Browsing by Author "Njore, Wainana Joseph"

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    Cash Management Practices and Financial Performance of Tea Processing Factories in Mount Kenya Region, Kenya
    (IAJEF, 2024-10) Njore, Wainana Joseph; Ndede, Fredrick W. S.
    The study objective was to determine the effect of cash management practices on financial performance of Tea processing factories in Mount Kenya Region. The study was anchored on Cash Conversion Theory. The target population included 35 tea processing factories situated in the Mount Kenya region, with Managers of the manufacturing units and accountants in charge of the factories selected as the respondents, totaling 70 participants. Primary data was collected using a five-point Likert scale questionnaire, and the analysis utilized quantitative techniques. Robust cash management practices, such as budgeting and monitoring bank balances, correlate positively with financial performance, emphasizing the need for continued efforts to optimize financial outcomes within the industry. The study concluded that cash management practices significantly affects financial performance of Tea processing factories in Mount Kenya Region. The study recommended that the Tea factories need to optimize cash management practices to ensure financial discipline and sustained growth. Regular monitoring of financial performance indicators and fostering a culture of financial literacy among employees are crucial for enhancing financial health and competitiveness in the sector.
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    Financial Management Practices and Financial Performance of Tea Processing Factories in Mount Kenya Region, Kenya
    (Kenyatta University, 2024-11) Njore, Wainana Joseph
    Tea processing factories in the Mount Kenya region play a pivotal role in Kenya's economy by contributing significantly to gross domestic product, employment, and foreign exchange earnings. However, despite their importance, these factories face financial performance challenges arising from fluctuating international tea prices, high production costs, and climate change impacts. From 2018 to 2020, notable disparities in financial performance were observed across counties in the region, highlighting the need for improved financial management practices. This study aimed to investigate the effect of financial management practices on the financial performance of tea processing factories in the Mount Kenya region. Specifically, the study examined the impact of cash management practices, capital structure decisions, and inventory management practices on financial outcomes. Grounded in Agency Theory, Pecking Order Theory, Cash Conversion Cycle Theory, and Lean Inventory Management Theory, the study adopted a descriptive research design. The target population comprised 35 tea processing factories in the Mount Kenya region, with managers and accountants serving as key respondents (n=70). Data collection utilized structured questionnaires with a five-point Likert scale, and quantitative analysis techniques were employed. The findings revealed moderate to high adherence to financial management practices, with significant positive effects on financial performance. Effective cash management, including budgeting and monitoring, showed strong correlations with improved financial outcomes. Similarly, strategic inventory management practices, such as Just-In-Time models and supplier relationships, were critical for enhancing performance. Capital structure decisions, particularly reliance on retained earnings and balanced debt-equity ratios, contributed to financial stability, albeit with variability among factories. The study concluded that financial management practices significantly influence the financial performance of tea processing factories in the Mount Kenya region. It recommends maintaining balanced capital structures, implementing effective inventory management systems, and optimizing cash management practices. Regular monitoring of financial indicators and fostering financial literacy among employees are essential for sustained growth and competitiveness in the tea sector.