Browsing by Author "Omwenga, Kerubo Cyprine"

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    Digital Financial Services and Profitability of Microfinance Banks in Kenya: A Theoretical Review
    (Globeedu Group, 2026-02) Omwenga, Kerubo Cyprine; Jagongo, Ambrose
    Microfinance banks play a crucial role in promoting financial inclusion in Kenya by serving low-income households and informal sector businesses. The profitability of microfinance banks in Kenya has fluctuated over the past few years, raising concerns about the sector’s financial sustainability. Return on assets increased slightly from 1.2% in 2021 to 1.4% in 2022, and further rose to 3.7% in 2023, indicating a gradual recovery in profitability. In 2024, the sector recorded a significant decline in return on assets, reporting a negative return of 6.1%, reflecting losses. The general objective of the study is to investigate the effect of digital financial services on the profitability of microfinance banks in Kenya. The specific objectives of this study are to determine the effect of mobile banking, internet banking, and agency banking services on the profitability of Kenyan microfinance banks. The research study also aims to establish the moderating effect of the regulatory framework on the relationship between digital financial services and the profitability of Kenyan microfinance banks. The study was anchored on the technology acceptance theory and supported by financial intermediation theory, financial innovation theory, and institutional theory. An empirical literature study was also incorporated.
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    Financial Literacy on Investment Decisions among Selected Secondary School Teachers under Teachers Service Commission in Nairobi City County, Kenya
    (Kenyatta University, 2024-10) Omwenga, Kerubo Cyprine
    In today's complex financial environment, informed investment decisions are crucial for individuals and education professionals. Teachers under the TSC make up 1.67% of Kenya's workforce, highlighting the significant role education plays in employment and the importance of teachers in the Kenyan labor market. As of April 2021, TSC had 318,000 teachers in primary and secondary schools, with secondary school teachers making up a significant portion of the workforce. Teachers need strong financial literacy to make informed investment decisions, understand investment options, assess risks, and understand market trends, which directly impacts their financial security and retirement planning. Secondary school teachers exhibit a conservative trend, they tend to prioritize stability and security in investment decisions, opting for low-risk options like savings accounts, fixed deposits, and government bonds, seeking financial advisors for guidance. There has been a long connection between financial literacy and investment decisions of secondary school teachers but the findings of the research between the two variables has been inconclusive as to the extent and nature of this relationship. The general objective of the study was to determine the effect of Financial Literacy on Investment decisions among selected Secondary School teachers under TSC in Nairobi City County, Kenya. The specific objectives of the study were to determine the effect of Financial knowledge, financial skills and risk diversification on investment decisions among selected secondary school teachers under TSC in Nairobi City County, Kenya. The study utilized the Prospect Theory, Herding Behavior Theory, and Theory of Mental Accounting in supporting theoretical review. Empirical reviews and conceptual framework of the study were also included. The target population was made up of 513 secondary teachers. The study used descriptive research design. 103 secondary school teachers out of the total population were chosen using stratified random sampling. This sample consisted of 35 secondary school teachers spread across the three zones in Nairobi City County. The study’s data is gathered from primary and secondary sources. A pilot study was done on 21 secondary school teachers using open and close ended questions. To ensure validity expert judgement was used and reliability was tested using Cronbach’s Alpha coefficient. Questionnaires were used to collect primary data. All the data analysis was coded using SPSS version 26.0.0. Descriptive statistics was used to analyze quantitative data. Tables were used to display the results. The study obtained research permit from Kenyatta University and NACOSTI. It also acknowledged the sources of information, provided relevant references, and ensured that all ethical considerations were upheld. The findings of the study showed that financial knowledge, financial skills and risk diversification had a significantly positive effect on investment decisions. The study concluded that Equal gender distribution in the workforce provides equal investment opportunities. Higher disposable incomes and education levels improved personal finance understanding, influencing investment management and stock market participation. However, teachers' decision-making styles vary due to historical data on product costs. Lack of financial knowledge about interest rates and product costs introduces uncertainty in investment decisions. The study recommends that TSC should implement comprehensive financial education programs for teachers, collaborate with financial experts to create a financial literacy curriculum, and develop targeted training programs emphasizing risk diversification in investment decisions, focusing on fundamental and advanced concepts.