MST-Department of Economic Theory

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Adopted Technology and the Performance of Micro and Small Enterprises in Nairobi
(Kenyatta University, 2024-07) Kiprono, Michael Kirui
Micro and small enterprises around the world play an important role in spurring economic growth. In Kenya, the government introduced numerous policy approaches that targeted the development 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 the efforts by mandated organizations and the government, studies indicate that 70 percent of Micro and Small Enterprises fail within three years, 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 faced many challenges, including inadequate funding, low skill levels, infrastructure, political instability, and operating expenses. Technology and innovations were directly proportional to improvements in micro and small enterprises. Therefore, the study focused on adopted technology that businesses have employed, including the various technological tools, systems, and innovations that these enterprises have integrated into their operations to improve efficiency, productivity, and overall performance. The study was conducted in the Nairobi's City County. Various studies have been done on technology. However, these studies focused on market entry and technology adoption, with limited attention to the effect of technology on MSE performance. This study aimed to fill this gap by examining the effect of adopted technology use on the performance of MSEs in Nairobi City County. The study sought to ascertain the effect of marketing innovation, process and service innovation, product distribution innovation, and payment technology on the performance of micro and small businesses in Nairobi's Central Business District. The study's empirical model was based on the Cobb-Douglas production function. 270 Micro and Small Enterprises were selected from a target population of 752 in Nairobi's Central Business District, and the entrepreneurs were given a self-administered questionnaire. The questionnaire's reliability was established using Cronbach's alpha, which was 0.72. The collected data was analyzed, and diagnostic tests were performed to assess heteroskedasticity, multicollinearity, and normality. Some moderator variables, such as business management skills, gender, education, and number of years in operation were included in the model. Data analysis results revealed that marketing technology, process and service innovation, distribution technology, and payment methods innovation had a positive influence on the performance of Micro and Small Enterprises in Nairobi City County. Therefore, Policymakers were encouraged to push 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.
Agricultural Education, Training, and Smallholder Dairy Farmers’ Productivity in Kiambu County, Kenya
(Kenyatta University, 2024-04) Kabuga,Danson Muthendu
Dairy farming is a feasible investment for many small-scale dairy farmers in Kenya. However, the sector is far from reaching its full potential due to various factors that limit both participation and production. More than 80% of Kiambu County’s population depends on agriculture as its main economic activity. The sector is a key contributor to the welfare of the majority of the county’s population, having employed more than 1.28 million people either directly or indirectly. Notwithstanding, only 17.4 percent of the County’s revenue is contributed by the sector. There is, therefore, disproportionality between the number of people employed in the agricultural sector and the amount of income the sector contributed to the County's income. Despite the fact that agricultural sector is faced with numerous challenges, well trained and educated farmers may have efficiency advantage as well as be better prepared to cope with uncertainties that affects the sector (Asfaw and Admassie,2004). The existing literature generally fails to distinguish between effects of general education and effects of specific agricultural education and training towards smallholder dairy productivity. This study investigated the effects of specific agricultural education and training on smallholder dairy farmer productivity in Kiambu Sub-County, Kiambu County. The objectives of the study were to establish the effects of agricultural education and training on smallholder’s dairy farmers’ productivity in Kiambu Sub-County, Kiambu County. This study adopted a non-experimental research design and a human capital theory. Quantitative and qualitative data were collected. Primary data was acquired by administering structured questionnaires to the sampled smallholder dairy farmers. Purposive and convenient sampling was employed to select the sample of respondents. In addition to the Yamane (1967) equation, the sampling technique produced a sample size of 338 smallholder dairy farmers from four wards: Riabai, Tinganga, Ndumberi, and Kiambu Township. Quantitative descriptive and regression analysis techniques were utilized to analyze the data. The research findings established that agricultural training had a positive effect on smallholder dairy farmers’ productivity in Kiambu Sub-County. However, the study found no significant differences in milk productivity between those who studied agriculture in school and those who did not study agriculture. The lack of significant differences in average daily milk production between the two groups was attributed to the predominance of respondents with basic and secondary agricultural education levels, suggesting insufficient specific education on agricultural practices. The study concluded that agricultural training positively influences productivity of small scale dairy farmers in Kiambu County. This study recommends that small scale dairy farmers should seek agricultural training specific to dairy farming to enhance their dairy productivity. In addition, the county government and dairy farmers’ cooperation’s should prioritize training small scale dairy farmers to enhance their agricultural knowledge and competencies to increase milk production and optimally operate their dairy farms. On the other hand, the Ministry of Education should permit early specialization at the secondary level allowing secondary level students to specialize in crop farming or livestock farming, thus gaining intensive knowledge of agricultural practices such as dairying, which could result in higher milk productivity and better dairy farming practices.
Analysis of Buoyancy and Elasticity of Income Taxes in Kenya
(Kenyatta University, 2020) Ambale, Caren Akumu
Kenya, just like many developing countries is currently confronted by huge fiscal deficits, declining external assistance and huge debt service charges that are adversely affecting the country’s development process. The tax revenue in Kenya keeps performing poorly and unsteadily. The revenue collected from tax does not match the target which creates budget deficits. Increased spending needs and weakening revenue-raising capacities have together created structural budget deficits that have in turn brought about fiscal crises whenever a recession hits. Therefore, of concern to policymakers is how Kenya can attain revenue stability and be able to sustain public expenditures. To do this, there was need to determine buoyancy and elasticity of income tax revenue. It analyzed the buoyancy and elasticity of corporate and personal income tax in Kenya. The study utilizeddata1963 to 2018.The study used ordinary least square regression model to estimate the coefficients. Adjusting data for discretionary changes determined the elasticity estimates. Specifically, the study established that, corporate income taxes are highly buoyant to changes in the national income. This being the position, it is important to understand this relationship as it has a potential of contributing significantly to government revenue. Also, the study noted that buoyancy of personal income taxes were less than one implying that these taxes are inelastic. It is necessary for the government to put in place guidelines that would widen the tax base. The government should for instance put up measures that can be implemented to ensure that all corporations pay taxes due to them without tax evasion. The government should also create an environment conducive enough to facilitate Gross Domestic Product growth. This way, it will be possible to raise more tax revenue.
An Analysis of Crowding-Out of Private Sector by Government Borrowing in Kenya
(2022) Kinyua, Luke Wahome; Charles Nzai
The government of Kenya has been running budget deficits every year of its national accounting. The government has therefore been forced to borrow either from the domestic or external financial markets to bridge those deficits to offer its citizens services. Government borrowing creates other macroeconomic problems in the economy. The objectives of the research were to evaluate the determinants of government borrowing and the effects of that borrowing on private sector credit, the crowding out impact of state loans. Two models for each objective with clear variables based on economic theory were constructed for estimation where variables included government borrowing or domestic debt, budget deficits, lending rates, efficiency of tax agency, private sector credit and political factors. Data was collected from reports published by government agencies for period 1990-2021 and data analysis techniques included the Auto Regressive Distributed Lag model. Co-integration and unit root tests were done prior to analysis. Domestic government borrowing is determined by the level of budget deficit, domestic savings, inflation rate in economy and lending rates. Budget deficit and inflation rate were both found to positively and significantly determine government borrowing in the long-run, while else domestic savings and lending rate were found to be negative and significant in determining domestic government borrowing. The research findings on the impact of loans acquired by government on free enterprise economy capital in Kenya showed that domestic government borrowing negatively and significantly affect the level of private sector capital. The crowding out effect is huge as a percentage rise in loans acquired by government causes six percent of private sector investors crowded out of investment. Interest and lending rates were found to negatively and significantly affect private sector capital level. Based on the study findings, budget deficit should be minimized as much as possible by reducing unnecessary government expenditure. Similarly, domestic savings should be encouraged as this stimulates domestic investment due to availability of stock of capital for investment. Inflation rate should be maintained as low as possible below 5 percent in order to stimulate government borrowing. Lending rates should be kept low by central banks to increase lending by commercial banks as this ensures enough money is in circulation to facilitate borrowing and investment by the government in key sectors. Domestic government borrowing should be discouraged as much as possible, other sources of funds should be sort to finance expenditure such as health, infrastructural development, education and manufacturing. The study has demonstrated that state loans from local sources causes crowding out of the private sector investment and has also recommended ways through which state loans from local sources can be reduced to ensure private sector investment and spur economic growth of the economy
Applicability of lintner's dividend policy to companies qouted on the Nairobi stock exchange
(2011-08-25) Ikame, Raphael Muigai; Khakame, E. W.; Wawire, N. H. W.
Distribution of profit through dividends is a problem unique to companies due to segregation of management from the ownership. In 1956, John Lintner laid the foundation for modern understanding of dividend policy a model that has been used over the years to explain companies' dividend policies. Researches done in the developed world provide insights into the dividend policy of companies based on Lintner's earlier findings. In the developing world however, few studies on the dividend policies of companies exist. More research is therefore required to understand the dividend policy of companies in the developing world and in particular, Kenya. This study examined whether companies quoted on the Nairobi Stock Exchange follow Lintner's model in their dividend policies and planning as is the case in the developed world. In which data from the 48 Nairobi Stock Exchange (NSE) quoted companies for the period 1998 to 2004 was used giving a 336 firm-year data. The data was analyzed to ascertain applicability of the model. The research indicated that on average, NSE companies paid 59.4 percent of their net earnings as dividends and had a dividend yield of 6.1 percent. Also, it emerged that the NSE companies while declaring dividends to be paid in any particular period did not apply the Lintner's dividend model
Changing Political Regimes and Performance of the Nairobi Securities Exchange
(Kenyatta University, 2015-02-06) Musimbi, David
The stock market all over the world play a critical role as one of the most sensitive indicators of the business cycle and one of the most influential variables in. the government index of leading economic indicators. Companies quoted on the Nairobi Securities Exchange have been undergoing turbulent times due to fluctuation in the prices of shares, consequently affecting investors either way and hence making them uncertain about the future. This study, first sought to evaluate the effect that political regime changes have on returns that investors get on Nairobi Securities Exchange. Secondly, the study determined the effect of political regime change across different market segments. Published time series quarterly data was sourced from the Central Bank of Kenya. Kenya National Bureau of Statistics and Nairobi Securities Exchange data bases. In order to achieve all the specific objectives a regression model, and threshold generalized auto regressive conditional heteroscedasticity models were used to ascertain the volatility of stock returns. Empirical results of the regression model revealed that there was a weak relationship between changing political regimes and the performance of the NSE. Also the study found out that different political variables affect different market segments differently.
Credit, Entrepreneurship Training and Performance of Micro and Small Enterprises in Nakuru County, Kenya
(Kenyatta University, 2020) Mwangi, Rahab Wanjiru
Micro and Small enterprises are widely recognised for their role in industrialization and economic growth across the globe. In Kenya, the government has initiated a number of strategies aimed at promoting small-scale enterprises notably the Uwezo and Women Enterprise Fund. Despite many initiatives by the government and other organisations, research has revealed that 60 percent of small enterprises fail within three years of being in operation, their ability to survive the market conditions being very low. Research has also shown that a large number of small enterprises experience growth challenges and limitations with a majority closing down. MSEs face numerous challenges, notably, limited access to credit, lack of entrepreneurship skills, low uptake of new technologies, and gender of the entrepreneur, among others. This study was carried out in Nakuru County to determine the effect of credit accessibility and entrepreneurial training on the performance of MSEs. The objectives of the study were to determine the effect of credit availability on the performance of Micro and small enterprises, and secondly, to examine the effect of entrepreneurship training on the performance of micro and small enterprises in Nakuru County. This research used a non-experimental research design. The empirical model was based on Cobb-Douglas equation to estimate the relationship between credit, entrepreneurship training and output as factors of production. A linearized logarithmic regression model was applied to determine the effect of each of the two variables on MSEs’ performance. A sample of 248 MSEs from a target population of 118,200 in Nakuru County was selected and a self-administered questionnaire administered to the entrepreneurs. Reliability of the questionnaire was determined using Cronbach alpha and found to be 0.72. Collected data was analysed using STATA data analysis programme and diagnostic tests carried out to test for Multi-collinearity and Normality. Some moderator variables such as age, gender, level of education and number of years of operation were analysed and descriptive statistics used to illustrate their individual effect on the performance of the enterprise. Data analysis results showed that both access to credit and entrepreneurship training have a positive significant effect on the performance of MSEs in Nakuru County. Therefore, the government and other stakeholders should aim at availing both affordable and accessible credit, as well as entrepreneurship training targeted at small and micro entrepreneurs. The Central bank, in collaboration with commercial banks, should loosen their borrowing terms by lowering their collateral requirements and interest rates on loans to micro and small enterprises. The mobile banking industry should be regulated to cap the interest rates levied on loans and also to increase the amount that can be loaned out. The government should further initiate training programs geared towards imparting entrepreneurship skills on the MSE population.
Demand for Child Health Care Services The Case Of Suba East Division Migori District Kenya
(2013-07) Angela, Oloo Akumu
The major objective of the study was to identify which factors' affect demand for child health care services and their importance in Migori district. The high child mortality rate, morbidity rate and low life expectancy levels are a contrast to the increase in the number of personnel in the district. The study therefore set out to highlight some of the factors that contribute to these poor health indices. To achieve the objectives of the study, cross sectional primary data were allowed using a questionnaire from a sample of 123 respondent. both the descriptive and regression results were given. for multinominal econometric analysis of data, only 106 respondent were used to some incomplete data. due to discrete nature of demand for children health care, a multinomial logit model was adopted to capture the overall demand and the demand for particular health provider. The result showed that waiting time, no. of siblings, house hold size, fathers level of education, household level of income and mothers employment were the significant variables. number of siblings and household's level of income were found to be negatively related to the demand for child health care services. Waiting time, household size, father's level of education and mothers employment are positively related to the demand for child health care services.
Demand for Locally Produced Films by Residents of Nairobi County, Kenya
(Kenyatta University, 2015-12) Ng’ang’a, David Ndirangu
Despite the aggressive marketing of local films and the creation of policies aimed at boosting their consumption in Kenya, consumption is still low. Attempts to critically analyze this problem have focused on the qualitative content in films with little investigation of consumers’ tastes and preferences. The aim of this study was to identify and analyze factors that affect demand for locally produced films in Nairobi County, Kenya. Film being a hedonic and experience good, the study investigated the effect of factors concerned with film consumption and consumer’s characteristics on film choices. Stratified and purposive sampling was used to select a sample of 384 respondents from around Nairobi County. The data was collected by interviewers guided by a structured questionnaire. Regression analysis was used in which the preference of the respondents between locally produced films and foreign films was the dependent variable while factors that affect demand for films were the independent variables. A logit model was adopted. Results from this study revealed the consumption behavior of residents on locally produced films and factors that affect demand for locally produced films. The study found that increased age of consumers and increased consumers’ expenditure on local films increased demand for local films while increased income of consumers, increase in consumers’ film watching frequency and increase in consumers’ expenditure on foreign films reduced demand for local films. The study also found that there was a significant difference in film preferences between males and females where females have a higher demand for local films than males. Individuals who had reached lower levels of education were found to prefer local films more than individuals who had reached higher education levels. The study recommends that local film producers should consider tastes across the different social demographic groups in creating content of their films. The study also recommends that producers and distributors of films should ensure that the locally produced films are readily available and easily accessible to the consumers.
Determinants of adoption of organic manures in urban vegetable production:
(2013-10-31) Perez Ayieko, Onono
This study was conducted to estimate the rate of adoption, identify and analyze factors determining adoption of organic manures in urban vegetable production by fanners in Migori municipality. A household survey was conducted among 89 farm households between lOth and 14th of December 2007. A logit model was used to analyze the impacts of age, gender, experience, extension, education, training, objective, land tenure, type of labour, membership in organization, off farm income and distance to main market, on probability of adoption. Analysis of the data reveals a rate of adoption of 58.4 %. The estimation results of the logit model indicate that; age of household head, college education, and training in aspects of organic manure use, are significant in explaining the difference in adoption by the farmers. Although the impact of the other factors were found not significant at 5% orlOOIolevel of significance, the coefficient estimates indicate that extension, experience, subsistence production, tenure security and membership in farming organization increases probability of adoption, while hired labour and longer distances to main market reduces probability of adoption. The study recommends that activities to enhance adoption of manure use in vegetable production in Migori should put into consideration these factors in their design and implementation.
The Determinants of Coffee Supply in Gichugu Division in Kirinyaga District: Kenya
(2014-06-05) Kariuki, G. J.; Okeri, S. O. M.; Njuguna, A. E.
The general objective of this study was to investigate the factors that determine the supply of coffee in Gichugu Division in Kirinyaga District in Kenya. Data were collected from a sample of 67 fanners in Kirima, Kabare and Bar~gwi locations of Gichugu Division. The data were analyzed using both descriptive statistics and-the use of econometric model. Four versions of the model were estimated. The interpretation of the results was based on regression results that are consistent with economic expectations on the coefficients of the model and their statistical significance. Coffee supply was found to be positively related to expenditure on inputs, the price of coffee received by the farmers, the size of the farmer's household, the number of coffee trees owned and managed by the farmer, and the farmer's off-farm activity. The distance from the farm to the factory and credit extension to farmers in form of loans and school fees were found to be negatively related to coffee supply. Furthermore, the study found that expenditure on farm inputs is the most significant determinant of coffee supply. Based on the findings of the study, it is recommended that fanners should diversify their farm activities to include activities for example, poultry keeping and zero grazing methods of cattle rearing to supplement their incomes as well as increasing their investment in coffee farming. Credit extension to farmers in form of material farm inputs should be enhanced to boost expenditure on farm inputs in order to increase coffee supply. To increase coffee supply, the government should stabilize the coffee prices to remove the price uncertainties that demotivate fanners to give maximum attention to their coffee farms.
Determinants of domestic private investment in Kenya (1970-2001)
(2014-08-19) Njuru, Stephen Gitahi; Wawire, N. H. W.; Obere, Almadi
This study analyse the determinants of domestic private investments in Kenya using a time series data in the period between 1970 and 2001. DPI needs to remain the cornerstone of renewed growth in Kenya if the economy is to be successful and efficient. Kenyan government has tried to put its economy on a faster and stable growth by use of private investments through some economic reforms. Despite these measures, domestic private investment has continued being characterized by decline, volatility and unpredictable trends. The objective of this investigation was to identify the factors that determine cyclic and declining trend of DPI in Kenya. The study also analyzed relative effects of each variable and gives policy recommendations based on the research findings. Flexible accelerator model which put investments as a function of economic growth was used in modelling determinants of domestic private investments. Data used in the study was obtained from secondary source and refined to make them reliable in estimating the. econometric model. Some variable were not stationary at levels. Non stationary variables in the series were differenced to make them stationary in order to avoid spurious regression results. Linear mod,el was estimated by use of ordinary least squares and this gave the most reliable results. Lagged domestic private investment was found to be the most statistically significant and positively related with DPI. The question of investment climate in the country should therefore be addressed in order to ensure continuing participation of the private sector in the investment. Exchange rates, fiscal deficit, inflation rates and real interest rates were found be statistically significant and negatively correlated with DPI. Economic liberalization and return on investment were statistically significant and positively correlated with DPI. Policies that address each of these variables should be put in place. All other variables were found to have negligible effects on DPI.
Determinants of performance of internet cyber cafes in Nairobi Province
(2013-09-03) Masika, Alexander Opicha
The informal sector has been recognized for its role in contributing towards national output and employment. In particular, the information and communication technology (lCT) sector has become a vital part in its contribution to the economy. In Kenya, especially the urban centers, the ICT sector has been recording a significant change facilitated by the Internet. This has been possible due to the proliferation of Internet cyber cafes that provide access to the Internet at a minimum cost. This research paper analyzed the performance of the Internet cyber cafes in Nairobi province. A total of 70 cyber cafes from Nairobi were selected using the two-stage cluster sampling technique out of which four (4) cyber cafes were identified as outliers and hence the sample population was reduced to 66 cases. The data was analyzed using both descriptive statistics and the use of an econometric model. Performance of the cyber cafes was measured by output per month in terms of total hours used on the Internet by the customers and was regressed against explanatory variables. These explanatory variables included; monthly rent, cost of maintenance of computers per month, distance between the cyber cafes, age of the cyber cafe, total wages paid to the employees per month and the total hours of operation per month. The regression results revealed that rent (bigger space) was the most statistically significant variable in determining the performance of the cyber cafes. Other factors that significantly affect output are the age of the cyber cafe and total hours of operation per month. Based on the findings of the study, it is recommended that the cyber cafes should be encouraged to expand their services which in turn would result in increased employment opportunities. This could be achieved by expanding business space in the province that will enable the cafes to acquire more equipment and thus hire more labour and as a result increase their respective output. The government should also ensure that high security measures are attained and maintained to encourage the cyber cafes to operate for longer hours which in turn will generate higher output levels.
The determinants of rural household savings in Kisumu district: a case study of South Nyakach location
(2012-04-26) Ambrose, Ramson Mwamba; Owino, Pius; Obere, Almadi
Saving play a very important role in economic development as it involves mobilization of resources, which is consequently invested with an aim to accelerate the growth process. Understanding the savings behaviour is therefore critical in formulating policy measures. As a result, the study has investigated the determinants of rural household savings behaviour. Both primary and secondary data were collected and fitted into a multiple linear regression model. Questionnaires were administered to the randomly selected households. Econometric tools were then used to analyze the data collected. The results show that income is the most significant determinant of savings. Other significant determinants include dependency, age, and education. The results also indicate a widespread existence of informal savings groups, which in contrast reveal a loose association with savings. Based on the empirical findings, the study recommends among others following: a.) That to increaser savings, dependency level should be reduced through the enhancement of family planning measures. b.) That the informal savings and credit groupings be strengthened through some form of education and credit assistance, so that they can be able to undertake economic activities. c.) That programmes on the virtues of savings be included in the existing awareness and public education programme. d.) That income generating activities and self-employment be encouraged as they contribute more to savings than the wage employment. e.) That effective ways of availing savings and credit facilities, particularly banks and cooperative societies, to the rural areas be designed.
Determinants of the real gross domestic product growth rate in Kenya, 1973-97
(2014-03-24) Maingi, James N.; Masya, F. M.; Obere, Almadi
The Kenya Government has pursued stabilization and structural adjustment policies for more than ten years in an attempt to restore and sustain the high growth rates experienced in the 1960s and early 1970s. Despite these measures, real GDP in Kenya has continued to be characterized by positive and negative rates of change of real GDP growth rates. The cyclical fluctuations have been more marked, especially after 1973. The objectives of the study were to identify the factors that determine fluctuations in real gross domestic product (GDP) growth rate in Kenya, measure the relative effect of the factors, and to give policy recommendations. Time-series data were collected from government and world bank publications for the period 1973 to 1997. Data collected were integrated to make it stationary. Ordinary least squares (OLS) method of estimation using time-series programme (TSP) was applied on stationary data. Both linear and log-linear models were run and on the basis of results linear model was adopted. From the linear regression results, growth of capital stock, export growth, financial development, external debt, exchange rate, and real interest rate were found to be significant determinants of real gross domestic product. On the basis of these findings, policy recommendations were then drawn on these variables so as to accelerate the pace of GDP growth rate in Kenya.
Dividend Payout and Financial Performance of Manufacturing Firms Listed at the Nairobi Securities Exchange
(Kenyatta University, 2017) Muchira, Kariuki John
To determine the correct mix of dividend and retained earnings and how it affects profitability has been a subject in Literature of financial management. This research came in to contribute to the on-going debate by examining the relationship between dividend pay-out and financial performance of manufacturing firms listed in the Nairobi Securities Exchange. The key motivation was to establish if the findings of this study are consistent with prior empirical studies as found in both Signaling and Bird -in-hand hypotheses of dividend policy theory. The target population was the listed manufacturing firms in Kenya as at December 2015. All the ten listed firms at the period were used in the study. The study used secondary data. Annual financial reports for the period 2002-2015 were utilized as the main source of data collection for the 10 firms. Ordinary Least Squares (OLS) was used to estimate the coefficients of explanatory and control variables. Return on Assets (ROA) serves as the dependent variable, profitability, while Dividend Pay-out ratio proxy for dividend policy was the explanatory variable. Control variables include firm size and leverage. The use of descriptive statistics showed that dividend payout ratio -measured as Dividend per Share/ Earnings per Share, had an average of 37.21% and a median of 33.88%. Correlational coefficient findings results imply that the independent variables that is; dividend payout, Firm Size, and Leverage, and the dependent variable -Return on Assets, all had a positive relationship. From the results, there is a clear positive and significant relationship between return on assets and dividend payout. The significance and the positive coefficient of the variable dividend payout indicate that when a listed firm has a policy to pay dividend it influences its level of future financial performance as measured by ROA. The study recommends that policies and laws governing dividend payment should be reinforced and enforced to ensure more frequent payment by firms in order to increase their market values through share price increases.
Domestication of International Refugee Rights in Kenya: Assessment of Teacher Awareness of Refugee Rights
(Kenyatta University, 2024-07) Lagat, Mercy Chepkirui
One of the prominent issues on the contemporary global arena is that of the protection of rights of refugees. As a response, international refugee regimes have been developed to safeguard these rights. In order to fulfill its obligations to international refugee law, Kenya has formulated policies to incorporate international law into its domestic legal framework. Kenya has been a host for refugees from Somalia, Ethiopia, South Sudan, the Democratic Republic of Congo, Rwanda, and Burundi for several decades. A significant question regards the extent to which Kenya has adequately protected the rights of refugees residing within its borders. The present study focused on the protection of refugee right to education. Narrowly, it assesses teachers’ awareness of refugee rights. By focusing on teachers as agents responsible for granting rights, this research is grounded on liberal and liberal institutionalist theories, emphasizing the significance of individuals as key actors in the domestication of international refugee law. The study examined the domestication of the right to education for urban refugee children, the inclusion of refugee rights in teacher training, and the attitudes of teachers towards refugee learners. The context was Ruiru Sub-county in Kiambu County. Employing an exploratory research design with a qualitative approach to data collection. Data were analysed thematically. Findings indicated that Kenya has made progress in domesticating refugee rights through legislations such as the Refugee Act of 2006, the 2010 Constitution, and the Refugee Act of 2021. These Acts guarantee the right to education for refugees. However, the study reveals that factors such as the encampment management policy, securitization of refugees, lack of teacher training on refugee rights, language barriers, a discriminatory national curriculum, and a negative societal perception of refugees as intruders hinder the access to education for urban refugee children in Ruiru. Furthermore, the study identifies inadequacies in international conventions and protocols that address the rights of refugees, particularly in relation to education. These inadequacies contribute to the challenges faced by urban refugee children in accessing education. The study concludes by emphasizing the need for comprehensive measures to address these challenges and ensure the effective domestication of refugee rights in Kenya.
Dynamic linkage between foreign equity flows and stock market returns at the Nairobi securities exchange
(Kenyatta University, 2018) Gachanja, Samuel Njuguna
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.
Economic feasibility of live fences: a case study of farms surrounding Kakamega forest
(2011-08-12) Kariuki, George Mbugua
The objective of this study was to assess the economic feasibility of live fences on farms adjacent to Kakamega Forest. There is a great need to conserve the forest, which has enormous local, national and global benefits. One of the sustainable ways through which conservation and regeneration of Kakamega Forest can be achieved is by developing alternative sources on farm, where households can be able to meet their demand for forest wood products. Establishment of live fences is one of the alternative methods. However, whether a live fence is economically worthwhile, remains a question that need to be answered. This study used the framework of cost benefit analysis and the Net Present Value methods to determine the economic feasibility of live fences. Projected benefits and costs were discounted at an economic rate of 12 percent for a period of 12 years. The study also identified potential advantages and disadvantages of establishing a live fence by administering an interview schedule to the residents surrounding the southern part of Kakamega Forest particularly in Shinyalu Division. Also, farmers who have established live fences in the area were purposively selected and were interviewed to identify the various costs and benefits involved in establishing a live fence. Secondary data was sourced from BIOTA studies, ICRAF and KEFRI publications. The farmers cited several potential advantages and a few disadvantages of establishing a live fence. The major advantages include, a source of firewood, boundary marking, a source of timber, wind breaking, charcoal, shade for humans and livestock, organic matter, fodder for livestock, and structural materials. Several disadvantages were also cited which include negative effects of shade and roots on crop production, source of conflict with neighbours, a high cost of establishment, inaccessibility of planting stakes and habitat for dangerous animals and insects. The results of cost benefit analysis indicated positive net benefits when a live fence is established on farms. The discount rate was adjusted upward to 18 percent. The tests provided stable results with a positive NPV. It is therefore necessary for all stakeholders involved in conservation of Kakamega Forest to encourage, train and fund farmers to aid them adopt live fences, which can positively mitigate forest degradation.
Effect of Government Expenditure on Selected Sectoral Output Performance in Kenya
(Kenyatta University, 2020) Tenai, Amon Kipruto
Government expenditure is a key component for guaranteeing a nation assigns and spend budgetary resources to accomplish a robust economic performance. However, the achievement of macroeconomic objectives, from time immemorial, has been a policy priority of every economy whether developed or developing. However, government expenditure still remains an important issue in global debates. The concern is whether or not government expenditure increases the output of different sectors in the economy. Over the past three decades, government spending has been growing at rapid rate in Kenya. The general objective of this study was to examine the relationship between government expenditure and selected sectoral output performance in Kenya. The specific objectives are: to determine the effect of government expenditure on agriculture sector output performance in Kenya. Secondly, is to determine the effect of government expenditure on manufacture sector output performance in Kenya. Lastly, is to determine the effect of government expenditure on service sector output performance in Kenya The study analyzed three sectors in Kenya that is agriculture, service and manufacturing which are the main stimulus for the economy, and focus on the variables that affect the sector output performance that is, government expenditure, public debt servicing, inflation, interest rates, private investment, terms of trade and exchange rate. The study adopted annual time series data for the period 1980 to 2016 to evaluate the effects of government expenditure on selected sectoral output performance in Kenya where ARDL model was used. Unit root test was conducted to test for stationarity and Johansen cointegration test was conducted to establish if there was short-run or long-run relationship between the variables that affected real sector output performance. The study found out a positive relationship between government expenditure and agriculture output performance. The study also found a positive relationship between government expenditure and manufacturing output performance and lastly, the study found out a positive relationship between government expenditure and service output performance. The results implied that this causation should be a vital tool for designing government expenditure policies in the economy

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