Browsing by Author "Mwaura, Ruth"

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    Climate-Induced Credit Risks and the Financial Stability of Commercial Banks in Kenya
    (nternational Academic Journal of Economics and Finance (IAJEF), 2025-11-25) Mwaura, Ruth; Abdul, Farida; Mutswenje, Vincent Shiundu
    Commercial banks remain central to credit intermediation, savings mobilization, and payment systems, making their stability essential for sustained economic growth. In Kenya, this stability has been increasingly tested by climate variability heighten financial risks. Sector-wide resilience, measured by the average Z-score, fell sharply from above 100 in 2010 to about 18 in 2013, before settling in a range of 26 to 40 between 2021 and 2024. Although climate shocks are now recognized as key threats to banking systems, empirical evidence on their precise impact, particularly through mediation and moderation channels, has been mixed. This study examined how climate-induced credit risk affect the financial stability of commercial banks in Kenya. The analysis was anchored on Credit Risk Theory and Financial Sustainability Theory. A census of all 39 commercial banks was undertaken using secondary data from audited bank statements, Central Bank of Kenya supervision reports, macroeconomic bulletins, and climate-event records covering the period 2010–2024. Financial stability was proxied by the Z-score, while earnings volatility was measured as the rolling standard deviation of return on assets. Fixed effects panel regressions confirmed that climate-induced credit risk (p
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    Factors influencing the credit risk management techniques used by microfinance institutions in Kenya
    (2011-08-09) Mwaura, Ruth; Khasiani, A. K.
    This study sought to investigate the credit risk management techniques used by Microfinance Institutions in Kenya. The objectives of this study were, to determine credit risk management techniques employed by microfinance institutions in Kenya, to identify any differences in credit management techniques employed by commercial banks in micro credit versus those employed by other MFIs, to determine if the commercial banks' 6 C's (Character, Capacity, Conditions, Collateral, Contribution, and Common sense) model for assessing credit risk is important in the credit appraisal process of microfinance institutions in Kenya and to determine whether there is a relationship between credit management techniques and the default rate of institutions offering Microfinance services. The scope of this study was limited to Nairobi. The study adopted both the descriptive and exploratory research designs. The target population of this study was the micro finance institutions (MFIs) and banks offering micro credit in Kenya. There are well over 36 microfinance institutions in Kenya. The study was carried out by use of questionnaires sent out to the respondents, the responses of which were analyzed to reach a set of conclusions. Stratified random sampling technique was used. The researcher also employed some elements of convenience sampling to come up with a sample of 36 institutions. Data for this study was analyzed by the use of descriptive statistics that is, mean mode median and further, with the use of the Statistical Package for Social Sciences, (SPSS) and excel computer packages. The data was then presented in form of tables, charts and graphs