Browsing by Author "Gatauwa, James M."

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    Effects of Government Capitation and Tuition Fees on Liquidity of Public Universities in Kenya
    (IAJEF, 2024-10) Mbugua, Hillary Ngugi; Gatauwa, James M.; Warui, Fredrick Waweru
    The financial challenges faced by public universities are a worldwide problem. Recent studies have shown how public universities cannot meet their liabilities when due. This has led to many universities almost facing insolvency due to many liabilities and fewer assets to cover them. The study on the liquidity of public universities has to be key to knowing how well our universities are equipped to perform better. How universities finance their operations is a key concern to stakeholders’ eager to solve the financial difficulties public universities face. The study had a general objective: to assess the effects of government capitation and tuition fees on the liquidity of public universities in Kenya. The study was advised by Agency theory and Keynesian economics theory. The study used a Causal research design. The study's population was comprised of 31 Chartered public universities in Kenya, and it covered a period of five years, from 2016 to 2020. A census of all public universities was undertaken due to the small population size. The data was analysed using descriptive analysis, including calculating means and standard deviation and inferential analysis using a panel data regression model. The study used secondary data, which was quantitative and collected from the Office of the Auditor-General. The study obtained permits for research from NACOSTI and ensured that all data collected was only used for the study. The study unveils intricate insights into university liquidity in that government capitation and tuition fees have minimal liquidity effects. These findings underscore the financial complexities within universities, highlighting the necessity for strategic financial planning and resource allocation to ensure stability and resilience amidst shifting regulatory and economic landscapes. The study recommends that universities Implement cost-effective financial controls and measures to mitigate potential liquidity. Strengthening monitoring and evaluation systems is advised to ensure effective financial management practices are adopted. Policymakers are urged to review funding allocation policies and establish financial resilience policies for public universities while promoting collaborative funding initiatives amongst universities.
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    Prudential Regulatory Framework and Financial Performance of Microfinance Institutions in Kenya
    (International Journal of Managerial Studies and Research, 2024) Nuriye, Abdi A.; Gatauwa, James M.
    The rising number of non-performing loans and insufficient cash among Micro Financial Institutions have been ongoing issues despite prudential regulations being in place to enable the Central Bank of Kenya to supervise them. Therefore, the objective of this investigation was to ascertain how the prudential regulatory environment affected Kenya's micro financial organizations financial performance. The study's specific goal was to investigate how credit risk, liquidity requirements, capital requirements, and microfinance size affect financial performance. Liability management theory, the buffer theory of capital adequacy, agency theory, and the shiftability theory of liquidity served as the study's pillars. In this study, causal research design was adopted. As of December 31, 2019, the 13 microfinance institutions in Kenya that were officially listed on the website of the Central Bank of Kenya constituted the population of this study. Document reviews of information found in publicly available financial statements and annual reports for the preceding five years, from 2016 to 2020, were employed as secondary data for the study. Return on Assets was used to gauge the financial success of Micro Institutions. Data analysis was performed using both descriptive and inferential analyses. The findings of the investigation indicated that, while the size of Kenyan microfinance institutions had no statistically significant effect on their performance, the capital and liquidity criteria had a significant effect. Furthermore, Microfinance institutions in Kenya were not found to have a statistically significant relationship with credit risk and profitability. The study came to the conclusion that an MFI's need for liquidity decides whether it can meet its short-term loan obligations and whether it can use its current or liquid assets to pay its current liabilities. Since lowering overhead has a direct influence on profitability, the study advised that the micro financial institutions examine their overhead costs and look for possibilities to do so. The microfinance organizations should raise their capital requirements by increasing profits, selling long-term assets for cash, acquiring funds through the issuance of preferred or common stock in return for cash; obtaining long-term financing, and doing all of the above. Lending should be done by microfinance organizations to a variety of clients, including consumers, small enterprises, and big businesses.
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    Type of Venture Capital Investment, Venture Capital Control and Financial Growth of Funded Small and Medium Enterprises in Nairobi City County, Kenya
    (IAJEF, 2024-11) Maragia, Dancan S.; Gatauwa, James M.
    Global venture capital industry expansion has boosted entrepreneurship and innovation, leading to the generation of wealth and jobs in a number of countries. SMEs play a crucial role in socioeconomic development by promoting wealth generation, economic growth, and job creation in their individual economies. These SMEs nevertheless have uneven and restricted access to sustainable finance, which is essential to their survival and expansion, despite their prominence and importance in developing countries such as Kenya. This study aimed to examine how type of venture capital investment and venture capital control affect the financial growth of selected SMEs in Nairobi County, Kenya. Both a descriptive research design and quantitative research methods were applied. The target population for the analysis consisted of 139 SMEs that have received venture capital funding. Data was analyzed using descriptive and inferential statistics. Results indicated that type of venture capital investment had a positive and significant effect on SMEs’ financial growth. SMEs' financial growth was positively, but not significantly, impacted by venture capital control. The study concluded that venture capital control had a positive but insignificant effect on SMEs’ financial growth. The study recommended that entrepreneurs should consider a diverse syndicate of venture capitalists. This is key for improved risk management, survival rate, access to more strategic collaboration and attraction to resources and expertise. In addition, the study recommended that entrepreneurs should review the venture capitalists’ level of control in the business. This would help to mitigate negative impact resulting from venture capital-imposed restrictions on managerial autonomy.