Browsing by Author "Mungai, John Njangiru"

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    Cash Budgeting Practices and Profitability of Small and Medium-Sized Enterprises in Nyeri Town Sub-County, Kenya
    (International Academic Journals, 2020) Kamau, James Mungai; Mungai, John Njangiru
    The study sought to establish the effect of cash budgeting practices on profitability of Small and Medium-sized Enterprises in Nyeri County, Kenya. Profitability was measured using the Return on Assets (ROA). The study used systematic sampling to determine the different SMEs whose employees and officials would be adopted as sample members. In this study, the researcher used 311 respondents as sample members with 100 of them being the officials mostly from management. Questionnaires were used in collecting primary data. The instrument was tested for reliability using Cronbach’s Alpha Reliability test while content validity was assessed using expert opinion. The researcher used Statistical Package for Social Sciences (SPSS) to conduct data analysis. The study used both descriptive and inferential statistics in data analysis. Further, diagnostic tests were conducted to check whether the data set met general assumptions for certain statistical procedures such as regression analysis. The diagnostic tests included; normality tests, multi collinearity test, and heteroscedasticity test. Data was analysed using descriptive and inferential analysis. Descriptive statistics included means and standard deviations. The inferential statistics included the regression analysis and Pearson correlation analysis. As indicated by R square, the Coefficient of Determination, 78.49 percent of variation or changes in profitability was explained by variation in cash flow management and its component variables. With regard to regression analysis results, the coefficient for cash budgeting (β=0.601, p=0.021) shows that cash budgeting has a statistically significant effect on profitability. The results of Pearson correlation analysis indicated that cash budgeting (r=0.662, p=0.001) has a strong positive and statistically significant relationship with profitability. The study recommends that SME managers ensure that adequate cash is set aside to cater for unforeseen negative cash flows, which was scarcely the case, going by the findings. In addition, it is recommended that the government through her agencies such as the National Chamber of Commerce and Industry and the Small and Medium Enterprise Authority consider financial literacy training for SMEs to enlighten them on best practices in business management especially matters related to cash budgeting.
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    Influence of Internal Control System on Financial Management in Ministry of Finance, Kenya.
    (International Academic Journals, 2019) Ndegwa, Ruth Muthoni; Mungai, John Njangiru
    Before the government introduced Integrated Financial Management Information System, execution of budget as well as process of accounting were done manually or in support of old applications that were not supported adequately. Because of this, the functioning of the management systems dealing with management of the public funds suffered greatly because there was no data on expenditure, planning of budget, control of expenditure, and reporting causing a negative effect on management of budget which resulted to commitment of resources by the government being controlled poorly; leading to building up of arrears; excess borrowing which pushes up rates of interest and crowds private sector investment and misallocation of resources therefore leading to undermined effective and efficiency in management of finances. This study focused on establishing the influence of internal control systems in IFMIS on financial management in Ministry of Finance. Specific objective was to assess the effects of internal control system on financial management in Ministry of Finance Descriptive research design was used in the study. The study was conducted in the National Treasury. The target population of the study was 128 employees. Stratified random sampling was applied to get the respondents. The study sample size was 97 employees. The study used questionnaires as the tool for data collection. Statistical Package for Social Sciences (SPSS) version 23 for windows was used to analyze quantitative data. Graphs, tables and pie charts were used to present frequencies and percentage while tables were prepared using each variable or indicator. The study found that internal control systems had significant positive relationship with financial management in Ministry of Finance and financial reporting systems had significant positive relationship with financial management in Ministry of Finance. The study recommends that the ministry of finance should ensure that they have systems that are reliable; this will ensure that they provide complete, accurate, timely and consistent information. The ministry should also ensure that the infrastructure supporting IFMIS is secure, corrupt free, secure from unauthorized access and breach of confidentiality this will boost efficiency in management of cash. Management in the ministry of finance should ensure that the IFMIS in use have the ability of monitoring future pipeline of payment. This will ensure that there is effective management of government’s flow of cash which will prevent accumulation of debt.
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    Micro-Credit Groups’ Socio-Economic Functions’ to Sustainability of Government Revolving Funds in Murang’a County, Kenya
    (International Organization Of Scientific Research (IOSR), 2017) Mungai, John Njangiru; Muathe, Stephen M. A.
    The government of Kenya overtime has formulated a series of revolving funds to counter the poverty in the rural areas and to make the citizens living in these sections to earn a decent living, through their on-going income-generating activities. The most common is the Youth Enterprise Development Fund and the Women Enterprise Fund. There have been issues on the loan repayment affecting sustainability of the revolving funds. The main focus of this study was to analyze the loan repayment and sustainability issues of government revolving funds in Murang’a County. The study was guided by the following specific objective:- to examine the implication of socio-economic functions of groups to government revolving funds sustainability. The study adopted a positivism philosophy of research, where the researcher was independent on what was being observed and studied. Descriptive survey design was used to determine the level of government revolving fund repayment and its effect on sustainability for other borrowers. The target population was 1520 social and economic groups in Murang’a County. Clustering and Simple Random Sampling techniques were applied to select a sample size of 307 groups, in addition a census of 16 constituency credit officers, who were also interviewed. This, in total accounted to 19.5% of the total population. A questionnaire and an interview schedule were used to collect data. Descriptive data were analysed using tables and charts. Quantitative data were analysed using Chi-square, Analysis of Variance and Logit Regression Model. The results indicated that socio-micro groups’ functions’ was statistically significance to loan repayment and sustainability. The study recommended review of the education curriculum to reverse the teaching business studies in primary schools.