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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Moderating Effect of Environmental Regulatory Framework on the Relationship Between Green Investment Initiatives and Profitability of Manufacturing Firms in Kenya
(Stratford Peer Reviewed Journals and Book Publishing, 2026-02) Karanja, Teresiah Wairimu; Warui,Fredrick Waweru; Aluoch, Moses Odhiambo
Despite their importance, manufacturing companies continue to encounter ongoing profitability challenges. Over the past decade, listed manufacturing firms in Kenya have experienced a consistent decline in return on assets (ROA), which reflects diminishing efficiency in asset utilization. This study aimed to assess how green investment practices influence the profitability of manufacturing companies in Kenya, while also examining the moderating influence of environmental regulations on this relationship. The research was underpinned by five theoretical perspectives: the Porter Hypothesis, Sustainable Finance Theory, Transaction Cost Economics Theory, Dynamic Capability Theory, and Institutional Theory. The study focused on ten manufacturing companies registered and publicly traded on the Nairobi Securities Exchange (NSE). Findings from correlation and regression analyses indicated that all four categories of green investment were positively and significantly associated with profitability. Among these, energy efficiency investments demonstrated the most substantial positive impact (r = 0.641, B = 0.821, p = 0.000), followed by investments in green supply chain management (r = 0.241, B = 0.447, p = 0.013) and renewable energy initiatives (r = 0.182, B = 0.314, p = 0.039). Sustainable waste management practices also showed a positive relationship with profitability, though the contribution was relatively modest (r = 0.094, B = 0.192, p = 0.233). Collectively, the green investment variables accounted for 38.6% of the variance in firm profitability (R² = 0.386), indicating considerable explanatory power. When the environmental regulatory framework was incorporated as a moderating variable, the explanatory strength of the model increased to 45.7% (R² change = 0.071, F change = 4.189, p = 0.006). This suggests that regulatory support amplifies the financial benefits derived from green investments. The study concludes that green investment initiatives significantly contribute to enhanced profitability in manufacturing firms, with regulatory policies providing a supportive, albeit limited, moderating effect. It recommends that policymakers reinforce environmental regulations and introduce incentives that encourage sustainable industrial investment. Manufacturing companies are also encouraged to embed green practices into their core operations as a strategy to boost competitiveness and profitability
Moderating Effect of Capital Inflows on the Relationship Between Systematic Risks and Stock Market Return Volatility Among Firms Listed at the Nairobi Securities Exchange, Kenya
(Stratford Peer Reviewed Journals and Book Publishing, 2026-02) Kinuthia,David Ngugi; Warui, Fredrick; mithi, Festus
The study assessed the moderating effects of capital inflows on the relationship between systematic
risks and stock market return volatility among firms listed at the NSE, Kenya. Volatility in the stock
market in Kenya has been on the rise in the recent years. Capital inflows can impact stock market
volatility by affecting overall market liquidity and investor sentiment. Sudden changes in capital flows,
such as large-scale foreign selling or buying, can exacerbate market volatility as prices adjust to
accommodate the influx or outflow of funds. Empirical studies found conflicting findings and displayed
research gaps that this study sought to fill. The study was anchored on positivism philosophy and
correlational research design. The target population was all 62 NSE listed firms listed between 2014
and 2024. Secondary data was collected from NSE, KNBS, CMA and world bank reports using data
collection sheet. The data was analyzed through descriptive statistics and multiple regression. The study
found that individual interaction terms were insignificant, including inflation (β = -0.0172, p = 0.428),
exchange rate (β = 0.0368, p = 0.306), and interest rate (β = -0.0215, p = 0.389). Hence, capital inflows
had no significant moderating effect on the relationship between systematic risks and stock market
return volatility. The study concludes that capital inflows have no significant moderating effect on the
relationship between systematic risks and stock market return volatility of firms listed at the NSE
Kenya. The study recommends that regulatory bodies such as the CMA and CBK develop policies that
encourage productive and long-term capital inflows. The CMA and CBK should establish early warning
mechanisms that monitor capital flow volatility and its potential spillover effects on equity market
stability. Market regulators should also enhance investor education initiatives so that market participants
are better equipped to respond rationally to changes in capital flow patterns, thereby reducing sentimentdriven volatility in the Kenyan stock market
Prudential Requirements and Financial Performance of Commercial Banks Listed at the Nairobi Securities Exchange, Kenya
(Kenyatta University, 2025-09) Musili, Johnstone Muimi
Commercial banks have a vital and varied function they perform. In Kenya, commercial banks
are essential to industrialization and job creation as well as the financial development of the
majority of market participants. Nonetheless, commercial banks' financial performance has
been deteriorating over time. For example, profitability fell to Ksh.112.1 billion in 2020 from
Ksh.159.1 billion in the prior financial period—a 29.5% negative shift. The conceptual linkage
between commercial banks' financial performance and regulatory standards has portrayed
dissimilar debate amongst scholars over the years. This study focused on the precise goals
listed; exploring the influence of liquidity, capital adequacy, and asset management on the
Nairobi Securities Exchange's (NSE) listing commercial banks' operating results. The
investigation was anchored on Keynes liquidity preference, the capital buffer and the liabilities
management theories. The investigation utilized causal-effect research approach. The target
audience comprise of eleven (11) listed commercial banks in NSE, Kenya whereby census
approach was used therein. The study analysis was based on descriptive as well as panel
regression analysis.Prior to drawing investigational deductions and conclusions, diagnostic
testing was conducted. The outcome was presented using tables and figures. Ethical issues
were given pre-eminence where a permit from Kenyatta University graduate school was sought
and NACOSTI in that order. Findings unveiled that liquidity exhibited a statistically significant
direct influence on financial performance; capital adequacy indeed exerts a significant and
positive influence on financial performance; and asset management depicted negative
influence on financial performance, which was statistically significant. The survey advices that
the banks should focus on other risk management strategies, such as credit risk, operational
risk, and market risk to enhance their performance financially. Implementing robust risk
management frameworks and diversifying risk exposure would help ensure overall financial
stability and resilience
Tathmini ya Maigizo ya Wahusika Walemavu Katika Kipindi cha Sultana Kwenye Runinga ya Citizen Nchini Kenya
(Kenyatta University, 2025-09) Getate, Caroline Kemunto; King'ei, Kitula
Osore, Miriam
Kipindi cha Sultana kilipeperushwa kwenye runinga ya Citizen nchini Kenya kuanzia
Machi, 2022 hadi Julai, 2023. Kipindi hicho kilihusisha wahusika mbalimbali wakiwemo
walemavu. Tafiti za awali zimechunguza usawiri wa wahusika walemavu katika njia hasi.
Utafiti huu ulilenga kuziba pengo hilo kwa kuchunguza usawiri wa wahusika walemavu
kwenye vipindi vya televisheni kwa njia chanya. Hivyo basi, utafiti huu ulilenga
kuchunguza maigizo ya wahusika walemavu kwenye kipindi hicho. Suala la utafiti
lilikuwa kutathmini maigizo ya wahusika walemavu katika kipindi cha Sultana katika
runinga ya Citizen nchini Kenya. Malengo ya utafiti huu yalikuwa; kujadili maudhui
yanayowasilishwa na wahusika walemavu katika kipindi cha Sultana kwenye runinga ya
Citizen, pili, kubainisha sifa za wahusika walemavu katika kipindi cha Sultana kwenye
runinga ya Citizen na kufafanua mbinu za maigizo zinazotumika na wahusika walemavu
katika kipindi cha Sultana kwenye runinga ya Citizen. Utafiti huu uliongozwa na nadharia
ya Maigizo (Turner, 1969) inayosisitiza umuhimu wa kudhihirisha mitagusano ya
wanajamii kwenye maisha yao halisi kupitia matendo yao kwenye jukwaa. Aidha,
nadharia hii inaonyesha manufaa ya hadhira katika kuchunguza vitendo vya waigizaji
kwenye jukwaa. Utafiti huu ulifanywa maktabani na nyanjani. Maktabani mtafiti
alidurusu vitabu, majarida, tasnifu na miswada mbalimbali kuhusu uigizaji, mbinu za
utafiti na nadharia ya Maigizo. Utafiti wa nyanjani ulihusu ukusanyaji wa data kwa
kuhusisha mahojiano na kurekodi. Vifaa vya utafiti vilivyotumiwa ni simu ya rununu,
tarakilishi na mwongozo wa mahojiano. Jumuiya ya utafiti ilikua waigizaji walemavu wa
viungo na wa tabia wa kipindi cha Sultana cha runinga ya Citizen. Sampuli ya utafiti
iliteuliwa kimaksudi ili mtafiti aweze kupata data ya malengo ya utafiti. Data ilikusanywa
kwa kutazama, kusikiliza na kunukuu majibu ya maswali kutoka kipindi kiteule. Data
ilichanganuliwa kwa njia ya maelezo kwa kuzingatia nadharia ya Maigizo, maswali na
malengo ya utafiti. Matokeo ya utafiti yaliwasilishwa kimaelezo. Utafiti ulibaini kuwa
wahusika walemavu wa viungo na wa tabia wanawasilisha maudhui mbalimbali.
Wahusika walemavu wanawasilisha maudhui ya bidii, mapenzi, ujasiri na unyanyapaa
ilhali wale wa tabia wanawasilisha maudhui ya ukatili, mauaji, tamaa na utabaka. Utafiti
pia umeonyesha kuwa wahusika walemavu wana sifa mbalimbali wanazotumia
kuwasilisha maudhui. Wahusika walemavu wa viungo wanadhihirisha kuwa na
ukakamavu, hasira, ubinafsi, upweke, uvumilivu na hekima ilhali wale wa tabia
wanadhihirisha kuwa na taasubi ya kiume, ukatili, udanganyifu, tamaa, ukaidi na
uchochezi. Aidha, mbinu mbalimbali zilitumiwa na wahusika walemavu. Mbinu hizi ni
pamoja na kufananisha, ishara za mwili, mazungumzo na hisia na mielekeo ya wahusika.
Utafiti huu utasaidia kuongeza data muhimu katika taaluma ya fasihi. Pia, utawafaa
watafiti watakaotumia nadharia ya Maigizo kwa kurejelea mihimili yake ambayo mtafiti
amejadili kwa kina.
Determination of an Absorption-Based Revenue Sharing Formula and Its Implications on Corruption Perception in Kenya
(Kenyatta University, 2025-11) Waweru, Misheck Njihia
Kenya's devolved governance system faces systematic under-utilization of allocated resources,
with county governments achieving only 16% absorption of development budgets and
accumulating Kes 180.52 billion in pending bills, indicating fundamental misalignment between
current revenue-sharing formulas and county absorption capacities that has persisted across three
formula generations since 2013. The study aimed to develop an absorption-based revenue-sharing
formula incorporating all devolved functions, quantify excess revenue created by existing
allocation mechanisms, and examine the relationship between excess allocations and county
corruption perceptions. Using panel data analysis for all 47 counties from FY 2013/14 to 2020/21,
the research employed constrained regression methodology anchored on Second-Generation Fiscal
Federalism Theory and Absorption Capacity Theory, measuring county capacity through
expenditure patterns across eight devolved functions with correlation analysis examining
governance implications. For the first objective, the empirically-derived absorption-based formula
identified water services as the most critical determinant (coefficient = 29.12, p < 0.001), followed
by youth services (coefficient = 15.40, p < 0.001) and health services (coefficient = 13.73, p <
0.001), with education (coefficient = 10.75, p < 0.01), trade development (coefficient = 9.33, p <
0.05), environmental conservation (coefficient = 7.38, p < 0.05), agriculture (coefficient = 7.26, p
= 0.065), and housing (coefficient = 7.03, p = 0.09) also contributing significantly. For the second
objective, analysis revealed that 32 counties received KES 60.638 billion above their demonstrated
absorption capacity, representing 25% of total allocations, with individual excess ranging from
KES 59.87 million (Bomet) to KES 4,307.25 million (Wajir), compared to projected sharable
revenue of KES 178 billion versus actual allocations of KES 238.65 billion. For the third objective,
correlation analysis showed a weak negative relationship (-12.46%, p < 0.1) between excess
revenue and corruption perceptions, suggesting governance quality moderates resource-corruption
dynamics more than absolute resource levels. The study concludes that current allocation
mechanisms systematically create resource misalignments representing fiscal inefficiency rather
than temporary capacity constraints, with absorption-based formulas offering superior efficiency
by aligning incentives with demonstrated capacity across all functional areas. The Commission on
Revenue Allocation should adopt the empirically-derived absorption-based formula through
phased three-year implementation, establish comprehensive county capacity building programs
targeting water services, youth development, and health systems as priority areas, and implement