RP-Department of Econometrics and statistics

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The Demand for Energy in the Kenyan Manufacturing Sector
(ICEED, 2009) Onuonga, Susan Moraa; Etyang, Martin; Mwabu, Germano
The manufacturing sector accounts for approximately 10 percent of Kenya's gross domestic product (GDP). The sector's output grew at an average rate of 8 percent per annum between 1970 and 2005. The growth of manufacturing was associated with the greater use of inputs, including all forms of energy. In the government's planning document, Kenya Vision 2030, the manufacturing sector is expected to continue contributing 10 percent annually to Kenya's GDP.1 The manufacturing sector mainly uses electricity and oil as sources of energy in its production processes, distribution, and transport services. The utilization of these two forms of energy, on average, has been rising, resulting in terms of energy and total
Determinants of Choice of Mobile Money Transfer Service Providers in Nairobi County, Kenya
(International Journal of Development and Sustainability, 2018) Mbugua, John; Gachanja, Paul Mwangi; Muli, James Mulinge; Muthoga, Samuel Karagu
In the developing world telecommunication sector has developed widely. Such development includes Mobile Money Transfer Service (MMTS), transfer of money using Information and Communications Technology (ICT) framework and Mobile Network Operators (MNO). Policy makers and cell phone organizations have all touted the capability of cell phones to eradicate poverty. Mobile innovation has kept on reforming banking and payment frameworks in Kenya, with arrangement of utilizations that empowers assorted mobile money transfer services (MMTS). In Kenya there are several mobile money transfer service provider. Various studies done reveals that users choose different mobile money transfer service provider. The objective of this study was to determine the factors that determine the choice of mobile money transfer service provider. The study adopted Multinomial Logit regression. The marginal effects results revealed that variables; ease of access, cost of transaction and convenience were significant in all the three models estimated representing the three service providers with one dominant service provider being the reference category. However, variables age, number of mobile phones and gender were not significant all along in determining the choice of MMTS service provider across the different service providers. Based on key findings, this study recommends increase in the number of money agents outlets by each service provider with smaller market shares to ease access, aggressive advertising to raise awareness of the existence of specific providers and to take high consideration before making any transaction costs reviews as households were found to be highly responsive to transaction costs.
An econometric analysis of effect of poverty on health status in Kenya
(Scientific & Academic Publishing, 2018) Musyoka, Peter K.; Omolo, Jacob; Korir, Julius; Nzai, Charles
One of the most important social-goal world-over is the achievement of good health. This is because, apart from been a fundamental right, it is also an invaluable asset and a prerequisite for improved productivity. However, the benefits associated with good health status may not be enjoyed in the presence of high poverty rates. Thus, poverty reduction is important in ensuring enjoyment of good health. In Kenya, despite the government’s effort to reduce poverty and improve health status of her citizens, poverty has remained high and health indicators have not been impressive either. This paper,therefore, sought to establish the effect of poverty on health status in Kenya. The study used Ordered Probit and the 2013 Kenya Household Expenditure and Utilization Survey dataset to achieve its objective. Estimation results indicate poverty reduction increased the probability of reporting own health as being very good and reduced that of reporting poor health,ceteris paribus. Increase in household size by one member increased the likelihood of reporting own health as being poor other factors held constant. A one year increase in age increased the probability of reporting poor health and reduced that of reporting very good health holding other factors constant. The probability of urban residents reporting own health as being poor was higher than their rural counterparts ceteris paribus. Being employed increased the probability of reporting own health as being very good compared to being unemployed other factors held constant. The study based on the findings concludes that poverty decreases the probability of reporting good health and, therefore, it is important for the government to formulate and implement policies that reduce or eradicate poverty.
Econometric Evaluation of Economic Freedom and Health Outcomes in East African Community
(IJSAB International, 2024-11-23) Wachira, Margaret Wanjiru; Gachoki, Charles Munene
Economic freedom encompasses a range of mechanisms that influence the health outcomes in economies worldwide. Decreasing the size of the government and implementing lower taxes, both of which are elements of economic freedom, could potentially lead to a reduction in government spending on healthcare, so putting health outcomes at risk. Despite improvements in health outcomes in East African countries like Kenya, Uganda, Tanzania, and Rwanda, including decreased newborn death rates and increased life expectancy, the East African Community still falls behind its Asian counterparts. This research aims to ascertain the connection between health outcomes and economic self-sufficiency in the East African Community. The study purpose was to look at the relationship between economic independence and both life expectancy and the rate of newborn mortality in the East African Community. The selected study design was descriptive, using secondary quantitative data obtained from world development indices. A variety of tests were performed and it was determined that fixed effects regression was suitable on the panel data generated from the 4 countries of East Africa between1997 to 2021. The study established that Carbon emissions have positive relationship with mortality rates per 1000 live births. Similarly, actions of government such as increase in consumption expenditure, gross domestic product percapita, labour force, trade all had significant p values at 0.05 level and therefore any increase in these variables result to minimal infant fatality rates and also increases probability of life expectancy. This study also confirmed that urbanization has no significant influence on life expectancy as well as mortality rates per 1000 lives.
The Effect of Education on Business Skills Cognition: The Case of Indigenous Microscale Enterprise Owners in Kenya
(Taylor & Francis, 2003) Bosire, Joseph; Etyang, Martin
One of the expected utilitarian values of education is the development of competencies for effective business practice after school. This article presents findings of a study on the effect of education on Business Skills Cognition among indigenous microscale business owners in Kenya. Data were collected from 208 respondents using an interview schedule, observation schedule and checklist. Business Skills Cognition as the dependent quantitative variable was measured using five broad dimensions of business practice to yield a continuum of scores ranging from a minimum of 45 to a maximum of 265 points. Results from chi-square, and One Way Analysis of Variance showed that the association between education levels, and Business Skills Cognition was positive and significant. The article discusses the implication of these findings for education delivery and training for enterprise development in Kenya and any other society that is keen on the utilitarian values of education.
Effect of Employees’ Leadership Skills on Project Performance in the Energy Sector in Kenya
(International Academic Journals, 2018) Musembi, Annastacia Katumbi Kavita; Guyo, Wario; Kyalo, Dorothy Ndunge; Mbuthia, Aflonia
The purpose for this study was to investigate the effect of employees’ soft skills on project performance in the Kenyan energy sector. The objective of the study was to establish the effect of employees’ leadership skills on project performance in the Kenyan public energy sector. The study employed both cross-sectional and correlation design. Purposive sampling technique was employed to select the projects that were studied. The population comprised all the project supervisors who led the project teams in the ongoing projects in the energy sector ending between January2016 to December 2018. In particular the study focused on the transmission projects, the generation projects, nuclear projects and the distribution projects. A total of 85 ongoing projects were selected. Out of these 9 were used in the pilot study. Therefore 76 projects were chosen for the study. A Questionnaire comprised of closed and open-ended research questions taking the format of five-point Likert-type interval scale was used to assemble primary data from project supervisors. The study established that employees’ leadership skills positively affect project performance in the energy sector in Kenya (R²=0.668, P=0.00). The study highlights the essential components of employees’ soft skills that would inform effective project performance. The study differed from other studies by empirically showing how comprehensive integration of leadership skills can affect project performance and also offers the possibility of contributing to change the way projects are planned, designed and implemented. On the basis of findings, the study recommends that both transactional and transformational leadership styles should be used in the management of projects with a greater emphasis on transformational leadership style. The study also suggests that further studies should be carried out in other sectors and countries and they should involve more soft skills.
Effect of Employees’ Soft Skills on Performance of Public Energy Sector Projects in Kenya
(International Academic Journals, 2018) Musembi, Annastacia Katumbi Kavita; Guyo, Wario; Kyalo, Dorothy Ndunge; Mbuthia, Aflonia
The purpose for this study was to establish the effect of employees’ soft skills on project performance in the sector. In line with these objectives, one hypothesis was developed and pragmatic paradigm adopted to support a mixed method research design. In particular the study employed both cross-sectional and correlation design. Purposive sampling technique was employed to select the projects that were studied. The population comprised all the project supervisors who led the project teams in the ongoing projects in the energy sector ending between January2016 to December 2018. In particular the study focused on the transmission projects, the generation projects, nuclear projects and the distribution projects. A total of 85 ongoing projects were selected. Out of these 9 were used in the pilot study. Therefore 76 projects were chosen for the study. A Questionnaire comprised of closed and open-ended research questions taking the format of five-point Likert-type interval scale was used to assemble primary data from project supervisors. The Statistical Package for Social Sciences (SPSS) program version 23 was utilized to conduct regression analysis, its results used to determine coefficients of multiple regression models, test hypotheses, evaluate reliability of estimated relationship and establish sample regression model. The investigation also found out that the combined employees soft skills positively affect project performance in the energy sector in Kenya (R²=0.633, P=0.00). The study highlights the essential components of employees’ soft skills that would inform effective project performance. The study differed from other studies by empirically showing how comprehensive integration of soft skills can affect project performance and also offers the possibility of contributing to change the way projects are planned, designed and implemented. On the basis of findings, the study recommends that both transactional and transformational leadership styles should be used in the management of projects with a greater emphasis on transformational leadership style. It also advocates for the establishment of clear communication plans with simple and collaborative channels for effective communication. In addition, there should be proper feedback systems, regular communication and free access to information. Communication channels should be chosen depending on the target audience. The research also proposes good stakeholder management in projects. It recommends stakeholder involvement at every stage of the project life cycle. Furthermore, it suggests prompt and adequate compensation of stakeholders, timely completion of projects, innovativeness and proper redress of stakeholder concerns. On the organizational environment, the study advises on the need for improvement on management practices, provision of the appropriate materials and equipment, provision of adequate and timely funding. It also proposes that the challenges in the physical environment should be dealt with besides providing adequate staff with the right skills. The study also suggests that further studies should be carried out in other sectors and countries and that they should involve more soft skills.
Effect of Infrastructure Development on Domestic Private Investment and Foreign Direct Investment in Kenya
(THE INTERNATIONAL JOURNAL OF HUMANITIES & SOCIAL STUDIES, 2024-04) Wenje, Peter Okoth; Njuguna, Angelica E
Kenya has prioritized infrastructure development since its independence. This is evidenced in the seasonal paper number 10 of 1965, various economic development policies of the 1970s, National development policies of the 1980s, Economic Recovery strategy for wealth and employment creation of 2003-2007, Current medium-term plans of 2008 to the present term, as well as the vision 2030. All these economic planning strategies aim to provide an excellent environment for infrastructure development in the country to facilitate industrialization and make Kenya an attractive market economy. The availability of quality infrastructure boosts economic productivity and the cost of production, improves the quality of life, raises the country's regional and global effectiveness, boosts domestic private investment (DPI), attracts foreign direct investment (FDI), and helps modernize the country. There is an evident effect of infrastructure development on DPI and FDI, as seen by the empirical literature. However, no study has analyzed whether the growth in infrastructure development is the reason for the structural change in FDI inflow and DPI development in Kenya. FDI and DPI in Kenya had a more or less uniform in trend from 1970 to 2006, to a significantly steeper upward trend from 2007 to 2021. This means that there is an observed structural change in both FDI and DPI. The study used a logistic regression model to explain the shift in the mean values from the low mean observed in 1970-2006 to a higher mean observed in 2007-2021, making this study different from any other study carried out on the subject. The first objective of the study was to analyze the effect of infrastructure development on FDI, while the second objective was to analyze the effect of infrastructure development on DPI in Kenya. Flexible accelerator theory on investment was the central theory of the study. The study used a logistic regression model to analyze the effect of infrastructure development on FDI and DPI in Kenya, using annual time series data from 1970 to 2021. From the results of the study, ICT infrastructure had a positive and significant effect on both FDI and DPI at a 5 per cent level of significance. Energy infrastructure had a positive and significant effect on FDI but for DPI, it had a positive and insignificant effect. Transport infrastructure, on the other hand, had a positive and significant effect on DPI, but it also had a positive and insignificant effect on FDI inflow in Kenya. GDP growth rate, inflation rate and exchange rate were used as the control variables in the study, and they were statistically insignificant for both FDI and DPI at a 5 per cent level of significance. Based on these findings, the government should prioritize ICT development since it has a ripple effect on the FDI inflow and DPI development. Investing in cyber security measures and cloud networking will give investors confidence in the security of their data and, hence, the urge to invest. Foreign investors prioritize energy generation capacity in the host country. Therefore, the government should prioritize expanding the energy supply to attract more investors. Domestic investors, on the other hand, rely on transport infrastructure. Therefore, the government should see how to reduce road congestion, port clearance bureaucracies, and freight charges to boost investment. The study concludes that infrastructural development is a prerequisite for both FDI inflow and DPI development in Kenya
Effects of Energy Efficiency on Firm Productivity in Kenya’s Manufacturing Sector
(Canadian Center of Science and Education, 2022-03-22) Macharia, Kenneth Kigundu; Ngui, Dianah; Gathiaka, John Kamau
There is concern about probable energy efficiency and economic performance trade-off, particularly in developing countries which often require more energy consumption to spur their economies. This study assesses the relation between energy efficiency and total factor productivity in Kenya’s manufacturing sector by applying a sample of firms in the World Bank Enterprise Survey. Energy intensity is used as a proxy for energy efficiency while total factor productivity is estimated using the Levinsohn-Petrin Algorithm. A dynamic panel data model is applied in the analysis of the energy efficiency and total factor productivity relationship which is at the sub-sector and firm size levels. The sub-sectors of concern are: chemicals, pharmaceuticals and plastics, food, textile and garments and paper and other manufacturing sub-sectors. Firm sizes of interest are: small, medium and large. The findings show heterogeneity in energy intensity across sub-sectors. Total factor productivity is also found to be heterogeneous across sub-sectors and firms of different sizes. The estimates show that in general, energy efficiency significantly promotes total factor productivity. Other factors that promote total factor productivity include capital intensity, age, size, top manager’s years of experience, foreign ownership and exporting status. However, the effect of these variables varies across the sub-sectors and firm sizes. The study findings suggest that policies to improve energy efficiency should be accorded additional emphasis jointly with improvements in total factor productivity.
Energy efficiency in the Kenyan manufacturing sector
(Elsevier, 2021) Macharia, Kenneth Kigundu; Gathiaka, John Kamau; Ngui, Dianah
As one of the highest energy-consuming sectors, Kenya’s manufacturing sector share of electricity consumption in 2019 was 50.16%. That of fuel consumption was 12%, the second-highest after the transport sector. It is therefore important to analyze the sector’s energy efficiency and its determinants. A stochastic frontier analysis based on the assumption of a translog production function at the sub-sector level is estimated by employing a pooled model covering the years 2007, 2013 and 2018 in the analysis of electricity efficiency and 2007 and 2013 in the analysis of fuel and total energy efficiency. The sub-sectors of interest are: chemicals, pharmaceuticals and plastics, food, textile and garments and the other manufacturing sub-sector. The results show significant potential to enhance electricity, fuel and total energy efficiency across all the sub-sectors. The findings further reveal that exporting status, research and development, top managers’ experience and female ownership enhance energy efficiency. The effect of these variables is, however heterogeneous by sub-sector and energy form. Labor productivity negatively influences electricity, fuel and total energy efficiency while the effect of firm age and size is ambiguous. Finally, the study provides policy implications for the design of policies to improve energy efficiency.
Enhancing Growth and Productivity Through Mobile Money Financial Technology Services: The Case of M-Pesa in Kenya
(Canadian Center of Science and Education, 2023-11-20) Wachira, Gladys; Njuguna, Angelica
Kenya’s financial industry has been revolutionized and progressing to digital transformation since M-pesa, a mobile money financial technology service, was introduced in 2007. An M-pesa account allows subscribers to send and receive payments as well as store money. As the digital system grew rapidly, a high percentage of Kenyan households gained access to this service, subsequently helping the unbanked and underbanked populations toward broader financial inclusion. As an efficient and highly adaptable payments system communicating across all markets in the economy, M-pesa has contributed to financial deepening, hence promoting economic development. This study analyzed the effects of mobile money financial technology services on Kenya’s output growth and productivity. The findings suggest evidence of a structural change in the growth of output and total factor productivity when M-Pesa was introduced. Mobile Money was established to have had a significant positive effect on enhancing output productivity and output growth.
Entrepreneurial Opportunity Discovery Dimensions and Growth of Nongovernmental Organizations in Kenya
(International Journal of Research in Business and Social Science, 2019-08-19) Tindika, Olive Kamene Ndeveni; Wanjau, Kenneth Lawrence; Kariuki, George Mbugua; Muchiri, Joseph
Non-Governmental Organizations (NGOs) play a critical role in addressing social ills like poverty, employment, and food insecurity; therefore, their growth prospects enhance their ability to address these social ills. Discovery of entrepreneurial opportunities amongst the agro-based NGOs has not got the desired attention, and it is the least researched area in social entrepreneurship. This study investigated the relationship between Entrepreneurial Opportunity Discovery Dimensions and Growth of Non-Governmental Organizations in Kenya. It employed correlation design and was anchored on the Kirznerian Entrepreneurship Theory. The target population was 135 agro-based NGOs in Kenya. A mixed-method approach was used, combined qualitative and quantitative techniques. Statistical Package for Social Sciences (SPSS) version 21 and Analysis of Moment Structures (AMOS graphic- 25) aided in the analysis. Structural Equation Modeling (SEM) using AMOS and Simple linear regression analysis were the primary analysis techniques used to evaluate the relationship between entrepreneurial opportunity discovery dimensions and the growth of NGOs. The results indicated that alertness0.372, p=0.033)and prior knowledge (0.163, p=0.031) have a significant favorable influence on growth, while social networks 0.047, p=0.713) showed an insignificant effect on the growth of NGOs. Investing in acquiring alert individuals and helping them gain relevant knowledge in the 21sttechnologies and emerging issues can lead to increased NGO ability to continue serving the community effectively and be engines of development for the general good of Kenya
Estimating a Finite Population Mean under Random Non-Response in Two Stage Cluster Sampling with Replacement
(Scientific Research Publishing, 2017) Bii, Nelson Kiprono; Onyango, Christopher Ouma; Odhiambo, John
Non-response is a regular occurrence in Sample Surveys. Developing estimators when non-response exists may result in large biases when estimating population parameters. In this paper, a finite population mean is estimated when non-response exists randomly under two stage cluster sampling with replacement. It is assumed that non-response arises in the survey variable in the second stage of cluster sampling. Weighting method of compensating for non-response is applied. Asymptotic properties of the proposed estimator of the population mean are derived. Under mild assumptions, the estimator is shown to be asymptotically consistent.
Financial Development and Economic Growth in Kenya: An Empirical Analysis 1980–2011
(Canadian Center of Science and Education, 2014) Onuonga, S.M.
The paper examined the empirical relationship between economic growth and financial development (FD) in Kenya over the period 1980–2011. The long-run and short-run parameters were estimated by use of autoregressive distributed lag (ARDL) bounds testing approach for co integration analysis. To determine the direction of causality, Granger causality analysis was done. Empirical findings indicate that there is stable long-run relationship among, financial development, trade openness and economic growth in Kenya. It also finds that financial development has a significant positive effect on economic growth. The magnitudes of the ECT coefficients suggest that the speed of adjustment in each of the estimated model is very high. The Granger causality tests showed that there is bi-directional causality between financial development and economic growth in Kenya for the period under study (1980–2011). This result therefore, supports both the supply leading, and demand following hypotheses. This means that financial development accelerates and augments economic growth in Kenya and that economic growth leads to development of the financial sector in Kenya. Thus, the government should strengthen the reforms in the financial sector so as to attract investors and improve the efficiency of all production activities in the country. At the same time, the government should enhance macroeconomic policies; fiscal policies, policies that attract foreign direct investment, and export promotion policies that on average lead to economic growth should.
Government Capital Expenditure and the Manufacturing Sector’s Output Performance in Kenya
(The International Journal of Humanities & Social Studies, 2024-04) Gitau, Alex Gicini; Okeri, Susan O.
The manufacturing sector is named as a key sector that promotes development through contribution to Gross Domestic Product, employment generation, value addition, diversification, industrialization and technological innovations. The government of Kenya has spent a lot of resources to boost the growth of the manufacturing sector. The need for growth in this sector picked momentum in the early 60s. Policies like the Import substitution in 1963- 1970, Structural Adjustment Programs in the 80s, the Vision 2030 in 2008, the Kenya Industrial Transformation Program in 2015, and the Big Four Agenda in 2018 have been implemented to spur growth in the sector and to turn Kenya into an industrial middle-income economy. Much emphasis has since been placed on spending by increased government expenditure towards the manufacturing sector to improve the overall performance. Despite all, the conduct of the manufacturing sector, as shown by the sector's contribution to the Gross Domestic Product, only increased substantially in the first three decades after independence, after which it stagnated to below 9 percent to date. The purpose of the study was to find out the effect of government capital expenditure in the manufacturing sector on the sector's performance. The Autoregressive Distributed Lag Error Correction model was used to achieve the objective of the study. The study found out that public resources were allocated to the manufacturing sector. Further, the study found out that government capital expenditure significantly contribute to growth of the manufacturing sector. Recurrent expenditure was also statistically significant in explaining changes in the manufacturing sector performance
Government Expenditure and School Efficiency and Productivity Change: A Case of Public Primary Schools in Kenya
(Science Publishers, 2019-04-16) Mutuku, Mutinda; Korir, Julius; Ngui-Muchai, Dianah
Education management is a more labor intensive process previously measured by level of school enrolment and education quality with low or no concern on productivity and efficient resource utilization. Trends in increasing government allocation to education sector demonstrate a positive impact on enrolment, education quality and efficiency levels determined in the study. However, there was a gap on how government expenditures impacted school technical efficiency in public primary schools. To determine schools’ technical efficiency and relative determinants; this study used data from the Southern and Eastern Africa Consortium for Monitoring Educational Quality (SACMEQ) data which evaluated class six performance for 3 times periods (2000, 2004, 2012). In the analysis, Data Envelopment Analysis (DEA) and Two Stage Least Squares are applied. Results revealed that technical efficiency scores in 8 provinces were lower in 2004 compared to 1997 but increased in 2007 with productivity change exhibiting same trends. Input change for enrolment and school amenities affected overall output. Class-pupil and pupil–toilet ratio, distance from small town, dispensary, bookshop and secondary school as well as class type contributed negatively to efficiency scores. Class-book ratio, government expenditure, playfield availability and class numbers contributed positively to efficiency. The results showed that schools located near main road and library had positive relationship to level of efficiency. On policy, expenditures should be increased towards quality classes and more qualified teachers who are high determinants efficiency.
Impact of Firm-Level Innovation on Productivity of manufacturing and Service firms in Sub-Saharan Africa
(Taylor \& Francis, 2023) Ndicu, Simon; Barasa, Laura; Ngui, Dianah
This study investigates the impact offirm-level research andinnovation on the productivity of Sub-Saharan Africanfirms in2014–2018. This study utilizes World Bank Enterprise Surveys on2,867 manufacturing and servicefirms conducted in SSA in 2018/19. Endogenous Switching Regression (ESR) was used as theprimary estimation methodology. The results indicated thatResearch and Development spending positively and significantlyimpacts manufacturingfirms’productivity. In addition, serviceinnovation has a positive and significant effect on theproductivity of servicefirms. In contrast, product innovation isinsignificant to manufacturingfirms’productivity. Lastly, processinnovation is significant only to the manufacturingfirms and notthe servicefirms. These results suggest that Sub-Saharan Africanfirms did not realize maximum innovation productivity gainsduring the study period. Nonetheless, the results imply that otherthan the conventional factor-driven production, Sub-SaharanAfricanfirms have the potential to drive their productivitythrough semi-endogenousfirm-level innovation
Impact of GDP and Exchange Rates on Foreign Direct Investment in East African Community
(International Journal of Science and Research (IJSR), 2022) Mwalya, Wambua; Gitahi, Njuru Stephen
This study investigates the impact of macroeconomic factors, specifically Gross Domestic Product GDP and exchange rates, on Foreign Direct Investment FDI in the East African Community EAC. The research aims to determine the effect of these factors on FDI and to establish if there is an endogeneity of exchange rate and GDP with respect to FDI in the EAC. The study uses nonexperimental research design and various statistical methods to analyze published annual data from 2000 to 2021. The results reveal that GDP, infrastructural development, trade openness, and ease of doing business significantly influence FDI in the EAC, while exchange rate negatively affects FDI. The study also finds an endogeneity of exchange rate and GDP with respect to FDI in the EAC. These findings suggest that policymakers in the EAC need to prioritize improving economic growth and stabilizing exchange rates to attract more FDI. Further research is recommended in other regions for comparative analysis.
Institutions’ effect on households’ choice of saving options in Kenya
(The International Journal of Business & Management, 2018-04) Njenga, Githinji; Onuonga, Susan M.; Sichei, Moses Muse
The study uses a multinomial/conditional probit model to analyze the effect of institutions on households’ saving behavior in Kenya. Data from the Financial Access National surveys is used in the analysis. The key finding in the study is that institutional factors including access to a saving option, incentives in a saving option, information and saving expectations influence the choice of saving options in Kenya. This result suggests that institutional factors influence households’ saving behavior particularly their participation in the savings options. Hence, easing access of savings options, motivating households through incentives, making households more informed of their saving choices and opportunities, and offering financial literacy to households on saving goals and targets are all critical in enhancing households saving participation in Kenya.
Integrating Corporate Social Responsibility and Community Development in Industrialization: Lessons from the Magana Town Industrial Park in Kenya
(Post Academic Publications, 2013) Gachanja, P. M.; Mugenda, Olive M.; Maina, L.
Corporate Social Responsibility (CSR) refers to the pursuit of commercial success in ways that honor ethical values, compliance with legal requirements and respect for the people, communities and the natural environment. While CSR can be clearly distinguished from philanthropy or charity, making an economic contribution is often seen as the most important and effective way for business to make a social impact. The debate about the ethical and social aspects of business has forced firms to react to the social and ethical pressure of the public. CSR of the company will only be correctly perceived by the public if its social and environmental value creation is transparent. The main rationale why firms get involved in CSR is to improve the image of the company besides corporate sustainability and adherence to a mission statement or CSR policy. While CSR is widely practiced in most industrialized nations, it remains grossly underdevelopment in Kenya. This study sought to establish the extent to which the Magana Industrial Park has integrated CSR in its mission for enterprise. The study targeted 900 households drawn from nine villages that lived within the radius of 10 kilometers from the industrial park, as well as the workers employed in the 15 firms located around Magana Town. To obtain in depth insights and knowledge, key informants interviews were carried out with the managers of a sample of five of the firms. Besides, at least 10 focus group discussions were carried out to generate information on public perception on CSR practice. The study established that the concept of CSR in the industrial park was either misunderstood or ignored all together. Only one enterprise had an elaborate policy on CSR. All others had a vague definition of CSR and a very scanty evidence of any CSR. The study recommends that the Ministry in charge of Industrialization should explore the possibilities of a policy document that will formalize or institutionalize CSR in both public and private sector enterprises. The government also needs to play its role in providing the basic infrastructure to eliminate unnecessary expenses to the enterprises.

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