Browsing by Author "Njihia, Jeffrey Njoroge"

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    Effect of Cash Reconciliations on Financial Performance of Kenya Power, Central Rift Region, Kenya
    (The International Journal of Business Management and Technology, 2025-05) Njihia, Jeffrey Njoroge; Makori, Daniel
    This study examined the effect of cash reconciliations, as a critical component of internal control systems, on the financial performance of Kenya Power in the Central Rift Region, Kenya. A quantitative research design was employed, targeting 155 finance division staff across eight sub-regions, with a sample of 62 respondents selected using proportional stratified sampling. Data were collected through structured questionnaires, assessing cash reconciliation practices on a five-point Likert scale, and secondary data on financial performance (Return on Assets) from Kenya Power’s financial statements (2018–2022). Descriptive statistics revealed strong employee confidence in cash reconciliation practices, including regular petty cash reconciliations, frequent surprise checks, bank reconciliations, independent verification, and high-quality record-keeping. Inferential statistics, including Pearson correlation and regression analyses, confirmed a significant positive relationship between cash reconciliations and financial performance. However, financial performance exhibited volatility over the study period, suggesting that while cash reconciliations are impactful, other factors also influence outcomes. The study concludes that effective cash reconciliations enhance financial accountability and transparency, though broader strategies are needed for sustained stability. Recommendations include adopting automated reconciliation systems, enhancing staff training, increasing bank reconciliation frequency, implementing robust monitoring, and integrating digital payment systems to strengthen financial controls and support long-term performance. These findings provide actionable insights for Kenya Power to optimize its internal control systems and financial outcomes in the Central Rift Region.
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    Internal Control Systems and Financial Performance of Kenya Power and Lighting Company
    (Kenyatta University, 2025-06) Njihia, Jeffrey Njoroge
    Kenya Power's recent financial performance, particularly its Return on Assets (ROA) over the past five years, has raised concerns. In 2018, the ROA was 1.01%, but subsequent years saw fluctuations, with a low of -1.71% in 2020. The most recent data for 2022 indicates a decrease of -1.23%, underscoring the need of analyzing the influence of internal control procedures on this pattern. In order to address these issues, the study set out to assess the financial performance and the internal governance mechanisms of Kenya Power and Lighting Company within the Central Rift Region. This research sought to provide a comprehensive analysis of the linkage between control structures and financial outcomes in the energy industry. Accordingly, it aimed to evaluate the influence of these internal control measures on the financial results of Kenya Power in the Central Rift Region. The research specifically aimed to determine the impact of inventory audits, cash reconciliations, cash management, and division of tasks on Kenya Power's financial performance in the Central Rift Region. This investigation was informed by the theories of agency, attribution, and dependability. The research design used in this study was quantitative. A sample of 62 employees was chosen using a proportionate stratified random sampling approach from the target population, which included 155 employees from the finance division of all Kenya Power Central Rift districts. To gather information, the researcher used a standardized questionnaire. Seven workers, or 10% of the sample total, were randomly given questionnaires as part of a pilot research at Kenya Power in the Central Rift. The credibility of the material was verified through an assessment of construct literature. Reliability was measured using Cronbach's alpha coefficient. Data collection followed the drop-and-pick-later approach. SPSS 25 was utilized for data analysis, incorporating both descriptive statistics—such as proportions, percentages, averages, and standard deviations—and inferential statistics, including regression and correlation. The research's findings were shown in tables. According to the report, Kenya Power has enough workers in the Central Rift Region to do every assignment. It also revealed that the organization regularly does surprise cash checks and that each employee's authority and duty are well-defined. Regression research revealed that cash management, inventory audits, cash reconciliations, and division of responsibilities all had a favourable and statistically significant impact on Kenya Power's financial performance in the Central Rift Region. According to the report, Kenya Power should examine and update its personnel rules on a regular basis to reflect evolving industry standards and organizational demands. Furthermore, funding ongoing training and development initiatives would provide staff members the abilities and know-how to succeed in their positions. In order to improve operational efficiency, the report also suggested that Kenya Power use technological solutions, such as inventory management software, to automate inventory monitoring and expedite record-keeping procedures