Browsing by Author "Mutswenje, Vincent Shiundu"

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    Firm Characteristics and Financial Performance of Selected Micro Finance Banks in Kenya
    (International Academic Journal of Economics and Finance, 2023-06-14) Nyamasege, Brenda Moraa; Mutswenje, Vincent Shiundu
    Microfinance banks are key financial intermediaries due to their ability of providing credit facilities to the unbanked population. The Kenyan Microfinance banking institutions have been undergoing declining run on their financial performances. One of the stable microfinance banks which is Faulu Microfinance was acquired in the year 2013 by Old Mutual holdings. The ROA, NIM and ROE of these banks have been characterized by decreasing figures from the year 2016. Consequently of this poor trend in the financial performance of these banks, this inquiry sought to evaluate firm characteristics effect on microfinance banking institutions finance performance in Kenya. The achievement of this objective is specifically achieved on the basis of; liquidity, management efficiency, credit size and bank age influence on Kenyan microfinance banking establishments finance performance. The theoretical underpinning of the study was Efficiency Structure Theory, Financial Intermediation and Liquidity Management Theory. Descriptively, the study design was applied to thirteen microfinance banks reached through a census sampling approach for the period of 2013 to 2019. Secondary data on the banks operational activities was obtained through secondary data collection pan. The evaluation of the study was made possible through panel and descriptive techniques of analysis where various diagnostic tests were applied. Due ethical standards were adequately followed. The outcome of the investigation noted that with significantly effect, liquidity negatively affected financial performance; management efficiency affected financial performance positively in a manner that is insignificant; credit size possessed inversely affected financial performance but in an insignificant way; and bank age affected the microfinance banks’ financial performance in an insignificant but positive way in Kenya. The inquiry suggested that to improve the financial performance of Kenyan banks, the management of microfinance banks should strengthen the management of their liquidity to avoid funds that would be retrieved to the banking circle.
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    Microfinance Services and Financial Performance of Small-Scale Women Enterprises In Kilifi County, Kenya
    (IOSR Journal of Business and Management (IOSR-JBM), 2023) Kalama, Faith Shaha; Mutswenje, Vincent Shiundu
    Background: small-scale enterprises owned by women continue to face numerous challenges that affect their financial performanceDespite their contribution to economic empowerment and poverty reduction among rural communities in Africa. In Kenya, nearly 400,000 SMEs don’t last over two years. This raiseconcerns over their financial sustainability and survival. The study sought to explore how small-scale women enterprises perform financially in Kilifi County, Kenya. The study’s specific objectives were; to determine whether access to credit, financial literacy training,and savings mobilization have influencesin the financial performance of small-scale women enterprises in Kilifi County, Kenya. Methodology: The study used an exploratory research design with a population sample of 350 out of 1286 registered women entrepreneurs in Kilifi County. Both primary and secondary data were collected using selfadministered questionnaires while Multiple linear regression was used to analyse data aided Statistical Package for Social Sciences (SPSS) 26.0. Result: The study found that obtaining credit and savings mobilization had a statistically significant effect on the performance of finances while financial literacy training had no statistically significant effect. Recommendations: The study recommends an adoption of a simple loan application procedure, tailored and affordable of microfinance loans as well as the establishment of uniquesavings schemes by MFI
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    Mobile Banking Services and Profitability of Deposit Taking Saccos in Vihiga County, Kenya
    (International Academic Journal of Economics and Finance, 2024-06) Ayugu, John Aguka; Mutswenje, Vincent Shiundu
    evelopment an economy. This is achieved by financial performance that is measured using profitability that serves a critical role in the financial markets and in general the entire economy. Nevertheless, their contributions may be hindered by issues related to financial viability. According to the 2022 CBK report, the SACCOs in Vihiga County had a varied performance in the period ending on December 31, 2021. As of December 31, 2021, the Sacco's recorded a pre-tax loss of Ksh.339million, which is a decrease from the loss of Ksh.1.4billion reported on December 31, 2020, and a significant decline from the profit of Ksh.118 million in 2019. The performance of this investment resulted in a 5% return on assets in 2017, followed by a - 2% return in 2018, a -4.1% return in 2019, a - 5.3% return in 2021, and a -0.6.9% return in 2022. Hence, this research aimed to ascertain the impact of mobile banking services on the profitability of SACCOS in Vihiga County, Kenya. The primary goals are to determine the impact of mobile money transfer, mobile account management, mobile credit facilitation, and mobile bill presentment on the profitability of SACCOs in Vihiga County. The research was informed by the intermediation theory, diffusion of innovation theory, theory of technological acceptability model, and the task technology fit theory. A descriptive research approach was utilized. The intended demographic for this project consisted of 125 individuals who were part of the 12 officially recognized SACCOS in the County. The research used a stratified sampling approach to determine a sample size of 95 individuals. These individuals were selected utilizing simple random selection from each stratum. The researcher gathered primary data via the use of semi-administered questionnaires that included both open-ended and closed-ended questions. The analysis employed descriptive statistics such as standard deviation, means, frequencies, and percentages. Conversely, inferential statistics was employed to determine the correlation between the variables being studied. The multiple regression analysis model was utilized. Multicollinearity, normality and heteroscedasticity were tested to test for the violation of regression equation. Frequency tables were utilized in quantitative data presentation. The ethical consideration was adhered to throughout the study period. The study showed that mobile money transfer, mobile account management and mobile bill presentment, all had the significance threshold of p<0.05 hence all had statistically significant effect on profitability of DTS in Vihiga County, Kenya. On the other hand mobile credit facilitation was statistically insignificant with p>0.05 The study concluded that popular of the responders established to abundant magnitude with the fact that mobile money transfer, mobile account management and mobile bill presentment indeed affected the profitability of DTS. The study recommended the effective utilization of bank to mobile transfer, bank to bank transfer and mobile to mobile transfer to help improve the profitability of DTS. It equally recommends the effective utilization of mobile account statements, transaction authorization and balance inquiries that would help to improve on the profitability of DTS. Additionally, it recommends for the effective utilization of utility bills management, till number payments and paybill payments that contribute to improved performance of DTS