Browsing by Author "Gatauwa, James"

Now showing 1 - 5 of 5
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    Capital Structure and Firm Efficiency of Deposit Taking Saccos in Kenya
    (Journal of Finance and Accounting, 2024-04) Gichinga, Raphael Njenga; Gatauwa, James; Kimutai, Carolyne
    The stability and resilience of SACCOs' performance stood out both during and after the coronavirus epidemic. However, the average variable returns to scale regarding the ratio of members' deposits to loans issued by SACCOs is inefficient, with a ratio of less than one. This inefficiency impacts revenues and, in turn, the interest paid on members' deposits.. This study sort to investigate the effect of capital structure on the firm efficiency of deposit taking saccos in Kenya and was anchored on financial intermediation Theory, economic efficiency theory and capital structure theories. The study adopted a positivist paradigm and causal research design and target population of all 176 saccos as at 2021.A data review guide was used to extract secondary quantitative data from the saccos published financial reports from year 2015 to 2021. Stata version 13 was employed to run descriptive and inferential statistics after computing efficiency scores using data envelopment analysis model and results presented in graphs and tables. The study findings indicate that saccos efficiency has an increasing growth trend though not optimal with variable return to scale contributing the highest levels in efficiency relative to scale efficiency while capital structure does not significantly affect level of efficiency. The study recommends that the deposit-taking savings and credit management board strategize and implement a rebate payment policy, comply with regulations on external borrowing, and improve strategies for collecting deposits. Additionally, the study suggests further research to determine if specific elements of capital structure significantly influence the efficiency of deposit-taking savings and credit societies.
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    Credit Risk and Financial Performance of Fully Fledged Islamic Banks in Kenya
    (International Journal of Managerial Studies and Research, 2023) Ibrahim, Shukri Abshir; Gatauwa, James; Abdul, Farida
    Islamic banks must carefully analyze the loans granted in order for them to get back the loans as per the agreements. The aim of this study was to assess how credit risk affects financial performance of Islamic Banks in Kenya. The agency theory and the modern portfolio theory guided the inquiry. Descriptive research design was embraced targeting 3 commercial banks offering Islamic products in Kenya and census was used. Secondary cross sectional quarterly data on particularly loan loss provisions and total loans was collected although other associated data on total liquid assets, total deposits, loan loss provisions, total loans, exchange rates fluctuation, total employee expenses, number of employees and net income was collected for the period 2017 all through to 2021 to help augment the results. Three regression models were used to estimate the link between Islamic banking risk, bank size and financial performance. It emerged that credit risk (r=0.463, β= -0.249, p<0.05), significantly affect financial performance of Islamic banks in Kenya. It was recommend that the credit managers of the Islamic banks in Kenya should review the existing credit risk management framework and mechanisms to manage the increasing trend in NPLs.
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    Environmental Sustainability Reporting and Financial Performance of Firms Listed at the Nairobi Securities Exchange, Kenya
    (. IOSR Journal of Economics and Finance, 2024) Kipngetich, Geoffrey C.; Gatauwa, James
    Despite the benefits associated with environmentally sustainable reporting however, most firms in developing countries like Kenya only implement such practices to for compliance reasons. This study sought to establishing whether their performance and environmental sustainability reporting are related of Nairobi Security Exchange (NSE) listed firms. Specific objectives include climate action reporting, responsible consumption and production reporting, sustainable innovation reporting and reporting on the success of NSE listed companies' utilization of sustainable energy. Stakeholder, institutional theory, the theory of CSR, and theory of impression management all lend support to the study. An explanatory design was employed. The target population was 116 respondents from 58 firms listed in NSE. The study adopts census approach to study all the Listed firms. The data collection instrument to be used was a semi-structured questionnaire. While theme analysis was used to examine quantitative data, descriptive, inferential, and other statistics was employed. A multiple linear regression model was adopted for analysis. The diagnostic tests used in the research include normality test, multicollinearity test, Heteroscedasticity, linearity and analysis of variance. The study established that sustainable energy use reporting, sustainable innovation reporting, Sustainable energy use reporting, and sustainable innovation reporting significantly influences financial performance, this accounts for the variation in financial performance among companies listed on the NSE and concluded that there is a high correlation between the financial performance of firms listed on the NSE. Environmental sustainability reporting variables were found to have a statistically significant effect on financial performance. When applied effectively, environmental sustainability reporting may enhance financial performance. Furthermore, the research suggests that companies listed on the NSE should employ sustainability reporting in the following strategic ways: incorporating sustainability into the business model, accepting responsibility for the sustainability performance of products and services, including the whole company, and engaging in collaborations.
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    Financial Behavioral Biases and Growth of Commercial Real Estate Investment Firms in Nairobi City County, Kenya
    (International Journal of Finance and Accounting, 2025-11) Mososi, Gilbert Oyugi; Gatauwa, James
    Purpose: The study aimed to examine the influence of financial behavioral biases on the growth of commercial real estate investment firms in Nairobi City County, Kenya. It specifically focused on assessing how heuristic biases, prospect-related tendencies, herding behavior, and market-influenced decision-making affect firm expansion within the commercial real estate sector. Methodology: A descriptive research design was employed, targeting 69 commercial real estate firms registered under the Kenya Property Developers Association (KPDA). From these firms, 276 key managers—finance, property, residential site, and portfolio managers—were identified as the target population. Using non-probability convenience sampling, 164 managers were selected to participate. Primary data were collected using structured questionnaires. Data analysis was conducted using SPSS version 22, employing both descriptive statistics (means, frequencies, percentages) and inferential statistical techniques. Findings: The study found that financial behavioral biases significantly and negatively influence the growth of commercial real estate investment firms. Investors demonstrated heightened sensitivity to losses compared to gains and displayed a tendency to rely on peer influence rather than professional advice. These biases contributed to suboptimal investment decisions and inaccurate assessments of property values. Unique Contribution to Theory, Practice and Policy: The study reinforces behavioral theory, heuristic constructs, and prospect theory by demonstrating their applicability in explaining decision-making behavior among real estate investors in emerging markets such as Kenya. The findings highlight the need for training managerial staff to identify and mitigate heuristic and cognitive biases, improve the quality of investment decisions, and minimize reliance on irrelevant or misleading information. The study recommends establishing a government-led regulatory authority to formulate comprehensive guidelines and oversight mechanisms aimed at enhancing investor education and promoting informed decision-making. Adoption of these measures is expected to support sustainable growth in Kenya’s real estate sector.
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    Sustainability Investments and Financial Performance of Commercial Banks in Kenya
    (International Academic Journal of Economics and Finance, 2025-09) Gakinya, Caroline Njeri; Gatauwa, James
    Over recent decades, sustainability investments and corporate social responsibility (CSR) have gained prominence, yet their financial implications for Kenyan commercial banks remain underexplored. This study examined the relationship between four CSR initiatives Education, Health Programs, Economic Empowerment, and Environmental Investments and Return on Equity (ROE). Using an exploratory design and secondary data from annual reports, correlations and regressions were conducted in SPSS at a 95% confidence level. Findings revealed that education-related investments had a strong, statistically significant positive effect on ROE (r = 0.561, p < 0.001), aligning with evidence that education enhances human capital, community wellbeing, and brand reputation. Environmental investments also showed significant positive associations with ROE, underscoring their cost-reduction and market-positioning benefits. Conversely, health program investments exhibited a weak, statistically insignificant relationship with ROE, potentially reflecting the longterm nature of healthcare returns. Economic empowerment initiatives similarly showed positive but insignificant effects, suggesting delayed financial impact despite strong social value in Kenya’s highunemployment context. Policy recommendations emphasize prioritizing education to address skills gaps, supported by collaboration between banks, businesses, and educational institutions, as well as tax incentives for CSR. Environmental sustainability should be advanced through regulations and incentives promoting energy efficiency and waste management. While health and economic empowerment programs may not yield immediate financial gains, their broader societal benefits enhanced productivity, poverty reduction, and community stability justify continued investment. This study contributes empirical evidence from a developingeconomy perspective, highlighting education and environmental sustainability as strategic levers for both financial performance and societal progress in Kenya’s banking sector.