Browsing by Author "Omolo, Jacob"

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    Bank Competitive Landscape and Competition in the Banking Sector in Kenya
    (African Review of Economics and Finance, 2019) Omolo, Jacob; Mdoe, Jackson; Wawire, Nelson
    This study investigates the evolution of competition among commercial banks in Kenya with changes in the bank competitive landscape. Employing system GMM and the performance dynamics approach, the study establishes that bank consolidation has an inverted U effect on competition in the banking sector in Kenya, growth in technology spurs competition among commercial banks in the short run but is impotent in the long run and the progressive increase in the core capital requirement for commercial banks from KES250 million in 2008 to KES1 billion in 2012 slowed competition in Kenya’s banking sector by 3.3 percentage points. Arising from the findings the study concludes that consolidation of commercial banks is a short to medium term instrument for promoting competition in the banking sector in Kenya, growth in technology is effective in promoting competition in Kenya’s banking sector in the short run rather than in the long run and blind increases in the core capital requirements can lead to undesired outcome of reduced competition in the banking sector in Kenya.
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    An econometric analysis of effect of poverty on health status in Kenya
    (Scientific & Academic Publishing, 2018) Musyoka, Peter K.; Omolo, Jacob; Korir, Julius; Nzai, Charles
    One of the most important social-goal world-over is the achievement of good health. This is because, apart from been a fundamental right, it is also an invaluable asset and a prerequisite for improved productivity. However, the benefits associated with good health status may not be enjoyed in the presence of high poverty rates. Thus, poverty reduction is important in ensuring enjoyment of good health. In Kenya, despite the government’s effort to reduce poverty and improve health status of her citizens, poverty has remained high and health indicators have not been impressive either. This paper,therefore, sought to establish the effect of poverty on health status in Kenya. The study used Ordered Probit and the 2013 Kenya Household Expenditure and Utilization Survey dataset to achieve its objective. Estimation results indicate poverty reduction increased the probability of reporting own health as being very good and reduced that of reporting poor health,ceteris paribus. Increase in household size by one member increased the likelihood of reporting own health as being poor other factors held constant. A one year increase in age increased the probability of reporting poor health and reduced that of reporting very good health holding other factors constant. The probability of urban residents reporting own health as being poor was higher than their rural counterparts ceteris paribus. Being employed increased the probability of reporting own health as being very good compared to being unemployed other factors held constant. The study based on the findings concludes that poverty decreases the probability of reporting good health and, therefore, it is important for the government to formulate and implement policies that reduce or eradicate poverty.
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    Effect of human capital investment on organizational performance of pharmaceutical companies in Kenya
    (European Centre for Research Training and Development UK, 2015-11) Odhon’g, Emily A.; Omolo, Jacob
    Provision of adequate health care services to their population remains a major challenge for governments in Africa. In Kenya, the number of trained Pharmacists is increasing with time but still insufficient relative to the population in need (one pharmacist for every 8,710 persons, or approximately 0.1 per 1000 persons. Kenya had about 8 pharmacists for every 100,000 people). It was estimated that for the country to meet its health related Millennium Development Goals, the pharmacy workforce needed to grow by 28 per cent annually between 2010 and 2015. Whereas, Kenya’s population is estimated to be 43 million (provisional) in 2014, the number of registered pharmacist in 2013 was 2,202 and rose to 2,355 with a ratio of 5 pharmacists per 100,000 persons. In summary we have approximately 5:100,000, meaning 5 pharmacists to 100,000 persons, while the requirement is approximately 1:10000, meaning 1 pharmacist to 10000 persons. The current numbers of pharmacists are not adequate for achievement of the post-2015 Sustainable Development Goal 3. The study sought to establish the effect of Human Capital Investment on Organizational Performance of Pharmaceutical Companies in Kenya. The independent variables include: training, education, knowledge management and skills development. The main underpinning theories in this study include: Human Capital, Skill Acquisition and Sustainable Resource Theory. 200 observations were used in the study. Study used questionnaires in data collection, descriptive and inferential statistics used in the analysis. The found a positive significant relationship between human capital investment and organizational performance. The study recommends provision of quality education, relevant training linked to industry requirement, the study suggest adoption of German Dual Vocational Education and Training system to facilitate and strengthen linkage between education sector and the industry. Promotion of knowledge management through teamwork, social networks and knowledge management systems; training on employability and transferability skills to enhance Skills Development. The enterprises to go beyond traditional apprenticeship, Soft skills assessment in schools, embrace technology and promote intrapreneurship. The study also suggest introduction of Skill Development Fund to equip the communities and businesses with relevant skills required in the dynamic global market place. KEYWORDS: Human Capital, Human Capital Investment, Education, Training, Knowledge Management, Skills Development, Soft Skills and Organizational Performance.
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    Effect of human capital management drivers on organizational performance in Kenya a case of investment and mortgages Bank Ltd
    (2014) Odhong’, Emily A.; Were, Susan; Omolo, Jacob
    The skills and capacities that reside in people that are put to productive use can be a more important determinant of the nation’s long term economic success and that of an organization. In Kenya, the contribution of the financial sector to Gross Domestic Product has remained unstable and showing slow growth. The sector also recorded a slow growth of 6.5 per cent in 2012 compared to 7.8 per cent in 2011. Investment and Mortgages Bank strive to achieve the best globally through effective utilization of human capital management drivers to attain sustainable competitive edge in the highly and globally competitive banking industry. The Bank’s outstanding operational efficiency maintained at 34.8 per cent, making it one of the best in the Kenyan Banking Industry. The Bank’s success relies heavily on human capital management drivers such as leadership practices, employee engagement, knowledge accessibility, learning capacity and workforce optimization. The main objective of the study was to establish the effect of human capital management drivers on organizational performance. The specific objectives are to: determine the effect of leadership practices, identify the effect of employee engagement, establish the effect of knowledge accessibility, investigate the effect of workforce optimization and determine the effect of learning capacity on organizational performance. The study was anchored on theory of Resource based view, human capital theory, goal theory and contingent leadership theory. The study adopted a case study research design and stratified random sampling. Qualitative and quantitative technique of data analysis was used. The study concludes that it is possible to use human capital management drivers to benchmark organizational capabilities, identify human capital management strengths and weakness, and link improvements in specific human capital management practices with improvements in organizational performance and obtain sustainable competitive edge.
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    Employment Challenges in Kenya
    (Centre for Economics and Community Economic Development, 2013) Omolo, Jacob
    This paper explores the employment challenge in Kenya. It focused on the past employment creation interventions adopted by the country over time, their outcomes and the status of the country’s employment policy. Kenya’s employment challenge is manifested in terms of a 12.7 per cent open unemployment rate, 21 per cent underemployment and a working poor estimated at 46 per cent of the employed. The employment challenge is heightened by rapid population growth at 3 per cent per annum, a youth bulge of 67 per cent of the adult population, low and un-sustained economic growth, and structural rigidities. The paper establishes that much of the employment creation measures adopted by the government have recognized the role of economic growth in employment. This is despite the low employment yield of the country’s economic growth attributed to sluggish economic growth. To reverse the trend in slow employment growth, Kenya must focus on ensuring high and sustained economic growth. In addition, employment needs to be put at the centre of the country’s macroeconomic policies. Since a large proportion of the Kenyan labour force, even under the best scenario, will remain in the informal sector, the living standards of Kenyans will only brighten if the productivity and employment conditions of informal employment improve. It is envisaged that improving the productivity of the informal sector with a well balanced mix of economic and social policies will make a remarkable contribution to improve the labour and living conditions of a large number of Kenyans.
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    Factors influencing micro and small enterprise’s decision to innovate in Kenya
    (Springer Nature, 2018-12-08) Njiraini, Peter; Gachanja, Paul; Omolo, Jacob
    An enterprise’s propensity to innovate has been recognised to have an important bearing on its performance. In Kenya empirical work on micro and small enterprises (MSEs) propensity to innovate is still nascent in spite of the pivotal role played by these enterprises in the economy. The current paper used a Probit econometric model to analyse factors that influence MSE’s decision to innovate or not. Results from the analysis show that the average number of years of education for a production worker, physical capital intensity, age of an MSE, access to finance and size of an MSE are important factors influencing MSEs innovation decisions. Higher foreign ownership and manager’s experience were found to act as hindrances towards MSEs’ decision to innovate. Based on the study findings it is clear that human capital skills and an MSE’s resource endowment positively influences MSEs innovativeness. From a theoretical perspective, there is need for skills segmentation to isolate human capital skills that are most relevant for stimulating MSEs innovative activities. Firm level and policy level strategies are also needed to improve the technical skills of the average MSEs’ production workers across the country. Subsidisation of physical capital and financial services for MSEs should also be used to promote these enterprises innovativeness.
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    Innovation and Micro and Small Enterprises Growth Performance: Evidence from Kenya
    (International Organization of Scientific Research, 2018-10) Njiraini, Peter; Omolo, Jacob; Gachanja, Paul
    The role that innovation can play towards the growth and survival of an enterprise continues to gain credence as better indicators of enterprise innovativeness come to the fore. In spite of this growing body of knowledge, micro and small enterprises in Kenya continue to experience high mortality rate. This paper used World Bank Enterprise Survey data for Kenya to probe whether innovative micro and small enterprises are indeed associated with better growth performance. The study used a qualitative analysis using a descriptive analysis and t-test for mean differences to compare innovative and non-innovative micro and small enterprises. The results show that there was no statistically significant relationship between a micro and small enterprise’s growth performance and its innovativeness. Innovative micro and small enterprises were, however, found to have invested relatively higher resources towards innovation inputs and hiring of advanced human skills. They also participated in export trade. The results seems to suggest that innovative micro and small enterprises’ investment were either too marginal to make a difference or the investments dissipated along the innovation chain.
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    Public Expenditure Effect on Household Welfare in Kenya
    (IOSR Journal of Economics and Finance (IOSR-JEF), 2025-10-25) Mala, Hanningtone Okendo; Omolo, Jacob; Etyang, Martin
    Background: One tool that governments utilize to enhance household wellbeing is public expenditure. The United Nations emphasized in 2005 that governments would need to increase public spending in the areas of agriculture, health, infrastructure, and education if the Millennium Development Goal targets were to be realized. This was stressed even more in 2015 under the United Nations 2030 Agenda for Sustainable Development. Between 2006 and 2022, public spending on health, infrastructure, agriculture, and education grew by almost 25 per cent of total national spending in Kenya. Compared to the 2030 Sustainable Development Goal of eradicating poverty, the projected number of impoverished individuals in 2021 was 38.6 per cent, in the field of education, the enrollment rates for primary and secondary schools were 47.8 per cent and 88.4 per cent, respectively, in 2015, falling short of the Sustainable Development Goal objective of 100 per cent target. In the health sector despite the Sustainable Development Goals' aim of fewer than 25 deaths per 1,000 live births by 2030, the maternal mortality rate remained high in 2022, with 41 deaths per 1,000 live births. Kenya will not be able to meet the Sustainable Development Goals by 2030, which include poverty eradication, healthy within the nation, if these trends continue. An increase in public expenditure on health and education without corresponding effects on household welfare has raised concerns among policymakers. Thus, the goal of the study was to ascertain how public spending affects household welfare in Kenya. Methodology: The study used data from the Basic Report on Well-Being, which is an extract from the Kenya Integrated Household Budget Survey for the 2015–16 year. Public expenditure data at the county levels covering all the 47 counties for the period 2014 to 2016 were used in the analysis, taking the county as the unit of study. The study used Ordinary Least Squares method to address the objective. Results: The study found that there was empirical support that a 1 per cent increase in government spending on agriculture would enhance household welfare by 0.1 per cent and 0.3 per cent, respectively, with regard to food and non-food household consumption. In addition, the study found that household welfare would improve by 0.18 per cent in terms of aggregate household consumption when the government increases public expenditure on agriculture by one percent. However, the study established that public spending on education had a positive impact on household welfare in terms of food and total household spending, whereas public spending on health per capita only had a positive impact on household spending on nonfood items. Conclusion: The study concluded that both national and county governments should allocate more funds to infrastructure, education, and agriculture, so that to improve household welfare status among Kenyan citizens