Browsing by Author "Musimbi, David"

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    Changing Political Regimes and Performance of the Nairobi Securities Exchange
    (Kenyatta University, 2015-02-06) Musimbi, David
    The stock market all over the world play a critical role as one of the most sensitive indicators of the business cycle and one of the most influential variables in. the government index of leading economic indicators. Companies quoted on the Nairobi Securities Exchange have been undergoing turbulent times due to fluctuation in the prices of shares, consequently affecting investors either way and hence making them uncertain about the future. This study, first sought to evaluate the effect that political regime changes have on returns that investors get on Nairobi Securities Exchange. Secondly, the study determined the effect of political regime change across different market segments. Published time series quarterly data was sourced from the Central Bank of Kenya. Kenya National Bureau of Statistics and Nairobi Securities Exchange data bases. In order to achieve all the specific objectives a regression model, and threshold generalized auto regressive conditional heteroscedasticity models were used to ascertain the volatility of stock returns. Empirical results of the regression model revealed that there was a weak relationship between changing political regimes and the performance of the NSE. Also the study found out that different political variables affect different market segments differently.
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    Effects of Central Bank Rate Pass through on Kenya’s Selected Macroeconomic Variables
    (Kenyatta University, 2024-03) Musimbi, David
    The study focused on the effects of central bank rate pass through on Kenya’s selected macroeconomic variables. Up until now, most research concentrated on other, shorter-term interest rates such as the repo and interbank rates, which are almost entirely endogenous to the bank rate. After controlling for other variables, there is a significant negative correlation of five percent between the central bank's interest rate and the overall market capitalization. There is a 0.7513 connection between them. According to the study, real GDP growth in Kenya increases by 0.29 percentage points whenever the central bank rate is changed. The interest rate pass through loans as the CBR changes was found to be 0.9666 percent in the short run, while it was 1.29 percent in the long run. Stock or asset values rise by 2.957 percentage points for every percentage point increase in the central bank rate.This study made use of time series data collected between 2010 first quarter and 2021 fourth quarter. The Blanchard model (based on the Exponential Generalized Autoregressive Conditional Heteroscedastic estimating technique), the co integration approach (based on the co-integration strategy and the Johansen and Juselius (1980) approach), and the co-integration approach (based on the Engle and Granger (1987) approach) were the methods employed in the study to estimate the Autoregressive Distributive Lag model. The study concluded that the real gross domestic product, stock market capitalization, and lending rates were not fully impacted by changes in the central bank's bank rates. For policy implication, Kenya needs a comprehensive review of its current monetary policy framework. This should be done in tandem with ongoing efforts to modernize the nation's banking and financial sector. The Monetary Policy Committee should be aware of the character and structure of commercial banks. Timing is of utmost importance when it comes to altering the Central Bank Rate. The research discovered an unsatisfactory pass-through effect when analyzing the impact of CBK on real GDP, lending rates, and stock market capitalization.
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    Effects of central bank rate pass through on Kenya’s selected macroeconomic variables
    (Kenyatta University, 2024-03) Musimbi, David
    The study focused on the effects of central bank rate pass through on Kenya’s selected macroeconomic variables. Up until now, most research concentrated on other, shorter-term interest rates such as the repo and interbank rates, which are almost entirely endogenous to the bank rate. After controlling for other variables, there is a significant negative correlation of five percent between the central bank's interest rate and the overall market capitalization. There is a 0.7513 connection between them. According to the study, real GDP growth in Kenya increases by 0.29 percentage points whenever the central bank rate is changed. The interest rate pass through loans as the CBR changes was found to be 0.9666 percent in the short run, while it was 1.29 percent in the long run. Stock or asset values rise by 2.957 percentage points for every percentage point increase in the central bank rate.This study made use of time series data collected between 2010 first quarter and 2021, fourth quarter. The Blanchard model (based on the Exponential Generalized, Autoregressive Conditional Heteroscedastic estimating technique), the cointegration approach (based on the co-integration strategy and the Johansen and, Juselius (1980) approach), and the co-integration approach (based on the Engle and, Granger (1987) approach) were the methods employed in the study to estimate the Autoregressive Distributive Lag model. The study concluded that the real gross domestic product, stock market capitalization, and lending rates were not fully impacted by changes in the central bank's bank rates. For policy implication, Kenya needs a comprehensive review of its current monetary policy framework. This should be done in tandem with ongoing efforts to modernize the nation's banking and financial sector. The Monetary Policy Committee should be aware of the character and structure of commercial banks. Timing is of utmost importance when it comes to altering the Central Bank Rate. The research discovered an unsatisfactory pass-through effect when analyzing the impact of CBK on real GDP, lending rates, and stock market capitalization