals Enterprises Owned by Women in Meru County. A Survey of Enterprises in Nkubu Town
(Journal of International Business, Innovation and Strategic Management, 2019) Rimbere, Arthur G.; Mutiria, Eric; Githinji, Moses
Entrepreneurship growth practices are being witnessed in every country in response to changes in global competitiveness and advancement in technology. It is against this reason that this research was being undertaken to analyze factors inhibiting the growth of cereals enterprises owned by women in Nkubu Town in Meru County. The study was guided by the following specific objectives: To establish whether access to finance, access to infrastructure, and managerial capacity and entrepreneur innovation inhibiting the growth of cereals enterprises owned by women in Nkubu Town in Meru County. The study adopted descriptive research designs with owners of cereals enterprises owned by women in Nkubu Town in Meru County, Kenya104 owners, managers and employees being the target population. Stratified sampling was used in this study; self-administered questionnaires were used as data collection instruments. The questionnaires were pre-tested for reliability and validity. Qualitative and quantitative data was analyzed by the help of Statistical package for social Sciences software (SPSS) Version 23. Data was analyzed using descriptive and inferential statistics.Inferential analysis entailed multiple regression and correlation analysis to assess the strength of the relationships between the specified variables. The result indicated that, collectively access to finance has the highest positive influence on enterprise growth, followed by entrepreneur innovation, managerial capacity and access to infrastructure. The study recommends that financial institutions should be in a position to give loans and other credit facilities and financial advisory services to SME’S in order to equip them with knowledge on financial management to help them expand their businesses.
Relationship between Knowledge Management and Innovative Work Behavior among Commercial Banks in Meru County, Kenya
(Stratford Peer Reviewed Journals and Book Publishing Journal of Strategic Management, 2019) Ndwiga, Christine Mwendwa; Gichohi, Paul; Nkaabu, Clement
To examine the extent to which knowledge management (KM) influences innovative work behavior (IWB) among the staff of commercial banks in Meru County, Kenya. Descriptive survey design was adopted. A structured questionnaire used to collect data in 20 commercial banks in Meru town with a population of 213 using a clustered random sampling on a sample of 110 comprising of top, middle, and lower levels management. A response rate of 92% was established. Content & convergent validity ensured data quality while cronbach's alpha value (0.7) tested the reliability of the questionnaire. Data was analyzed using the SPSS software and computed using Descriptive statistics and inferential statistics. Findings indicated a moderate positive correlation between KM and IWB. KM process (acquisition, sharing & application) was well established in banks processes. However, IWB process (idea generation, promotion and realization) was not well structured. Tacit knowledge requires knowledge champions as enabled by empowered leadership. To the knowledge of the authors, no previous studies have analyzed the relationship of KM and IWB nor the approach in the context of commercial banks in Meru County.
Culture Alignment, Firm size and Sustainable Competitive Advantage among Deposit taking Savings and Credit Cooperative Societies in Kenya
(IOSR Journal of Business and Management (IOSR-JBM), 2019-06) Mwenda, Kirigia Paul; Senaji, Thomas; Mwiti, Evans
Competitive advantage refers to a set of capabilities that permanently enable the business to demonstrate better performance than its competitors. Competitive advantage occurs when an organization acquires or develops an attribute or combination of attributes that allows it to outperform its competitors. Sustainable competitive advantage, refers to the long-term benefits of implementing unique values creating products which competitors cannot implement simultaneously, along with the inability to duplicate the benefits of this strategy. With the changing dynamics in the SACCO sector in Kenya, Managers are so much concerned not just in achieving competitive advantage but also sustaining it for long term benefit. This is can be attained through culture alignment. Culture is a shared common way of being, thinking and acting in a collective and coordinated people with reciprocal expectations in a given society. Organizational culture is set of shared values, beliefs and norms that influence the way employees think feel and behave in the organization on a daily basis, it is a firm’s orientation towards its internal stakeholders, which forms the basic rules that guide employees behaviors, developed and shared within an organization.The purpose of this study was to analyze the relationship between Culture Alignment on Sustainable Competitive Advantage among Deposit taking Savings and Credit Cooperative Societies in Kenya and the moderating effect of firm size on this relationship. This study was anchored on contingency theory and adopted a correlational research design where data was collected only once from the respondents by use of questionnaires from six hundred and fifty six managers of deposit taking SACCOs in Kenya. Statistical package for social sciences (version 23) was used for data analyses. Multi linear regression was used to establish the relationship between the variables and data was presented through descriptive and inferential statistics and all ethical considerations were made. The study found culture alignment has a great influence on sustainable competitive advantage and also revealed a strong positive relationship between culture alignment (R= 0.591) and sustainable competitive advantage of SACCOs in Kenya and that Sustainable competitive can be attained through culture alignment. Moreover, firm size was found to influence this relationship. The study recommends that SACCOs in Kenya should strategically align their culture in order to sustain their competitive advantage and maintain a good market standing as they meet the needs of their stakeholders
FORENSIC ACCOUNTING SKILLS AND FRAUD CONTROL IN COUNTY GOVERNMENTS IN KENYA: EVIDENCE FROM COUNTIES IN MT. KENYA REGION
(International Journal of Economics, Commerce and Management, 2019-06) Kirimi Karuti, Jephitha; Mwaniki, Gillian; King’oriah, George
In the 21st century fraud is becoming an issue that top management are struggling to control. At least 5% of the firms lose their revenues to fraud annually. Past studies indicate that fraud can occur amidst policies that have been put in place. The current study aimed at investigating how application of forensic accounting skills influence fraud control in County Government. Seven counties in the Mount Kenya region and 351 staff members were the target population as well as the study sample size. The data was analyzed using SPSS. Descriptive statistics mainly percentages and frequency distribution were used for data presentation. Analysis of variance (ANOVA) was used to establish the level of statistical significance of difference between the observed and expected values. Regression analysis was used to estimate the model coefficients while Pearson coefficient of correlation was used to establish the strength of relationship among the variables. Test of hypothesis was also carried out. The study concluded that there was a positive linear relationship between Forensic Accounting skills and fraud control with an influence of a coefficient of (0.267). The study therefore concluded that adoption of forensic accounting skills would contribute massively to fraud control in the public sector.
Assessment of Factors Influencing Youth Participation in Agri-Business in Kericho County, Kenya
(THE INTERNATIONAL JOURNAL OF BUSINESS & MANAGEMENT, 2019-06) Kalya Maritim, Dennis; Kirimi, Dorothy; Mutiiria Njeru, Erick
The purpose of this research was to analyze the assessment of factors influencing youth participation in Agri-business in Kericho County. The specific objectives were; to assess influence of youth attitudes towards youth participation in Agri- business in Kericho County, to establish the influence of access to credit facility towards youth participation in Agri-business in Kericho County, to examine influence of access to land towards youth participation in Agri-business in Kericho County and to determine influence of perceived benefits towards youth participation in Agri-business in Kericho County. The target population of this study consisted of 7560 youths who are registered with youth groups that currently engage in various agribusinesses in the Kericho County. The sample size for this study was 384 which was derived using fisher 1998 formula. Stratified and random sampling was used where 384 respondents was sampled from a population of 7560 youth that currently engaged in 504 agribusinesses groups in the Kericho County. In this study, the questionnaire was utilized in data collection and data collected was analysed using descriptive and inferential statistics. The study used SPSS version 23 as a tool for data analysis. The results revealed a positive and significant relationship youth attitudes and youth participation in Agri-business in Kericho County. The results further revealed that access to credit facility affect youth participation in Agri- business in Kericho County positively and significantly. The result also indicated that access to land affect youth participation in Agri-business in Kericho County positively and significantly. The study findings also indicated that the correlation between perceived benefits and youth participation in Agri-business in Kericho County was positive and significant. This implies that an improvement in the indicators of perceived benefits positively leads to an increase in youth participation in Agri-business in Kericho County. The study findings recommended that Kericho County to invest more in youth attitudes, access to credit facility and access to land practices as these practices improves the youth participation in Agri-business.