Browsing by Author "Kimutai, Caroline"

Now showing 1 - 9 of 9
  • Thumbnail Image
    Item
    Board Characteristics and Financial Performance of Selected Microfinance Banks in Kenya
    (International Journal of Management and Commerce Innovations, 2024) Ibrahim, Fardowsa Ibrein; Kimutai, Caroline
    The study sought to examine the effect of board characteristics on financial performance of microfinance banks in Kenya. It delves into the effect of board size, gender representation, and board independence on the financial standing of these institutions. Theoretical framework comprises of agency, resource dependency, institutional and stewardship theories respectively. Research data was collected over time frame 2015-2022. To illuminate the hidden patterns and relationships within the data, a panel of secondary data extracted from audited financial reports and records was subjected to rigorous scrutiny. The outcome unveiled a positive but statistically insignificant effect of board size on financial performance; board composition of the selected banks affected the selected microfinance banks’ financial performance negatively with such effect being insignificant in Kenya; and board independence inversely but insignificantly affected these selected microfinance banks’ financial performance in Kenya. The survey suggests that the management of selected microfinance banks in Kenya should contemplate reducing the size of the board to enhance financial performance.
  • Thumbnail Image
    Item
    Budgeting Techniques and Quality of Financial Reporting in Nairobi City County, Kenya
    (Zenodo, 2025-03) Obonyo, Brian Tirimba; Kimutai, Caroline
    Every economy sector places a premium on financial reporting quality, which draws heavily from other functions within an organization. Nairobi County's financial reporting, however, has reportedly been of low quality due to bad financial choices, ineffective operations, stakeholder mistrust, and lost opportunities. Therefore, this study ascertained how budgeting techniques affects quality of financial reporting of Nairobi City County Government in Kenya. It evaluated influences of incremental, activity based and zero-based budgeting on quality of financial reporting. Theory of budgeting, resource-based view and complexity theories served as theoretical reviews. The study's framework was a descriptive study design. Responses were drawn from one hundred and twenty-two (122) directors, internal auditors, finance officers and accountants of finance and economic planning department of Nairobi City County Government in Kenya. Stratified sampling approach was employed in selecting ninety-three (93) responders who made up sample size with Yamane sample size formula. This study employed a quantitative approach, utilizing structured questionnaires to gather primary data. To ensure the robustness of the findings, the research instruments underwent a rigorous assessment of reliability and validity. Findings unveiled that incremental budgeting insignificantly and positively affect the quality of financial reporting; activity-based budgeting provided a significant and positive effect on the quality of financial reporting while zero-based budgeting unveiled an insignificant positive effect on the quality of financial reporting in Nairobi City County. The study concludes organizations should prioritize the implementation of activity-based budgeting practices to enhance their financial reporting quality effectively. The survey recommends that Nairobi City County should actively promote the adoption of activity-based budgeting practices throughout the organization.
  • Thumbnail Image
    Item
    Carbon Financing and Profitability of Renewable Energy Firms Registered Under the Energy and Petroleum Regulatory Authority, Kenya
    (International Academic Journal of Economics and Finance, 2025-06) Wainaina, Kareithi Samuel; Aluoch, Moses Odhiambo; Kimutai, Caroline
    Erratic profitability for renewable energy firms has pushed them to looking for additional sources of funding and carbon financing has emerged as a critical source which also contributes to achieving sustainable growth. By allowing businesses to generate revenue through the sale of carbon credits, carbon financing offers a powerful incentive for investing in cleaner technologies and processes. This financial mechanism not only supports companies in meeting regulatory climate commitments but also opens new revenue streams, increasing profitability and enhancing their financial resilience. Despite Kenya’s rich potential, high capital costs, inconsistent regulations, limited financing, and operational inefficiencies hinder firms’ financial sustainability. Additional issues like grid connectivity, market competition, and currency fluctuations further complicate their profitability. The study’s principal aim was to establish a link between carbon financing and profitability of renewable firms registered under Kenya’s Energy and Petroleum Regulatory Authority. More precisely, the study examined key carbon financing variables that include carbon credits, project initial cost, credit issuance and transactional costs, tax incentives and their effect on profitability. The study was based on and supported by the resource-based view theory, market-based theory and agency theory. The study employed a descriptive survey design and adopted a positivist research philosophy. The research design relied on primary data collected using a structured questionnaire that relates to carbon financing. The target population was fifty (50) renewable energy companies registered under Energy and Petroleum Regulatory Authority, and a population approach was used. Both descriptive and inferential statistics was used for data analysis with the help of Scientific Package Social Sciences (SPSS). Descriptive statistics including mean and standard deviation. A multiple regression model was performed to estimate the relationship between carbon financing and profitability. The results were presented on frequency tables, charts, and graphs. The results revealed that carbon credit, tax incentives, credit issuance and transactional costs and projects costs have significant effect on the profitability of renewable energy firms registered under the Energy and Petroleum Regulatory Authority. Further, firm size does have a significant moderating effect on the relationship between carbon financing and profitability of renewable energy firms registered under the Energy and Petroleum Regulatory Authority. Therefore, all the five hypotheses were not supported and the study concluded that carbon financing has significant effect on profitability of renewable energy firms registered under the Energy and Petroleum Regulatory Authority and this effect is strengthened by firm size. The study recommended that management should consider diversifying the types of carbon credit projects in which the firm engages. Expanding into various carbon credit initiatives, such as forest preservation and renewable energy projects, can help mitigate risks associated with fluctuations in carbon credit prices and market demand. The government should continue to support the development and growth of carbon credit markets, both locally and internationally. Policies should focus on creating a stable and transparent regulatory framework that encourages both local and foreign investments in carbon credit projects.
  • Thumbnail Image
    Item
    Cashflow Management Practices and the Financial Performance of Five-Star Hotels in Nairobi County, Kenya
    (Stratford Peer Reviewed Journals and Book Publishing, 2023) Chepkonga, ercy Jepchumba; Kimutai, Caroline
    Financial performance of entities in the hospitality industry continue to elicit widespread scholarly interest in the modern competitive business landscape. Effective cashflow management practices remain the mainstay of financial performance in most organizations. However, scholarly research on cashflow management practices enable performance improvement in Kenya’s hospitality industry particularly five-star hotels in Nairobi County is largely limited. The current study examined cashflow management practices’ impact on the financial performance of five-star hotels in Nairobi County, Kenya. The theory that underpinned the study is the Liquidity Preference Theory. A descriptive research design was used and it involved using a survey distributed to all five-star hotels in Kenya. Financial and general managers and their assistants from each five-star hotel provided insights through a closed-ended questionnaire that enabled the researcher to collect and analyze numeric data. Data collected was coded and entered into the package referred to as the Statistical Package for Social Sciences (SPSS) used to analyze quantitative data. The analyzed data revealed that there is a significant relationship between cashflow management practices (p=0.039; p<0.05) and the financial performance of five-star hotels in Nairobi City County, Kenya. The study recommended that five-star hotels in Nairobi County should adopt effective strategies for cashflow management to actualize improved financial performance.
  • Thumbnail Image
    Item
    Financial Risk Management and Financial Performance of Investment Firms Listed at Nairobi Securities Exchange, Kenya
    (IJSRP, 2023-08) Chiru, Sylvia; Omagwa, Job; Kimutai, Caroline
    Financial performance is a crucial aspect for investment firms as it reflects their overall stability and communicates their financial well-being to investors. Some investment firms in Kenya are currently experiencing a decline in financial performance. This study focused on four dimensions of financial risk management (interest rate risk, exchange rate risk, inflation rate risk, and liquidity risk) to examine the effectiveness of risk management strategies in enhancing financial performance. The study equally assessed the moderating effect of firm size. Primary and secondary data sources were utilized, with a sample size of 40 respondents selected from the five listed investment firms. Data collection spanned eight years from 2014 to 2021. Multiple regression analysis, descriptive statistics, and diagnostic tests were employed. The study found that effective management of interest rate risk, exchange rate risk, inflation rate risk, and liquidity risk significantly affect financial performance. Additionally, firm size was found to moderate the relationship on financial performance. The study imparts valuable understandings regarding the significance of strategies for managing financial risks within investment firms. The study recommends management support for managing exchange rate risk through strategies like currency invoicing, leading and lagging, and exposure netting. It suggests the use of appropriate financial instruments such as forward rate agreements and options, as well as maintaining a diverse bond portfolio, to improve the management of interest rate risk. Effective liquidity risk management, including techniques such as cash flow forecasting and optimizing net working capital, is also highlighted. Managing inflation rate risk requires portfolio adjustment techniques, necessary spending adjustments, and continuous monitoring of changing inflation dynamics. Furthermore, the study recommends that policymakers in Kenya encourage investment firms to provide comprehensive risk disclosures in their financial reports. By implementing these recommendations, investment firms can enhance their financial performance and strengthen their risk management practices.
  • Thumbnail Image
    Item
    Financial Risk Management and Financial Performance of Investment Firms Listed at Nairobi Securities Exchange, Kenya
    (ijsrp, 2023-08) Mwalolo, Sylvia Chiru; Omagwa, Job; Kimutai, Caroline
    Financial performance is a crucial aspect for investment firms as it reflects their overall stability and communicates their financial well-being to investors. Some investment firms in Kenya are currently experiencing a decline in financial performance. This study focused on four dimensions of financial risk management (interest rate risk, exchange rate risk, inflation rate risk, and liquidity risk) to examine the effectiveness of risk management strategies in enhancing financial performance. The study equally assessed the moderating effect of firm size. Primary and secondary data sources were utilized, with a sample size of 40 respondents selected from the five listed investment firms. Data collection spanned eight years from 2014 to 2021. Multiple regression analysis, descriptive statistics, and diagnostic tests were employed. The study found that effective management of interest rate risk, exchange rate risk, inflation rate risk, and liquidity risk significantly affect financial performance. Additionally, firm size was found to moderate the relationship on financial performance. The study imparts valuable understandings regarding the significance of strategies for managing financial risks within investment firms. The study recommends management support for managing exchange rate risk through strategies like currency invoicing, leading and lagging, and exposure netting. It suggests the use of appropriate financial instruments such as forward rate agreements and options, as well as maintaining a diverse bond portfolio, to improve the management of interest rate risk. Effective liquidity risk management, including techniques such as cash flow forecasting and optimizing net working capital, is also highlighted. Managing inflation rate risk requires portfolio adjustment techniques, necessary spending adjustments, and continuous monitoring of changing inflation dynamics. Furthermore, the study recommends that policymakers in Kenya encourage investment firms to provide comprehensive risk disclosures in their financial reports. By implementing these recommendations, investment firms can enhance their financial performance and strengthen their risk management practices.
  • Thumbnail Image
    Item
    Influence of Firm Size on Financial Performance of Insurance Firms in Nairobi City County - Kenya
    (International Journal of Academics & Research, 2024-01-31) Wako, Buke Liban; Kimutai, Caroline
    Technology, processes, and people are combined by businesses in such a way as to increase the value and productivity of business performances while minimizing routine costs. This results in efficient financial performance. The context of a company's qualities has big influences on the insurance industry's performances and growth. Because of the industry's strong performances’ and appeal to consumers, there is a great need for whenever the system is doing okay, a slowdown if the economy is having trouble. In order to increase financial stability throughout the nation and achieve sustained development, Kenya's insurance industry must perform effectively. Although some businesses have increased their effectiveness, the majority of insurance companies have demonstrated a decline in performance from 2017 to 2021. Due to this, this investigation seeks to ascertain the effect of firm size on the finance performances of insurance institutions in Nairobi County. An explanatory research design was employed. A purposive sample of 50 firms was utilized out of the 53 insurance firms. The Insurance Regulatory Authorities, the Associations of Kenyan Insurer, and financial report were used as secondary sources to collect data. Analysis made use of panel regression, descriptive analysis, and correlation analysis. A threshold of 0.05 was used for the hypothesis testing. This investigation adhered to all ethical standards. Findings of the investigation discovered that firm size significantly but positively determined insurance financial performance in Kenya where Nairobi City County is situated. Therefore, the inquiry suggests that the management of insurance firms should device means through which firms can be managed effectively to enhance the operations of insurance within the area of the study. This would attract both investors and clients to the field of insurance thus, boosting financial performance in Kenya.
  • Thumbnail Image
    Item
    Organizational Structure and Financial Performance of Insurance Companies Listed at Nairobi Securities Exchange, Kenya
    (International Research Journal of Economics and Finance, 2025-01-21) Kiraithe, Mawira Robin; Kimutai, Caroline
    In Kenya, insurance companies have been experiencing a decline in their financial performance assessed by ROE. In the turbulent and competitive business environment, firm characteristics have been playing a vital role in shaping overall financial performance and market competitiveness. The general aim of this study was to establish the interplay between organizational structure and financial performance of listed insurance companies listed at the NSE in Kenya. This research was guided by the growth of the firm theory. This research applied descriptive research methodology. The target population of this research was 6 firmslisted at the NSE. The period under study spanned from 2018 to 2022. A Census ofthe 6 listed insurersin the NSE in Kenya was performed. This study utilized secondary data, extracted using a data extraction tool. Descriptive and inferential statistics were utilized in data analysis. Descriptive statistics comprised of standard deviation, mean, minimum and maximum. The relationship between independent and dependent variables was established using inferential statistics such as multiple regression and correlation analysis. The study found that organizational structure positively and significantly influences the financial performance of insurance companies listed at the NSE in Kenya. The study recommends that regulatory bodies, like the Insurance Regulatory Authority (IRA), encourage insurance companies to adopt organizational structures that improve decision-making, efficiency, and accountability, alongside supporting training and performance evaluations. It also suggests a decentralized approach to organizational restructuring, empowering lower-level employees, to enhance operational efficiency, innovation, and overall financial performance
  • Thumbnail Image
    Item
    SASRA Prudential Regulations and Financial Performance of Deposit Taking Saving and Credit Co-Operative Societies in Kenya
    (Stratford Peer Reviewed Journals and Book Publishing, 2023) Gatu, Kamau Antony; Njehia, Bernard K.; Kimutai, Caroline
    Financial performance of Kenya’s deposit-taking savings and credit co-operative societies has been a source of concern, as evidenced by declining indicators over time. According to the SASRA study, profitability has declined significantly, as evidenced by a drop in Return on Assets (ROA) from 2.65% in 2020 to 1.59% in 2021. The purpose of this study was to investigate the effect of prudential requirements imposed by Kenya's Savings and Credit Cooperative Societies Regulatory Authority (SASRA) on the financial performance of Deposit Taking Savings and Credit Cooperative Organisations (SACCOs). The objectives of the study were to investigate the effect of liquidity, asset quality and capital sufficiency on and financial performance of deposit taking saving and credit co-operative societies in Kenya. The study was based on public interest theory, buffer theory and agency theory. The study employed a comparative research design and positivist research theory. The population studied in this study consisted of 175 licenced Deposit Taking SACCOs. Secondary data was used in the study, which was then analysed using descriptive and inferential statistics. Stata was used to conduct the analysis in this study. A multiple linear regression model was used to forecast financial performance. Diagnostic tests were performed to ensure that the linear regression model assumptions are not violated. The correlation results showed that liquidity has a negative correlation (-0.0497) with ROA. Capital adequacy showed a positive correlation (0.6710) with ROA. Similarly, asset quality had a positive correlation with ROA (0.5663). Panel regression results confirmed the importance of capital adequacy and asset quality in driving financial performance, as evidenced by highly significant coefficients (0.7140 and 0.2087, respectively) with p-values of 0.0000. The liquidity coefficient, on the other hand, was found to be -0.0008 with a p-value of 0.7380, indicating that changes in liquidity have a negligible impact on ROA. The study discovered that liquidity, capital adequacy, and asset quality explain 62.65% of the variation in financial performance (ROA). The study recommended that deposit taking savings and credit co-operative societies (SACCOs) should take a balanced approach to liquidity management in order to optimise financial resources and potentially increase returns, and employ a solid capital base to improve stability.