RP-Department of Economic Theory

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Adopted Technology and Performance of Micro and Small Enterprises in Nairobi
(IOSR Journal of Economics and Finance, 2023) Kiprono, Kirui Michael; Rono, Gladys
Micro and small enterprises around the world were acknowledged for their indelible part in spurring economic development. In Kenya, the government introduced numerous policy approaches that targeted the growth and promotion of Micro and Small Enterprises, most notably the Micro and Small Enterprises Act of 2012, which established the Micro and Small Enterprises Authority and introduced the Kenya Industrial Estate. Despite numerous initiatives by the government and other statutory organizations, studies revealed that 70 percent of Micro and Small Enterprises failed within their initial three years of existence, rendering their survival in the market space low. This was despite the efforts put in by the government of Kenya and other stakeholders to promote Micro and Small Enterprises in the country. Micro and Small Enterprises were faced with many challenges, including inadequate funding, low levels of skill, infrastructure, political instability, and operating expenses. Technology and innovations were directly proportional to improvements in micro and small enterprises. This study was conducted in Nairobi Central Business District. The study, therefore, tried to find out the effect of adopted technology on the performance of Micro and Small Enterprises in the Nairobi Central Business District. The objective of the study was to establish the effect of marketing innovation on the performance of Micro and Small Enterprises in Nairobi Central Business District. The empirical model of the study was based on the Cobb Douglas production function. A sample of 270 Micro and Small Enterprises from a target population of 752 in Nairobi Central Business District was selected, and a self-administered questionnaire was administered to the entrepreneurs. The reliability of the questionnaire was determined using Cronbach's alpha and was found to be 0.72. Collected data was analyzed. Some moderator variables, such as Business management skills, gender, education, and the number of years of operation, were analyzed, and descriptive statistics were used to illustrate their effect on the performance of the enterprise. Data analysis results showed that marketing technology had a positive influence on the performance of Micro and Small Enterprises in Nairobi Central Business District. Therefore, Policymakers were encouraged to encourage Micro and Small Enterprises to adopt technology enabled marketing strategies. Providing incentives, training programs, and resources to help them establish and maintain an online presence was recommended.
Agricultural Trade and Economic Growth in East African Community
(AJER, 2016) Ouma, D.; Kimani, T.; Manyasa, E.
East African Community states, as many other states in the region, depend largely on agricultural activities to boost their economic growth and create employment. Up to 80 per cent of the populace depends on agriculture directly and indirectly for food, employment and income, while about 40 million people in EAC suffer from hunger. The role of trade in economic growth and vice versa cannot be over emphasized. However, whether there is any link between EAC’s regional trade and the region’s economic growth remain unknown. This study therefore investigated the relationship of the agricultural trade with economic growth in East African Community. Several bi-variate Vector Auto-Regressive (VAR) and Vector Error Correction Models (VECM) were also estimated. Granger causality test and Impulse response analysis on trade and economic growth were performed using panel data from UNCOMTRADE, International Financial Statistics and World Development Indicators for the period 2000 – 2012 on the five EAC members and other 77 trade partners. Empirical findings showed mixed results for the different EAC member states. There existed bi-directional relationship between agricultural exports and economic growth in Kenya, uni-directional relationship in Rwanda, and no relationship at all in Burundi, Tanzania and Uganda.
An Analysis of Household Choice of Mobile Money Transfer Services in Nairobi County, Kenya
(International Journal of Economics, Commerce and Management, 2018-10) Njuguna, Mbugua, John; Mwangi, Gachanja, Paul
Mobile Money Transfer Services (MMTS) has proven to be a critical component in poverty reduction in Africa in general and Kenya in particular. Access to basic financial services through mobile money could enhance the ability of rural households to invest in their livelihoods and improve welfare. Kenya is a home to six service providers of mobile money making her a global leader in usage of mobile money transfer services. Various researches conducted in Kenya reveal that despite leading in usage of mobile money, users are faced with myriad of challenges such as prohibitive costs on small transactions, network outages and users are not able to switch easily from one dominant service provider to others. The objective of this study was to investigate the household choice of Mobile Money Transfer Services over alternatives of mobile money transfer in Nairobi County. The study adopted non-experimental research design since the information required could not be manipulated. The study made use of both the secondary and primary data. The results on the marginal effect indicated that the variables Age, Education level, income, cost of transaction of MMTS and cost of transaction of alternatives to MMTS were significant at 5% level. The findings revealed that an increase in age, education level or income by one unit would lead to a decrease in the probability that an individual chooses the alternative of MMTS and is more likely to choose MMTS services by 0.011, 0.112 and 0.230 respectively.
Bank Size and Financial Risk Exposure on Financial Performance of Commercial Banks in Kenya
(Sciedu Press, 2019-09-13) Konya, M. Nelly; Jagongo, Ambrose; Kosimbei, George
The performance of banks in Kenya has become a major concern for economics and policy makers due to the role of banks remaining central in financing economic activities. The study sought to establish the effect of bank size and financial risk exposure on financial performance of commercial banks in Kenya. The descriptive research design and a positivist approach were adopted. The Berger and Hannan approach was used to establish the relationship between bank size, financial risk exposure and the moderating effect of macroeconomic variable on the financial performance of commercial banks in Kenya. Various diagnostic tests were carried out and the study data structure was panel hence Stata was employed to determine the relationship between the variables. In conclusion, banks need to grow bank sizes where they enjoy both economies of scale and scope. The Kenyan Treasury should design policies that would increase the capital size, liquidity requirements and deposit insurance premiums; this may assist in enlarging the size of banks to a level where they are fairly equal with none having relative market power to drive the market. Areas of further research may include but not limited to considering other variables besides the financial risk exposure and bank size in determining their effect on the financial performance of commercial banks in Kenya. The research may as well be done in the East African or African context. The further studies should seek to leverage on mixed research approaches that utilize both quantitative and qualitative research.
Congestion in the Justice System and Private Investments
(IPRJB, 2018) Marang’a, Moses; Ouma, Duncan; Kosimbei, George
Purpose: Public goods and services play a vital role in a given economy. Most importantly, optimal supply of public goods and services is desirable. The justice system services are public services that, as argued by most economists and governments, would be expected to spur the growth of private investment. However, these services are prone to congestion which may influence their supply and level of use. This study investigated the effect of congestion in the justice system on private investments growth in Kenya. Methodology: Drawing from the modified neoclassical theory of investment, a government service characterized by congestion was integrated as an input in the firm’s production function to derive a structural model for private investment growth. Utilizing data for the period 1960 to 2016, two-stage least square (2SLS) instrumental variable (IV) method was used for estimation. Results: The study found that congestion in the justice system reduces growth of private investment. This implies that congestion increases firm’s adjustment costs, decrease their profitability and consequently reduces capital accumulation. Recommendation: To enhance the growth of private investments, we recommend reduction of congestion in the justice system to the possible minimum. This can be achieved by upscaling resolution of disputes out of court to reduce inflow of new caseload. Consequently, the waiting period between hearings and mentions for existing cases would reduce translating to speedy conclusion of cases. The justice system institutions with involvement of litigants and their legal representatives should continuously undertake activities targeting rapid finalization of old cases, but not at the expense of inbound demand for justice. Consequently, congestion would diminish creating a legal and contracting environment characterized by minimal delay hence supporting accumulation of capital.
Constraints on Research Productivity in Kenyan Universities: Case Study of University of Nairobi, Kenya
(Multidisciplinary Journals, 2016) Muia, A.M.; Oringo, J.O.
Besides teaching, research has become a core function of universities around the world. Yet, like in many African countries, Kenyan universities still lag behind in terms of research productivity, due to factors many researchers refer to as constraints. This study which was conducted in the University of Nairobi sought to analyze constraints that influence research productivity in the university. Specific constraints that the study sought to analyze their impacts on research productivity included; resource constraints, institutional constraints, cultural constraints and other concepts and issues that impact on research productivity in the University of Nairobi. The study also sought to understand the respondents’ view on the overall status of research productivity in the University of Nairobi. Being the largest and the leading research university in the country, the researcher believed that the findings arising from the study of the University of Nairobi could appropriately be generalized to other universities in Kenya. The target populations of the study were the research personnel of the six colleges of the University of Nairobi. Data were collected by use of both open and closed ended questionnaires. The collected data were then analyzed and the findings presented by use of tables, graphs and charts. The study concluded that resource constraints, institutional constrains and cultural constraints have impact on the research productivity in the University of Nairobi. In the overall, the study established that research productivity in the University of Nairobi is at fair level. This view was overwhelmingly supported by the majority of respondents (62%). Other concepts and issues that were stated to have impact on research productivity included; lack of funds, poor management, lack of dissemination and implementation of research findings, inadequate materials and equipment, lack of incentives and rewards to researchers and sophisticated procurement procedures.
Coping Mechanisms to Income Loss by Girls and Women during COVID-19: Evidence from Selected Informal Settlements in Kenya
(Society For Science and Education, 2023) Kosimbei, George K; Omolo, Jacob O; Rono, Gladys J; Musyoka, Peter K; Onono, Perez A
This study investigated the coping mechanisms that were adopted by girls and women to mitigate the impacts of income loss due to COVID-19 pandemic. A mixed methods approach involving use of desk review, cross-sectional survey, key informant interviews and focus group discussions was employed. A logit regression model was estimated using data collected from 402 randomly selected households from Kibra, Mathare, Obunga and Nyawita informal settlements. Most households in the informal settlements lost employment and incomes during the pandemic leading to increased food insecurity. Girls and women bore a disproportionate share of the burden of employment and income loss and could not access basic necessities including food and house rent, suffered increased sexual harassment, exploitation and abuse, and experienced increase in conflicts within households. To mitigate the impacts of income loss, households reduced food intake or skipped meals, made use of social support systems, begged from well-wishers. Use of risky and negative coping mechanisms including early and forced marriage, as well as transactional sex increased among adolescent girls, and young and older women. The study recommends design and implementation of business and non-business development services to engage women entrepreneurs in more stable income generating activities for enhanced post COVID-19 recovery. Further, County government departments for gender, youth and cultural services, and community and faith-based organizations should undertake more sensitization programmes in the informal settlements to influence attitudes of girls and young women on early marriage and transactional sex. Government-based social protection programmes for the vulnerable households should be made more open and transparent, free from harm, manipulations and abuse. Beneficiary targeting of such programmes should also be based on the differential vulnerabilities of households in each location. Early response of the government and other institutions to cushion
Credit Access and Performance of Micro and Small Enterprises in Nakuru County, Kenya
(2020) Silas, Peter Mwiathi; Mwangi, Rahab Wanjiru
Ent repreneurship cont ributes to the achievement o f development goals by encouraging economic growth and improving the standards of l iving of the people. The Government o f Kenya has established various funds in an effort to enhance equity among socially disadvantaged groups like women , the disabled and unemployed youth. Despite these efforts, the uptake of these funds remains low due to unfavourable lending conditions, leaving a financing gap. This study employed a non-experimental research design, conducted in four randomly selected administrative sub-counties in Nakuru County. From an approximated sampl ing frame o f 650 MSEs, a random sample o f 248 was selected. A st ructured questionnai re, with a Cronbach Alpha coefficient of 0 .72, was administered to the sample. Results o f a l inearized logarithmic regression showed that credit amount and challenges faced in accessing credit accounted for close to 14.0% (R2 = 0.139) of per formance o f the MSEs in Nakuru County. The study concluded that credit access had a positive signi ficant effect on the performance o f MSEs. Policy impl ication was that the Cent ral bank, in collaboration with commercial banks, should ease borrowi ng t erms t o i ncrease MSEs‟ access t o credit . A l so, t he government should offer incentives to lending inst itut ions so that they can lower the cost of borrowing.
Customer relationship management practices as recipe for customer loyalty: A literature review
(2013) Kangu, Maureen; Wanjau, Kenneth; Kosimbei, George; Arasa, Robert
According to empirical evidence the extent of Customer Relationship Management (CRM) benefits to an organization will vary depending on the nature of the business concerned. They are likely to be more substantial in the case of any organization that has some or all of the following characteristics: frequent customer interactions and purchases, high cross-selling potential, perceived risks and involvement, and profitability. Findings from the empirical studies have grouped CRM benefits under two main paradigms: operational and strategic benefits. The review of literature provides insights into the operational and strategic benefits of CRM and how it can be used for strategic advantage of a business. It is advisable that organizations include in their strategic plans the CRM initiatives that they will use to ensure promotion of customer loyalty. It is one thing to plan for growth of business using data extrapolation and forecasting but it is equally important for organizations to plan for ensuring customers are managed professionally. Competition for business has been in the front of financial performance. Majority of global performance rankings of companies are based on financial performance. It is good if professionals and business experts can develop an index for CRM with very clear indicators and measurable processes. The index and its metrics can be used by firms to benchmark their CRM process and seek ways to improve in the areas which they have shortcomings. This will infuse a culture of customer relationship management, customer loyalty, CRM
Demand for Reproductive Health Vouchers and Utilization: A Case Study of Output Based Approach in Kilifi Kenya
(NIHR Health Technology Assessment Programme, 2017) Mwangangi, Mary N.; Kioko, Urbanus; Korir, Julius
Demand side financing initiatives are different forms of financing health services that aim to minimize financial obstacles to accessing health care and also decrease inequities by ensuring that services are made affordable to poor and underserved populations through provision of subsidies. Vouchers have been expected to improve health outcomes by improving on service quality, improving effectiveness while also increasing the utilization of health care services. Despite the fact that vouchers have been implemented in Kenya since 2006, very few studies have focussed on underlying factors that contribute to low utilization even with high demand for the vouchers particularly in Kilifi County. This study investigates the relationship between demand and household and individual characteristics and also the relationship between utilization and household characteristics. The findings indicate that age, education, marital status and occupation had a relationship with demand for the reproductive health vouchers while for utilization of the vouchers only age and marital status were found to be statistically significant.
Determinant of Foreign Direct Investment Spillovers; Kenya’s Domestic Firms Case
(Center for Promoting Ideas, 2016-09) Mugendi, Charles Ndegwa; Njuru, Stephen Gitahi
Developing countries and emerging economies increasingly see foreign direct investment (FDI) as a catalyst to the development of domestic firms. This development can be through spillover effects whose presence can affect development of business enterprises in the host economy. FDI in developing countries is perceived not only as a source of capital inflow, but also as a vehicle for acquiring modern technology and the necessary managerial know how that these countries require for development. These are some of the reasons why most of the developing countries have continued to pursue domestic policies that encourage more FDI inflows. Many countries have gone further than simply removing barriers to inward foreign investment and have taken a more proactive approach towards attracting FDI through the use of fiscal and financial incentives. It appears therefore, that although the aggressiveness and effectiveness of the government’s policies in prompting FDI growth not been refuted, the effects of FDI on domestic firms and factors that determine spillovers are far from clear. Therefore, this study investigates the main firms’ characteristics that determine FDI spillovers. Firm level primary and secondary panel data were collected for the period 2012 to 2015. A structured questionnaire was administered to both domestic and foreign firms from different sectors. FGLS techniques was used and it was evident that firms that had skilled workers, high technology and research and development expenditure were able to attract horizontal and vertical spillovers.
Determinants of Sustainable Development in Kenya
(IISTE, 2017) Kaimuri, Belinda; Kosimbei, George
This study investigated the determinants of sustainable development in Kenya using annual data for Kenya for the period of 1991 to 2014. Adjusted net savings rate (ANSR) was used as a proxy sustainable development. The study used the autoregressive distributed lag model (ARDL) for the analysis and the bounds test for cointegration to test whether a long run relationship exists between the study variables - household consumption per capita, unemployment rate, resource productivity, energy efficiency, real gross domestic product per capita and terms of trade. The main result from the study was that a long run relationship exists between the variables. Secondly, the estimated coefficients of household consumption per capita negatively impacts sustainable development in the long run while unemployment rate and energy efficiency both negatively influence sustainable development in the short run. Resource productivity, real gross domestic product per capita and terms of trade are insignificant in determining sustainable development. The results suggest that developing the economy while stimulating savings and promoting a contractionary fiscal policy on public deficits will promote sustainable development.
Does the Inverse Farm Size Productivity Hypothesis Hold for Perennial Monocrop Systems in Developing Countries? Evidence from Kenya
(arjare, 2021) Ateka, Josiah; Onono-Okelo, Perez Ayieko; Etyang, Martin
The inverse farm size and productivity relationship (IR) is a recurring theme in the literature. However, most previous studies were undertaken within a setting of mixed cropping systems. In this article, we investigate the effect of farm size on productivity within the context of a perennial mono-cropping system, acute competition for farmland, frequent subdivision of farms and declining yields. We apply household survey data of smallholder tea farms in western Kenya and consider both technical efficiency (TE) and the yield per hectare as indicators of productivity. The findings show that the effect of farm size on productivity is nonlinear, with TE initially declining and then rising with farm size. The findings also demonstrate that the farm size and productivity relationship is important for perennial monocrops and that the use of robust measures of productivity is important for the IR. The findings have important implications for agricultural policy in developing countries
Dynamic Linkage between Foreign Equity Flows and Stock Market Returns at the Nairobi Securities Exchange
(Strategic Journals, 2018-07-15) Gachanja, S. N; Kosimbei, G
This study investigated the dynamic linkage between foreign equity flows and equity returns at the Nairobi Securities Exchange (NSE) since foreign equity flows are expected to induce a surge in domestic stock prices and consequently a fall in price when foreign equity investors exit the domestic stock market. An increase in the stock prices attracts foreign investors in to the domestic stock market. The main objective of this study was to understand how stock prices in Kenya influence foreign equity flows, and in turn how foreign equity flows affect stock prices. To understand the dynamic linkages between foreign equity flows and stock market returns the study utilized vector autoregressive models, causality tests, vector decomposition and impulse response functions together with data from the Capital Markets Quarterly statistical bulletins for during and after 2007/2008 financial crisis (January 2007 to December 2015). Monetary variables used included NSE 20 share index which represents stock market returns, net foreign equity flows, foreign equity outflows and inflows. The study established that foreign equity flows has a positive and significant effect on stock markets returns. Also, foreign equity flows granger causes stock market returns at Nairobi Securities Exchange which is consistent with price pressure hypothesis. Hence, there is need for the government agencies to implement relevant policies that can attract equity inflows in Kenya.
Dynamic relationship between the housing prices and selected macroeconomic variables in Kenya
(Stratford Peer Reviewed Journals and Book Publishing, 2018-08) Njaramba, Stephen Githae; Gachanja, Paul; Mugendi, Charles
In Kenya housing prices are considered high and have still continued to rise. This has made housing affordability and access a preserve of the top income earners. Consequently, large population live in houses with reduced access to clean water, sanitation, unreliable and unhealthy energy sources, increased exposure to diseases and low levels of financial security. Arable land is also being converted to residential centers which is constraining on public goods provision and agricultural output. Housing prices behavior have been known to influence business cycle dynamics by affecting aggregate expenditure and also the performance of the financial system through their effect on the profitability and stability. This study examined the dynamic relationship between housing prices and selected macroeconomic variables in Kenya. In doing this, the study used time series data for the period 1960 to 2015 and VAR models. The VAR models were selected where Toda and Yamamoto (1995) methodology was used. This is a modified version of granger causality test based on augmented VAR modeling. The study findings indicate that the housing prices dynamically relate with the selected macroeconomic variables. The study therefore concludes that housing prices have a positive contemporaneous impact on the selected macroeconomic variables indicating the existence of mutually reinforcing cycles between the housing prices and the selected macroeconomic variables. Therefore, there is need to observe the housing prices movements to avoid the cost that could result in case of instability in the housing market.
Effect of Board Size on Tax Planning Amongst Firms Listed at the Nairobi Securities Exchange, Kenya
(International Journal of Social Science and Humanities Research, 2023-07) Guyo, Mohamednur brahim; Waweru, Fredrick Warui
Tax planning is one of the critical tools used by both government and firms to achieve optimum revenue. Tax laws are formulated by different government authorities to derive maximum benefit from tax provisions. Although tax preparation might boost profitability, it can also come at the expense, preventing businesses from optimizing revenue by tax planning. For example, when corporate structure is a requirement for getting the intended tax advantages, possible expenses can arise if tax planning is disputed by taxation, resulting in brand damage. Various studies have been carried out on board attributes and tax planning among different sectors and different nations all this having mixed results. Therefore, this study sought to investigate the effect of board size on tax planning amongst firms listed at the Nairobi Securities Exchange, Kenya. The sample for the investigation included 65 Nairobi Securities Exchange listed companies listed between 2014 and 2021, and secondary panel data was collected from these companies using a census sampling technique. The study adopted descriptive and panel regression techniques of analysis which has some diagnostic tests. Ethical standards were adhered to in the study. Revelation from the survey showed that board size significantly in a manner that is positive with effect on tax planning of listed firms. The report consequently suggests that board size be decreased to improve tax planning effectiveness for Kenyan listed companies at the Nairobi Securities Exchange. This would enable the board of directors of the companies to facilitate decision-making within the shortest time frame possible
The Effect of Diaspora Remittances on Health Outcomes in Kenya
(International Organization Of Scientific Research (IOSR), 2021) Kibet, Weldon; Rono, Gladys
Background: A healthy population positively impacts on a country’s economic growth. However, two measures of health outcomes in Kenya -life expectancy at birth and under-five mortality rate, on average are 58.2 years and 85.9 deaths per 1000 births against government targets of 72 years and 24 deaths per 1000 births respectively. The consequences of the above scenario have hampered country’s productivity, national income and poverty reduction initiatives. The general objective of the study was therefore to determine the effect of diaspora remittances on health outcome. Specifically, this study examined the effect of diaspora remittance on life expectancy at birth, and the effect of diaspora remittance on under-five mortality rate. Methods: Time series data for the period 1985 to 2018 were used in this study. Multivariate regression was specified and the Ordinary Least Square (OLS) estimation technique was used in estimating the direction and coefficients of diaspora remittance and control variables on measures of health outcomes (under-five mortality rate and life expectancy at birth). The research was informed by Grossman theoretical model with various inputs into health production function Results: The study found that the coefficients of diaspora remittance, official development assistance were positive and statistically significant. While immunization uptake level negatively affected life expectancy at birth. The under-five mortality rate was negatively affected by diaspora remittances, private consumption and official development assistance, while immunization uptake level positively affected it. From the findings of the study, the government in collaboration with financial institutions should guarantee cheap, efficient, and safe remittance of employee compensation from abroad for the country to realize better health outcomes.
Effect of Employment on the Urban Youth Savings: A Case Study of Nairobi City County, Kenya
(Ijariie, 2024) Thuku, Thuku Jeremiah; Mugendi, Charles
Savings play a vital role as they act as backstop for capital formation and economic growth. A better saving behavioristhe basis of a sound economic and financial policy. Studies on savings have historically taken a central position in several economic research areas. Issues and problems related to savings among households and individuals have gained significant importance in microeconomic studies as savings stimulate larger investments and higher gross domestic product growth. Studies conducted in developing countries have shown that savings remain low particularly among the youth due to various factors such as high unemployment rates, limited access to financial services and high dependency rates among other factors. Low savings inhibit the availability of investment funds. This research study examined the effect of employment on the urban youth savings using Ordinary Least Squares estimation method. The goal was to get an understanding on the effect of employment factors on the uptake of savings by the youth. A cross-sectional research design was adopted where primary data was collected from the youth in Nairobi City County. Random sampling technique was used to select the respondents in the survey where self-administered questionnaires were administered to 400 urban youth. The study’s results demonstrated a showed a positive relationship between employment on the level of savings among the urban youth. Otherfactorssuch asrate ofreturn was found positively affect savings while factors such as age, number of dependants and education effected savings negatively. The study concluded that creating more employment opportunities for the youth through quality job and through revitalizing both the formal and informal sector and offering higher rate of returns on savings would be critical in mobilization of savings.
The Effect of The Size of the Informal Sector on Economic Growth in Kenya (1974 to 2016)
(International Journal of Social Science and Economic Research, 2019) Opondo, Mary Awuor; Etyang', Martin N.; Okeri, Susan; Njuguna, Angelica
The Kenyan economy is dual and predominantly informal. The size of the sector in the country has grown over time. The sector employed 19 percent of the total workforce in 1974 which increased to 84 percent in 2016. The country targets economic growth averaging 10 percent per annum, and a reduction in poverty rates to 28 percent of the total population by the year 2030. Efforts to develop the sector for economic growth, employment creation and poverty reduction can be traced to the period 1986, under the Sessional Paper No.2 of 1986 on Economic Management for Renewed Growth. The growth of the informal sector in the country has led to a marked increase in employment numbers, but not much is known about the effect on the other two objectives, which are economic growth and poverty reduction. Reports on the contribution of the sector to economic growth are largely conflicting with limited econometric studies. The study analyzed the relationship between the size of the informal sector and economic growth in Kenya. A growth accounting exercise was conducted using the standard Cobb-Douglas production function. From the study findings, the informal sector is the lowest contributor to output growth in the country. Given the size of the sector the study concludes that there is a need to target increased productivity in the informal sector for increased economic growth.
Effect of Youth Empowerment in Unemployment Intervention Programmes on Youth Employability in Nakuru County, Kenya
(Global Press Hub, 2022-02) Omukhango, Mary; Etyang, Martin N.
This study sought to assess the effect of youth empowerment in unemployment intervention programmes on youth employability Nakuru County, Kenya. The study targeted 2 main youth intervention Programmes in Nakuru Town East Sub County; which are the Youth Enterprise Development Fund (YEDF) and Uwezo fund. The study used primary data collected through wellstructured questionnaires. There were two questionnaire sets, for the youth and the other was responded to by the County directors and Project implementers/Coordinators in Nakuru County. Regression analysis was employed to determine the statistical relationship between youth empowerment in unemployment intervention programmes and youth employability. The regression results show that the frequency of funds access and youth employability are positively and significantly related (β=0.373, p=0.000). The results also indicated that training and youth employability are significant and with a positive relationship (β= 0.317, p=0.011). Further, results revealed that years in employment (experience) and youth employability were positively related (β =0.441, p=0.000. The results indicated that holding the number of entrepreneurial trainings, Z2 and the years the youth have been in self-employment, Z3 constant then a unit increase in the number of times the youth have accessed the funds, Z1 will lead to a 0.373 increase in Youth employability. Likewise if Z1 and Z3 are held constant then a unit increase in entrepreneurial trainings for the youth would lead to a 0.317 increase in youth employability. A unit increase in the years the youth have been in self-employment would lead to a 0.441 increase Youth employability if Z1 and Z2 are held constant. In order to enhance youth empowerment in unemployment intervention programmes, the government should endeavor to increase the youth beneficiaries’ entrepreneurship trainings and put more emphasis on the importance of repayment and refinancing in order to achieve positive growth in their businesses.

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