MST-Department of Accounting and Finance

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Audit Controls and Performance of Constituency Development Fund Projects in Embakasi East Constituency, Kenya
(Kenyatta University) Muriithi, Margaret W.
Through audit controls, organizations accomplish execution and organizational objectives, avoid misfortune of assets, empower generation of solid reports and guarantee compliance with laws and controls. As a fund misuse, misappropriations of funds, stalled projects, are some of the challenges affecting performance of Constituency development fund projects. This study therefore sought to investigate the effects of audit controls to the projects performance of constituency development fund in Embakasi East Constituency. The study was guided by the following specific objectives; to establish the effects of detective controls on projects performance of constituency development fund in Embakasi Constituency; to determine the effects of preventive controls on projects performance of constituency development fund in Embakasi East constituency; to establish the effects of monitoring and evaluation measures on projects performance of constituency development fund in Embakasi East Constituency and to determine the effects of risk assessment on projects performance of constituency development fund in Embakasi East Constituency. The study was guided by three theories which included; The Agency Theory, Reliability and Accounting Theory and The Fraud Triangle Theory. This study adopted a descriptive survey research design. The population for this study was Constituency development fund committees (CDFCs), project committee members and community leaders. The targeted population will be representing different projects being implemented in the constituency. Some of the projects included education, health and sanitation, security among others. This study used a questionnaire to collect data. The questionnaire was designed in this study comprised of two sections. Before processing the responses, the completed questionnaires were edited for completeness and consistency. The data was then coded to enable grouping of responses in various categories. The data collected was both quantitative and qualitative and analysed via descriptive analysis and content analysis. The descriptive statistical tools helped in describing the data and determining the extent used. Data analysis used SPSS and Microsoft excels to generate quantitative reports in tabulations, percentages, and measures of central tendency. Tables were used to present responses and facilitate comparison. The research analyst also conducted a multiple regression analysis so as to determine the strength of the relationship amongst the variables. On detective control, the study revealed that to a great extent areas pointed by the external auditor’s report help in detecting frauds and that CDF offices are not frequently audited. Regarding effects of preventive controls on projects performance of constituency development fund in Embakasi East constituency the study revealed that accounting records are limited to employees with designated responsibility for such records and also that procedures exist to prevent the interception or alteration by unauthorized persons of billings or statements before posting. It was further revealed that the monitoring and evaluation committees assigns responsibilities for the timely review of audit reports and resolution of any non-compliance items noted in those audit reports. Thus the study recommends the management of CDF should have clear level of authorities and that CDF office should be frequently audited and report made to the top management for implementation. Further, the CDF management should develop objectives for the CDF fund in each of the area and put strategies to ensure that the objectives are achieved in an efficient manner identifying risks that affect achievement of the objectives. Legislators should ensure that there are independent process checks and evaluations of controls activities on ongoing basis for CDF.
An Investigation on the Members' Attitudes as Regards the Lending Policies for the Savings and Credit Co-Operative Societies in Kenya: a Case Study of Mwalimu Savings and Credit Co-Operative Society Limited, Nairobi
(Kenyatta University, 1998) Lumumba, Omweri Martin
Savings and credit co-operative societies are one of the many non-agricultural cooperative societies in Kenya. They are unique in that, out of their services and daily operations, they can be classified as financial institutions. Because of their great contribution towards economic development, the government through the Ministry of Co-operative Development issues policies which guide their operations. These policies are reviewed periodically to be in line with changing economic conditions. The researcher's main objective was to find out the attitudes members held towards the lending policies and also the aspects of such policies that members were not satisfied with. The other objective was to find out whether members' attitudes were influenced by the salary scale or the number of years one had been in the society. The researcher undertook a case study of Mwalimu Savings and Credit Co-operative Society Ltd, Nairobi where a sample of 150 was used. A questionnaire was used in collecting data. The data collected were analysed by way of tabulation, mean scores, percentages and semantic differential profiles. From the study it was found that, depending on the lending policy in question, members' attitudes varied from positive ,...tonegative. Further, it was' established that members' satisfaction or dissatisfaction with particular lending policies was not influenced by either salary scale or number of year one had been with the society. From the findings it was recommended that those policies to which members held negative attitudes be dropped and that the government should withdraw its involvement in the running of day-to-day operations of the savings and credit co-operative societies. This could ensure autonomy of such societies and members' full participation in their management could enhance high savings.....
Factors influencing the effectiveness of guarantorship in loan recovery: the case of Mwalimu Sacco Society Ltd
(Kenyatta University, 2006) Mutura, James K.; Maganjo, R.; Munywoki, S. K.
There are about 4,200 sacco societies in Kenya which by December 2005, had mobilized Kshs.105 billion representing 31 percent of the country's savings. Mwalimu Sacco society Ltd is situated in Nairobi and established in 1974 is one of the largest SACCO societies in the country. Its objective is to mobilize savings and grant loans to members. By December 2005, Mwalimu Sacco society Itd had mobilized Kshs.6.7 billion, which is equivalent to 6.3percent of all Sacco savings in the country. By then the outstanding loans stood at Kshs.6.04 billion out of which about kshs 35 million was deliquent. The securities for the loans are loanees expected future income and guarantors. Granted, that Sacco societies mobilize large amounts of savings and consequently give huge loans on the premise that the latter will be paid promptly, a mechanism of compelling loanees to pay such loans from other sources of income in absence of employment income is lacking. Further the retirement benefits authority (RBA) prohibits the use of a loa nee's pension in clearing the loan liability. Given the magnitude of funds lent out, there is need to examine factors that influence the effectiveness of guarantorship in loan repayment. An exploratory study approach was adopted. It involved focus group interviews, review of relevant literature and discussions with experts in the field of cov operative management. The study used combination of stratified random sampling and purposive sampling to obtain a sample of 200 guarantors who were been attached for defaulted loans at Mwalimu Sacco Society in 2005. Questionnaires were used to collect data from the attached guarantors. Secondary data from the Sacco was used to identify loan defaulters and their respective guarantors. Data acquired was analyzed through mean mode and standard deviation in addition to analysis of variance (ANOVA). A Pearsons correlation coefficient analysis was carried out to determine multicolinearity amongst the independent variables. Analyzed data is presented through the use of bar graphs, pie charts and tables. Findings from the study revealed that females are more prompt in loan repayment than males. The patriarchal nature of the Kenyan society emerged as a major reason for this phenomenon. Age and gender were found to have an impact on loan repayment. As members grew old they become more inclined to repaying the loans than the young with females being more reliable in loan repayment. It also emerged that members' other sources of income and increased salaries could hardly be traced to the Society in form of increased savings and accelerated loan repayment. Contrary to commonly held view that peer pressure encourages loan repayment, the researcher found that peer pressure has no role in repayment of defaulted loans. The government policy and regulations were also found to have a minimal role in loan repayment. Findings from the study revealed that as members income threshold increases, their monthly savings with the Sacco do not increase correspondingly. Loss of employment income was found to be the single most important reason for nonrepayment of Sacco loans.
An Investigation into the Challenges Affecting Cross Listing of Public Listed Companies in East Africa Community
(Kenyatta University, 2009) Egondi, Obinga Patrick
The purpose of the research was aimed at providing background on the current status of capital market integration with an analysis on the public listed companies in East Africa in relation to cross listing. Specifically the study investigated the challenges of cross listing of the public listed companies in the region adopting a descriptive design. Literature published in the area was reviewed on the existing relationships concerning the cross listings and found the existence of slow pace and few cross listings. Stratified and Quota Sampling techniques were used to study the companies and collecting primary data through questionnaire was administered by the researcher. Collected data was analyzed using Descriptive Statistics and MS Excel for simple data analysis to identify the relationship. The study specifically investigated how firm-level, sOClOeconomic environment and institution-level factors limits the choices of whether and where to cross-list. Regarding- the influence of firm-level characteristics, the study reveals that majority of the public listed firms take into consideration size, foreign sales and not having sizeable tradable goods, and a high level of private benefits. Regarding the effect of institution-level characteristics, the study found that listed firms in East Africa Markets are less likely to cross-list because their markets are faced with illiquidity and inefficiency, poor reputation, high concentration and infrastructure and still dwell on primitive domestic equity market and small to hold such kind of offering. The study identified that social economic variable; Market risk and inefficiency, high liquidity risk, stricter disclosure standards, poor access to capital markets, existence of politically protected markets limits public listed firms from making cross listing decision. The data also indicate no differences in the factors affecting cross-listing decisions across the East Africa Public listed firms according to country. This proves that public listed firms in East Africa are still developing (in the developing economies). The study recommends the need to enhance the efficiency and efficacy of public listed firms in there cross listing decision since it is value enhancing and concludes that crosslisting premium arises from commitments of all parties though Results are inconclusive regarding the impact of private capital flows on cross listing decisions.
A survey of strategies used to cope with financial distress: A case study of quoted companies in the Nairobi stock exchange (1995-1999)
(2011-07-15) Mwirigi, Mac M. John
Financial distress is usually experienced by quoted companies when there is a mismatch between the assets and the financial obligations of the business. This makes it necessary for companies to use response actions to cope with financial distress. Of importance to this study is the fact that quoted companies used different response actions to minimize financial distress. This is because of different characteristics such as the size, sector and the leverage of the company. The study design used a cross sectional sampling. A total of 80 respondents were randomly selected followed by stratification. The data were gathered using questionnaires, interviews and observations. The data were analyzed using the Statistical Package for Social Sciences (SPSS). Descriptive and multiple regressions were used. Based on the results of the survey, it was found that response actions taken by quoted companies to cope with financial distress were successful in respect of the characteristics of the company.
Factors affecting the adoptation of technological innovation by commercial banks in Kenya
(2011-08-03) Kubasu, A.
This thesis focused on factors affecting diffusion and impact of internet banking. It was based on the theory that when a cost-saving innovation, such as internet banking, is initially introduced, large banks have an advantage to adopt it first and enjoy further growth in size. Over time, due to environmental changes (demand change, technology progress and banking deregulation); the innovation diffuses into smaller banks. As a result, the aggregate bank size distribution increases stochastically towards a new steady state, and there exists important interactions between the IB adoption and the average bank size. In 2006, 96 percent of banks with assets over Kshs 24 billion had a website, compared to only 51 percent with assets under Kshs 8 billion. These observations raise an important question: what explains these variations in adoption of IB. To answer the research questions, an empirical study of banks adopting technological innovation was conducted. The study applied a descriptive survey design. A structured questionnaire was administered to all financial managers in all 46 commercial banks with a response rate of 70%. The SPSS was used to run simultaneous-equation regressions on data. Factors driving adoption of IB include increase average bank assets, non adopters imitating early adopters and loan specialisation in consumer lending. Factors hindering IB adoption include competition among banks and average age of a bank. The study recommends to enhance IB adoption, banks should; strive to increase their average assets size, non adaptors to carefully study early adaptors, specialize in consumer lending, feed off competition by forming strategic alliances finally it's cheaper and convenient for new banks to install internet banking technology in a package with other computer facilities compared to old banks. The study is important because banks have been blamed for not adequately satisfying demand for financial services. The research contributes to the debate on how to enhance access to financial services in Kenya.
Costs of micro finance institutions in response to HIV AIDS crisis in Kenya
(2011-08-17) Ndungu, Moses Kirika; James Maingi; James M.Muturi
This study has examined the costs incurred by Microfinance institutions in late, early or no response to the HIV/AIDs pandemic in Kenya. The general objective of the study was to investigate the costs of MFIs in response to HIV/AIDS crisis in Kenya. The basic objectives of the study are: to identify and analyze the costs incurred by MFIs in response to HIV/AIDs effects to their clients; to examine how staff administration costs are affected as a result of MFI staff being infected or affected by HIV AIDS crisis in Kenya; to identify and analyze the effect of a client's withdrawal of savings on an institution's borrowing costs and to identify the social responsibility cost for the purpose of disseminating information about HIV/AIDS The analysis of the study shows the trend of costs that result on the responses. Such costs include writing off of bad loans, provisioning for bad and doubtful loans and declining liquidity of the Microfinance institutions which are on rise. The early responses strategies such as training the clients and staff and educating them about the pandemic, development of special products for PLWAs as well as developing HIV/AIDs policies are at very minimal level or completely lacks in some MFIs. In conclusion MFIs should realize that HIV/AIDs is already having disastrous economic effects on their market segment leading to high costs on the responses. Early responses can drastically reduce the spread of pandemic and save the costs of late and non response. Early responses include training and educating the society about the pandemic. HIV/AIDs policy manuals should be developed to formalize the ways in which the pandemic can be contained. More over the institutions should join hands and fund events to disseminate the information about the pandemic
Effect of Corporate Governance Practices on Financial Performance of Sugar Firms in Kenya
(2011-08-17) Njagi, Silas Nyaga; Thuo, A. K.
Due to the recent global high profile corporate failures across the world, corporate governance has become the center of the agenda for both business leaders and regulators all over the world today. This is because corporate governance which is hitherto seen as the foundation for good corporate performance had received lack-luster attention from corporate bodies globally for a considerable length of time. The governance structure of any corporate entity affects the firm's ability to respond to external factors that have some bearing on its performance. In this regard, it has been noted that well governed firms largely perform better and that good corporate governance is of essence to firms. While many academicians have stated that sound corporate governance practices will reduce the risk of corporate failure. The key question faced by investors is whether an investment in sound corporate governance practices by a company results in an increase in shareholder value. The purpose of this study was to establish how corporate governance practices employed by sugar companies in Kenya affect their financial performance. The specific objectives included establishing the relationships between board size and the financial performance, independent directors and the financial performance, ownership structure and the financial performance, corporate disclosure and the financial performance and audit committee and the financial performance. The study was causal and censured all the seven sugar firms that were operational between 2005 and 2011. Seven years data for each of the seven sugar firms was extracted from their annual reports and financial statements all totaling to forty nine firm years. Data was then analyzed using profitability measures with the aid of statistical package for social science (SPSS). The study confirmed consistent results on the effects of the corporate governance variables selected on the companies' financial performance as measured by the ROE, ROA, NOI, Net Profit after tax and Net Profit margin. In particular, the study confirmed that financial performance of companies improve with increase in financial literacy of the Board Audit Committee, independence of the Board Members as well as the increase in the disclosure of the corporate governance practices at any given point in time. The study also confirmed that the financial performance of the sugar companies was not directly affected by the size of the Board and the company's ownership structure. Finally the study recommends in part that sugar firms should closely monitor and emphasize on financial literacy of audit committee, independence of the directors and corporate disclosure to be able to report positive financial performance.
The effect of commercial bank loans on savings and credit socities' loans : a case study of Nairobi Central Business District
(2011-08-17) Musyoki, Rodah Minoo; James M.Muturi
In Kenya the responsibility for the promotion, growth and development of the cooperative sector has been given to the Ministry of Co-operative Development and Marketing. This sector has made tremendous contribution towards wealth and employment creation. Currently there are over 10,800 registered Co-operative Societies with a membership of over 6 million, (Mutua &Oyugi, 2006). Co-operatives are the most practical ways of pulling resources together and accessing credit easily among their members. In the co-operative movement, savings and credit cooperative societies are the most active segment. By providing savings and loan facilities, SACCOs make a significant contribution towards providing development capital. The SACCO organizational system is members based. Members' voluntary savings are accumulated in the form of shares and deposits. It is these savings that form the basis for extending credit to members' various needs. The success and potential of SACCOs as provider of financial services, has not been without challenges. Commercial banks have moved into this sector offering personal loans at very attractive terms. Market liberalization has resulted into easy accessibility to finance. The mainstream banking sector has changed its focus and now the target is, small savers who have been induced with personal loans hitherto the domain of SACCOs. At a time when Kenyans, especially retail customers are being literally begged for business by commercial banks, the once powerful savings and credit co-operative society movement could easily lose its ground (Omanga, 2007). The Objective of this study was to evaluate the effect of commercial bank loans on Savings and Credit Societies' loans. The Study targeted a Population of 174 SACCOs based within the Nairobi Central Business District. Systematic Sampling method has been used to select a sample of 20 SACCOs for purposes of the Study. Data was collected using a questionnaire administered through drop and pick method and analyzed with the help of the Statistical Package for Social Scientists (SPSS) programme
Impact of the local authority transfer fund LATF on service delivary : a case of the County Council of Garissa
(2011-08-17) Mogeni, Samwel Mosomi; James M.Muturi; Joseph Mathenge Theuri
The Kenyan Government in its effort to strengthen the capacity of LAS services introduced the LATF in 1999, increasing the allocation to the fund from Shs.lb in FY 1999/2000 to Ksh.7.5b in FY 2006/07. The County Council of Garissa allocation increased from Kshs 4,052,720.00 in 1999/2000 to Kshs 50,153,956.00 in 2006/2007.It's in the light of the increased allocation and eight years after the introduction of the fund, that the study sought to assess its impact on service delivery to the residents of the County Council of Garissa. The study involved administration of structured and semi-structured questionnaires to the respondents (34 Council employees and councillors, respondents who were considered to have vital information for the study). 29 of the questionnaires were properly filled and the response rate of eighty-five percent was considered adequate for the purposes of the study. Data collected were analyzed using descriptive statistics where percentages based on frequencies were calculated. The data are presented using tables. Findings from the study indicate that after the introduction of LATF, the quality of services offered improved and the council was able to offer additional services according to seventy-six percent of the respondents, while it did not for twenty-four percent of the respondents. With the exception of reservations from twenty-four percent of the respondents, it can be concluded that LATF has enabled the council to offer additional services and improve the quality of its services. Other findings indicate that ninety percent of the respondents agree that the council holds the annual LASDAP meetings at ward level to identify projects to be undertaken. Further, they concurred that the final list of projects generally reflects those identified during the consultative meetings. However, ten percent of the respondents disagreed indicating that it's the chief officers together with councilors who identify projects to be undertaken. More awareness is therefore needed to bring on board all residents individually or through representatives. In addition, the council has been preparing and submitting its annual budget within stipulated deadlines thereby avoiding financial penalties for noncompliance. However, the council does not always implement and complete all budgeted for projects. Measures should be put in place by the relevant authorities to ensure implementation of budgeted for projects and adherence to the budget. Also, internal audit is not regularly done according to eighty-six percent of the respondents in contrast with eighty-three percent of the respondents who agree that external audits are regularly done on LATE The internal audit unit should be established and empowered to perform its mandate
An analysis of the effect of corporate governance on performance of commercial state corporations in Kenya
(2011-08-17) Miring'u, Alice Njeri
This study sought to examine how Corporate Governance affects financial performance in commercial state corporations in Kenya. Empirical studies have provided the nexus between corporate governance and firm performance. Well-governed firms have higher firm performance. Mismanagement, bureaucracy, wastage, pilferage incompetence and irresponsibility by directors and employees are the main problems that have made State corporations (SCs) fail to achieve their performance objectives. The poor performance of SCs in Kenya by 1990 led to outflow from central government to parastatals equivalent to 1 percent of the GDP in 1991. The data set for this study covered a four-year period between 2003 -2006. The objectives of the study are to identify the relationship between financial performance and board composition and size and CEO duality identify the relationship between financial performance and good governance practices as recommended by capital market authority. There are practical implications for academic researchers, the Government and practitioners. The study used descriptive survey design. The target population for this study was 41 commercial SCs in Kenya as presented by Inspectorate of SCs. see Appendix: III. Sample of 30 respondents out of 41 was found ideal in comparison to 5% of 41 which is 2, SCs since it is a larger sample (Gupta, 2005)as displayed by Appendix IV. Respondents were 30 and human resource officers or company secretaries. The finance officers provided the financial reports. The primary data relate to the changes made as the sampled corporations implemented corporate governance practices. Data were analyzed through descriptive statistics and chi (x) square. The conclusion of the study brings out the following findings. That the board size mean for the sample was found to be ten while a minimum of three outside directors is required on the board. State corporations should also emphasise on a two tier system of management where the CEO does not double as the chair and the CEO. The study thus discloses that there is a positive relationship between RoE and board size and board compositions of all SCs. The government should enforce the measures it has laid down to ensure SCs are following them so that the recommended governance structures are followed. The concerned ministries should also be very keen in the supervisory role through the relevant committees to ensure that all regulations are enforced as required
Factors influencing credit financing of small and medium scale enterprises : a case of SMEs in Nyeri Town
(2011-08-18) Wachira, Virginia Kirigo
This study was carried out to determine the factors influencing credit financing of small and medium scale enterprises in Nyeri town. The cadre of SMEs understudy was all the registered SMEs in Nyeri town. The main objective of this study was to investigate the factors that influence credit financing for the small and medium scale Enterprises in Nyeri town. The literature review identified what other researchers have done in the area of credit financing of small and medium scale enterprises. The study conceptualized to determine the relationship between the dependent and independent variables. The study employed the descriptive survey research design and employed a questionnaire to collect data from 280 SMEs in Nyeri town. The researcher sampled 280 SMEs out of the population of 5600 SMEs using a simple stratified sampling technique. The questionnaires were pre-tested in a selected sample of 56 businesses within Nyeri town which were similar to the actual sample which was used in this study. Data was collected through questionnaire. The questionnaires were administered through a pick and collect technique. The analysis was done through descriptive statistics and findings of the study were presented in form of tables, charts and graphs. The study revealed that most of the businesses are service provider and very few are involved in manufacturing which may be due to the fact that Nyeri town is predominantly a rural town with very few industries. It was also noted that majority of the SME'S operators are women which account to 60.4% of the business in Nyeri town. The main hindrance to the accessibility of credit to SME'S the study revealed was lack of collateral since most businesses were small with low turnover. The study recommends among others that the government should come up with an integrated training framework for SMEs to enable them attain appropriate skills that would enhance competition in the sector.
An investigation of the relationship between systematic risk and returns of securities : a case of companies listed on the Nairobi stock exchange (NSE)
(2011-08-18) Ngatia, John K
Prior to June 2001, all companies in the NSE traded under one market segment. Classification was done and they were re-classified into Main, Alternative Investment Segments and Fixed Income Securities. The period between 2001 to 2008 brought about phenomenal changes at the bourse. In addition to market segmentation, the increased number of newcomers in the stock market and other major changes that took place in the Kenyan economy affected the stock market significantly and thus the amount of risk exposure. These changes in the market made it totally different in terms of systematic risk. This study sheds light on the post-classification period after the companies have traded for a couple of years and it aimed at illuminating areas of systematic risk and how they relate to shareholders returns and whether the classification of the market into various segments trading under different requirements had effect on the investment returns of the shareholders. A study performed at the Warsaw stock exchange which is an emerging market with similar segments as the NSE revealed that the main market segment earnings results were slightly stronger than the whole market while being definitely stronger than the parallel (Alternative) market segments (Jarmathowicz & Gornit 1998). In light of market segmentation concept, this shows that the performance of the three market segments namely, Main, Alternative and Fixed Income Securities investment segments, ought to be significantly different. It is therefore important to understand whether the re-classification of companies at NSE three market segments reflects significant differences in performance levels of those companies. This study sought to establish whether the companies that are classified under MIMs are actually different in terms of risk and return with those that are classified under AIMs at NSE. Descriptive design approach was used to provide further insight into the research problem by describing the variables of interest and examining associative relationships. It involved taking repeated measures over time that was useful for conducting trend analysis and tracking changes in relationship over time. Systematic risk was found to have minimal effect on dividends and stronger positive effect on bonuses to investors. Main investment market segment had the highest systematic risk and posted the highest ' returns to investors compared to Alternative investment segment. Systematic risk and return relationship was found to be stronger in companies under MIMS compared to companies under AIMS. Future researchers may investigate the unsystematic risk return relationship at the NSE and establish the effect of different economic situations on the risk and return relationship
The relationship between board composition and firm performance.a quantitative study on Kenyan listed companies
(2011-08-18) Achira, Kerubo Elizabeth
Due to various corporate scandals and failures, there has been a renewed interest on the role of boards in the performance of firms. In the light of Third world countries' financial crisis, the effectiveness of good governance in African economies has been a confronting issue .Agency problems arise when ownership is separated from management. In developing markets like East Africa, investors are eager to improve the governance mechanism. Researches on this topic worldwide have increased in recent years; however, many of these studies have obtained inconclusive findings because of various reasons such as fast changing of the market, management methods and different approaches. Board of directors as the monitors for management and trustee for shareholders play an important role. This situation has raised a key issue in corporate governance of how to effectively monitor managers and to exercise control so that managers act in the best interest of the shareholders .Governed firms have been noted to have good firm performance. There is no gainsaying of the fact that corporate governance structure has a critical impact on the responsive ability of a firm to external factors that impinge on firms' performance. This study reviewed previous literatures and studies from both advanced markets and Kenyan market. It examined the correlation between board composition and firm's performance of Kenyan listed companies. A quantitative approach was adopted to examine the correlation between managerial composition and firm performance of listed companies in NSE. The research population was 55 companies listed in NSE. Sample size of 60% was derived through stratified sampling method .Secondary data was used for this study and data sourced from annual audited financial statements of the listed companies in NSE. Empirical analysis was undertaken using Generalized Least Squares analyses. Softwares that were used included SPSS and STATA. Results of data analysis were interpreted in line with the research objectives and fmdings recommendations and conclusions reported. The findings of the study showed that board characteristics such as board size, board independence and gender diversity were positively related with firm performance, where as the number of board members with PhD level education was found to be negatively related to firm performance. The findings also provide partial evidence to different governance theories, further indicating the need for theoretical pluralism to gain insights into boards' functioning.
An investigation into the impact of microfinance loans on performance of small businesses : a case study of Meru-South District
(2011-08-18) Nthuni, Kenneth Mutuiri; Raphael Maganjo; James M.Muturi
Access to financial services by self-employed persons in small business enterprises is one of the limiting factors that inhibit growth and develooment of these small businesses. The problem of accessibility is created by lending institutions through their lending policies. This is displayed in the form of prescribed minimum loan amounts, complicated application procedures and restricting credit for specific purposes. For small business enterprises, reliable access to short-term credit and small amounts of credit is more valuable and appropriate in credit programmes aimed at such enterprises. The funds to buy goods and operate are inadequate because of the high interest rates that are charged on loans by the money lenders, thus small businesses are unable to borrow as they wish and if they do, they are unable to pay the loans thus creating more problems for the business enterprise. Hence, there is a need to look for better ways to provide financial services to these small businesses whose collateral base is limited. In this study, microfinance loan (microcredit) is seen as a way to facilitate economic activities through creation of a financial market for small businesses. Provision of financial services to the small businesses will enable them to start economic activities, creation of goods and services and growth of these businesses. Microfinance will help bridge the gap created between small businesses limited collateral base and provision of financial services by the mainstream commercial banks. The objective of this study was to derive the correlation between provision of microfinance loans to small businesses and their performance in relation to their sales so as to establish the relationship between women empowerment and microfinance loans. The researcher used both primary and secondary data for this study. Primary data will be collected using a questionnaire. The questionnaire was administered by the researcher and if necessary use research assistants. Both open-ended and closedended questions will be used. Secondary data were sought from the available library search and other documented sources kept by microfinance institutions. Descriptive and inferential statistics were used. Descriptive statistics was used to summarize the basic features of the data in the study, whereas the inferential statistics were used to infer the sample results to the population. Descriptive statistics such as frequency distributions, percentages, means, ranges, variations and measures of central tendency were used. Data were analysed using Statistical Package for Social Sciences (SPSS)
The role of cooperative education in the performance of savings and credit cooperative socities : a case of SACCOs in Nyeri District
(2011-08-18) Maina, Rosemary Gathigia
Co-operative Education is one of the Principles of Cooperatives. Its objective is to foster understanding for members leaders and employees in carrying out their respective roles and ensuring that the general public is informed about the nature of the cooperative movement. The Cooperative Education therefore aims at developing an enlightened and responsible leadership capable of directing and effectively controlling Cooperatives for the benefit of members and for continued prosperity of the Cooperative movement and the nation. This is achieved through imparting relevant management knowledge, business and entrepreneurial skills needed by employees and Committee Members to enhance efficiency and effectiveness in the services rendered by Cooperatives. It is in view of this that this study sought to explore the role of Cooperative Education in the performance of SACCOs. This study was carried in Nyeri District and focused on main areas related to the problem i.e. perception of Cooperative Education among SACCO members, employees, management committee and public, importance of SACCOs and effects of Cooperative Education in SACCO performance, in adequate cooperative education and challenges facing SACCOs. Various related literatures were reviewed in order to establish the importance of the study, high light gaps and provide benchmark for comparing the findings. The target population was drawn from fifty five (55) operating SACCOs in the district and consisted of members, cooperative officials and staff. The target population was 16,250 members, 385 officials and 221 staff members. Out of this total 1703 (10%) individuals and the DCO Nyeri District participated in the study due to researchers financial constraints and lack of time. Stratified random sampling was used and SACCOs selected for participation informed. Data collection was conducted by use of questionnaire. Descriptive design was used while data was analysed through Statistical Package for Social Sciences (SPSS) Computer Package. Data was collected and presented in tables. Percentages, frequencies, bar graphs and pie charts were used in reporting the data. The research findings point out the need for quality Cooperative Education, adequate time for Cooperative Education need for Cooperative Education in areas like financial reporting, financial and time management. These translate in better performance of SACCOs in terms of membership growth, turn over, financial growth, and improved rebates to members.
Factors that influence the use of intergrated financial management information systems in public sector.a case of selected government ministries in Kenya
(2011-08-18) Kwena, Franklin Imbuye
Factors contributing to non-performaning loans in agro-based financial sector.a case of Agricultural Finance Corporation of Kenya
(2011-08-18) Selote, Kipkirui Soo
Factors influencing the efficiency and efficacy of Kenya's constituency development fund : a case study of Sabatia constituency
(2011-08-18) Evusa, Zablon
Kenya's Constituency Development Fund (CDF) is one of the ingenious innovations of the National Rainbow Coalition (NARC) Government of Kenya. Unlike other development funds that filter from the central government through larger and more layers of administrative organs and bureaucracies, funds under this program go directly to local levels and thus provide people at the grassroots the opportunity to make expenditure decisions that maximize their welfare consistent with the theoretical predictions of decentralization theory. Increasingly, however concerns about the utilization of funds under this program are emerging. Most of the concerns revolve around issues of allocative efficiency. My research aimed at establishing constituency characteristics that impact on the efficiency and efficacy of CDF and also the utilization of the funds to ensure that the program achieves its full potential. My research observed that CDF could have negative outcomes because of fiscal illusion and reduced local fiscal effort. The research also found out some political economy aspects associated with this program. The study used both primary and secondary sources of data. The school and church heads, contractors' and members of the management committee of Sabatia CDF were consulted as the source of primary data. The secondary data was obtained from written reports about CDF use in Kenya and other development reports. The study used Cluster random sampling to obtain the sample population from the target population. The study was conducted through survey research design and was concerned with the efficient use of CDF in Sabatia constituency. The survey research design generally entailed the use of sample populations to analyze and discover occurrences of events. In data analysis the study used the measures of central tendency (mean, mode and median), measures of dispersion (Standard deviation) and variation coefficient. The findings of the study, it was hoped, will be useful as a benchmark for establishing whether funds are well managed when decentralized to local levels or by the central Government. This was to be used as a guideline for future allocation of CDF and further establishment of decentralized or devolution of resources.
An investigation into effective performance in financial management of non-governmental organizations in Kisumu District, Nyanza Province
(2011-08-18) Okumu, Martin Ouma
The role of Non-Governmental Organizations (NGOs) world over is to supplement the government agencies in providing services to the people. NGOs are formed as a result of certain needs identified by individuals or groups of individuals. Most NGOs are involved in research and provision of services to supplement the efforts of the government agencies. Financing of NGOs is largely by donors while management is by individuals who oversee the programmes of the organization. The donors rely on the managers of these programs for the full management of their finances and implementation of the programs. In Kenya, management of these NGOs has had a few controversies. These could be due to the inability of the local managers to effectively run the affairs of the organizations. The most talked of is the financial management. The study has been prompted by the controversies to find out how the finances of NGOs are managed. The objectives of this study included; determination of the factors that affect effective financial management of LNGOs; assessing the extent that these factors affect financial management of LNGOs; drawing policy implications on the financial management of LNGOs and; to suggest why and means of enhancing good financial practices among the LNGOs. The study design adopted was descriptive survey. The target population of this study was 200 Local Non-governmental organizations. The sample design for the study was both purposive and random sampling involving a sample size of 30 LNGOs. Data for the study was collected through questionnaire and analyzed using statistical tools which included frequency distribution. The study results are presented using tables and graphs. The study has revealed that financial management in LNGOs is ineffective. The study has also established that lack of necessary training and relevant skills are amongst the factors that have led to ineffective in financial management amongst the local Non-governmental organizations. In conclusion it has been proposed that the lack of relevant skills and lack of training be addressed by the willing funders, as this will ensure that the LNGOs effectively manage the funds donated by the funders.

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