Kenyatta University Repository
Kenyatta University Institutional Repository is a digital archive that collects, preserves and disseminates scholarly outputs of the Institution
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Fiscal Deficit On Cost Of Credit: Does It Matter? Insights from Selected Listed Commercial Banks in Kenya
(International Academic Journal of Economics and Finance, 2025-08) Ndung’u, Evanson Waweru; Musau, Salome
The banking sector is an integral player in any economy due to their role in financial intermediation. They collect surplus cash from savers and redistribute to borrowers. However, commercial banks have consistently suffered poor performance arising from high cost of credit. The exorbitant cost of lending has led to an enormous rise in non-performing loans during 2002 to 2023, which adversely impacted banks’ profitability. The study primarily aimed at examining the effect of fiscal deficit on lending costs for a subset of Kenyan Nairobi Stocks Exchange (NSE) listed commercial banks. The study was anchored on the Keynesian liquidity preference theory. A census of Kenya's NSE listed twelve commercial banks was the descriptive survey research design’s main focus. Using a secondary data collection sheet, the review amassed secondary data from 2007 to 2023 spanning 17 years. Pearson's correlation coefficient, panel multiple regression analysis, and descriptive statistics (mean score, frequencies, standard deviation, minimum, and maximum) analyzed data. Tables were used to display the results. The corrected Rsquare value demonstrated that fiscal deficit explains a substantial share of fluctuations in borrowing costs. Regression analysis evidenced that fiscal deficit positively and significantly influenced costs of credit. The review therefore concluded that fiscal deficit when properly managed can reduce the cost of credit thus leading to additional borrowing and economic growth. These results yield critical implications for commercial bank managers, policymakers and researchers. The results indicate that prudent fiscal deficit management is necessary to prevent excessive pressure on credit markets
Microfinance Services and Financial Performance of Deposit Taking Saccos in Nairobi City County, Kenya
(International Academic Journal of Economics and Finance (IAJEF), 2025-05) Kamurar, Margaret Siameto; Mbuva, Geoffrey
DT SACCOs are financial institutions which offer micro credit services to their members and as a result pivotal contribution towards poverty eradication and creation of jobs arises. However, the conceptual linkage between the aforementioned services they offer to their members and the fluctuating financial performance is still controversial. The academic concern of the current study was to interrogate the causal effect of micro finance services on financial performance of those DT-SACCOs carrying out their ordinary business activities in the County of Nairobi City Kenya. More precisely, the study aimed determining the effect of micro credit on financial performance of DTSACCOs in Nairobi City County, Kenya. Microfinance theory and bank-led theory are the two key suppositions underpinning the current investigation. Since the populace was made up of 42 unit of analysis which was the DT-SACCOs operating in Nairobi City County, survey approach was be relied upon by the researcher when collecting the necessary data. During the actual data collection exercise, the approach of drop and pick the questionnaire was relied upon by the researcher. The unit of observation was the corresponding 42 top management members of each SACCO aforementioned. A data collection schedule was most appropriate and was used for collecting the secondary data. Descriptive, correlational and inferential data analysis were performed after the diagnostic test was completed. It was revealed that micro credit influenced financial performance which was statistically significant and of direct nature. The management group of DT-SACCOs domiciled in the Nairobi City County, Kenya will benefit from the research findings for well-informed decision making will be much in order as far as financial performance improvement is concerned. The point here is that those financial institutions will be able to project the profitability in future with micro credit which they are aware of its prediction power when considered in isolation. SASRA which is a government arm will benefit from the research findings for the contextual viewpoint addressed herein pinpoints areas of enabling policy making to create user-friendly techno financing environment for DT-SACCO members which by extension will promote the socialwellbeing of the nationals in Kenya through more job creation. This study is of its kind in the academic frontier for the scholars will have a cornerstone to guide them on identifying the other relevant contextually researchable areas. That is the study outcome is a reliable empirical anchorage for the linkage between other micro finance services and profitability where by other unit of analysis such as commercial banks, Microfinance Banks which are financial institutions can be brought to research books. Therefore, more suitable empirical models may be created by factoring other micro finance service aspects which significantly address each financial institution.
Project Management Capabilities and Sustainability of Water Projects Funded by the County Government of Makueni, Kenya
(Strategic Journals, 2025-10) Mutevu, Kaluma; Kyalo, Josphat
This research project assessed the effect of project management capabilities on sustainability of water projects funded by the county government of Makueni, Kenya. A descriptive research approach was employed in the study. Data was obtained from 43 completed water projects with a target population of 100 stakeholders. Primary data was gathered utilizing questionnaires which served as the instrument for data collection. The study established that management commitment (β=0.061, p=0.004), stakeholder participation (β=0.1085, p=0.002), resource allocation (β=0.223, p=0.003) and (β=0.3304, p=0.002) had a positive significant effect on the sustainability of water projects funded by the county government of Makueni, Kenya. The study concluded that the management commitment ensured that the necessary resources, including financial, human, and technical resources are allocated to the water projects. Involving community members, local leaders, NGOs, and government agencies in planning, implementation, and monitoring ensures that projects meet community needs. By carefully prioritizing and distributing resources such as funding, manpower, and materials, the county government could ensure that projects are implemented efficiently and effectively. Digital inclusion improved communication and engagement with local communities which helped to build trust and collaboration between the government and the community, leading to more sustainable and successful water projects. The study recommended that to enhance management commitment to water project sustainability in Makueni Kenya, clear goals and objectivesneed to be set. The County government of Makueni, Kenya should involve community members, local leaders, and other relevant stakeholders in the planning, implementation, and monitoring of these projects. Enhancing resource allocation methods involves implementing more efficient and effective strategies to ensure that the limited resources available for water projects in Makueni County are utilized in a sustainable manner. The County government should invest in technology infrastructure such as mobile apps and online platforms that provide real-time information on water availability, quality, and usage.
Financial Management Practices and County Governments’ Financial Performance of Makueni County, Kenya
(International Academic Journal of Economics and Finance (IAJEF), 2025-05) Matheka, Faith; Kosgei, Margaret
There continue to exist challenges in the Kenyan County Governments’ financial performance despite the efforts put in place by the Ministry of National Treasury and Economic Planning to improve the County Governments’ financial performance. This is evidenced by the late submission of financial reports to the Controller of Budget by the County Treasuries, underperformance in own source revenue, presence of high pending bills at the end of each Financial Year, Low absorption of development budget and the failure to submit financial and non-financial reports for the established County Public funds. These aspects undermine the efficient financial performance of the County Governments. The study targeted to ascertain how Financial Management Practices impact on the County Governments’ financial performance with the objectives being to ascertain how financial management practices, financial reporting, financial planning, and control activities affect the County Government's financial performance. The theories employed in the research were the positive accounting theory, agency theory, stewardship theory and the fraud triangle theory. Descriptive research design was applied on all One hundred Makueni County Treasury staff members. First hand data was gathered through administering an online questionnaire using Google Forms. Data analysis was done using SPSS version 25 and MS Excel 2016. Data was presented using charts and tables. The adjusted Rsquared 45.7% of financial performance is explained by financial reporting, financial planning and control activities. The pvalues are less than 0.05 implying that financial reporting, financial planning and control activities are significant in explaining financial performance in Makueni county. The study concluded that financial planning, financial reporting and control activities influence financial performance of County governments. The government should ensure that all the employees adhere to the financial management practices to enable the government function effectively and improve on the financial performance. This will ensure that the resources are used prudently and that objectives of government are achieved
Financial Determinants and Financial Sustainability of Small and Medium-Sized Enterprises in Nairobi City County, Kenya
(International Academic Journal of Economics and Finance (IAJEF), 2025-02) Owino, Odhiambo Dancun; Irungu, Anthony; Muchiri, Bancy
Small and medium-sized enterprises encompass businesses with a workforce size ranging from ten to ninety-nine individuals. These enterprises are pivotal in fostering economic growth and job creation, constituting approximately ninety-eight percent of all businesses in Kenya. However, there is a worrisome trend of limited growth in new SME formations, and many of them face closure within the initial five years due to financial constraints and other factors. The study explored financial factors that affect the sustainability of SMEs in Nairobi City County. The primary goal was to identify the financial determinants and assess the sustainability of SMEs in this specific region. To achieve this, the study focused on examining the effect of access to finance, financial innovation, financial management and financial risk management on SME sustainability. The agency, pecking order, modern portfolio and diffusion of innovation theories guided the study. A descriptive research design was employed, utilizing a sample of 347 SMEs. Secondary data was obtained through templates and primary data was gathered via questionnaires. The collected data was analyzed using inferential and descriptive statistics, including regression econometric modeling. Findings were presented through frequency tables, graphs and percentages. Findings revealed that access to finance is statistically significant in explaining financial sustainability of SMEs (β =0.245, p < 0.05). It was noted that financial innovation is statistically significant in explaining financial sustainability of SMEs (β= 0.317, p