School of Business and Economics

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Effect of Budget Planning on the Financial Performance of Public Universities in the Mount Kenya Region, Kenya
(nternationalJournalof ProfessionalPractice (IJPP), 2024-09) Kaithia, Lilian Kawira; Moguche, Abel; Rintari, Nancy
Public universities perform a vital role in providing higher education and contributing to the country's socioeconomic development. Notably, public higher education establishments in the Mount Kenya region, have successfully implemented budgetary control approaches to improve financial performance. That notwithstanding, most of them are ignorant of how budgets and budgetary control affect performance outcomes. The purpose of this study was to establish the effect of budget planning on the financial performance of public universities located in the Mount Kenya region, Kenya.The design used in the investigation was descriptive. The target population was 7 universities located in Mount Kenya Region. The respondents, enlisted using census method included 284 heads of departments in both academic and administration divisions of the universities included. Structured questionnaires were used to collect data for this study. Using the drop and pick method, the researcher issued and collected filled in questionnaires after 2 weeks. The data were analyzed using descriptive techniques like frequencies, percentage and mean, while the inferential statistics included correlations. The study conducted a pre-test study in Laikipia University, where 28 respondents were recruited using simple random method. Data was presented using tables and explanations. The findings indicated a noteworthy and optimistic correlation between budgetary planning and financial performance of public universities (r=0.817, p=0.000).The study concluded that most universities had budgets that guided them in a financial year. However, the main concern was declined revenue consistency to adequately fund the budget. The study recommended that budgetary control strategies such as incremental and activity-based budgets be introduced in public institutions. Further, public universities need to focus more on creating budgetary control through appropriate planning, monitoring, and budget implementation, as well as allowing employee engagement in the budget process in order to strengthen the budgetary control process.
The Effects of Real Time Gross Settlement on Financial Performance of Microfinance Institutions in Nairobi County, Kenya
(International Research Journal of Economics and Finance, 2023-07-28) Makena, Christine; Kambura, Susan; Moguche, Abel
Companies that do not innovate run the risk of being surpassed by rivals. The financial sector has been impacted by globalization and technological advancement. The banking sector is utilizing these developments to enhance client service and guarantee profits on these investments. The study's objective and purpose was to determine the effects of real time gross settlement on financial performance of Microfinance institutions in Nairobi County, diffusion theory anchored the research. Many researches have been carried out to understand the connection between process improvements and financial performance. However, few of the reviewed research have determined the effect of real time gross settlement on financial performance of microfinance institutions in Nairobi County Kenya. Thus the current study aimed to fill in this knowledge gap. Cross-sectional survey research approach was used with a sample of 12 management staff. A pilot study was conducted in Kilifi County to check on reliability and validity of data collection instruments with the used of SPSS to analyse data. Mean and standard deviation were used to determine descriptive analysis, whereas model brief, ANOVA, and coefficients of regression were used to determine regression analysis. Outcomes were presented using frequency tables. According to the correlation analysis, real-time gross settlement positively correlated with financial performance. The study concludes that the processes of the Microfinance banks have been automated to improve MFIs operations. The study concludes that the Microfinance bank uses Real time gross settlement to minimize risk related to high value payment settlements. Recommendations is that in addition to automating core processes, the Microfinance banks should make it possible for the clients to open accounts remotely and operate those accounts remotely as well.
The Effect of Product Differentiation Strategy on The Performance of Commercial Banks in Kenya
(Journal of Business and Strategic Management, 2023-08-17) Njue, Leonard Mugendi; Kambura, Susan; Moguche, Abel
Purpose: The study aimed to determine the effect of product differentiation strategy on the performance of commercial banks in Kenya. The study hypothesized that product differentiation had a statistically significant impact on Kenyan commercial banks' performance Methodology: The study used a quantitative research method targeting the branch managers of licensed commercial banks in Nairobi County. A sample of 227 branch managers was selected using stratified sampling. Data was collected using an online questionnaire. Data was checked for internal consistency using Cronbach's alpha. The alpha was within the acceptable rate level of 0.60 to 0.90 The ordinal logistic regression was used to analyze the relationship between the variables. Findings: The effect of product differentiation on performance was statistically significant (Wald = 7.768, df = 1, p = .005), with a 95% confidence interval of 0.442 to 2.535. Therefore, product differentiation statistically significantly affects commercial banks' performance. The results imply that banks need to increased focus on product differentiation strategies to increase performance. Unique contribution to theory, practice and policy: The study is significant to bank managers because it provides them with information on one of the strategies (product differentiation) that managers can use to increase the performance of their banks. Implementing this strategy would result in increased performance and benefit the stakeholders due to the increased return on investment.
Business Process Reengineering Effects on Financial Performance of Commercial Banks in Meru County, Kenya
(International J ournal of Professional P ractice (IJPP), 2023-09) Jepleting, Kipkorir Janet; Mutea, Fredrick; Moguche, Abel
Financial sector is one of the fundamental dimensions of economic expansion and evolution. Financial institutions remain indispensable because of the role they play. In Africa, however, commercial banks have been reducing in number owing to tightening regulations, mergers, acquisitions, liquidations and collapses. On the same vein, Kenyan banking sector has recently encountered diverse experiences from new threats such as increasing inflationary pressure, worries about the sustainability of the public debt, a shaky economic recovery, and volatility in financial markets and devastating impact of COVID-19. Collectively, these make it difficult for the local banks to achieve optimum financial returns. The study aimed to determine how business process reengineering (BPR) affects performance of commercial banks in Meru County, Kenya. The objective was to determine effects of BPR on performance of commercial banks in Meru County. The study moored on Technology Adoption model. It employed descriptive research survey design with a target population of sixty (60) branch management staff comprising of three participants from each of the 20 commercial banks in Meru County. Additionally, the study adopted census approach and structured questionnaires to collect data. Descriptive statistics; mean and standard deviation coupled with linear regression were used to analyze data. Data was presented in tables. It was concluded that BPR enhanced financial performance of commercial banks. Further, the study recommended that commercial banks strengthen BPR to improve business operations. The study established that BPR, if effectively implemented, was a game changer to commercial banks, since it may reduce process time, simplify and streamline operations, and revamp service quality, thus increased efficiency that results into better services and products. This maximizes return on investment. Studies may be conducted to ascertain benefits and challenges of adopting BPR in commercial banks in Kenya.
Effect of Training and Development on Employee Productivity in Private Hospitals in Nyeri County, Kenya
(Human Resource and Leadership Journal, 2023-06) Mualuko, Josephat; Rintari, Nancy; Moguche, Abel
Purpose: To explore the effect of training and development on employee productivity in private hospitals in Nyeri County, Kenya Methodology: The study adopted descriptive research design to collect data using closed-ended questionnairesin 10 private hospitals in Nyeri County, Kenya. Ten (10) human resources managers and 79 departmental heads from the hospitals participated making a total of 89 respondents selected using census method. The collected data were analyzed quantitatively with SPSS Version 23 and the results presented descriptively using frequency, percentage and mean. Inferential statistics such as linear and multiple regression analysis were done whereas tables and explanations were used Results: The questionnaire responses on employee productivity indicated that a combined total of 58(77%) respondents were in agreement that there were employee productivity policies. Nevertheless, a combined total of 60(80%) did not agree that employees were usually very effective in reporting the duties performed at a particular time. The questionnaire responses on training indicated that a combined total of 59(79%) were in agreement that there was a culture of employee on job training in the organization. However, a combined total of 60(80%) did not agree that employees were allowed time off to enable for training and development. Further, the R- square was 0.224 hence indicating that training had a 22.4% influence on employee productivity. Unique contribution to theory, policy and practice: The study concluded that in as much as employees purported to have achieved their targets there was laxity on formally reporting on what they done. Additionally, when the staff requested to be given some time off to attend a personal training it was rejected since it would result to overburdening of other staff with more duties. The study recommends that hospital management should frequently conduct an audit on the procedures and processes required to be attained by the employee.
Effect of Customer Behavior on Organizational Performance of Lodges Within Lewa Wildlife Conservancy
(Innovative Journal of Social Sciences, 2023-08) Halake, Fatuma; Rintari, Nancy; Moguche, Abel
The purpose of this study was to determine the effect of customer behavior on organizational performance of lodges within Lewa Wildlife Conservancy. A descriptive survey design was employed to depict the true representation of customers' satisfaction levels and their effect on the organizational performance of lodges within the wildlife conservancy. The target population for this study comprised all the staff at the lodges (Lewa Wilderness, Lewa House, and Elewana Lewa Safari Camp) in the Conservancy. Since the size of the population (121) was small, the study conducted a census. Data was analyzed using descriptive and inferential statistics. The majority (80%) of the respondents stated that the performance of the lodges had been affected to a large extent by customer satisfaction levels, 13% to a very large extent, 4% to a moderate extent, and 3% to a little extent. This shows that customer behavior as a result of satisfaction had a great effect on the performance of the lodges. Majority of the respondents conquered that the lodges experienced very low rates of churn indicating customer satisfaction. Additionally, the respondents agreed that the lodges monitored switching behavior and prevented it by providing superior products and services and that customer defection could lead to negative word-of-mouth, thus damaging the organizations’ reputation as shown by the average scores of 4.45 and 4.38 respectively. Further, there was a positive correlation was observed between organizational performance and customer behavior, with a correlation coefficient of 0.615. Notably, the regression coefficient results revealed that for every unit increase in customer behavior, there is a corresponding increase of 0.654 in organizational performance. The study concluded that customer behavior, such as the frequency and volume of purchases, directly impacted the lodges’ revenue. The study recommends that the lodges should also tailor services and experiences to individual guests. They should gather information about guests' preferences and interests before their arrival, and use that information to personalize their stay. This can include personalized greetings, room amenities, dining options, and activities that align with guests' interests, creating a memorable and unique experience.
Exploration of Cash Flow Management Strategy and Financial Performance of Saccos in Imenti North Sub-County, Kenya
(Journal of Finance and Accounting, 2023-08) Sora, Rahima Atikiya; Kambura, Susan; Moguche, Abel
The study sought to explore the influence of cash flow management strategy on financial performance of Saccos in Imenti North Sub-County, Kenya. Descriptive research design was adopted to collect data from 21 deposit and non-deposit Saccos located in Imenti North Sub- County. The target respondents included 42 accounts department officers, 114 tellers, 93 back- office staff, and 120 loan officers hence a total of 369 respondents. Descriptive and inferential statistics were used to analyze the data. Cash flow management strategy had a correlation coefficient r=0.772** at α < 0.000 and a 99% significance level. The study established that the investment department was still undeveloped in many Saccos therefore limiting on the authorization of incorporation of funds in investment options like capital markets. This limited the Saccos to act as mere institutions of accepting deposits and savings, while at the same time issuing loans. This method of operation at many times did not guarantee consistent income due to competition from other financial institutions doing similar work. The study thus recommends that the Board of Management [BOM] should create policies and provide adequate funds to establish an investment department, if there is none, or strengthen it if in existence. The contribution to the study is that a quality policy structure would introduce the Saccos to endless opportunities in investment at capital markets which has a well-structured and managed fund portfolio. In return, this would improve the income since the operations of the Saccos would have been diversified spreading into various classes of investments available.
Determining the Effect of Process Innovation on Financial Performance of Deposit Taking Saving and Credit Cooperative Societies in Laikipia County, Kenya
(International Journal of Finance, 2023-04) Jillo, Safia Abdi; Rintari, Nancy; Moguche, Abel
Purpose: To determine the effect of process innovation on financial performance of deposit taking saving and credit cooperative societies in Laikipia County, Kenya Methodology: The study used descriptive research design to collect data from nine deposit taking Saccos in Laikipia County. Specifically, the target population were 118 respondents who included 22 departmental managers and 96 support staff selected using census method. Notably, the study collected both primary and secondary data whereby primary data was collected in form of questionnaires from departmental managers and support staff. Secondary data was collected from financial reports such as income statement, whereby various financial ratios such as return on assets, return on equity, gross profit, net profit, liquidity ratio were noted. Further, the study conducted a pilot study in Bingwa Sacco in Kirinyaga County whose managing director, 3 departmental managers and 13 technical staff took part. The study also measured reliability using Cronbach Alpha Coefficient method while face, content and construct types of validity were measured. Further, SPSS software version 24 was used to analyze and generate various statistical reports whereby, in the analysis of the questionnaire, the study examined and generated descriptive statistics such as frequency, percentage and mean. Additionally, the study generated various linear regression statistics such as model summary and ANOVA of each independent variable. Thereafter the study generated inferential statistics to test the general model. Results: The results indicated that 92(82%) strongly agreed and 16(14%) agreed on a mean of 4.75, that there were effective complaint management processes which clients used in case of dissatisfaction. Further, 74(67%) strongly agreed and 17(15%) agreed on a mean of 4.23 that cheque clearance took less time since the system was able to process it faster. That notwithstanding, 74(67%) strongly disagreed and 21(19%) disagreed on a mean of 2.23, the Sacco management had invested a lot in equipping the Sacco with good working computerized systems. In addition, 65(58%) strongly disagreed and 31(28%) disagreed on a mean of 2.29, that the Sacco had established updated system checks to facilitate less downtime during financial transactions. Additionally, R was 0.864 while R-square was 0.747 at a Durbin Watson of 1.601. This meant that process innovation predicted 74.7% on financial performance which was positively correlated d at 1.601. Further, the p-value was 0.022 which was below than 0.05 and therefore, the study rejected null hypothesis. Unique contribution to theory, policy and practice: The study concluded that Sacco’s bid to incorporate ICT to assist in financial transaction such as having enough servers and skilled staff was still low hence increased system downtimes. Consistent downtime exposed the client deposits to cyber theft since the hackers noted this weakness and used to their advantage to commit crime. Therefore, the Sacco management should invest in secure servers to protect client’s information from unauthorized access or use. This could also involve wither hiring new ICT personnel or sharpening the skills of the current ICT staff through training and development. Additionally, the Sacco staff should maintain a strict policy of ensuring that they do not issue passwords to anyone or leave their computers logged in in their absence even when there is a system failure to reduce cyber hacking. Further, the Sacco ICT management should expand their domains to ensure that there are minimal system failures to facilitate smooth flow of operations.
Effect of Employee Engagement on the Operational Efficiency of Water Service Providers in Meru County, Kenya
(EPRA International Journal of Economics, Business and Management Studies, 2022-10) Juma, Winfridah Nafula; Moguche, Abel; Kanyiri, Adel
Operation efficiency is critical for the smooth running and sustainability of water utilities. Employee engagement is integral to the operational efficiency of non-profit organizations in Kenya, including water service sector. Studies show that when the employees are appropriately engaged, managed and monitored, the organizations will avoid unnecessary losses and costs, achieving operational efficiency. This research scrutinized the effect of employee engagement on the operational efficiency of water service providers in Meru County. The objectives analyzed the variables of delegation, consultation and unions and their influence on the operational efficiency of Water Service Providers in Meru County. The study was anchored on three theories: Classical scientific, AMO, and social exchange theories. The Research was conducted on two water service providers: Imetha Water and Sanitation Company Limited and; Meru Water and Sewerage Services. The target population was 200 employees involving the corporate management team, middle management, and operative employees. The researcher selected 132 sample respondents from the population for the study. The researcher adopted an expository research design approach. Data was gathered using questionnaires. Content validity was used in the study, and Cronbach's Alpha was employed to measure the reliability of the research instruments. KMO and Bartlett Tests were carried out to test the validity of the research instruments. Data collected was analysed and evaluated using SPSS (Version. 21) and presented in charts, tables, and graphs. The variables of the influence of employee engagement were correlated against the operational efficiency of water service providers using the Pearson product-moment correlation coefficient. The study hypothesis was tested using a two-tailed normal distribution test at a 5% significance level. The results indicated a P value was 0.000 (P< 0.05) implying that employee engagement had a significant effect on operation efficiency of water service providers in Meru County. The study recommended that the WSPs adopt employee engagement strategies improve their operational efficiency for sustainability purposes.
Influence of Strategic Planning on the Organizational Performance Among Commercial-Based Parastatals in Kenya
(Journal of Business and Strategic Management, 2023-04) Leral, Solomon Eramram; Rintari, Nancy; Moguche, Abel
Purpose: To examine the influence of strategic planning on the organizational performance among commercial-based parastatals in Kenya. Methodology: The study used a descriptive research design to collect data on a target population of six (6) commercial based parastatals. The respondents were 45 departmental managers and 151 administrative staff. The study obtained the sample size of 40 departmental managers and 110 administrative staff using simple random method. They were issued with closed and open-ended. Further, pre-test study was conducted at Kenya Airways where 4 departmental managers and 11 administrative staff. Additionally, descriptive analysis, frequency tables and explanation were used to illustrate the results. Further, inferential statistics were examined using multiple regression and correlation analysis. Results: The dependent variable results indicated that 75(69%) respondents strongly agreed on the highest mean of 4.37 (SD of 1.04), that the management motivated the staff to go and get a higher academic qualification. Additionally, on a mean of 3.67 (SD of 1.32), 51(48%) respondents strongly agreed that the number of clients has been increasing for the last few years. That notwithstanding, 85(79%) disagreed on a mean of 2.22 (SD of 0.73), that the parastatals had enough cash to meet their financial obligations effectively. The independent variable results indicated that 38(36%) and 19(18%) respondents strongly agreed and agreed respectively on a mean of 3.81(SD of 1.01), that strategic forecasting had significantly informed their strategic planning. This was closely followed by availability of resource allocation influenced employee motivation. This question had a mean of 3.55 (SD of 1.04) where 28(26%) respondents strongly agreed and 19 (18%) agreed on the sentiments. However, 39(36%) respondents strongly disagreed while 51(48%) disagreed that bench marking had always guided their strategic planning decisions on a mean score of 2.98 (SD of 1.04). The Pearson correlation coefficient was r=0.700** at α < 0.000 and 99% significance level indicating a positive correlation between strategic planning and organization performance. Unique contribution to theory, policy and practice: The basis of the parastatals’ strategic planning was not supported by any bench marking but rather a specific individual’s knowledge and experience. Therefore, when the individual at any capacity left the parastatal, the remaining team did not have a clear way of formulating strategies or benchmarking them with other corporates. The study recommends that there should be developed processes of strategic planning which are well documented by the management and have a policy to guide on what should done, who should be consulted and when should that happen in case of eventualities. Further, the management should encourage work mentorship from senior management to junior employees to orient them on management issues. This would help the employees gather relevant skills and knowledge to make strategic decision, when need be, on behalf of the parastatal.

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