RP-Department of Business Administration

Permanent URI for this collection

https://repository.ku.ac.ke/handle/123456789/7716

Browse

Browsing RP-Department of Business Administration by Author "Abdul, Farida"

Now showing 1 - 3 of 3
  • Thumbnail Image
    Item
    Determinants of Average Lending Rates among Selected Commercial Banks in Kenya
    (2018) Itimu, Samuel Mwaura; Abdul, Farida
    Despite liberalization of Kenya’s financial sector in 1991, Kenya has become less competitive in terms of affordability of financial services and access to loans compared to countries such as South Africa and Malaysia whose private sector credit to GDP ratio are above 100 percent compared to Kenya’s private sector lending which stands at 40% of GDP. Financial sector liberalization has led to increased financial services access as evidenced by CBK data where 26.4% of the population in 2006 could access financial services compared to 66.9% in 2013(CBK) Newsletter No.1 December 2014.This remarkable growth is as a result of financial innovation including mobile banking, agency banking and credit information sharing which has translated to economic growth but has not led to matched increased access to credit. High cost of credit and operational inefficiency among commercial banks in Kenya limits the access of loans to the private sector and individuals which ultimately slows economic growth and development. The study is on the probable determinants of average lending rates among commercial banks in Kenya which include Bank Specific factors such as Non-performing loans, Operating costs, capital adequacy, and Bank size and liquidity risk. Also industry factors such as Kenya Banks Reference Rate and Central Bank Rate are included in the study. The effect of Credit information Sharing and Government Domestic borrowing on lending rates among commercial banks and intervening variable inflation be studied. The study employed a descriptive research design and the population consisted of eleven listed commercial Banks in Kenya. The Target population was staff of the eleven listed banks working in Credit and Risk and Compliance departments. A sample size of 33 was derived from three staff from credit and risk and compliance departments of each of the listed commercial banks in Kenya. Purposive sampling technique was used to collect data. Secondary data was collected from published journals and financial statements. The financial statements for the year 2012, 2013, 2014, 2015 and 3rdquarter of 2016 were used. Correlation and multiple regression analysis was used to analyze the nature and degree of relationship between the independent and dependent variables. Statistical package for social sciences was utilized to aid in data analysis. Summary of findings on the objectives was done, conclusion and recommendations to various stakeholders made.
  • Thumbnail Image
    Item
    Determinants of Average Lending Rates among Selected Commercial Banks in Kenya
    (International Academic Journals, 2018) Itimu, Samuel Mwaura; Abdul, Farida
    Despite liberalization of Kenya’s financial sector in 1991, Kenya has become less competitive in terms of affordability of financial services and access to loans compared to countries such as South Africa and Malaysia whose private sector credit to GDP ratio are above 100 percent compared to Kenya’s private sector lending which stands at 40% of GDP. Financial sector liberalization has led to increased financial services access as evidenced by CBK data where 26.4% of the population in 2006 could access financial services compared to 66.9% in 2013(CBK) Newsletter No.1 December 2014.This remarkable growth is as a result of financial innovation including mobile banking, agency banking and credit information sharing which has translated to economic growth but has not led to matched increased access to credit. High cost of credit and operational inefficiency among commercial banks in Kenya limits the access of loans to the private sector and individuals which ultimately slows economic growth and development. The study is on the probable determinants of average lending rates among commercial banks in Kenya which include Bank Specific factors such as Non-performing loans, Operating costs, capital adequacy, and Bank size and liquidity risk. Also industry factors such as Kenya Banks Reference Rate and Central Bank Rate are included in the study. The effect of Credit information Sharing and Government Domestic borrowing on lending rates among commercial banks and intervening variable inflation be studied. The study employed a descriptive research design and the population consisted of eleven listed commercial Banks in Kenya. The Target population was staff of the eleven listed banks working in Credit and Risk and Compliance departments. A sample size of 33 was derived from three staff from credit and risk and compliance departments of each of the listed commercial banks in Kenya. Purposive sampling technique was used to collect data. Secondary data was collected from published journals and financial statements. The financial statements for the year 2012, 2013, 2014, 2015 and 3rdquarter of 2016 were used. Correlation and multiple regression analysis was used to analyze the nature and degree of relationship between the independent and dependent variables. Statistical package for social sciences was utilized to aid in data analysis. Summary of findings on the objectives was done, conclusion and recommendations to various stakeholders made.
  • Thumbnail Image
    Item
    Investment Incentives and Effective Corporate Tax Rate for Manufacturing Firms in Kenya
    (Canadian Center of Science and Education, 2024-01) Nganyi, Silas Muyela; Koori, Jeremiah; Abdul, Farida
    Effective corporate tax rate is a finance subject of interest to firms, policy makers and researchers. It measures level of tax burden at firm level. Thus, governments implement various investment incentives to influence effective corporate tax rate. The effective corporate tax rate in Kenya is still a problem averaging 31.3 percent for the last 10 years. Such high effective corporate tax rate militates against desired competitive corporate environment for the manufacturing sector. In the last ten years, the manufacturing sector has deteriorated to 7.4 percent contribution to gross domestic product which is less than 15 percent as envisaged in Kenya Vision 2030. This undesirable phenomenon prompted design of this study. The objective of the study was to determine the effect of investment incentives on effective corporate tax rate. The study adopted positivist philosophy and longitudinal research design. A sample of 278 firms provided secondary data for the period 2010 to 2020. Descriptive and inferential statistics were conducted using panel data regression. The study established that investment incentives are statistically significant predictors of effective corporate tax rate for manufacturing firms in Kenya. The study recommends that public policy makers should design appropriate profit based, capital investment and custom duty incentives as part of fiscal policy instruments to grow firms involved in manufacturing. The study has added to finance knowledge that fiscal policy affects corporate operations. However, there is need for further investigation on other possible investment incentives that were not covered in this study that influence effective corporate tax.