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Browsing by Author "Jagongo, Ambrose"

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Bank Characteristics and Lending Rates among Commercial Banks in Kenya
(2017) Maubi, Andrew Mokaya; James, Rosemary; Jagongo, Ambrose
This study sought to investigate the effect of bank characteristics on lending rates among commercial banks in Kenya. Specifically the study sought to; establish the effect of bank size, credit risk, and liquidity risk, operating costs, on lending rates among commercial banks in Kenya. The research philosophy for this research was positivism. Explanatory non-experimental research design was employed. The target population was thirty nine (39) commercial banks from whom secondary data was collected by way of census since these are the banks from which complete information could be obtained for meaningful analysis for the study period 2006-2015. Descriptive Statistics including Mean, Standard deviation, inferential statistics (Panel regression analysis and Correlation analysis) were carried out. Data analysis was run on the Stata 13 package and findings presented in figures, tables, graphs and charts while deriving conclusions and recommendations from the findings of the study. The finding revealed that bank size, operating costs, had positive and significant effects on lending rates. However the effect of GDP growth rate and bank size was found to be negative. The finding further showed that the effects of credit risk and liquidity risk on lending rates was positive but insignificant. Based on the findings, the study concluded that bank characteristics play a significant role in determining the lending rates of commercial banks. The study recommends that individuals wishing to take mortgages home equity loans, car loans, and personal loans from commercial banks should consider the size of the banks, its market share and other internal factors to identify the most competitive banks in terms of lending rates. Key Words: Bank, Credit, Liquidity, Risk, Operating Costs, Lending
Benchmarks and Yield of Unit Trusts in Kenya Akama Thaddeus Onyinkwa, Kenyatta University, Kenya
(INTERNATIONAL JOURNALS OF ACADEMICS & RESEARCH - IJARKE, 2025-10) Jagongo, Ambrose; Ndede, Fredrick W. S.
Investors expect money market unit trust schemes to deliver above-market financial returns, relying on the expertise of professional managers. However, many of these schemes struggle to consistently outperform the market, leading to diminished portfolios and missed investment opportunities. This underperformance can be attributed to various factors, including inappropriate benchmark selection, inefficient management practices, high operational costs, and potential conflicts of interest within certain institutional affiliations. To address these challenges, investors should carefully evaluate the performance of unit trusts against relevant benchmarks, consider the impact of management fees on net returns, and assess the ability of funds to generate real returns in different inflationary environments. Fund managers may need to reform their operational structures, enhance investment strategies, and optimize fee structures to improve performance and attract investors. The study aimed to investigate how benchmarks impact unit trust yields in Kenya. The research was guided by a conceptual framework that posited relationships between these variables and unit trust yields. The study employed an explanatory research methodology, utilizing panel data analysis over the period from 2013 to 2022. Data were collected from secondary sources, including Capital Markets Authority, Central Bank of Kenya, Kenya National Bureau of Statistics, and unit trust performance reports. The empirical review of existing literature informed the study's hypotheses and provided context for interpreting the results. The findings revealed that benchmarks significantly influenced the yield of money market unit trusts in Kenya. Money market funds affiliated with independent institutions and insurance companies exhibited higher yields compared to bank-affiliated funds. Benchmarks such as bank deposit rates, 182-Day Treasury Bill, and 364-Day Treasury Bill were positively related to fund yields. Based on these findings, the study recommends that fund managers carefully evaluate their institutional structures and closely monitor relevant benchmarks. Regulators should ensure fair competition and transparency in the industry, while investors should consider benchmark performance when selecting money market unit trusts.
Corporate Governance and Financial Performance of Selected Commercial Banks Listed at Nairobi Securities Exchange in Kenya
(International Academic Journals, 2020) Omware, Isaac Maramba; Atheru, Gerald; Jagongo, Ambrose
Performance of commercial banks has been impressive in terms of profits in the last few years. This may be as a result of good governance in the banking sector. The study examined the Corporate Governance factors and Financial Performance of commercial banks listed in Nairobi Securities Exchange in Kenya. Specifically, the study examined the effects of board size, board independence, level of education of board members, ethnic composition and gender diversity of board members on financial performance. The performance of the firm was measured using Return on equity, Return on asset and Net interest margin. A cross sectional and analytical research design was used in this study. The population involved in this study is 11 commercial banks commercial banks listed in the Nairobi Securities Exchange in Kenya. Purposive sampling was used to obtain sample representation of the entire population. In this case, 5 of the 11 Chief Executive Officers from the banks were interviewed. Primary data was obtained by administering questionnaires to Chief Executive Officers and Senior Management Officers of the sampled banks. The content validity of the two instruments of data collection was assured by ensuring that each of the items in the questionnaire and interview schedule addresses specific contents and objectives of the study. Statistical Package for Social Scientists was used and Spearman Correlation Coefficient and Multiple Regression Analysis to determine the magnitude of the relationship and prediction of financial performance respectively was applied. From the study we can therefore conclude that size of the board, board independence, level of education of board members, gender diversity, and ethnic composition positively influence the financial performance of commercial banks listed to a great extent.
Debt Servicing and Sectoral Economic growth in Kenya
(Redfame Publishing, 2018-05) Molonko, Brenda; Jagongo, Ambrose; Omagwa, Job
Effect of Access to Credit and Financial Services on Poverty Reduction in Central Region of Ghana
(Center for Promoting Ideas (CPI), 2017-08) Ampah, Samuel Nathaniel; Jagongo, Ambrose; Omagwa, Job O.; Frimpong, Siaw
The study sought to determine the effect of access to credit and financial services on poverty reduction in Central Region of Ghana from the perspectives of Micro, Small and Medium Enterprises (MSME’s). Micro, Small and Medium Enterprises contribute significantly to the economic growth and poverty reduction strategies of most countries. The importance of the MSME’s have long been recognized in many countries across the globe. However, lack of access to credit and financial services has been identified by several studies as the main obstacle to MSME’s growth and the reduction of poverty in Ghana. The Specific objective of this study was to establish the effect of access to credit and financial services on poverty reduction. One hypothesis was formulated to cover the specific objective and operationalized into four sub-hypotheses to cover the various indicators of poverty (growth in income, increase in consumption expenditure, acquisition of business assets and ability to educate children). Using cluster sampling techniques, this cross sectional study sampled 370 entrepreneurs of Micro Small and Medium Enterprises. Questionnaire was used as the data collection instrument in an exercise that took place in November and December 2016. SPSS was used to perform cross tabulations and multiple regression analysis. The study found that access to credit and financial services had a fairly weak positive effect on growth in income, increase in consumption expenditure and acquisition of business assets. The study however found access to credit and financial services to have a significant effect on ability to educate children as poverty indicators. Consequently, the study rejected the null hypotheses in question. In view of the findings, the study makes conclusions and recommendations for further studies besides highlighting limitations.
Effect of financial management decisions on financial performance of selected nondeposit taking Saccos in Kiambu county, Kenya: theoretical review
(2019) Njenga, Raphael; Jagongo, Ambrose
Savings and Credit Co-operatives societies`financial performance has not sufficiently compensated members on their investments leading to an outcry and dormancy in operations from the studies carried out on their financial performance .The financial management components have been seen to affect financial performance in Savings and Credit Co-operatives societies, especially on area of debt to equity mix, working capital and investment portfolios on financial performance .This paper offers a back ground on financial management decisions and financial performance. It provides an empirical and theoretical overview on the relationship that exists between financial management decisions and financial performance of SACCOs in Kenya .This paper concludes that financial management decisions on capital structure, working capital and investments are significant predictor of financial performance and that Gross Domestic Product affect both financial management decision and financial performance. This paper indicate a need to an empirical research to ascertain the exert relationship between the financial management decision and financial performance of SACCOs.
Effect of Foreign Ownership on Financial Performance of Listed Firms in Nairobi Securities Exchange in Kenya
(Research Publish Journals, 2017-10) Jagongo, Ambrose; Musyimi, Anthony Muema
This study aimed to determine the effects of foreign ownership on firm’s financial performance of listed firms. The study findings indicated correlation co-efficient of 0.683, implying a positive relationship between foreign ownership and financial performance. This was evidenced by the p value of 0.000 which is less than that of critical value (0.05). The study concluded that there was a significant positive relationship between foreign ownership and firm’s financial performance.
Effect of Savings Generated After Repayment of Women Enterprise Fund Loan On Profitability of the Women-Owned Enterprises in Kajiado County, Kenya
(Stratford Peer Reviewed Journals and Book Publishing, 2025-10) Mphande, Celestine Chitumbiko; Jagongo, Ambrose; Muchira,Bancy
Women-owned enterprises in Kajiado County demonstrate lower profitability compared to neighboring counties despite comparable growth rates in enterprise numbers. This study investigated the effect of savings generated after repayment of Women Enterprise Fund loans on the profitability of women-owned enterprises in Kajiado County, Kenya. Anchored on the Free Cash Flow Theory, the study employed a positivism philosophy and explanatory research design, targeting 8,100 women entrepreneurs who accessed the Women Enterprise Fund between 2018 and 2022. Using Yamane's formula, a sample of 381 respondents was selected through stratified random sampling across five sub-counties, achieving a 72.4% response rate. Data was collected using structured questionnaires and analyzed using Stata version 17, employing descriptive statistics. The findings revealed a strong positive correlation between savings and profitability (r = 0.930, p = 0.000). Regression analysis demonstrated that savings significantly and positively affect profitability (β = 2.255, p = 0.000). The study concludes that savings constitute a critical determinant of enterprise profitability, providing financial resilience and reinvestment capacity. It recommends strengthening savings incentive programs, linking savings behavior to loan eligibility, implementing financial literacy training emphasizing savings management, and establishing accessible savings infrastructure. Further research should explore sector-specific effects and additional profitability determinants in other counties
Effect of Selected Macroeconomic Variables on Lending Rates among Commercial Banks in Kenya
(Canadian Center of Science and Education, 2017) Maubi, Andrew Mokaya; Jagongo, Ambrose; James, Rosemary
This study sought to investigate the effect of macroeconomic variables on lending rates among commercial banks in Kenya. Specifically the study sought to; establish the effect of Gross Domestic Product growth rate and inflation rate on lending rates among commercial banks in Kenya. The study also sought to determine the moderation effect of political risk on the relationship between macroeconomic variables and lending rates among commercial banks in Kenya. Explanatory non-experimental research design was employed. The target population was thirty-nine (39) commercial banks from whom secondary data was collected by way of census since these are the banks from which complete information could be obtained for meaningful analysis for the study period 2006-2015. Descriptive Statistics including Mean, Standard deviation, inferential statistics (Panel regression analysis and Correlation analysis) were carried out. Data analysis was run on the Stata 13 package and findings presented in figures, tables, graphs and charts while deriving conclusions and recommendations from the findings of the study. The finding revealed that GDP growth rate and inflation had positive and significant effects on lending rates. However, the effect of GDP growth rate was found to be negative. Political risk was found to have insignificant moderating effect on the relationship between macroeconomic variables and lending rates among commercial banks in Kenya. Based on the findings, the study concluded that macroeconomic variables play a significant role in determining the lending rates of commercial banks. The study recommends that government should pay attention to macroeconomic factors while controlling the domestic lending rates. Policy initiatives that wish to keep the lending rates at a low level should also take into consideration the need to enhance economic growth and reduce inflation. Keywords: Gross Domestic Product growth rate, inflation rate, lending rates, banks.
Effects of 2008 global liquidity crisis on the performance of banks' shares traded in Nigeria Stock Market
(Academic Journals, 2014-12) Abubakar, Aminu Yakubu; Jagongo, Ambrose; Almadi, Obere J.; Muktar, Badayi S.
Effects of Working Capital Management on Profitability of Deposit Taking Microfinance Institutions in Nairobi City County – Kenya
(IJARKE, 2024) Macharia,Marion Nyambura; Jagongo, Ambrose
The aim of this research was to ascertain how working capital management affects the profitability of Deposit Taking Microfinance Institutions in Nairobi City County, Kenya. The specific objective was to finding out how accounts payable management affects the deposit of Deposit Taking Microfinance Institutions in Nairobi City-County, Kenya. The study was based on Liquidity Preference Theory (LPT). The study used a descriptive research methodology the target population was all 14 Deposit Taking Microfinance Institutions in Nairobi City-County, Kenya registered, regulated, and operating from 2018 to 2022. The study employed census sampling technique. The research utilized panel data for a five-year period (2018–2022). The results were presented in tables for simplicity of perception. The study concluded that there was significant connection between the cost-effectiveness of Deposit Taking Microfinance Institutions and accounts payable management. The researcher concluded on several issues one of them being that Deposit Taking Microfinance Institutions should concentrate more on sustainability measures on accounts payable management as a unit change in APM led to the highest increment on profitability. The researcher further recommend that other sectors of the economy apart from the Micro-finance institutions be examined as well as other factors of variables of Working Capital Management can be considered
The Effects of Working Capital Management Practices on the Financial Performance of Insurance Companies in Kenya
(International Academic Journals, 2020) Wambia, Wilson Ochieng; Jagongo, Ambrose
Working capital management affects the financial performance of organizations and therefore requires sound management to balance off the performance and risk of not meeting financial obligations as they fall due. This study sought to explore the effect of working capital management practices on the financial performance of insurance companies in Kenya. Its objectives were to establish the working capital management practices adopted by insurance companies, assess the relationship between working capital management practices and the financial performance of insurance companies, establish the impact of raising the minimum working capital on financial performance of insurance companies and establish the challenges faced by insurance companies in Kenya in working capital management. The study used the descriptive research design. It targeted 47 underwriting managers, chief accountants and finance managers from all the 47 insurance companies in Kenya. Purposively sampling technique was used to select a sample size of 141 respondents. Data was collected using the questionnaire and analyzed using Statistical Package for Social Sciences. This study established that insurance companies used all the three working capital management approaches which are conservative, matching and aggressive practices. Further, it established that the choice of working capital management technique affected the performance of insurance companies. This study concluded that working capital management had positive effect on financial performance of insurance companies. It recommended that a review and adherence to proper recruitment principles to ensure recruitment of competent staff as a long-term strategy of ensuring employee efficiency in task execution.
Electronic Banking and Accessibility of Financial Services in Commercial Banks: Theoretical and Empirical Literature Review
(Research Publish Journals, 2017-10) Gichuki, Joseph Muthee; Jagongo, Ambrose
The Kenya 2030 vision for financial services aims at creating a vibrant and globally competitive financial sector that will create jobs and promote high levels of savings to finance the country’s overall investment needs. Electronic banking has influenced the provision of financial services in the world. It has enabled faster and efficient provision of financial services. Even though it has many advantages, electronic banking has its share of challenges such as security of accounts, access to the internet, technological failure, financial and technological literacy and regulatory challenges. This paper presents the background knowledge about electronic banking and accessibility of financial services by commercial banks. It then discusses the problem statement which includes the challenges faced by commercial banks in provision of financial services using electronic banking in Kenya. The paper progresses to review the theoretical and empirical literature in support of the title. It concludes by presenting findings of a benchmark case study done in Ghana on the effects of electronic banking on financial services and similar studies which are related to this study under findings and conclusion. Subsequently the paper provides insight for further research to be carried out under this area through providing a platform to research under conclusion and recommendations.
Exchange Rate Volatility and Export Performance of Tea Firms in Kenya
(2017) Chirchir, Francis Kipkoech; Muse, Mmbayiza Antony; Jagongo, Ambrose
The problem of exchange rate volatility has for many years given rise to a relentless debate in the field of economics and to the finance professions in many parts of the world. In Kenya, the subject has been at the centre of current economic policy debate for the past decades, involving policymakers, the business community, academicians and or researchers and the business press at large. It is therefore from these continuous agitations from different corners of the business word that this study is purposed to empirically establish the effect of Exchange rate volatility and on export performance of Tea firms managed by Kenya Tea Development Agency in Kenya with specific interest being to determine the magnitude at which foreign exchange rate affects export performance of tea firms in Kenya, to examine the level at which tea substitute prices affect export performance of tea firms in Kenya and toestablish the degree at which domestic tea prices affect export performance of tea firms in Kenya. This study was therefore governed by positivism research philosophy characterized by the testing of hypothesis developed from existing theory through measurement of observable social realities. This study adopted a census approach where secondary average monthly means for the 54 (fifty-four) tea firms was collected fora period of five years (January 2008 to December 2012).The results in this study indicated that exchange rate volatility and domestic tea prices weresome of the variables that influence export performance of tea firmsin Kenya to the world markets. However, the tea substitute’s prices did not influence the export performance of tea firms to the importing countries. The study further realised interdependence between exchange rate stability, macroeconomic stability and export performance and hence policy makers needs to consider the existing degree and likely effects of exchange rate volatility while designing, developing and implementing trade policies. Key words: Exchange rate volatility, export performance, forex rate, tea substitutes, and domestic tea prices
Factors Hindering Growth of Women Owned Micro and Small Enterprises: A case of Micro Finance Borrowers in Makadara, Nairobi
(International Academic Journals, 2019) Kiyai, George; Namusonge, Mary; Jagongo, Ambrose
The Small and Medium Enterprises (SMEs) sector has an important role to play in Kenya’s drive towards industrialization as well as its quest for poverty eradication. To the extent that this is true, SMEs need to grow. The limited access of SMEs to credit and financial services is often presented as one of the most important supply constraints confronting the SME sector and research findings indicate that financial problems are one of the main reasons why relatively few SMEs graduate into larger enterprises. This paper sought to analyse constraints faced by women entrepreneurs after loan that impeded growth of their enterprises. The study findings showed that a majority of the sampled enterprises have not expanded despite getting MFI loans. Major policy interventions recommended relate to an evaluation of the credit methodologies of MFIs in line with the business needs of the entrepreneurs. The paper offers some background on Micro and Small Enterprises (MSEs) growth, conceptual framework, empirical review of literature on MSEs growth.
Financial Forecasting and Profitability of the Top 100 SMEs in Kenya
(Stratford Peer Reviewed Journals and Book Publishing, 2025-12) Mwanzi, James Munyalo; Jagongo, Ambrose; Makori, Daniel
Small and Medium Enterprises constitute critical economic drivers in developing economies, yet their profitability remains volatile despite contributing approximately 24% to Kenya's GDP and employing over 93% of the active labor force. This study examined the effect of financial forecasting on the profitability of the Top 100 SMEs in Kenya. An explanatory research design under positivist philosophy was adopted, employing a census approach that selected 40 consistently listed firms from the Top 100 SMEs ranking. Data were collected through questionnaires for primary information and audited financial statements for secondary data, then analyzed using SPSS with linear regression analysis. The results showed that financial forecasting had a statistically significant positive effect on profitability (β = 2.10, p = 0.027), meaning a one-unit improvement in forecasting increased profitability by 2.10 units. With R = 0.36 and R² = 0.13, the model indicated a moderate relationship where forecasting explained 13% of profitability variation, leading to the rejection of the null hypothesis at the 0.05 level. The study concludes that financial forecasting serves as a statistically significant determinant of profitability among Kenya's Top 100 SMEs, with effective forecasting enabling enterprises to predict cash flow fluctuations, manage liquidity prudently, and identify profit-enhancing opportunities. The study recommends that the Kenya MSME Authority should develop standardized financial forecasting training programs targeting SME managers to enhance predictive accuracy and implementation, the Kenya Association of Manufacturers should establish forecasting benchmarking frameworks enabling SMEs to compare practices against industry standards, financial institutions should integrate forecasting capability assessments into credit evaluation processes while providing technical support to borrowers and policymakers should mandate periodic forecast reviews and documentation for SMEs seeking government support programs to institutionalize strategic financial planning practices that demonstrably improve profitability outcomes.
Financial Inclusion Innovations and Financial Performance of Commercial Banks in Kenya
(Research Publish Journals, 2017) Nzyuko, Joseph Mutinda; Jagongo, Ambrose; Kenyanya, Husborn
Financial inclusion is the process of expanding access to financial services to those currently not accessing them which is an important objective in many developing countries. This study represents an investigation into financial inclusion innovations adopted by commercial banks in Kenya. The study majored on use of technology such as Automatic Teller Machines (ATMs), mobile phone banking internet banking and agency banking and its impact on financial performance of commercial banks in Kenya and how these inclusion innovations have moved us closer to branchless banking. The study was based on the fact that there is ground to cover in expanding access to financial services, given that about 25% of the population remains totally excluded and Financial services touch points are located away from areas of high poverty levels, with 69% of all financial access touch points being located in areas with the least likelihood of poverty. The threat posed by cybercrime to individuals, banks and other online financial service providers is real and serious hence the need for the study. The target population of the study was 42 commercial banks licensed in Kenya by 2010. The study used time series data from central bank of Kenya (CBK) and Kenya bankers’ association (KBA) annual bank supervisory reports (2010-2016). Through multiple regressions and correlation analysis the study found out that there is a strong positive relationship between financial inclusion strategies and financial performance. Based on these results, the study recommends that financial inclusion innovations should be emphasized in the financial sector through regulatory and advisory bodies since it leads to improved financial efficiency. In addition, the study also recommends that financial institutions to embrace agency, internet banking and ATM banking to include the excluded people in financial services and products throughout the country since they proved significant in influencing financial performance. The study recommends further research on financial inclusion on microfinance institutions in Kenya and their impact on micro and small business organizations.
Financial Literacy and Its Impact on Investment Decisions in Nigeria: a Theoretical Perspective
(2017-11) Malgit, Amos Akims; Jagongo, Ambrose
Over the years financial literacy has gain prominence in the field of investment all over the world. This is attributed to its importance in investment decision making. This study sought to explore the theoretical perspective of financial literacy and its impact on investment decisions in Nigeria. Decision theory, prospect theory and theory of mental accounting were adopted for the study. These theories provided more insight on the impact of financial literacy on investment decisions. The study is of the view that financial literacy of individuals positively impacts on their investment decisions. Therefore, successful investment decisions depend on the level of financial literacy of investors.
Financial Risk Hedging Practices, Management Strategies and Debt Capacity: Theoretical Review
(International Academic Journals, 2019) Wangui, Damaris; Jagongo, Ambrose
There has been a rapid increase in nonfinancial firms leveraging their balance sheet, which seem to have constrained their borrowing space thus reducing the volume of credit uptake. Leverage has been rising since 2015 thus reducing the borrowing capacity of these companies. Majority of these firms are the top large borrowers therefore, corporate sector weaknesses across a majority of economic sectors largely restricted their ability to borrow and expand the asset side of banks. Kenya is heavily dependent on imports and hence its market aggregates are vulnerable to external shocks. Exchange, inflation and interest rates have been highly volatile in Kenya and this is not helped by the fact that most non-financial firms don’t have concrete policies on financial risk hedging therefore the need for hedging in those firms listed in Kenya. This paper offers a background on financial risk hedging practices, management strategies and debt capacity. It also provides a theoretical and empirical overview on the relationship between financial risk hedging practices, management strategies and debt capacity by reviewing other literature on the topic. This paper concludes that hedging practices, management strategies and debt capacity are related and therefore assessing firms’ debt capacity is crucial as it also affects firm performance.
Good Governance, Development Expenditure and Economic Growth: theoretical Review
(Research Publish Journals, 2018) Mbatiah, John; Jagongo, Ambrose
Inefficiencies in development expenditure have led to increased calls for more governance in Kenya. The quality of governance, more so good governance, has been fronted as a prerequisite for economic growth, hence its inclusion as a key influencing factor in the efficient management of development expenditures. This paper offers a background on good governance, public expenditure and economic performance. It also provides a theoretical and empirical overview on the relationship between good governance on development expenditures in Kenya by reviewing other literature on the topic. This paper concludes that promoting good governance in Kenya is significant in improving efficiency in development expenditures leading to economic growth. Also, the paper creates a platform where further insight can be provided through empirical research.

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