Browsing by Author "Suva, Mark"

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    Agency Banking and Profitability of Commercial Banks Listed at Nairobi Securities Exchange, Kenya
    (International Academic Journal of Economics and Finance (IAJEF), 2024-10-23) Mukhtar, Hassan Matan; Aluoch, Moses Odhiambo; Suva, Mark
    Despite the instrumental role played by listed commercial banks in Kenya in terms of employment creation, these institutions are currently facing problems of the profitability. For instance, across the period 2018-2022, the value of return on equity has averaged at 13.15% against similar industry figures in South Africa estimated at 20.15%. This provide a clear indication that majority of the listed commercial banks in Kenya are underutilizing their equities to generate profits for shareholders. The inquiry’s essence was to establish the effect of agency banking liquidity agency banking fee and bank size on profitability. The transaction cost theory, market power theory and public interest theory of bank regulation. Relevant empirical studies were reviewed to inform the development of the conceptual framework anchored the inquiry. Positivist philosophy and explanatory design were used. The study adopted direct regression model and moderation regression model to achieve the analysis of the findings. This study targeted 12 listed commercial banks in Kenya and census was used since the population is small. Information in its secondary nature will be gathered with aid of data collection SPSS for descriptive analysis as well as inferential analysis aided by the sheet on a period from 2018 all trough to 2022. Prior to this, diagnostic tests covering Heteroscedasticity Test, multicollinearity and normality were done and appropriately interpreted. Results presentation was in tabular and graphical means. As part of the ethical concern, the study sought for relevant authorization documents. The study established that agency banking fee had significant effect on profitability of the listed commercial banks in Kenya. Furthermore, firm size was not significant while interaction term was significant and hence firm size as deduced to be a partial moderator variable. In conclusion, agency banking was a significant predictor of profitability of a financial institution. It was recommended larger banks in tier I and II should leverage the economies of scale they enjoy in the market to invest heavily in agency banking for more profit generation.
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    Mobile Payment Services and Financial Performance of Local Businesses in Kiambu County – Kenya
    (International Journals of Academics & Research (IJARKE Business & Management Journal), 2024) Mbugua, Eric Kimani; Suva, Mark
    Mobile payments are a critical emerging mode of financial transactions in the business environment. Local business owners in Kiambu County have faced marginalization from traditional banking, with businesses in these regions lacking access to formal financial services due to factors such as low cash flow levels, lack of collateral and low incomes. Customers have lacked the convenience of transacting with their money in the traditional banks or incurring more costs in accessing their money. Local business owners, customers, and other stakeholder have encountered rigidity in making payments in their daily business operations. Money is transferred to their bank accounts or registered institutions, which is wired to the seller accordingly. Therefore, the current study investigated the effect of mobile payment services on the financial performance of local businesses in Kiambu County, Kenya. The specific objectives of the study investigated the effect of mobile money transfers, online transactions, and mobile payments on the financial performance of local businesses in Kiambu County, Kenya. The study was anchored on agency theory, contingency, the technological acceptance model, and innovation diffusion theory. The study employed a descriptive research study design to explore the sub-variables. A sample size of 157 respondents from the local businesses in Kiambu was targeted. Validity and reliability of the research instruments was considered during the pilot study for 20 respondents that were not involved in the parent study. The reliability analysis showed that all the study variables met the threshold Cronbach value of 0.70. Quantitative data were examined using descriptive and inferential statistical methods and presented in tables and figures, while qualitative data were examined through content analysis. The analysis of demographic information demonstrated a fair representation of both genders, designations to various positions in the local businesses, and various levels of experience dealing with local businesses in Kiambu County, Kenya. The findings indicate a meaningful positive and significant relationship between financial performance and mobile money transfers, online transactions, and mobile payments. Regression analysis suggests that mobile money transfers, online transactions, and mobile payments together account for 52.8 percent of all the variations in the financial performance of local businesses in Kiambu County, Kenya. The study concluded that mobile payment services significantly impacted the financial performance of local businesses in Kiambu County, Kenya.