Browsing by Author "Irungu, Anthony Mugetha"

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    Asset Quality and the Financial Performance of Commercial Banks in South Sudan
    (EdinBurg, 2023-11) Odongo, Gabriel Nyongesa; Irungu, Anthony Mugetha
    Banks are of great and noteworthy importance in preserving and promoting the advancement of diverse economic sectors, making them crucial components of the economy. They shift the resources' attention from areas with surpluses to those with deficits. However, majority of nations have encountered banking issues that have necessitated significant banking system reforms. The issues are primarily the result of domestic factors including poor banking supervision, ineffective management, and insufficient capital. Making sure companies participating in the sector are managed prudently is a crucial aspect of bank regulation. The primary aim of this study was to determine the effect of asset quality and the financial performance of commercial banks in South Sudan. An explanatory research design was used in the study. The target populace was commercial banks in South Sudan. There were 29 commercial banks that existed in South Sudan between 2017 and 2021. The study used purposive sampling to sample 23 banks that were in operation between 2017 and 2021. Secondary information was used in the study. For analysis, the obtained information was cleaned and imported into STATA 17. Descriptive statistics and regression analysis was conducted. The inferential statistics used were correlation and regression. Descriptive outcomes showed that the mean asset quality ratio from 2017 to 2021 for the commercial banks in South Sudan was 0.262, with the least asset quality ratio being 0.622 and the most being 4.395. Trend outcomes were clear that asset quality was inconsistent amongst South Sudan commercial banks. Outcomes were clear that asset quality negatively but significantly impacted by the performance. The study concluded that asset quality had a negative and noteworthy impression on financial success. As a result, the report advises banks to refrain from holding too many loans relative to their overall assets, as this reduces liquidity and negatively impacts the bank's ability to operate. The study suggests that banks implement appropriate credit risk management procedures. This is because inadequate credit risk management procedures lead to a large percentage of nonperforming loans, which eventually have a negative impact on commercial banks' profitability.
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    Microfinance Services and Household’s Income among Saving and Internal Lending Community Groups in Evurore Ward, Embu County, Kenya
    (Journal of Finance and Accounting, 2024-06-28) Njeru, Caroline Wawira; Irungu, Anthony Mugetha
    The research established loans, savings and training services effect on the income of household’s income among saving and internal lending community groups in Evurore Ward of Embu County, Kenya. Greeman Bank model, Saving-Asset Accumulation model and Village Saving Model served as theoretical base of the study. Descriptive design was implemented following a population of 562 SILC practicing group members in Evurore Ward where proportionate sampling technique was applied to arrive at 291 respondents. Primary data was sourced employing the utilization of structured questionnaire. The outcome unveiled a significant positive effect of microfinance loans on household’s income; the effect of microfinance savings on household’s income among SILC groups was not statistically significant but positive; microfinance training had a significant positive effect on household’s income among SILC groups in Evurore Ward, Embu County, Kenya. The survey recommends that to further enhance the income-generating potential of SILC groups, it is necessary to promote increased access to microfinance loans. This can be achieved by collaborating with microfinance institutions, NGOs, and government agencies to expand the availability of microfinance loan programs tailored to the needs of SILC groups in the area.
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    Revenue Diversification on Financial Sustainability of Public Universities in Kenya
    (Journal of Finance and Accounting, 2024-07) Kimathi, Betty Kathure; Irungu, Anthony Mugetha
    Public universities play a critical role through academic empowerment of the citizens and actively participating in knowledge dissemination and research in society. However, despite being the centers of knowledge creation and development, one of the significant challenges facing public universities in Kenya is financial sustainability. This is evidenced by growing debt from financial institutions, unremitted statutory deductions, and shrinking government grants. Whereas proponents of sound financial management practices including revenue diversification hold the practices as possible solutions for financial sustainability of every organization, few studies have been done to ascertain this position in Kenyan public universities. Therefore, this paper sought to assess the effect of revenue diversification on financial sustainability of Kenyan public universities. The study used modern portfolio theory and financial sustainability model to discuss the variables. A descriptive research design was adopted while targeting 41 public universities for the study. Random sampling approach was applied to select 22 out of the 41 public universities. Using a secondary data collection template, secondary panel data was collected from the office of auditor general for the financial years 2018/2019 to 2022 / 2021.The study found revenue diversification had a negative significant impact on financial sustainability using gearing ratio and a positive significant effect on financial sustainability using sustainability ratio in Kenyan public universities. The study recommends that public universities should explore innovative alternative sources of revenue and close revenue-generating units whose marginal costs are higher than marginal revenues.