Browsing by Author "Maingi, James"

Now showing 1 - 8 of 8
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    Effect of credit and education on performance of micro and small enterprises in Kenya
    (Scientific & Academic Publishing, 2018) Musavi, Valentine Lynda; Maingi, James
    Purpose: The purpose of this study was to establish the effect of credit and owner/manager educational qualification on performance of micro and small enterprises in Kenya and their joint effect using the 2016 MSMEs survey data. Methodology: This is cross-sectional data collected from a population of 50,043 enterprises. A sample of 384 enterprises was used in the analysis as obtained using Fisher’s (2003) formula for computing sample size from a large population. Inferential statistics was used to interrogate the relationship between the variables. Results: Regression results indicated that both access to credit services and educational qualification had a positive and significant effect on performance of the sampled enterprises. Further analysis indicated that the joint effect of the two variables was greater than their individual effect. Unique contribution to theory, practice and policy: Recommendations of this study are that the central Bank of Kenya should focus more on lending and credit facilitation programs in order to encourage greater bank-led financing to the sector to help bridge the unmet demand for credit and that micro and small enterprises should be encouraged to establish good credit history with various lending institutions to enable them access credit facilities from financial institutions. In addition, owners/managers of the enterprises should be provided with training on managerial and technical skills to complement their educational qualifications in running the enterprises.
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    Effectiveness of Jatropha Curcas live fence in managing Household risks and vulnerability in Kilifi County
    (Kenyatta University, 2015-06) Wanjau, Miller; Maingi, James
    Growing of Jatropha curcas has been received with mixed feelings in Kenya. The plant has tremendous potential to be Africa's most excellent bio-fuel feedstock. However, there have been concerns that the plant is not commercially viable and that it negatively affects food production and security. The lack of factual information coupled with politics surrounding the growth of the plant has compromised its uptake by local farmers. This has however not dampened the spirits of pro poor development supporters who view the plant as a potential solution to rural poverty. Live fences (Hedgerows) are a common occurrence in rural Kenya. They are frequently used as fences because of their low cost and aesthetic value. The growing of Jatropha as a hedgerow can easily be brushed off as a non beneficial undertaking considering the previous research findings on the non viability of the plant but inherent in it is a coping mechanism that households may use to mitigate against idiosyncratic and covariate income risks. The lack of risk mitigation mechanisms means that households prone to income shocks cannot smoothen consumption when faced with a risk. In the recent past, there has been a great emphasis on a social protection agenda that protects not just the chronically poor but also the vulnerable populations against idiosyncratic and aggregate shocks. A few households in coastal Kenya have embraced the technology but it is not clear whether there are any significant savings and benefits arising from the endeavor. The purpose of this study was therefore to analyze the effectiveness of the Jatropha hedgerows in managing household risks and vulnerability by first defining the relationship between household Consumption and income from Jatropha hedgerows and secondly by analyzing the effectiveness of the hedgerow in protecting the vulnerable society. The study employed a diagnostic research and involved the collection of primary data through questionnaires and schedules from forty pre selected households who had successfully grown the hedge to maturity and were receiving an income from the sale of seeds, oil and other by products from the hedge. Correlation and regression analysis were run to ascertain the relationship between household consumption and income from Jatropha hedgerows and a demographic analysis conducted to ascertain the participation of women and older members of society in the project. The results of the analysis show that Income from Jatropha hedgerows is positively correlated to household consumption proving that the Jatropha hedgerow is an effective tool for household consumption smoothing. The results also show that women and older members of society, who are the most vulnerable in the society, are participating and benefiting from the project. The findings of the study lead to the conclusion that Jatropha curcas hedgerows are effective in managing household risks and vulnerability. The study recommends that a comprehensive research on Jatropha curcas as a plant be carried out by KARl or any other relevant institution to verify claims such as low oil content and high toxicity that have surrounded the growing of the plant. The study also recommends that social protection be extended beyond financial and income related considerations to include investments that support informal arrangements and upgrade the nonprofit sector especially those that have sustainable development at their core.
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    Foreign Direct Investment Volatility and Economic Growth in Kenya (1970-2010)•
    (2014-03-10) Ngugi, Grace Ngonyo; Korir, J.K.; Maingi, James
    Attracting FDI has continued to be a vital concern for many developing countries to supplement their insufficient domestic investment. As such the Kenyan Government, over the years, has put great efforts to boost the levels of FDI to spur economic growth by offering various investment incentive packages example establishment of the EPZs which offer incentives such as ten-year tax holiday followed by a 25% tax rate for the next ten years, exemption from import duties, value added tax and stamp duty and repatriation of profits is unrestricted. Despite the Kenyan government effort to attract FDI, it has been volatile. Although several empirical studies have confirmed FDI volatility general affects economic growth negatively, the impact of FDI volatility on economic growth and whether the effects are in the short run or long run has not been addressed in the case of Kenya. The main objective of the study was to empirically analyze the relationship between of FDI volatility and economic growth in Kenya and how FDI volatility affects economic growth in Kenya. The period under study was 1970- 2010. The data for the study were collected from National Bureau of Statistics, UNCTAD and IFS sources. The study modeled FDI volatility using EGARCH methodology, ARDL bound was used to test for cointegration and finally estimated vector error correction model to check the effects of FDI volatility on economic growth. The findings of the study were that there exists some level of FDI volatility in Kenya, where first lag conditional variance of FDI has effects on the current period conditional variance ofFDI. The study found that FDI volatility has long-run relationship with economic growth in Kenya and FDI volatility deters economic growth in the long run.
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    The Impact of Public Expenditure Components on Economic Growth in Kenya 1964 - 2011
    (International Journal of Business and Social Science, 2013-04) Muthui, John Njenga; Kosimbei, George; Maingi, James; Thuku, Gideon Kiguru
    The purpose of this study was to find out the impact of public expenditure composition on economic growth in Kenya from 1964 to 2011. The specific objectives of the study were to investigate the impact of government expenditure on components: education, infrastructure, health, defense and public order and security on economic growth in Kenya. This study employed use of annual Kenyan data for the period 1964 to 2011 for all the variables. The study conducted Stationarity Test, Causality Test, Cointegration Tests before using vector error correction model to estimate the data. The survey showed that though government expenditure on education is positively related to economic growth it does not spur any significant change to growth. Based on this, investing in more and better-distributed education in the labor force will help create conditions that could lead to higher productivity and higher economic growth. On health while an increased expenditure on improving health might be justified purely on the grounds of its impact on labor productivity. This supports the case for investments in health as a form of human capital. To reduce the huge budget outlay for importing medicine and drugs, this study recommended for government to support research and development in this sector locally It was also noted that the government should encourage programs like Build Operate and Transfer (BOT) to foster increased investment and provision of public utilities. As a result of this relationship between private and public investment, The government should come up with policies that brings a balance between the two.
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    The Impact of Public Expenditure Components on Economic Growth in Kenya: 1964-2011
    (2014-03-06) Muthui, John Njenga; Kosimbei, G. K.; Maingi, James
    Kenya has been faced with severe macroeconomic imbalances in the past, As such; the purpose of this study was to find out the impact of public expenditure composition on economic growth in Kenya from 1964 to 2011. The specific objectives of the study were to investigate the impact of government expenditure on components: education, infrastructure, health, defense and public order and security on economic growth in Kenya The growth models specified in this study only takes into account potential determinants of growth in Kenya. The key explanatory variable in the model is GDP growth. This is the increase of GDP or other measure of aggregate income. This study employed use of annual Kenyan data for the period 1964 to 2011 for all the variables. The study conducted Stationarity Test, Causality Test, Cointegration Tests before using vector error correction model to estimate the data. The survey showed that though government expenditure on education is positively related to economic growth it does not spur any significant change to growth. Based on this, investing in more and better-distributed education in the labor force will help create conditions that could lead to higher productivity and higher economic growth. It is also necessary to adopt policies that lead to the creation of diversified, dynamic, and competitive sectors capable of absorbing the more educated labor force to translate human capital into higher economic growth. On health while an increased expenditure on improving health might be justified purely on the grounds of its impact on labor productivity. This supports the case for investments in health as a form of human capital. To reduce the huge budget outlay for importing medicine and drugs, this study recommended for government to support research and development in this sector locally Public investment in human capital (health and education), public law and order, research and development, and social and economic infrastructure leads to creation of positive externalities which in turn improve the productivity of private investment. It was also noted that the government should encourage programs like Build Operate and Transfer (BOT) to foster increased investment and provision of public utilities. As a result of this relationship between private and public investment, the government should corne up with policies that brings a balance between the two.
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    Impact of Tax Reforms on Revenue Productivity in Kenya
    (2014-03-10) Mokua, Nyandieka Kenyanya; Maingi, James; Njaramba, Jennifer
    The implementation of the Kenya vision 2030, coupled with financing expenditures under the devolved government in the new constitution requires enormous resources. The vision requires the government to ensure that the bulk of its expenditures are met from tax revenue and that overall expenditure should be controlled to ensure stable macroeconomic environment. The Government of Kenya continued to carry out tax reforms over the years with an aim of improving taxation efficiency and increasing the amount of revenue raised to finance the ever raising government expenditure. Despite the continuous tax reforms since 1986, the envisaged improvement on tax productivity to Gross Domestic Product Ratio of 28 percent has not been achieved. This study sought to investigate the impact of the reforms that have been undertaken in Income tax, Excise duty, Import duty and sales/Value Added tax on revenue productivity. Income tax is levied on individual and corporate incomes thus as the economy keep expanding the contribution of this category of tax to revenue is bound to increase, assuming the reforms are aimed at broadening the tax base. Similarly, Value Added tax is a consumption tax charged on both local sales and importation, as opposed to import duty, which is levied on the value of imports. Excise duty is levied selectively on particular goods and services. Compared to Import and Excise duties, Value Added tax has more potential to increase revenue through reforms aimed at increasing consumption spending in Kenya. The specific objective of this study therefore was to estimate the effect of tax reforms on buoyancy of Income tax and Value Added tax, as well as estimating the effect of the reforms on elasticities of the tax system. The study was guided by the Tax Modernization Programme of 1986 and the Kenya Vision 2030. Published secondary data was used to analyze the relationship between tax reforms and revenue productivity and before, after piecemeal/policy and during the comprehensive reform buoyancy and elasticities were estimated using regression analysis. The regression result showed that total tax in Kenya was inelastic during the three periods, but it was buoyant during the pre-reform and piecemeal reform periods. The study also showed that the reforms had a positive impact on productivity of income tax, but did not have a positive impact on productivity of Value Added Tax. The positive of reform on the productivity of income tax was as a result of the relative effectiveness of income tax reform that made the tax system simpler and reduced avenues for evasion and corruption, whereas the low elasticity of value added tax might have been caused by tax evasion and collusion between the tax collectors and tax payers. In spite of the good performance of income tax as a result of reforms, further reform needs to be done particularly on the inelastic value added tax. These reforms include: reduction of rates and exemptions, increasing the number of tax collectors, imposing tougher penalties for those found guilty of evasion, strengthening audit skills, taxation of absentee landlords and income from rental houses.
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    The Role of Management Practices In Establishing Resilient Project Networks Among Agricultural Innovation Platforms in Central and South Western Uganda
    (International Academic Journals, 2020) Yosamu, Mugarura; Sang, Paul; Maingi, James
    The rising trajectory of project networks due to globalization and quest for sustainable project delivery has continued to attract critical interest and attention. This study assessed effects of management practices on resilience of project networks among agricultural innovation platforms in Central and South Western Uganda. The study concluded that management practices has a significant effect on resilience of project networks among agricultural innovation platforms. Based on this conclusion, the study recommends that during AIP functioning, leaders should cultivate and enhance good management practices such as coordination, accountability, and monitoring and evaluation since these practices are key antecedents project network resilience.
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    The Effect of Branchless Banking Strategy on the Financial Performance of Commercial Banks in Kenya
    (2017-10-17) Dzombo , Gift Kimonge; Kilika, James M; Maingi, James
    The Banking sector acts as the life blood of modern trade and economic development. Commercial banks influence, facilitate and integrate the economic activities like resources mobilization, poverty elimination, production, and distribution of public finance. The financial performance of commercial banks has great implications in the financial sector and in the country at large, and will still remain an important subject of concern by all the stakeholders in the banking industry. In the last two decades, a lot of banking innovation has taken place in order to improve commercial banks financial performance. Branchless banking which involves the use of agency banking and electronic banking channels in the distribution of banking products and services is one such innovation. This study purpose was to evaluate the effect of branchless banking on the financial performance of commercial banks in Kenya. The specific objectives of the study were to analyze the individual effects of agency banking and electronic banking channels on the financial performance of commercial banks in Kenya and the combined effect of both agency and electronic banking on the financial performance of commercial banks in Kenya. The study adopted an exploratory research design. A survey of all the 42 licensed commercial banks in Kenya was done. Both primary and secondary data on branchless banking and financial performance of banks was obtained from the individual commercial banks, Central Bank of Kenya banking annual supervision reports respectively. Return on Assets (ROA) was used as the main indicator of commercial banks financial performance. The amount of investment in agency and electronic banking was used as indicator for agency and electronic banking. Data analysis was done using SPSS and STATA statistical softwares. Descriptive statistics, diagnostic tests and tests of hypothesis were done. Data was presented using tables and charts. Study findings indicated that when used in isolation; both agency and electronic banking had a significant negative effect on the financial performance of commercial banks at 5 percent significance level. However, when agency and electronic banking channels were used together as a multichannel strategy, they had a significant positive effect on bank’s financial performance at 5 percent significance level. The study recommends that for positive returns, commercial banks should invest in both agency and electronic banking as a multichannel strategy since these channels are complimentary to each other.