Browsing by Author "Njoka, Charity"

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    Analysis of the Influence of Firm’s Growth on the Financing Structure among Youth-owned Small and Medium Size Enterprises in Kiambu County, Kenya
    (International Journal of Economics, Business and Management Research, 2023) Otieno, Vincent Ochieng; Njoka, Charity
    Small and Medium Enterprises (SMEs) play a vital role in the economic landscape, with their financial stability being crucial for their survival and growth. The availability of capital, especially during phases of product and process innovation, is a pivotal factor that determines the trajectory of SMEs. Kiambu County in Kenya has emerged as a region witnessing notable growth in SMEs, particularly among young entrepreneurs who own a substantial number of these enterprises. This study aims to investigate the impact of firm growth on the financing structure of youth-owned SMEs in Kiambu County, Kenya, drawing upon the trade-off theory as its theoretical framework. Employing both explanatory and cross-sectional research designs, this study adopted linear regression analysis to explore the relationships between key variables. The findings reveal that most SMEs in the region exhibit high levels of product and service development, indicating growth in their ability to provide unique offerings. However, when it comes to ICT and financial innovation, the majority of these SMEs lag behind. Moreover, the study indicates a significant increase in the overall employee count, suggesting overall growth within these enterprises.
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    Financial Literacy and Investment Decisions among Middle and Long-Distance Elite Athletes in Kenya
    (The Strategic Journal of Business Change & Management, 2024) Nyang’au, Fednard Machoka; Njoka, Charity
    This study examined the impact of financial literacy on the investment decision-making process among middle and long-distance elite athletes in Kenya. The research design employed in this study was descriptive in nature. A total of 1,695 athletes specializing in middle- and long-distance events, and based in Kenya, were included in the study. From this population, a sample size of 318 athletes was selected. The researcher took into account of both stratified and purposive sampling methodologies in order to identify the specific participants. Data collection was conducted using structured questionnaires. The study included correlation analysis and a multivariate regression model to assess the hypotheses. The research results were presented through the utilization of graphical representations and tabular formats. The findings revealed that the participants exhibited a lack of knowledge of the functioning of the Nairobi Securities Exchange (NSE). Moreover, it was observed that athletes engaged in moderate buying and selling activities of ordinary shares, preference shares, and bonds for various firms inside the NSE. The findings of the study revealed that a significant proportion of the participants expressed a tendency to infrequently allocate a portion of their profits following each successful race for the purpose of saving. The findings of the survey revealed that a significant proportion of the participants expressed a modest level of awareness regarding various investment prospects both domestically and internationally. The findings of the study suggest that the allocation of investments in real estate, business, and financial assets in the region was only partially and inadequately executed. The findings of the research indicated that the level of literacy among the participants was significantly low. The team had a limited understanding of fundamental concepts in financial literacy, including the overall inflationary trend in the economy, the concept of time worth of money, and the potential misperception of cash holdings. It is imperative that athletes obtain the necessary knowledge that will serve as the fundamental basis for an effective investment strategy. By acquiring such knowledge, athletes will enhance their ability to develop a robust investment plan that is resilient to inflation. Hence, it is imperative for athletes to actively pursue financial counsel, as there exists a multitude of advisors who can offer them the necessary assistance, direction, and expertise required to construct a robust investment strategy that ensures long-term viability, while safeguarding against potential financial setbacks stemming from the prevailing economic climate.
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    Financial Risks and Financial Performance of Commercial Banks Listed In Nairobi Securities Exchange, Kenya
    (IAJEF, 2024-11) Mable, Sophie Malalu; Njoka, Charity
    Despite the implementation of comprehensive risk management systems by commercial banks, the banking sector incurs financial losses. Commercial banks listed on the Nairobi Security Exchange are experiencing declining financial performance. Financial risk management is regarded as a metric for assessing the performance or failure of a financial organization. It has been neglected in recent a long time. The main objective of the study is to ascertain the effect of financial risk on the financial performance of commercial banks listed on the Nairobi Securities Exchange in Kenya and will be measured by return on equity. This study was based on Merton's Default Risk Model, Agency Theory, Shiftability Liquidity Model, and Risk Management Theory. Explanatory research design was used for study. The sample is 11 listed commercial banks being focused from the year 2018 to 2023. The data collecting sheet was employed to amass the secondary data. The ethical considerations were observed to. The variables were analysed using IBM SPSS Version 25. Tests for multicollinearity, heteroscedasticity, correlation, regression as well as the Hausman test were established. The findings on credit risk indicated that the mean Non-Performing Loans Ratio is 11.062% which show moderate negative correlation between credit risk and financial performance of listed bank at (r=0.324; p=0.0016). Operational risk results indicated a strong positive and significant association between operational risk and financial performance(r=0.758 and p=0.00168) while liquidity risk showed that the mean of loan to deposit ratio is 72.847% and a weak positive correlation relationship between liquidity risk and financial performance (that r=0.0652 and p=0.003).From the finding the study conclude that credit risk, operational risk and liquidity risk has significant influence on financial performance of listed commercial banks. The study recommends that banks should engage in continuous monitoring of credit portfolios, invest in capacity building for enhanced risk management capabilities. Banks should conduct regular comprehensive risk assessments, invest substantially in technology for robust IT systems, and engage in scenario planning to anticipate and address potential operational risks. In addition, the listed banks should diversify funding sources, employ advanced risk modelling for robust liquidity risk management.
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    Internal Control Systems and Financial Performance of Private Security Firms in Nairobi City County, Kenya
    (International Academic Journal of Economics and Finance (IAJEF), 2025-05) Kisaingu, Francis Munyao; Njoka, Charity
    Effective internal control systems are vital for protecting organizational assets, ensuring adherence to regulations, and enhancing overall operational performance, all of which contribute to strong financial outcomes. Huge cash losses have been recorded throughout the years, putting private security companies involved in cash transportation in the headlines. Theft of cash in transportation occurs not just by the G4S security business, but also by other security agencies engaged to carry it. In one recent occurrence, KK security agents stole a total of Sh82 million while carrying it from Westlands to the Central Bank of Kenya. The Wells Fargo security failed to prevent the theft of 94.9 million belonging to one of the Supermarket in Kenya during money transit. It is evident that the existing private security measures were insufficient to safeguard the business's assets. Private security firms are essential for ensuring safety and security across various sectors, including business environments, residential areas, and public events. This research aimed to investigate the effect of internal control systems on the financial performance of private security firms in Nairobi City County, Kenya. The objectives of the research were: to evaluate the effect of access control on financial performance of private security firms and to analyze the effect of risk assessment on financial performance of private security firms. The research was anchored on Agency Theory and Stakeholder Theory. The linkage between the variables were investigated using a causal study approach. The research focused on a population of 81 officially registered private security companies, from which a sample of 25 firms were chosen utilizing stratified sampling techniques. Data was primarily collected through structured, closed-ended questionnaires. The collected responses were analyzed utilizing both descriptive and inferential statistical methods. Descriptive statistics involved measures like means, standard deviations, and while inferential statistics comprised regression analysis to determine relationships and significance. The analyzed data was presented through frequency and percentage tables, and charts. The findings revealed that access control shows a positive performance as indicated by significance value of .001. Risk assessment have a significance level of .004, further solidifies the importance of this variable. The research concluded that effective internal controls particularly in the areas of access control and risk assessment play a critical role in enhancing the financial performance of private security firms. The research recommended that firm managers prioritize the continuous improvement of internal control frameworks. Specifically, it advocated for regular staff training to upgrade professional skills, as well as collaborative efforts among stakeholders and policymakers to foster an environment that supports best practices in internal control throughout the private security sector.
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    Internal Controls and Credit Risk Among Commercial Banks Listed in Nairobi Securities Exchange,Kenya
    (IJCAB Publishing Group, 2020) Agang, Jared Ochieng; Njoka, Charity
    Inappropriate credit policies, as well as inadequate, limited institutional capacity by Kenya's financial sector, led to several of the banking institutions collapsing over what was termed as poor management of credit risks which resulted to increased amounts of loans that were not being serviced. The main aim of the research project was to establish the effects of internal controls on credit risk among the banks listed in NSE. The distinctive goals included to find out the influence of internal control, assessing risk ,activities in control and monitoring among banking organizations listed in NSE. The study was guided by capital asset pricing model, agency theory and modern portfolio theory. The study adopted a casual descriptive research design. The target population encompassed the eleven listed banks in Nairobi Securities Exchange where census was done. Both primary and secondary data were collected. The questionnaires were applied to gather data. The diagnostic tests include multicollinearity and normality. Data was evaluated using both descriptive and inferential statistics using SPSS. The findings show that there is a positive and significant link between monitoring and credit risk. The study found that assessment of the risk has a significant way on credit risk and that internal controls that are not strong such as poor ethical values have stimulated the involvement to fraud that leads to income loss and misuse of the income received. The study concluded that risk assessment P=.000 < 0.05, control activities P=.000 < 0.05, monitoring and control environmentP=.001 < 0.05 have a significant effect on credit risk among commercial banks listed in NSE. The study recommends that banks should implement proper risk assessment to guide their operations and also implement efficient control activities to guide their operations. Further, the study recommends that banks’ monitoring approaches should be guided towards effective tasks and achieving the goals of the organization. In regard to propositions for more studies, this investigation could be further advanced by looking at the effect on credit risk management in other institutions such as investment banks and microfinances. It will help in the management of credit unions, Savings and Loans Associations, investment banks and microfinances in Kenya
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    The Effect of Microfinance Services, Financial Literacy and Financial Health of Women Members of Selected Microfinance Banks in Kenya
    (Stratford Peer Reviewed Journals and Book Publishing (Journal of Finance and Accounting), 2024) Riro, Jerusha Kerubo; Musau, Salome; Njoka, Charity
    The World Bank identifies the financial health of women as crucial for poverty reduction and economic development. This study aimed to assess the impact of microfinance services and financial literacy on the financial health of women members of selected microfinance banks in Kenya. Specifically, it examined the effects of micro-credit, micro-savings, and micro-insurance services, as well as the moderating role of financial literacy. Guided by empowerment, gender stratification, finance growth, and information asymmetry theories, the study employed an explanatory research design within a positivist framework. The target population included 37,773 women with active deposit and loan accounts in 14 microfinance banks in Kenya, with a sample size of 384 respondents. Findings revealed that micro-credit, micro-savings, and micro-insurance services significantly enhance the financial health of women. Additionally, financial literacy positively moderates the relationship between microfinance services and financial health. The study recommends that microfinance institutions diversify their financial products beyond traditional micro-credit and implement educational programs to improve awareness and understanding of micro-savings services among women