Browsing by Author "Jagongo, Ambrose O."

Now showing 1 - 5 of 5
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    Board Characteristics, Firm Size and Financial Leverage of Manufacturing Firms Listed At Nairobi Security Exchange, Kenya: Theoretical Review
    (International Academic Journals, 2019) Njenga, Raphael; Jagongo, Ambrose O.
    Kenyan manufacturing firms’ structural inefficiencies with huge uncontrollable debts levels coupled with poor performance poses a great threat to Kenyan economy. The sector is financed through debts and equity to avoid dire negative impact such as collapse arising from firm`s illiquidity. Kenyan manufacturing firms are crippled by poor corporate governance and huge unsustainable debts leading to stakeholders losing their investment and unsettled suppliers claims associated with poor financial management decisions. Kenyan manufacturing sector growth depicts a worrying declining trend .The government efforts in setting up sector`s improvement policies, have not yielded fruits .The financial leverage and the board of director’s characteristics have been identified as a root cause. The problem is catalyzed by numerous court cases against manufacturing firms` former directors on mismanagement and embezzlement of funds. This independent study paper offers a back ground and theorizes on financial leverage and board of directors characteristics. It provides literature and theoretical overview on the relationship that exists between financial leverage decisions and Board of director’s characteristics in manufacturing sector. This paper concludes that Board of directors characteristics affect financial leverage decisions and that firm size influences how much external borrowing a firm may secure. This paper indicate a need to an empirical research to ascertain the exert relationship between the board of directors characteristics, firm size and financial leverage of manufacturing firms.
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    Effect of Budgetary Allocation on Performance of the Judiciary Department in Embu County, Kenya
    (International Academic Journals, 2019) Mwangi, Michael Muriithi; Jagongo, Ambrose O.
    The judiciary has a systematized execution based planning and set up a monetary administration and responsibility frameworks. The budgetary allocation within the judiciary has not been effective; this has resulted to wastage of financial resources resulting to ineffective implementation of certain projects. Since the increased budgetary allocation to the judiciary after the proclamation of the new constitution in 2010, a subjective investigation of assessing the effect of budgetary allocation to the judiciary from 3billion to 16 billion needs to be done. The following objectives guided the study: To determine the effect of recurrent budget allocation on performance of the Judiciary department in Embu County in Kenya; To determine the effect of development budget allocation on performance of the Judiciary department in Embu County in Kenya and; To establish the effect of loans and grants allocation on performance of the Judiciary department in Embu County in Kenya. The following theories guided the study; Budget theory, Agenda based theory of budgeting, Principle agent theory on budgeting, Progressive theory of public expenditure and budget theory for public administration. The target population comprised of all finance officers, accountants, auditors, procurement officers, ICT officers and human resource officers in Runyenjes, Siakago and Embu law courts. The sampling technique used for the study was census method. Data was obtained from respondents from the judiciary in Embu County using questionnaires that was self-administered to the entire population. The study applied the use of descriptive survey design. Validity was established through expert judgment while the reliability of the instrument was tested using the internal consistency methods, in this case, the Cronbach’s Alpha. The relationship between the variables was determined using regression analysis. The study established that budgetary allocation affects the performance of judiciary positively. The most evident achievement of the judiciary concerning the effects of budgetary allocation was the attainment of the constitutional requirement for the gender balance and the tremendous improvement on the quality of service delivery. However, there was still some aspects concerning service delivery that was rated dismally such as the response of complaints. The study recommends that the judiciary can then automate the processing of complaints. This will reduce the frequency of interaction of the judiciary staff and the public. This will drastically reduce the accusation of their poor score in processing proceedings, ruling and judgments.
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    Effect of Capital Adequacy on Financial Performance of Commercial Banks in Kenya
    (The Strategic Journal of Business and Change Management, 2024) Wanjiru, Beatrice Nyokabi; Jagongo, Ambrose O.; Ndede, Fredrick W. S.
    The performance of the banks has been dwindling in Kenya. Kenya’s commercial banks’ ROA was 2.6 percent in 2017, 2.7 percent in 2018, 2.6 percent in 2018, 1.7 percent in 2019 and 3.3 percent in 2021 and indication of unstable profitability trend. In January, 2013, the CBK issued regulations referred to as prudential guidelines that outlines several aspects of risk management. However, it is not evidently clear through empirical studies how CBK prudential guidelines have impacted bank performance. The study general purpose investigated the extent central bank prudential guidelines has influenced bank performance. The specific objectives sought to establish the effect of capital adequacy on performance of commercial banks. Four theories guided the study; Institutional Theory, Public Interest Theory of Regulation, Stewardship Theory and firm growth theory. The explanatory research design was adopted involving 39 commercial banks in Kenya according to CBK 2022 comprising 9 tier I, 8 tier II and 22 tier III. A census of all the 39 commercial banks was undertaken. Descriptive and inferential tests were adopted in analyzing the data. The descriptive tests included means, minimums, maximums, standard deviation, Kurtosis and Skewness. The particular inferential tests were the unbalanced panel regression model. Prior determining the unbalanced panel regression model, diagnostic model assumption tests were tested. The diagnostic tests comprised the normality tests, serial correlation test, heteroscedasticity, and Multicollinearity and Hausman tests. Presentation of results were done through figures and tables. The findings from the study showed that capital adequacy positively influences the financial performance of commerce banks (β =0.0333113, p=0.027<0.05). It can be concluded that 67% of banks have attained required cash ratio of 0.5 to 1 but still 33% are still struggling with liquidity challenges. A recommendation is made that banks ought to strictly maintain requisite capital adequacy at all times. Tightening of liquidity measures especially taming illicit money is important in enhancing liquidity in the banks. The banks are supposed to revise existing regulations in order to mitigate the growing concern of non performing loans. The study recommends more audit meetings annually to ensure that all systems and activities of the bank are undertaken as required. There is need for review credits systems so that lending procedures are tightened.
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    Financial Innovations and Levels of Risks in Commercial Banks in Kenya
    (IJCAB Publishing Group, 2019) Abdullahi, Hassan Maalim; Jagongo, Ambrose O.
    The commercial banks need to identify the sources of the several financial risks which emanates from financial innovations, as they may affect the banks’ stability. This study sought to determine the influence of financial innovations on level of risks in commercial banks in Kenya. The specific objectives were to determine the relationship between internet banking and financial risks in commercial banks in Kenya; to explore the relationship between mobile banking and financial risks in commercial banks in Kenya; to establish the relationship between agency banking and financial risks in commercial banks in Kenya; and to determine the relationship between electronic cards and financial risks in commercial banks in Kenya. The study adopted a descriptive research design. The target population was all the 42 commercial banks registered with CBK as at December 31st 2016. The unit of observation will be the risk management managers. This was a census study. The study collected both primary data and secondary data. Primary datawas collected from the respondents through a uestionnaire while secondary data was collected from the financial statements. Prior to the actual data collection, the questionnaire was tested for reliability and validity. The collected data was analyzed through descriptive statistics and inferential statistics through aid of SPSS software Version 21. The inferential statistics entailed use of a multivariate regression analysis to establish the relationship between the variables and test hypothesis. The analyzed data was presented using of tables, charts and graphs.
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    Group Lending and Loans Performance in Micro-Finance Institutions in Nairobi City County, Kenya: Case of Kenya Women Microfinance Bank Limited
    (IJCAB Publishing Group, 2019) Abdi, Abdirashid Ali; Jagongo, Ambrose O.
    The microfinance industry has grown over the years. However, there is a growing concern on the loan default among microfinance institutions in Kenya. This may be a pointer to increased ineffectiveness of the institutions’ various lending programs. This study seeks to examine the relationship between group lending and loans performance in micro-finance institutions in Kenya, with a focus on KWFT. The study specifically sought to: determine the relationship between group self-internal regulations among group members and loans performance in KWFT microfinance; to examine the relationship between credit appraisal process of members and loans performance in KWFT microfinance; to establish the relationship between credit policy on group loans and loans performance in KWFT microfinance; and to assess the relationship between credit risk control measures on the group and loans performance in KWFT microfinance. The study was guided by theory of group lending, Asymmetric Information theory and Portfolio Theory. The study adopted a descriptive research design. The target population consisted of approximately 60 respondents in six KWFT branches within Nairobi County. The unit of observation was the credit managers and credit/ loan officers. Since the population was small, a census study was adopted whereby the entire population was considered for the study, thus all the 60 respondents formed the sample size for the study. The study collected primary data though a questionnaire. The developed questionnaire was checked for its validity and reliability through pilot testing. The collected data was analyzed using descriptive and inferential statistics with the help of SPSS software. The descriptive statistics included frequency distribution tables, means, standard deviation and measures of relative frequencies. The inferential statistics entailed a regression analysis which will establish the relationship between variables. The study findings indicate that strong correlation coefficient between loans performance at KWFT and group self-internal regulations, credit appraisal process, credit policy and credit risk control measures and they are all statistically significant. The study concludes that groups financed had put in place mechanisms to ensure that the group members repay loans in time, credit appraisal process employed to inform lending to groups were amount of credit the group qualifies, the ability of the group to repay and the nature of collateral to be imposed, rates charged on the group loans determines the effectiveness of repayment of loans by the members and the period the group is given to repay the loans determines the loan performance. The study recommends that organizations participating on group loans need to ensure that the group are promoting good governance in their leadership and administration, the study recommends that those in charge of loans need to work for stability in the macro-environment to ensure interest rates charged by MFIs remain stable and affordable and the study recommends that micro-finance institutions should put in place a credit risk management team whose mandate will be to establish well defined credit control policy and guidelines.