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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Effect of Stock Market and Bank Development on Savings in Sub-Saharan Africa
(Kenyatta University, 2025-12) Kemosi, Desmond Aoga
Savings is regarded as one of the avenues to achieve higher economic growth and standards of living. Despite this significance, the savings rate remains low in Sub-Saharan Africa compared to the global average, middle- and high-income countries. It is, therefore, critical to understand the drivers of savings so as to realize its potential effect on growth. Literature suggests that the expansion of stock markets and banks plays a critical role in mobilizing savings. Theory predicts that stock markets and banks promote savings by lowering transaction costs, addressing information asymmetry, and offering enhanced opportunities for diversification hence, lower risks. Empirically, it is anticipated that stock market and bank advancement will promote savings. This theoretic and empirical predictions notwithstanding, the part plaid by security market expansion and bank expansion on mobilization of savings has not received much attention in literature, particularly in Sub-Saharan Africa. The study’s goal therefore, is to determine the outcome of stock market progress and bank expansion on savings in Sub Saharan Africa. The study analyzed panel data for 17 countries using the random effects model. The data was obtained from the World Bank. The study obtained indications of a significantly positive effect of liquid stock markets on savings in Sub-Saharan Africa. Regarding effect of bank development on savings, the study reports that bank expansion, assessed by private sector credit, hinders savings in Sub-Saharan Africa. Regarding control variables, the study finds that economic growth promotes savings in the region. Conversely, the impact of interest rates is significantly negative while that of inflation is insignificantly negative. These findings have shown that the expansion of liquid securities markets and higher economic growth promote savings. Policy makers should, therefore, enact policies to ensure highly liquid stock markets for higher national savings. Policy makers should also advance growth friendly policies to enhance disposable income and higher savings rates. Finally, the finding that interest rates, as measured by real deposit rates, negatively affects savings may reflect low levels of interest on deposits. Policies to enhance returns on deposits may thus be required to promote higher savings. The finding that the effect of security market growth, measured by shares traded ratio, on savings is negative and significant reflects low market activity. Further studies on causes of low levels of stock market activity will enrich available knowledge.
Sustainable Finance and Financial Performance of Selected Commercial Banks in Kenya
(Kenyatta University, 2025-11) Maroa, Ibrahim Jackson
This study generally aimed at examining sustainable finance and financial performance of identified
Kenyan commercial banks. The specific objectives were to examine the effect of impact investments
on the financial performance of selected commercial banks in Kenya; assess how green banking
affects the financial performance of selected commercial banks in Kenya; examine the effect of credit
risk sustainability assessment on the financial performance of selected commercial banks in Kenya;
determine the moderating effect of bank size on the relationship between sustainable finance and
financial performance of selected commercial banks in Kenya. A causal research design was
employed in answering the pertinent questions. Particularly, 10 commercial banks that have complied
with the regulations of sustainable finance within Nairobi City County were targeted. All of the
commercial banks which have initiated and adopted sustainable finance programs in their activities
were purposively selected. Data was gathered out of the two sources, primary and secondary.
Therefore, original evidence collected from surveys, while existing materials from previous research,
print media and the internet sources were also gathered. Questionnaires were utilized in the collection
of raw information from 41 participants, after which it was refined and structured for analysis using
numerical numbers. The data was then uploaded into SPSS software for analysis. Measurement of
how the variables related to each other entailed the analysis of distributions, as well as predictive
data. Content analysis technique enhanced qualitative data analysis. The outcome established that the
regression model for this study was highly significant, with an F-statistic of 213.407 (p < 0.05) and
an adjusted R-squared of 0.671, indicating the model explained 67.1% of the variance in bank
financial performance. Impact investment and credit risk sustainability assessment (β = 0.109, p =
0.001) have a statistically significant and positive effect on the financial performance of commercial
banks in Kenya (β = 2.682, p = 0.045, and β = 0.109, p = 0.00, respectively). In contrast, green
banking exhibited a significant negative relationship with financial performance (β = -3.702, p =
0.000). The moderating effect of bank size produced mixed outcomes, with no significant moderation
for impact investment (β = -0.014, p = 0.269) and green banking (β = -0.147, p = 0.156), but a strong
positive moderation for credit risk sustainability assessment (β = 0.575, p = 0.005), showing that
larger banks derive greater financial benefits from sustainability-linked risk management practices.
It was concluded that while impact investments and sustainability-linked credit risk assessments
enhance financial performance, green banking currently poses short-term financial challenges for
commercial banks in Kenya due to high implementation costs and low market uptake. The study
recommends that banks should strategically allocate capital to measurable impact investments, adopt
phased and cost-effective green banking initiatives, and integrate ESG criteria into credit risk
assessment processes to improve portfolio quality and profitability. Future studies should explore
sustainable finance practices across other sectors to assess comparative outcomes and identify
strategies for aligning financial sustainability with broader corporate performance goals. This study
contributes to knowledge by demonstrating that sustainable finance is multidimensional, producing
distinct financial effects depending on the specific practice and institutional context.
Compensation Practices and Employees’ Performance in the Insurance Companies in Nairobi City County, Kenya
(Kenyatta University, 2025-11) Masoud, Mohamed Ali
The insurance companies in Kenya have been posting poor employee performance results
in the recent past. These instances could be seen from the increase in fraud cases
involving employees in the insurance companies in Kenya. Employees’ performance is
fundamental for any organization, thus ought to be monitored. This in the premise that
optimal employees’ performance has a ripple effect on organizational performance. One
way of boosting employees’ performance is through compensating them well. This study
therefore sought to research on the effect of compensation practices on employees’
performance in the insurance companies in Nairobi City County, Kenya. Precisely, the
study investigated the effect of salaries and wages, Professional allowances, Individual
incentives and, Fringe benefits on employees’ performance in the insurance companies in
Nairobi. The equity theory, the expectance theory, the agency theory and the balanced
scorecard theory were reviewed so as to support this proposal. The study used the
descriptive research design. The target population was drawn from a pool of insurance
companies operating in Nairobi. The stratified random sampling method was employed in
picking the sample size of 162 units from the target population of 270 units. The
employees in the human resources, finance and sales departments of the insurance
companies in Nairobi constituted the earmarked respondents to this study. This current
study employed primary quantitative data which was collected via questionnaires.
Several diagnostic tests such as the test for normality, linearity, autocorrelation and
multicollinearity were carried out in this study. F-test in ANOVA as well as the
coefficient of determination was conducted before ultimately running the regression
model. The p-value statistics from the regression model was used in answering the
research questions. Ultimately, conclusion and recommendation were given. The study
used tables, graphs, charts and plots in presenting the overall trend of the data. The study
revealed that salaries and wages, professional allowances, individual incentives and
fringe benefits had a positive significant effect on employees’ performance. The study
concludes that offering competitive salaries helps attract top talent in a highly
competitive industry. Professional allowances alleviate the financial burden of job-related
expenses, leading to higher job satisfaction. Personalized incentives resonate more with
employees, as they reflect individual preferences and values leading to higher levels of
motivation and engagement, as employees feel their unique contributions are recognized
and valued. The study recommends that the companies should conduct regular market
surveys to ensure that salary offerings are competitive with industry standards. The
companies should implement a structured bonus system tied to individual and team
performance metrics. The companies should develop programs that reward employees for
achieving specific performance metrics, such as sales targets or customer satisfaction
scores. The companies should offer a strong health plans that cover a wide range of
medical services, including mental health support.
Business Strategic Initiatives and Organizational Performance of Import Pharmaceutical Companies in Kenya
(Kenyatta University, 2025-08) Migwi, Mary Waithira
Kenya relies heavily on imported pharmaceuticals, which account for 70% of its
healthcare market. The performance of import pharmaceutical companies is therefore
vital to
nationalhealth outcomes. These companies face challenges related to
profitability, market share, customer retention, and inventory turnover. This study
examined the influence of business strategic initiatives on organizational performance of
import pharmaceutical companies in Kenya , focusing on pricing, debt collection,
employee engagement, and strategic alliance initiatives. The study applied the Balanced
Scorecard, Resource Dependency Theory, Cash Conversion Cycle Theory, and
Resource-Based View. Using a descriptive research design, data was collected via
structured questionnaire from 296 employees selected from 125 registered import
pharmaceutical companies. The target population was 6,356 respondents. A pilot study
involving 38 respondents, confirmed content validity which was 0.8. Reliability was
0.81, computed using Cronbach’s alpha method with the aid of statistical package for
social sciences. Data was analyzed using descriptive and inferential statistics at a 95%
confidence level. Results showed that the four initiatives positively correlated with
organizational performance of import pharmaceutical companies in Kenya, with strategic
alliance initiatives (r = 0.790) and debt collection initiatives (r = 0.748) showing the
strongest effects, followed by employee engagement initiatives (r = 0.676) and pricing
initiatives (r = 0.600). Regression analysis confirmed these relationships, though pricing
initiatives had an insignificant effect. In conclusion, the study found that strategic
alliance initiatives provided the greatest boost to organizational performance of import
pharmaceutical companies, while effective debt collection initiatives played a key role in
maintaining financial stability. However, pricing and employee engagement initiatives
needed to be carefully aligned with customer and workforce expectations, as poor
implementation risked negative impacts on organizational performance. The study`s
recommendations included adopting value-based pricing, enhancing debt recovery
through digital tools, aligning engagement initiatives with workforce needs, and
strengthening strategic partnerships. The study adhered to ethical standards and offers
valuable insights for policymakers and industry stakeholders, supporting sustainable
growth in Kenya’s pharmaceutical sector and guiding future research on tailored
strategic initiatives.
Micro Finance Services and Financial Performance of Deposit Taking Saccos in Nairobi City County, Kenya
(Kenyatta University, 2025-09) Siameto, Margaret Kamurar
DT SACCOs are financial institutions which offer microfinance services to their members
and as a result pivotal contribution towards poverty eradication and creation of jobs arises.
However, the conceptual linkage between micro finance services they offer to their
members and the fluctuating financial performance is still controversial. The academic
focus of the current investigation was to interrogate the degree to which micro finance
services influence financial performance of those DT-SACCOs carrying out their ordinary
business activities in the County of Nairobi City Kenya. Specifically, it aimed to determine
the effect of micro credit on financial performance of DT-SACCOs in Nairobi City County,
Kenya, to evaluate the effect of micro savings on financial performance of DT-SACCOs
in Nairobi City County, Kenya and to examine the effect of micro insurance on financial
performance of DT-SACCOs in Nairobi City County, Kenya. Finance growth nexus
theory, microfinance theory and bank-led theory are the three key suppositions
underpinning the current investigation. Since the populace was made up of 42 DT
SACCOs operating in the City of Nairobi, located in Nairobi County, survey approach was
be relied upon by the researcher when collecting the necessary data. Questionnaires were
the tools dropped and picked by the researcher after they were duly filed. 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. The key research findings were as
follows, micro credit influenced financial performance which was statistically significant
and of direct nature. For micro savings there was direct influence on financial performance
and for the case of micro insurance, there was statistically significant adjustment of
financial performance, which was direct. 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, micro savings and micro insurance
which they are aware of their prediction power when considered as a composite score and
not each in isolation. SASRA which is a government arm will benefit from the research
findings for it will establish user friendly policies which factor in techno innovation for
more job creation. In the academic frontier the empirical results act as a cornerstone to
guide them on identifying the other relevant contextually researchable areas. That is the
outcome depicts the philosophical 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.