DSpace Repository :: Browsing by Author "Omagwa, Job"

Browsing by Author "Omagwa, Job"

Now showing 1 - 20 of 37

Accounting Practices and Financial Performance of Public Secondary Schools in Makueni County, Kenya
(International Organization Of Scientific Research (IOSR), 2019-06) Manei, Benson Orikae; Omagwa, Job
In Kenya, most public secondary schools fund management systems have been coupled by a lot of challenges among them corruption, mismanagement, problems of denied secondary certificates due to arrears that are non-existent, and some parents accusing the schools of making fictitious fees balance claims. Therefore, this brings out the case of serious financial performance challenges in Kenyan public schools. As a result, the study sought to determine the effect of accounting practices on the financial performance of public high schools in Makueni County. The accounting practices investigated were: record keeping, internal control and budgeting. The study was guided by three theories: Residue Equity theory, Institutional theory and Contingency theory. The study adopted a census design and the target population was 44 public secondary schools in Makueni County. The study used purposive sampling in picking respondents. Both primary and secondary data was used and the analysis procedure entailed the use of descriptive analysis (means and standard deviation) and Multiple Regression Analysis with the aid of SPSS Software (Version 21). The study found that record keeping had a positive and significant effect on financial performance of public secondary schools in Makueni (Beta = 0.819; P Value =0.000,< 0.05). The study further found that internal control had a positive and significant effect on financial performance of public secondary schools in Makueni (Beta = 0.853; P Value = 0.000,<.0.05). It was also established that budgeting had a positive and significant effect on financial performance of public secondary schools in Makueni (Beta = 0.811; P Value = 0.000, <0.05). Based on the findings, the study concludes that the relationship between record keeping, internal control as well as budgeting and financial performance of public secondary schools in Makueni County was positive and significant. The study recommendations the management and administration of the public secondary schools to involve all stakeholders in managing and accounting for the school finances and resources; empower, build capacity and remunerate bursars accordingly to enable them diligently deliver on their mandate as well as sensitize the school principals on basic accounting, bookkeeping and financial management to enable them oversee, supervisor and guide financial management among their institutions.
Agency Banking and Financial Performance of Commercial Banks in Embu County, Kenya
(Canadian Center of Science and Education, 2017) Mbugua, Irene Njoki; Omagwa, Job
Agency banking is receiving much attention all over the world owing to its associated benefits. In a number of countries, banks are finding new ways to make money delivering financial services to "unbanked" people. Rather than using bank branches and their own field officers, they offer banking and payment services through retail outlets, including grocery stores, pharmacies, seed and fertilizer retailers and gas stations among others. This study sought to establish the effect of agency banking model on financial performance of commercial banks focusing on commercial banks in Embu County, Kenya. In particular, the study sought to achieve the following specific objectives: establish the effect of cost-effectiveness of agency banking on financial performance of commercial banks, to determine the effect of commissions earned from agency banking on financial performance of commercial banks, to establish the effect of operational flexibility of agency banking on financial performance of commercial banks and to determine the effect of banking hall decongestion financial performance of commercial banks in Embu county, Kenya. This study was informed by: bank-led theory advantage and agency theory. The study adopted a descriptive research design. The study target population was all the Banks agent outlets in Embu County, Kenya. The sample size of the study was 69 bank officials in top, middle and junior level management in Embu County, Kenya. The study used stratified random sampling technique to select the study sample that participated in the study. The study used primary data which was collected by use of questionnaires that were administered through a Drop-off/Pick-Up method. Before the actual study, a pilot testing was conducted to establish validity and reliability of the data collection tool. The data collected was entered and coded in the Statistical Package for Social Scientists (SPSS) for easy analysis and presentation of the results to be yielded. Descriptive statistics such as mean, frequencies, standard deviation and percentages were used for descriptive analysis of the data collected. The study also used correlation analysis and multiple regressions to establish the relationship between the dependent variable and independent variables. The study found that agency banking, has brought about down the cost of banking and banking transactions. The study also found that banking cost of agency banking influence the financial performance of the Commercial Banks in Embu County to a very great extent. The study established that a majority the bank officials’ rated as excellent the amount of commission earned by the bank and the bank agents earned from the adoption of agency banking, that a considerable majority of the respondents were of the opinion that agency banking had led to lead to decongestion of banking halls and that operational flexibility of agency banking is a significant predictor of the financial performance of the selected commercial bank. The study concludes that cost-effectiveness had the greatest effect on financial performance of the selected Commercial banks followed by banking hall decongestion then operational flexibility while commissions earned had the least effect on financial performance of the selected Commercial Banks. The study recommends that Commercial banks in Kenya should improve customers’ perception by making more advertisements and also increase promotion activities of agent’s banking Central bank consider coming with a clear agency banking regulatory policy which creates a universal platform for all banking institutions.
Analyzing the Effect of Liquidity on Financial Stability: Evidence from Kenyan Deposit-Taking Savings and Credit Cooperative Societies
(Stratford Peer Reviewed Journals and Book Publishing, 2024-05-15) Birisi, Hesborn Birisi; Omagwa, Job; Musau, Salome
Non-performing loans have been on the rise among DT SACCOs in Kenya over the past five years as evidenced by the increase in percentage of NPLs to gross loans in SACCO regulatory authority report of 2020. Consequently, if this trend is allowed to continue then this sector’s contribution to financial intermediation through provision of financial services will be negatively affected. In view of the above this study sought to investigate the effect of firm characteristics and financial stability of deposit taking savings and credit cooperative societies in Kenya. In view of the above this study sought to assess the effect of liquidity on financial stability of deposit taking savings and credit and cooperative societies in Kenya. The study was anchored on agency theory. Positivist research philosophy was adopted in this study. The study adopted explanatory research design. The target population for the study comprised 160 DT SACCOs which were fully operational in the period. A census approach was used for the study. This study utilized quantitative secondary data which was obtained from the society’s financial statements and supervision reports from the savings and credit cooperatives regulatory authority. The study utilized annual panel data for the period of 2017 to 2021. Multicollinearity test, normality tests, autocorrelation test, homoscedasticity, stationarity test and model specification test were carried out prior to panel data analysis. Data was analyzed using descriptive statistics, Pearson’s correlation analysis and panel regression analysis. STATA software was used for the analysis. The findings showed that liquidity had a strong, positive effect on NPLs ratio (β = 0.410056, p=0.003 <0.05). In view of the findings, the study recommends that DT SACCOs with high liquidity levels should consider implementing rigorous lending practices to ensure that loans are extended to creditworthy borrowers. Additionally, effective credit risk assessment and continuous monitoring of borrower repayment behavior are essential to minimize NPLs. DT SACCOs should focus on improving management efficiency by implementing cost-effective operational processes.
Asset structure and financial performance: a case of firms quoted under commercial and services sector at the Nairobi securities exchange, Kenya
(2017) Mwaniki, Gladys; Omagwa, Job
This study sought to determine the relationship between the asset structure and the financial performance of the firms quoted under the commercial and service sector at the NSE, Kenya. The target population by the study was the secondary data from the annual reports of the firms. The asset structure is analysed in term of: Property, Plants and Equipment; current assets; intangible assets; and long term investments and funds, which formed the independent variables. The dependent variable of interest was the financial performance of the firms, and was measured in terms of: earning per share; return on assets; return on equity, profit margin (return on sales); and current ratio, by aid of a composite index. A census was done on the entire firms listed under this sector by the year 2014, for a five year period, 2010 to 2014. A document review guide was used to collect the secondary data from the financial statements of the firms under study. A multiple regression analysis (standard) was conducted with the aid of statistical programs SPSS version 21. The results of the study indicate that asset structure had a significant statistical effect on the financial performance. In particular, the study found that: Property, Plants and Equipment, and long-term investments and funds have a statistically significant effect on financial performance, while current assets and intangible assets do not have statistical significance on financial performance. This study concluded that the firms should increase the allocation of resources towards long term investments and funds, and utilize available resources in terms of the Property, Plant and Equipment effectively
Asymmetric Information, Demographics, and Housing Decisions amongst Apartment Households in Nairobi County, Kenya
(International Organization of Scientific Research, 2016) Omagwa, Job; Kaijage, Erasmus
The study sought to determine the moderating effect of asymmetric information on the relationship between household demographics and four owner-occupied apartment housing decisions that is choice of neighbourhood, choice of location of apartment house, source of financing and size of house. Using two-stage cluster sampling, 196 owner-occupied apartment households were studied in Nairobi County, Kenya though a sample size of 226 households had been initially selected to participate in the study. Questionnaires were used as the data collection method in an exercise that took place in August 2014. Hierarchical multiple regression analysis was used to achieve the study objective of testing for moderator effects of asymmetric information. Preliminary statistical tests were performed and the same were, to a great extent, in the affirmative. The study found that asymmetric information had a moderating effect on the relationship between demographics and the four housing decisions but the moderation was not statistically significant in explaining any of the four relationships hence the implication that the owner-occupied housing market in Nairobi County, Kenya could be efficient to the extent of the scope of this study. Hence, there was no sufficient evidence to reject the four null hypotheses of the study in view of a significance level of 0.05. The study cites limitations encountered and recommends areas for further study in view of the study findings.
Bancassurance and Profitability of Selected Commercial Banks in Kenya
(Globeedu Group, 2017) Kamunya, Joseph; Omagwa, Job
The banking sector in Kenya plays an important role in the growth of the economy, and thus this sector needs to be stable, over the years this sector has faced challenges which have impacted on profitability of most institutions. Hence, the sector adopted the concept of Bancassurance as a form of diversification to improve its fortunes. However, despite the introduction of this sophisticated concept, there is very little empirical evidence on whether the concept has a significant effect on Profitability of the banks which have largely adopted the concept. And this was the thrust of this empirical investigation. The objective of the study was to determine the effect of bancassurance on profitability of selected commercial banks in Kenya, between the years 2012 to 2016. Profitability was operationalized into Net income, Return on Asset and Return on Equity. The study adopted descriptive survey method. Purposive sampling was used to pick respondents for the study; the target population of six best commercial banks in Kenya was adopted. These were banks offering bancassurance services. Data was analysed by descriptive statistics and multiple regression analysis. Data presentation was in the form of tables and graphs. The study found a positive and statistically significant effect of interest income from banc assurance, customer retention and acquisition and the risk diversification on financial performance of selected commercial banks in Kenya. The number of insurance products on offer did not have a statistically significant effect on profitability of the banks under study. Hence, the study concludes that Bancassurance is a significant component of the banks revenue stream which should be given more prominence as the banks strive to remain profitable.
Bank-Specific Characteristics and Financial Distress of Commercial Banks in Kenya
(IAJEF, 2024-11) Githinji, Mary Wangechi; Simiyu, Eddie; Omagwa, Job
Empirical evidence on the banking industry in Kenya indicates that local banks have been prone to financial distress. Commercial banks in Kenya have been experiencing cycles in Financial Distress and though such cycles have been precipitated by Bank-Specific Characteristics in other countries. It is still a challenge for empirical investigation as to know whether Bank-Specific Characteristics significantly affect Financial Distress in Kenya’s banking industry. Subsequently, the basis of this research was to evaluate the connection between Bank-Specific Characteristics and Financial Distress of commercial banks in Kenya. Explicitly, the research was informed by determining the Income Diversification on Financial Distress of commercial banks in Kenya. The Gambler’s ruin theory and Modern portfolio theory provided theoretical anchorage to the research. Positivism research philosophy and causal research design were adopted for the study. The research was a census of all the 36 fully operational commercial banks in Kenya for the period 2011 through 2019. Secondary data was utilized in this study. Data sources included: websites of the CBK and individual Commercial Banks, audited financial statements and Annual supervision reports. Data analysis entailed use of descriptive and inferential statistics where the latter involved dynamic panel logistic regression analysis. Diagnostic tests undertaken in the study included: model specification, stationarity, autocorrelation, and multicollinearity tests. Hypotheses were tested at a significance level of 0.05. Data was displayed through frequency tables and graphs. Based on the dynamic panel Logistic regression analysis, the research revealed that Income Diversification had a significant effect on Bankometer Score (β=0.3504847, p=0.002) on commercial banks in Kenya. The study recommended that banks should diversify their revenue streams into new business areas and markets while considering risks and capabilities.
Capital Structure And Financial Performance Of Small And Medium Enterprises In Embu County, Kenya
(International Organization of Scientific Research, 2018) Ruri, Joseph Kinyua; Omagwa, Job
Small and Medium Enterprises constitutes the backbone of many economies in the world since they create jobs and contribute positively to their respective economies which Kenya is not an exception. In Africa there are a few studies on the link between capital structure and SMEs financial performance. The few studies in record focuses on capital structure and profitability of quoted companies, capital structure and financial performance of errand services SMEs and international joint ventures. In addition, the effect of capital structure on financial performance of large firms have been examined by a number of studies with smaller firms attracting less attention. Very few if any studies have examined the effect of capital structure on financial performance of SMEs. Hence, inadequate finance knowledge and inconclusive literature thus the need for more empirical work. This warranted a further investigation hence the current study. The specific objectives of the study were: to establish the effects of equity capital, debt capital and Retained earnings on financial performance of SMEs. The study adopted descriptive design. The target population was 95 SMEs and by use of stratified random sampling technique a sample of 29 respondents was established. Descriptive analysis and multiple regression analysis were used in data analysis. Data was presented in tables graph and pie charts. Preliminary diagnostic tests were done before running the regression analysis. The study established that: Equity capital and Debt capital has a significant effect on financial performance of the SMEs studied due to a p-value of 0.021 and 0.020 respectively with the significance level being 0.05. However, retained earnings was found not to have a significant effect on financial performance of the SMEs studied since the p-value was 0.797. Among the three variables Equity capital had greatest proportion in terms of contribution towards capital structure due to its advantage to the firm. Debt capital was found to be more risky than others while retained earnings proved difficult to raise and maintain. The study therefore concludes that generally, capital structure has a collective significant effect on financial performance of SMEs in Embu County, Kenya.
Challenges associated with Adoption of Agency Banking and Bank Performance: A Case of Selected Commercial Banks in Kenya
(International Organization of Scientific Research, 2017) Mungai, Edwin Henry Mutura; Omagwa, Job
The study sought to determine the effect of challenges associated with adoption of agency banking on bank performance of four selected commercial banks in Kenya. Empirical evidence indicates that the effects of challenges associated with adoption of agency banking on bank performance in Kenya are positive and that there is relationship between accessibility of banking services, low cost of service and customer transactions as a result of agency banking. The study employed purposive sampling to obtain a sample of 44 respondents from four banks. Data was collected using questionnaires. The findings of the study indicate that administrative challenges do not significantly affect bank performance whereas reliability and operational challenges were found to have a significant effect on bank performance. The study concluded that the banks needs to do more in containing some of the challenges studies since they impacted on agency banking as a product generally. Based on the findings, the study made recommendations to commercial banks management, academicians and policymakers. The study recommended that policy makers heighten awareness to the public through regular open day forums, media and exhibitions on the need and use of agency banking, and develop strategies that will capture new customers. Banks should also be allocating more resources to most especially minimize liquidity problems. The study finally suggested further research on the effects of adoption of agency banking on other upcoming agencies for other commercial banks and microfinance institutions.
Corporate Governance Structure and Profitability of Deposit Taking Savings and Credit Co-Operative Societies in Nyeri County, Kenya
(IJSER, 2019) Wanjiru, Peter Njuguna; Omagwa, Job
Despite being great potential agents for national development in Kenya, SACCOs perform poorly. This poor performance points in a nutshell to the poor corporate governance practices by board of directors or other bodies that have been entrusted with the responsibility of governing the SACCOs. Corporate governance is tasked with overseeing and supervising management to ensure that organization goal and objectives are met. Studies that have been done on the effects of corporate governance structure on profitability show inconclusive results. Some studies found no relationship between corporate governance structures and profitability while other studies document a positive relationship. Further, there are limited studies on developing economies since most studies focus on developed economies. The study conducted a census of the 8 deposit taking SACCOs in Nyeri County and purposive sampling method was used to select 4 respondents from each SACCO making a sample of 32 respondents. A questionnaire was used to collect primary data while secondary data was obtained from the deposit taking SACCOs regulator SASRA via their website. The study adopted descriptive research design. Multiple regression analysis results indicated that 57.7% change in profitability of the deposit taking SACCOs were explained by corporate governance structure. Gender Diversity had a p-value of (p=0.004<0.05) indicating that it had significant effect on the profitability of deposit taking SACCOs hence the null hypothesis was rejected. Similarly, occupational expertise had a p-value of (p=0.011<0.05) indicating that it had a significant effect on the profitability of deposit taking SACCOs hence the null hypothesis was rejected. Finally, directors’ age had a p-value of (p=0.014<0.05) indicating that it had a significant effect on profitability of deposit taking SACCOs hence the null hypothesis was rejected. The study recommended that SACCOs should put in place by-laws that support gender balance, set minimum academic and professional qualifications as well as directors’ age to ensure quality governance, professionalism and inclusivity. SASRA, being the deposit taking SACCOs regulator should set regulations and conditions regarding corporate governance structure to ensure quality boards are in place to deliver their mandate to shareholders.
Corporate governance, financial performance and firm Value: a case of commercial banks in Kenya
(SSBFNET, 2019) Ochego, Evans Machero; Omagwa, Job; Muathe, Stephen M. A.
Firm value is dependent on corporate which leads to increased value. High valued firms attract more investors. Towards firm value protection, minimum capital requirements were raised by the Central Bank of Kenya from 250 million to 1 billion shillings on commercial banks to cushion bank shareholders value. Despite the increased oversight and regulatory efforts on corporate governance to protect and enhance firm value, some commercial banks have recorded low firm value. Hence, this study sought to investigate the mediating effect of financial performance on the relationship between corporate governance and firm value of commercial banks in Kenya. The study was anchored on Agency Theory. Explanatory research design was adopted. Target population was forty four Kenyan commercial banks, where a census was conducted. Secondary data was collected from published financial statements and bank websites for the period 2009 to 2018. STATA version 13.0 was used for data analysis. Descriptive and inferential statistics specifically panel regression was used in data analysis. The study findings established that there is a statistically significant effect between financial performance and firm value of commercial banks in Kenya. Therefore, the study concluded that firms with good financial performance have high firm value. And as such, these calls for the management of the commercial banks improve financial performance which will go a long way in improving firm value. There is also need for Central bank of Kenya, Capital Markets Authority and Nairobi Securities Exchange to emphasize on corporate governance and short term goals to enable achievement of long term goals
Credit Management and Loan Portfolio Performance of Savings and Credit Cooperative Societies in Nyandarua County, Kenya
(International Academic Journal of Economics and Finance, 2020) Gichuhi, Anne Wambui; Omagwa, Job
The SACCO sector globally continues to struggle with huge loan performance inefficiencies. Alarmingly, the Portfolio at Risk levels for local societies stand beyond the maximum boundaries endorsed by both the World Council of Credit Unions and the SACCO Societies Regulatory Authority. Theoretical foundations suggest that credit management has an effect on loan portfolio performance. While studies have tried to critique this state, a number of unresolved gaps still exist. The specific objectives of the study were: to determine the effect of client of client appraisal, lending policy, collections policy and loan diversification on loan portfolio performance of SACCOs in Nyandarwa County, Kenya. An explanatory research design was used. A target population of 25 Savings and Credit Cooperative Societies in Nyandarua County were studied using census approach. Questionnaires were used to collect primary data. The drop and pick method was used in administering the research instrument. Validity was assessed through expert opinion and pre-testing. Reliability test relied on the Cronbach’s Alpha reliability test. Data analysis was done by use of both descriptive and inferential analysis. Descriptive statistics, correlation analysis and multiple linear regression were used to analyze data. The p value for client appraisal (p=0.001) is less than 0.05 level of significance which informs a finding that client appraisal has a statistically significant effect on loan portfolio performance. The p value for lending policy (p=0.022), which is less than 0.05 significance level, indicates that lending policy has a statistically significant effect on loan portfolio performance. The p value for collections policy (p=0.034), which is less than 0.05 level of significance, indicates that collections policy is a statistically significant determinant of loan portfolio performance. The p value for loan diversification (p=0.007), being less than 0.05 level of significance, demonstrates that loan diversification was a statistically significant determinant of loan portfolio performance. Pearson correlation analysis results indicated that client appraisal (r=0.764, p=0.002), lending policy(r=0.513, p=0.003) and collections policy (r=0.537, p=0.014) have a strong positive and statistically significant relationship with loan portfolio performance. Nevertheless, although loan diversification (r=0.355, p=0.020) also demonstrated a positive correlation with loan portfolio performance, the results indicated that the relationship was weak. The study recommends that the SACCOs invest in technology based initiatives such as computerized loan tracking system that could turn around the way SACCOs operate their credit system and hopefully improve loan quality. The study recommends enhanced adoption of co-guarantee lending methods to help diversify risk among group borrowers. All ethical considerations were observed by the study accordingly.
Credit Management Practices and Financial Performance of Microfinance Institutions in Nairobi Central Business District, Kenya
(IJSER, 2018) Kipkirui, Edwin; Omagwa, Job
The link between credit management practices and financial performance remains unclear especially in the Microfinance Sector in Kenya. Though there are studies on performance of MFIs in Kenya, few have sought to explain the same in view of credit management practices. Much of the available local empirical literature is in the banking context. Hence, this remains an area of empirical interest: this formed the motivation of the study. The study sought to determine the effect of credit management practices (client appraisal, credit risk, collection policy, and credit terms) on financial performance of MFIs in Nairobi Central Business District, Kenya. A descriptive survey design was adopted for the study; the target population comprised of 165 members of staff of the MFIs studied. Primary data was collected using questionnaires. Purposive sampling was used to pick 165 respondents. Of the 165 questionnaires dispatched, 158 were filled and returned. Descriptive analysis and multiple regression analysis were used to analyze data. The study found that credit risk control, client appraisal, collection policy and terms of credit were all statistically significant in explaining financial performance of the MFIs studied. The study further established that credit risk control, client appraisal, collection policy and terms of credit had a positive relationship with financial performance. The study concludes that unit increase in credit risk control, client appraisal, and collection policy and terms of credit results to better financial performance of MFIs. Hence, the MFIs should endeavour to invest more on the credit management practices as a way of improving their financial performance. The study’s contribution to knowledge was equally highlighted.
Credit Risk Management and Financial Performance of Deposit Taking Savings and Credit Co-Operative Societies in Nairobi City County, Kenya
(Globeedu Group, 2019-04) Bwire, Charity Akochi; Omagwa, Job
The study sought to determine the relationship between credit risk management and financial performance of deposit taking SACCOs in Nairobi City County. There is substantial empirical evidence focusing on the relationship between SACCOs and their financial performance but few studies if any, have specifically focused on deposit taking SACCOs. In this regard, there is need to fill the research gap that exists as well as add to the few empirical studies that exist. Most of the empirical studies have found a negative relationship and this warranted further consideration hence, need for the current study. The research design used was descriptive in nature with data being collected from 40 deposit taking SACCOs. Questionnaires were administered to 120 respondents three from each deposit taking SACCO in Nairobi City County through purposive sampling. Data was analyzed using standard deviation analysis, multiple regression and correlation coefficient. The study found that credit monitoring has a significant effect on financial performance of deposit taking SACCOs (p-value=0.0146). Similarly, the study established that credit appraisal has a significant effect on financial performance (p-value=0.0229) whereas credit risk control was found to have a significant effect on financial performance (p-value=0.0211). Hence, the study concludes that credit risk management is a key factor in explaining the financial performance of deposit taking SACCOs in Nairobi City County, Kenya.
Credit Risk Management And Financial Performance Of Selected Commercial Banks In Kenya
(International Organization of Scientific Research, 2017) Mumbi, Mercylynne Wanjugu; Omagwa, Job
The study sought to determine the impact of credit risk management on financial performance of selected commercial banks in Kenya. Empirical evidence indicates that the effects credit risk management on financial performance of commercial banks in Kenya are positive.The study employed descriptive research design while probability method of sampling was used to obtain a sample of 42 respondents from five banks. Data was collected using questionnaires. The study found that debt recovery process does not significantly affect bank performance whereas loan appraisal process, lending requirements and credit policies were found to have a significant effect on bank performance. The study concluded that the banks need to maintain credit risk exposure within acceptable parameters to maximise a bank’s risk adjusted rate of return. Based on the findings, the study made recommendations to commercial banks management, academicians and policymakers. The study recommended that commercial banks in Kenya should put stringent measure when conducting loan appraisal process and ensure that officers responsible should adhere to all the lending requirements stipulated in order to enhance financial performance. Future researcher should focus on the challenges commercial banks face when implementing credit risk management strategies.
Credit Risk Management and Performance of Loan Portfolios among Saccos in Kisumu County, Kenya
(Globeedu Group, 2017) Toroitich, Jerop; Omagwa, Job
The purpose of this study was to determine the effect of credit management on performance of loan portfolios among SACCOS in Kisumu County, Kenya. The study sought to determine the effect of credit risk identification, risk analysis, risk monitoring and control and credit approval on performance of loans portfolio among SACCOs in Kisumu Kenya.Descriptive research design was used. The sample size was 56 credit managers in the deposit taking SACCO’S who were selected using purposive sampling. Data collected was analyzed using descriptive statistics that will yield tables, charts, mean and standard deviation that was used to give meaning to the data collected. The study found a positive and statistically significant effect of credit risk identification, credit risk analysis, credit risk monitoring and credit approval on performance of loan portfolios of the SACCOs studied. Hence, the study concludes that much effort should be directed to credit risk management to achieve improvement in performance of the loan portfolios. The study therefore recommends that all SACCOs understudy should identify their credit risk, perform credit risk analysis, perform credit risk monitoring and control and perform approve credit so as to improve their loan performance. The Study finally suggested further studies on the credit risks management on performance of loan portfolios among banks in Kenya.
Debt Servicing and Sectoral Economic growth in Kenya
(Redfame Publishing, 2018-05) Molonko, Brenda; Jagongo, Ambrose; Omagwa, Job
Debtors Management and Financial Performance of Selected Microfinance Institutions at Nairobi City County in Kenya
(Peer reviewed and refereed international journals, 2017-12) Moranga, Getii Kevin; Omagwa, Job
The purpose of this study was to assess the effect of debtors management on the financial performance of selected microfinance institutions (MFIs) at Nairobi County in Kenya. The independent variables for debtors management were: debt collection policy, internal control systems, client appraisal and legal framework. On the other hand, the dependent variable was financial performance of selected MFIs at Nairobi County in Kenya. Primary data was collected by the aid of self administered questionnaires and analyzed using multiple regression analysis. Both descriptive statistics and inferential statistics were determined. The nine licensed MFIs in Nairobi City, Kenya by the CBK as at 31st December 2014 were the target population of the Study. In each of the 9 MFIs, four individuals were purposively selected to participate in the study as respondents; these were the Branch Manager, Credit Officer, Debt Recovery Officer, and Finance Officer and hence the sample size was 36 Officers in the 9 MFIs. With the aid of SPSS version 21.0 and Excel software, quantitative results were tabulated and presented in the form of charts, bar graphs, and narratives. The study found out that debt collection policy, legal framework and internal control systems are statistically significant in influencing financial performance of selected MFIs at Nairobi City in Kenya. The study further established client appraisal had no statistically significant effect on financial performance of MFIs at Nairobi city in Kenya. The study found out that internal control systems had a significant effect on financial performance of MFIs in Nairobi city Kenya. The research recommends that all MFIs should have established debt collection Policy, adopt internal control system, closely monitor implementation of internal control systems and that the MFI Managers and the regulators should put more emphasis on compliance procedures.
Dividend Decisions, Economic Growth and Firm’s Value of Firms Listed at Nairobi Securities Exchange Kenya
(International Knowledge Sharing Platform, 2020) Gitagia, Francis K.; Wamugo, Lucy; Omagwa, Job
The declining and highly volatile firm value observed in the NSE over the last decade has raised concern among scholars and financial practitioners. A declining and turbulent firm value implies lost and unstable shareholders wealth which in turn increases risk to the stock holders. It is therefore important to ensure that the firm value is enhanced to ensure growth and stable wealth of the shareholders. The study was carried out to determine the effect of dividend decisions, economic growth and firms’ value of selected firms listed at Nairobi securities exchange Kenya. The target population was the 46 non-financial companies listed in the NSE. A census of all non-financial firms listed in the Nairobi Securities Exchange was done. The study utilized secondary data from financial reports as published in the NSE handbook and Kenya National Bureau of Statistics for the period between 2008 and 2016. Panel regressions analysis and Pearson’s product moment correlation analysis were used for inferential analysis while means and standard deviations were used for purposes of descriptive analysis. Feasible Generalized Least Square (FGLS) regression results indicated that dividend decisions (p=0.012, <0.05) had a statistically significant positive effect on firm value. Whisman test of moderation further indicated that GDP had significant positive moderation effect on the relationship between each of the dividend decisions and the firm value. The study concludes that; dividend yield has a very strong positive relationship with firm value. That is, increases/decreases in dividend yield will be accompanied by increases/decreases in firm value. The study therefore recommends that corporate managers increase the dividend payout in times of profitability
Effect of Budgetary Control on Financial Performance of Selected Commercial Banks in Kenya
(International Organization Of Scientific Research (IOSR, 2019-07) Mbuthia, Veronicah Wanjugu; Omagwa, Job
The successful provision of basic banking products and services must not be devoid of an effective budget control system, if the organizational goals and objectives are to be achieved. A detailed review of past studies shows that they were carried out either on a different context or interrogated different conceptual issues. In addition, some of the past empirical studies focused on different research methodologies and adopted different data collection instruments. The purpose of this study was to establish the effect of budgetary control on financial performance of selected commercial banks in Kenya. The study specifically sought to establish the effect of budget planning, budget implementation, budget control and budget review on financial performance of selected commercial banks in Kenya. The study adopted a cross sectional descriptive design and the target population was the employees in credit, accounting/finance and operations departments in three selected commercial banks. Both secondary and primary data was used and analyzed using trend analysis, multiple regression analysis and descriptive analysis. The study results indicated that budgetary planning has a positive and significant effect on financial performance (P = 0.000). In addition, the study found that budget implementation was found to have positive and significant effect on financial performance (P= 0.000). Further, budget control had a positive and significant effect on financial performance (P = 0.021). Also, the study found that budget review was also found to have positive and significant effect on financial performance (P= 0.001). The study found that budget planning had the most significant effect on financial performance of selected commercial banks in Kenya followed by budget implementation, budget review and budget control. The study recommends that the managers of the banks should review their current performance yearly targets, work on threats and opportunities and analyses the success and failure of previous plans so as to improve on their budgetary planning. Further, the managers in commercial banks should establish more budgeting centers, employ more budget officers and provide budget manual in order to improve on their budgetary control. In addition, they should solicit feedback, review budget conference for accuracy and arrange for catering and other vendors so as to improve on the budget conference.

Browsing by Author "Omagwa, Job"

Results Per Page

Sort Options