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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
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 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.
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 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.
Impact of CBK Prudential Guidelines on MFI Operations in Kenya
(Research Publish Journals, 2019) Chepkutwo, Donald; Jagongo, Ambrose; Okech, Timothy
Microfinance institutions in Kenya are currently registered under eight different Acts of Parliament; The Non Governmental Organizations (NGO) Co-ordination Act, the Building Societies Act, the Trustee Act, the Societies Act, the Co-operative Societies Act, The Companies Act , the Banking Act and the Kenya Post Office Savings Bank (KPOSB) Act. Some of these forms or registrations do not address issues regarding ownership, governance, and accountability. They have also contributed to a large extent to the poor performance and eventual demise of many MFIs because of a lack of appropriate regulatory oversight. This paper aims to identify whether the absence of a regulatory framework has had any effect on the outreach and sustainability of microfinance in Kenya. This paper concludes that that the major challenge hindering outreach and sustainability of micro finance institutions in Kenya is lack of specific legislation and set of regulation to guide the operation of microfinance subsector. Also, the paper creates a platform where further insight can be provided through empirical research.
The Impact of Portfolio Diversification on Financial Performance of Investment Firms Listed In Nairobi Securities Exchange, Kenya: Empirical Review
(Research Publish Journals, 2018) Musembi, Michael Makau; Jagongo, Ambrose
The concept of diversification has taken a universal centre stage in the process of management and continues to be an increasingly important aspect of doing business in the world of today. The relationship between diversification and firm performance has formed the subject of many researches but many researchers have disagreed on the nature of the relationship between diversification and performance. Because of the contradictory results concerning the relationship between diversification and performance, the question of whether diversification improves or worsens firm performance is still worthy of further research such as the one being undertaken in this study. In addition, despite the existence of these studies, very little attention has been given to the developing countries. Besides, the impact of diversification on firm performance has not received adequate research attention in Kenya. The study will examine the Impact of portfolio diversification on financial performance of investment firms listed in the NSE in Kenya. The study will take an explanatory non experimental research design. The target population for the study will be the investment firms listed in the NSE.
Internal auditing and financial performance of public institutions in Kenya: A case study of Kenya Meat Commission
(Academic Journals, 2017) Muchiri, Nelius Wangui; Jagongo, Ambrose
Internal auditing provides audit services to the management at all levels, including board of directors and audit committee, thus improving the organizations corporate governance. The objectives that guided the research were effect of corporate governance on financial performance and effect of audit committee on financial performance. The researcher used case study research design; this was due to the fact that data was collected from one organization only, that is, Kenya Meat Commission (KMC). The sample size was all fifty seven management staff at KMC. Open and close ended questionnaires were used to collect primary data from the respondents. The data collected was quantitative. Descriptive statistics, time series and regression analysis were used to analyze the data. The data was presented in the form of tables. The data collected ascertained that internal auditing plays a major role in the financial performance. The findings of this study, however, are at odds with the aforementioned position. The researcher found that the relationship between the internal audit function existence and financial performance at the KMC was insignificant. That is, existence of internal auditing does not influence the profitability and return on investment. The researcher recommends that the internal audit function should be more independent and manned by competent staff. There should also be an independent oversight body to oversee the operations of the state corporation.
Internal Control Constraints and Performance of Revenue Collection in Marsabit County
(Global Press Hub, 2025-06-11) Molu, Saadia Wario; Jagongo, Ambrose
Marsabit County from 2018 to 2023, experienced a consistent decline in tax revenue, despite having a legislative and institutional framework for revenue management. This trend raised concerns about the county government's ability to meet its goals. The study aimed to assess how weaknesses in internal oversight influenced tax revenue generation, focusing on the impact of internal control automation, risk assessment, communication, knowledge, and monitoring technologies. The research was grounded in agency theory, stakeholder theory, resource-based view (RBV) theory, and the technology acceptance model. A descriptive research design was adopted, targeting 80 employees from the Finance, Health, Tourism & Trade, and Lands departments of Marsabit County Government. Using a stratified sampling method, 67 individuals were selected as the study sample. The study collected data from both primary and secondary sources. Semi-structured questionnaires were used to gather primary data, while a secondary data collection template was used for secondary information. Quantitative data was analyzed using SPSS version 20. This investigation sought to provide insights into how internal control limitations affected revenue collection efficiency, ultimately offering recommendations for improved fiscal performance in the county.

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