Browsing by Author "Mutwiri, Nathan Mwenda"

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    Central Bank Prudential Regulations and Financial Performance of Commercial Banks Listed at the Nairobi Securities Exchange, Kenya
    (International journal of Management and Commerce Innovations, 2023-11-22) Rono, Edwin Kiprotich; Mutwiri, Nathan Mwenda
    The study sought to examine the effect of central bank prudential regulations on financial performance of commercial banks listed at the Nairobi Securities Exchange, Kenya. The hypothesis of stakeholder preference, agency, and liquidity was reviewed to support study variables, and empirical evaluations related to research was reviewed. A randomized study design was conducted on 12 quoted commercialized banking establishments in the NSE was the research population. Secondary information for the survey was compiled from the Central Bank of Kenya's financial disclosures as well as yearly articles. The outcome produced by the analysis reported that capital regulation affected listed commercial banks’ financial performance positively in a manner that is insignificant; liquidity and credit regulations inversely significantly affected financial performance; while foreign exchange regulations insignificantly in a way that is negative affected listed commercial banks financial performance at the Kenya’s Nairobi Securities Exchange. The recommendation was that in order to improve the financial performance of listed Kenyan banks, the central bank authority should conduct a comprehensive review of the capital regulation to identify the effect of such on the overall financial performance. This would enable the management of the listed banks to plan and optimize their investment towards maximizing the banks’ profitability.
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    Financial Technology and Profitability of Small and Medium Enterprises in Trans Nzoia County, Kenya
    (International Journal of Innovative Research and Advanced Studies, 2025) Mutai, Mirriam Chepchirchir; Mutwiri, Nathan Mwenda
    SMEs have continued to face various challenges despite its vital role in the economy. Most African countries depends heavily on SMEs for economic development and industrialization. The government of Kenya has identified the creation of SMEs as a strategy of achieving vision 2030. However, Republic of Kenya Baseline Survey (2019) found out that 65% of SMEs’ fail within the first three years of their operations despite the provision of interventions. The thriving economy of Trans Nzoia County is comprised largely of SMEs which are the main income earners in the region. However, the income generation of these SMEs has been dwindling and consequently, their ability to spur economic growth in the growing metropolis may be affected. The recent report from the county government of Trans Nzoia indicates that net profit margin of SMEs in the county declined from 11.3% in 2018 to 4.4% in 2022. This trend resulted directly in unemployment which then heightens social inequities and rate of crime. As such, this study sought to explore the influence online banking services on financial performance of SMEs in Trans Nzoia, County, Kenya. This study adopted and based its findings on a descriptive research design whose target population constituted of 3610 SMEs registered by ministry of trade, commerce and industry of Trans Nzoia County, Kenya. By using the Cochran, (1977) criterion, the researcher selected a sample frame of 347 SME. Stratified sampling technique was applied to group SMEs while purposive sampling technique was adopted to select respondents. The main research instrument used was the semi-structured questionnaire and included information for both dependent and independent variables .The study was anchored on Technology Acceptance Model. The researcher utilized Likert scale to gather information from questionnaires. Data collected for the research was edited, evaluated and analysed using descriptive statistics and inferential statistics with the help of statistical package for social sciences (SPSS) 24. The results indicated that online banking services significantly affects profitability of SMEs in Trans Nzoia County, Kenya. According to the study's findings, financial institutions should develop more banking agents in rural areas, because they are the most favored and used by SMEs.
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    Systematic Risk and Performance of the Stock Market in Kenya
    (Kenyatta University, 2019-06) Mutwiri, Nathan Mwenda
    Stock prices in Kenya have been experiencing drastic volatility in the recent past. In the year 2015 alone, the value of the listed companies shrunk by about Ksh 250 billion representing about 25% of the national government annual budget. Performance of stock market is an important proxy of a country’s economic environment. Globally, economists, financial analysts and investors are interested in comprehending the factors that affect the fluctuations of stock markets. When the stock markets operate smoothly and efficiently, they facilitate economic growth and lower business risk. Excessive fluctuations of stock prices (in the financial markets) affects the smooth operation of financial markets and consequently adversely affects the performance of an economy. Rational investors are keen in achieving their maximum expected rate of return of their investments including stocks; they constantly value and revise their portfolio composition so as to maximise their wealth. An effectively diversified portfolio minimises the unsystematic risk hence almost eliminating these risk associated with an individual asset. However systematic risks cannot be managed by simple diversification. Investors therefore need to understand the effect of these systematic risks on the stock performance. The study sought to determine the relationship between systematic risk factors and performance of the stock market in Kenya. The specific objectives of the study were: to establish the relationship between Interest Rates, Foreign Exchange Rate, Inflation, Gross Domestic Product, Trading volumes and Performance of stock market in Kenya. The study adopted a positivist philosophy and employed a correlation research design. The study targeted all the stock listed in the Nairobi Securities exchange. This study utilized the NSE 20 share index movements to measure the performance of the stock market in Kenya. The study was underpinned by the Efficient Market Hypothesis, Capital Asset pricing Model, Arbitrage Pricing theory, Keynesian theory and Mixture Distribution model as theories and models anchoring the study. The study investigated the long run and the short run relationships between the systematic risks and performance of stock markets in Kenya using ten years (2007 to 2016). The study used time series secondary data from the Central Bank of Kenya, Kenya National Bureau of Statistics and the Nairobi Securities Exchange. The study used cointegration analysis to establish the relationships between the variables of study. In addition Johansen-Julius test of cointegration, Vector Error Correction Model and Granger causality test were used to test the relationships. The study found a significant long run positive relationship between interest rate, exchange rate, inflation, gross domestic product and performance of the stock market in Kenya. The study found a negative significant relationship between commercial bank weighted average lending rate, the trading volumes and the Performance of Nairobi Stock exchange. Growth in Gross Domestic Output was insignificant in explaining the performance of Nairobi stock exchange. In the short run, only three lags of commercial bank weighted lending rate, one lag of Inflation, and three lags of Trading volumes were significant in explaining changes in Nairobi stock exchange. This is an indication that C.B.K should not be keen to increase the CBR because this leads to a decline in stock prices and this discourages potential investors away which is disastrous for the economy. Additionally, the central bank should not be keen on having a target exchange rate for the USD/Ksh because changes in exchange cannot significantly explain the changes in stock price hence such a move would not be very effective. Investment firms, financial analyst should use past data on 91 Treasury bills rate, Inflation, Trading volumes to predict future performance of stock exchange for the benefit of investors.