RP-Department of Economic Theory

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Technical Efficiency among Smallholder Dairy Cattle Farmers in Nyandarua County, Kenya
(GLOBEEDU Group, 2025-03) Mwaura, Eric Kimani; Gachanja, Paul Mwangi
Dairy farming is important due to its role in Kenya’s economy. It increases the nation’s food security, gives farmers a source of revenue, and creates jobs. The majority of milk drank worldwide comes from dairy cattle. Dairy cattle rearing has supplanted tea and coffee plantations as the primary source of livelihood across the Rift Valley and central Kenyan regions. The sector remains an integral part of Kenya’s economy; overall dairy production has gone down over the past 20 years despite an increase in cattle herds. In addition to the likelihood of an increment in the demand for dairy products and milk due to the growth of urban dwellers, Kenya’s dairy farming industry has not yet reached its full potential. Dairy production has been rising in Nyandarua, yet studies demonstrate that there has not been an analogous increase in productivity per cow when compared to the counties next door. The attainment of maximal technological efficiency at the farm level would be essential due to the shortage of production resources (particularly land) for dairy farming and boosting the availability of food, which is amid the Kenyan government’s targets. The assessment’s two goals are to estimate the technical efficiency of smallholder dairy cattle farmers in the Kinangop sub-county of Nyandarua County, Kenya, and to identify the factors that influence their technical efficiency. A non-experimental research approach was adopted, and cross-sectional data was gathered using questionnaires completed by a sample of farmers. Participants were chosen conveniently due to the lack of a population list to form a sampling frame to take part in the study based on a stratified sample from the ward. Each sampled farmer’s quantitative input and output data were gathered. Multiple regression analysis was used in the study in order to identify elements that alter technical efficiency, and a maximum-likelihood estimation approach was employed to establish the stochastic frontier production function. From the results, it was concluded that farmers were 71.1% technically efficient, 95% of the dairy farmers were above average, and only 5% of the farmers were below average. The maximum estimates likelihood coefficients indicated that labour, acres allocated to fodder production, concentrate, and fodder fed to animals per day were positive, although statistically insignificant. However, expenditure on animal health had a negative impact on technical efficiency but was statistically insignificant. The study also establishes that the level of education is a key determinant of efficiency in Kinangop. This study recommends that the smallholder dairy farmers in Kinangop sub-county ought to strive to be technically efficient including hiring labour that can aid in providing labour, joining the various societies that may be critical in providing credit among other services, using concentrates and fodder in dairy farming as well as practicing hay and silage preservation. The study further recommends that the county government of Nyandarua come up with policies that aid citizens in accessing higher education and extension services.
A Case of Public Debt Liquidation Using Inflation in Kenya
(Canadian Center of Science and Education, 2025-05) Buhere, V. Amayoka; Korir, Julius
Kenya adopted Medium Term Debt Strategies in 2001 to reduce external borrowing, prioritise concessional debt, slow domestic debt accumulation, extend maturities, and set debt ceilings. Despite these efforts, concerns about debt sustainability persist. Inflation has been demonstrated to liquidate debt in advanced economies but remains unexplored in Kenya. This study used 1983-2022 data and time series analysis to assess inflation’s potential to liquidate public debt, distinguishing domestic from external debt. The results indicated that a 2% shock inflation had a minimal impact on domestic debt, reducing the ratio by just 0.024% in ten years. Conversely, external debt to GDP increased by three and a half percent in five years but decreased by 282% in ten years, aligning with global findings that longer-term debt is more responsive to persistent inflation shocks. This study informs fiscal policy on inflation’s role in managing public debt.
The Magnitude Of The Informal Remittances Flow To Kenya: An Augmented Gravity Model Approach
(Iosr-Jef, 2024) Mathenge, Anthony Kagiri; Mdoe,Jackson Idi
Background: In Kenya remittances are now a proper source of external finances. Kenya received $4.19 billion in form of diaspora remittances in year 2023. Over the years, remittances are proving to be more stable, well diversified and are promising more growth relative to foreign direct investments, official development assistance, private capital and exports. On the micro scale the remittances are helping achieve Kenya’s developmental goals of having a globally competitive human resource and an adequately and decently housed population as outlined in the country’s development blueprint - The Kenya Vision 2030. Though the remittances are these important, official remittance data in Kenya, as well as in many African countries, only include remittances sent through formal channels such as banks and Money transfer Operators. Remittances through the informal channels such as hawalas and hundis are not recorded. This means that the recorded remittances are grossly understated impeding the capacity of policy makers to design appropriate policies aimed at encouraging remittances. The study employed panel data analysis and a thought experiment on remittance data between 2013Q1 and 2022Q4. Through a thought experiment, the study asks what impact a reduction of the costs of sending remittances would have on remittances if the transaction costs were reduced to that of the informal channels of sending remittances. The analysis revealed that the size of the informal remittances in Kenya is between 20% and 26% of the formal remittances. On the determinants of remittance flows to Kenya, the study establishes that Kenyan migrants send more when the economic freedoms and economic conditions improve in their host nations but send less when economic freedoms back at home improve. Accurately measuring informal emittances in Kenya is vital for creating effective government policies. This data would reveal the true extent of remittances' impact on the economy, allowing policymakers to develop strategies that fully utilize their potential for development. By encouraging people to send money through official channels, the government can increase tax income, improve access to financial services, and better monitor these transactions. Additionally, understanding the size of informal remittances is essential for combating financial crimes like money laundering and ensuring that resources are used efficiently
Monetary Policy And Private Sector Credit In Kenya
(IOSR Journals, 2024-01) Maza, Edwin M.; Etyang, Martin N.
The Kenyan banking sector has made significant strides in boosting lending to the private sector, which contributed around 31 percent of Gross Domestic Product as of 2021, up from 19 percent in the 1990s. In the past decade, Kenya has enacted several monetary driven policy tools to lower the cost of private sector advances, including the interest rate ceilings that were implemented in September 2016. The relatively high cost of lending by financial corporations to individuals and businesses has been identified as one of the main obstacles to credit expansion in Kenya. To understand how private sector credit responds to monetary policy changes, this study's main goal was to research the influence of policy strategy on private sector lending. Specifically, the study purposed to explore the outcome of changes in the money supply and lending rates on private sector advances. The study is of significance as it examined the connection between Kenya's monetary policy and private sector lending with a view to understand how private enterprise lending responded to changes in money supply and interest rates. The analysis used secondary data, quarterly macroeconomic statistics 2010-2021 from the Central Bank of Kenya and Kenya National Bureau of Statistics and applied a vector error correction model. A unit root test was performed to check for stability, and a Johansen cointegration assessment was performed to establish presence of short- or long-run relationship among the variables affecting private sector lending. The findings of this study ascertained that there exists a long-term relationship between monetary policy and private sector credit in Kenya. To determine how changes in interest rates affect growth of private sector, the research findings show that interest rates and private sector credit are inversely related in the long-term. In addition, the results show that the growth of money supply affects growth of private sector credit that the growth of money supply has a positive impact on the growth of credit to the private sector as per the long-run estimation. This outcome, therefore, shows that, a reduction in the money supply causes a decrease in private sector credit, and vice versa. The study has demonstrated that monetary policy and the expansion of private sector loans are closely related over time. It is, therefore, unfeasible to underestimate the central bank's influence over the economy's long run liquidity management through interest rates and money supply by extension, which impacts several macroeconomic indicators. By implementing accommodative monetary policies that directly affect cost of credit to individuals and firms and, additionally, encourage investment through borrowing by fostering confidence in the nation's financial sector of the economy, the Central Bank of Kenya plays a crucial role in creating the most favorable conditions to foster credit advances to the private sector.
Analysis of Technical Efficiency and Rice Output of Small-Scale Rice Farmers in Kirinyaga County, Kenya
(Iosr Journal Of Economics And Finance (Iosr-Jef), 2025-02) Murimi, Henly; Muthoga, Samuel
Background: The demand for rice in Kenya is growing, with yearly consumption increasing at a rate of 12 per cent per year. Kenya has thus put into place measures to reduce demand-supply gap. An initiative such as National Rice Development Strategy (N.R.D.S.) Phase 2 (2019–2030) has been implemented to accelerate rice production and close this gap. Despite these polices, rice output has grown slowly, while rice consumption has increased significantly faster than rice production. 949,000 metric tonnes of rice are consumed nationally yearly, compared to 180,000 metric tonnes produced. This research aimed to determine the technical efficiency of smallscale rice farmers in Kenya's Kirinyaga County and the effect inputs have on rice output. Materials and Methods: The study adopted a cross-sectional research design. This study targeted 6000 smallscale farmers engaged in small-scale rice growing in the Mwea Irrigation Scheme. To get 362 farmers, the sample size was calculated using Cochran's methodology. A layered, multi-phase random sampling approach was used to choose the respondents. A survey questionnaire was used to gather quantitative data for this investigation. The respondents were the small-scale rice farmers in Kirinyaga County's Mwea Irrigation Scheme. This research used primary data, which was collected for the agricultural season of 2023. The assumptions of regression analysis were examined before running the regression, including homoscedasticity, multicollinearity and normality. Results: The mean of technical efficiency was found to be 87.8% and ranged between 39.9% and 98.3%. This implied that technical inefficiencies exist among the small scale rice farmers in Kirinyaga County. The study found that the coefficients for fertilizer, farm size, labour and capital were positive and statistically significant revealing that and increase in the amount of fertilizer used, land size, labour and capital in rice production would result in an increase in rice output. Conclusion: The study concluded that the technical efficiencies of small scale rice farmers in Kirinyaga County differs among the farmers. Further, the study concluded that small scale rice farmers in Kirinyaga County do experience technical inefficiencies which account for loss in rice output. The study also concluded that fertilizer, farm size, labour and capital contributes to changes in rice output
Do Regional Economic Disparities Promote Regional Value Chains? A Case Study of East Africa Community Member States
(2024-12) Kainga, Erastus; Muthoga, Samuel
Economic differences impact regional value chain expansion. This study aims to examine how regional economic disparities (RED) affect the development of food and beverage value chains (RVCs) in the East Africa Community's (EAC) manufacturing sector. The dynamics of regional value chain promotion in EAC's manufacturing sector are examined using the New Economic Geography (NEG) model. Utilizing secondary data from five member states and the variables; taxes, labor, incomes of executives and laborers, intra- and extra-regional trade, and gross value added. To answer the research questions, regression analysis was used to shed light on (i) the effect of regional economic disparities on the promotion of regional value chains and (ii) the effect of prices on regional value chains. The results indicate that whereas laborers' pay and taxes have a negative and substantial impact on the promotion of RVCs, disparities have a positive and significant impact on price, intra- and extra-regional trade, executive salaries, and overall promotion of RVCs. This study will help EAC member states maximize their industrialization, economic development, and export performance. The results show that workers need to keep learning new skills to be competitive in the rapidly evolving industrial sector. The manufacturer's adoption of modern technology and its industrial location are also significant variables. Wages ultimately determine output, and countries with higher worker wages typically have higher levels of intraregional trade. For this reason, protectionist policies must be used for EAC states to increase intraregional trade.
Effect of Deployment of Total Quality Management Practices to Enhance Firm Competitive Advantage of Selected Manufacturing Firms in Industrial Area, Nairobi City County, Kenya
(International Journal of Research in Business and Social Science, 2024-04-28) Mirioba, George; Muthim, Janet
The technical efficiency operations of manufacturing enterprises in Nairobi County, Kenya, have lately declined to 59%, compared to the global index of 74%. This decline is mostly attributed to the insufficient implementation of Total Quality Management Practices. A comprehensive and extensive study is required to solve the complex problems faced by Industrial Area enterprises in implementing overall quality management methods. This study should be tailored to the specific context and location in order to effectively tackle the underlying issues and maintain operational excellence. The study aimed to evaluate the impact of customer focus, quality planning, supplier management, and staff involvement practices on the competitive advantage of manufacturing enterprises in the industrial area of Nairobi City County, Kenya. The study was based on the notions of competitive advantage, quality trilogy, and zero defects. The study's methodology was informed by a cross-sectional research design. The target population consisted of 20 manufacturing enterprises that were specifically chosen from the industrial sector of Nairobi City County. The census survey employed the use of semi-structured questions to gather primary data. Data analysis involved the utilisation of bothdescriptive and inferential statistics, with the findings being presented in tables and narratives. The study employed a multivariate regression model to ascertain the correlations between variables. The study revealed that quality planning practice, employee involvement practice, supplier management and customer focus practice had statistically significant positive impacts on competitive advantage. The study determined that total quality management techniques had a statistically significant impact on the competitiveness of selected manufacturing enterprises in the industrial area of Nairobi City County, Kenya. The study suggests that management of manufacturing enterprises should do research on dynamic quality management approaches to implement and maintain operational relevance in the face of increased sectorial competitive challenges
Public Debt, Private Investments and Unemployment Rate in Kenya
(Kenyatta University, 2024-11) Mugo, Bernard Githio
The government of Kenya has put efforts to ensure that private investment in the country is boosted and hence reduce the unemployment rate. However, despite the government efforts in increasing the levels of private investment and lowering unemployment rates in the country, with increased government borrowing, private investment has continued to perform below expectations while the rate of unemployment continues to increase. While some researchers have attempted to assess the effect of public debt on private investment and unemployment the studies have found contradicting results. The major goal of this study was to ascertain how Kenya's state debt has affected both private investment and the unemployment. Assessing the impact of governmental debt on private investment and figuring out how it affects Kenya's unemployment rate were the specific objectives of the study. Longitudinal research approach was used where time series data from 2001 to 2021 was gathered. Secondary data was used. The World Bank, the Kenya National Bureau of Statistics, and the Central Bank of Kenya (CBK) provided the data for this report. To analyze the data, descriptive and inferential statistics were applied where ordinary least square method was adopted. The study established that domestic debt has a negative and significant relationship with private investment. However, the relationship between external debt and private investment was found to be positive and significant. Similarly, regarding the effect of public debt on unemployment rate, the study revealed that domestic debt has a negative and significant relationship with unemployment rate. External debt however was found to have a positive and significant relationship with unemployment rate. Based on the above findings the study concluded that public debt has a significant effect on private investment. For the second objective the study concluded that public debt has a significant effect on unemployment rate. Based on this, the government through its policy makers should come up with measures that would control the mount of borrowing by the government.
Demand for Contraception after Self -Managed Medical Abortion: The Case of Nakuru County, Kenya
(The Brooklyn Research and Publishing Institute, 442 Lorimer St, Brooklyn, NY 11206, United States, 2025-06) Sigu, Steve Biko; Omondi, Francis
This study examined demographic and socioeconomic determinants of post-medical abortion contraceptive demand using data from 401 women who obtained medical abortion drugs at 21 pharmacies in Nakuru, Kenya, as part of the PMAC project pilot. A probit model was used to identify key factors. Although 60% of women initially chose to bundle abortion drugs with contraceptives, only 43% used contraception after selfmanaged abortion. Socioeconomic factors such as effective demand, exposure to contraceptive promotional interventions, abortion decision-making, and prior contraceptive use significantly influenced post-abortion contraceptive uptake, alongside demographic factors like age, marital status, and education level. The findings highlight the multifaceted nature of contraceptive decision-making following self-managed abortion, shaped by both individual and contextual factors. The study concludes that aligning decisionsupport strategies and targeted interventions may help increase contraceptive use post-abortion, informing policy and programmatic approaches in similar contexts.
Effects of Contraceptive Use, Prenatal Visits, and Facility Delivery on Maternal Mortality in Kenya, Uganda and Tanzania
(Kenyatta University, 2024-10) Gachuru, Joseph Maina
Globally maternal mortality rate has continued to be on a high level compared to the World Health Organisation (WHO) standards. This is despite several initiatives to tackle the high maternal mortality. These initiatives include but are not limited to the Alma-Ata Declaration of 1978, the millennium development goals (MDGs) which had a goal dedicated to maternal mortality, sustainable development goals (SDGs) to accelerate the gains in MDGs. However, despite the various initiatives by governments to lower maternal deaths, the global mortality rate remains higher than the WHO goal of 70 deaths per 100,000 births as at 1990. As of 2020, the global mortality rate was 223 deaths per 100,000 births. The East African Community (EAC) countries had maternal mortality rates higher than the global average with Kenya recording the highest deaths of 530, Uganda 284 and Tanzania recorded the least mortality rate of 238 per 100,000 births. This is despite developing robust frameworks to improve health outcomes. Although maternal mortality has been on a downward trend in Kenya, Uganda and Tanzania since 1990, none of the East African Community countries attained the global maternal mortality rate average and subsequently missed the WHO target of 70 deaths. To reduce the high maternal deaths, the nations have been encouraging the utilization of contraceptives, prenatal care services and facility delivery services. The utilization of services varied in the three countries and so is the rate of reduction of maternal mortality. This study, therefore, sought to analyze how the utilization of these three variables (contraceptive use, prenatal care and delivery at health facility) affects maternal mortality. The study objectives were: to explore the effects of contraceptive prevalence rate on maternal mortality, establish the effect of prenatal visits on maternal mortality and determine the effect of health facility delivery on maternal mortality in Kenya, Uganda and Tanzania. Data was obtained from World Health Organization reports, World Bank reports, and Demographic and Household surveys (Kenya, Uganda and Tanzania). The panel data obtained between 2000 and 2016 from the three East African countries, was analyzed using Panel Auto-Regressive Distributed lag model. It was established that in the long run prenatal care use and delivery at health facility are important determinants of maternal mortality while contraceptive use did not have an effect on maternal mortality in Kenya, Uganda and Tanzania. Hence for the EAC countries to reduce maternal mortality the governments should build more health infrastructure to enhance timely access. They should further establish comprehensive health programs by incorporating specific programs to tackle maternal mortality and strengthen community outreach services through empowering community health workers.
The Effect of Rule of Law on Total Factor Productivity in Kenya
(Iosr Journal of Economics and Finance (Iosr-Jef)., 2023) Mungai, Peter M.; Mwilaria, Shadrack M.
Economies across the globe have witnessed wide variations in incomes, inviting researchers and policy makers to explore various interventions to bridge the gap. Among the interventions floated is focusing more on productivity levels than the accumulation of inputs. Total Factor Productivity, defined as a measure of output growth not explained by factor inputs, has been fronted as the solution to the widespread variations. Kenya targets achieving an annual Total Factor Productivity growth rate of 2.5 from the current 0.352 to achieve vision 2030 and Sustainable Development Goals. One way to increase Total Factor Productivity is by creating an enabling and conducive environment where factor inputs operate. Institutions, specifically the Rule of Law, play a vital role in ensuring a thriving environment. This study, therefore, sought to establish how the Rule of Law affects Total Factor Productivity in Kenya both in the short run and in the long run. The study adopted an Auto Regressive Distributed Lag Model with an error correction term, which was informed by the presence of co-integration relationships as established by the ARDL bound test. The study utilized a time series data set for the period 1996 to 2020, obtained from secondary sources. The ARDL bound test for co-integration was employed since variables were found to be of mixed series. The study found a positive long-run relationship and a negative short-run relationship between the Rule of Law and Total Factor Productivity in Kenya. Consequently, the study recommended that the government of Kenya should provide both technical and budgetary support to those institutions that promote the entrenchment, adherence and upholding of Rule of Law as one of the ways of improving TFP levels.
Effects of Budget Deficits on the Exchange Rate in Kenya: 1993-2021.
(Iosr Journal of Economics and Finance (Iosr-Jef), 2023) Ricy, Rianne Nyanchama; Mugendi, Charles
Theexchange rate is considereda significant metric for a nation's competitivenessin the internationalmarket and economic performance in general. At the same time, the persistence and widening of the budget deficits in Kenya hasraised much concern among economists and policymakers since it determines a nation’s financial health.Raising the need to examine the connection between budget deficits and the EXR. With that being said, theories on howthe EXR is influenced by budget deficits are contradictory and despite attempts made by empirical studies tying budget deficits to theEXR,there remains to be controversy in their findings with each contention faced with a counter-argument. Therefore, this study utilizedquantitativeannual time series data spanningfrom 1993 to 2021 and the ARDL model to establishhowbudget deficitsaffect the EXR in Kenya, differentiating the indirect and direct effects,which is crucialin determination of the exact relationship between these variables. The study revealed that the budget deficit has a positive effect on the EXR. The study also revealed that the CAD and TOT have a positive effect on the EXR. However, the effect of the TOT on the EXR is insignificant. The study concluded that since budget deficits influence the movements in the EXR, there is need to keep the widening budget deficit in Kenya in check. Further, the study recommended the establishment of a regulatory framework tailored towards budget deficit reduction and debt sustainability.
Effects of Selected Macroeconomic Variables on Market Capitalization of Nairobi, Kenya
(The International Journal of Humanities & Social Studies, 2024) Anne, Avonde; Muthoga, Samuel
This study examined the effects of selected macroeconomic variables on the market capitalization of the Nairobi Securities Exchange in Kenya during the period 2010- 2022, based on the Arbitrage Pricing Theory (APT) using quarterly data. The autoregressive distributed lag model technique was applied to test how market capitalization was affected by the macroeconomic variables. Gross domestic product, money supply, and inflation were stationary at the level while interest rate, market capitalization, and exchange rate became stationary at first difference. From the empirical results, no co-integration between market capitalization and exchange rate, money supply, interest rates, Gross domestic product, and inflation was found by use of bounds test. Money supply and inflation had a weak influence on market capitalization; interest rate, Gross Domestic Product, and first lag of the exchange rate were positive and affected market capitalization, while the exchange rate at the current level affected market capitalization negatively. It was concluded that macroeconomic variables affect market capitalization. The study recommends that the government need to put up relevant policies that increase gross domestic product. Policymakers need to consider macroeconomic variables during policy formulation on market capitalization.
The Nexus between the changes in Oil output in the United Arab Emirates and the Volatility of Petrol Prices in Kenya
(ATCR Publishing, 2023-11) Rotich, Samson Kiptoo; Muthoga, Samuel
The volatility of petroleum prices in Kenya compels an analysis into the fundamental causes of the recurrent fluctuations. Movements in oil production from important importing sources play a role in determining petroleum prices in importing countries. However, no clear model exists that explains how these changes in oil output affect the price of gasoline in Kenya. Additionally, there is no framework that explains how long these shocks last in the Kenyan market. The present situation has opened the door for a research project designed to comprehend the effects of changes in oil output from the United Arab Emirates on gasoline costs in Kenya. The two main goals of the study are to first determine how monthly oil output changes in the UAE affect Kenyan gasoline prices between 2017 and 2020, and then to determine how long the effects of oil production shocks from the UAE last in the Kenyan gasoline market. In order to determine whether monthly variations in oil output from the United Arab Emirates have an impact on Kenya's gasoline prices and whether oil production shocks from the United Arab Emirates have lasting effects on the Kenyan gasoline market, the research is set up as a hypothesis-driven investigation. The study made use of concepts from the Real Business Cycle theory and the conventional notion of market self-adjustments. The analysis relied on secondary data which were collected from various sources including OPEC, EIA, Central Bank of Kenya and World Bank’s websites. The data were processed using the R programming language. After analysis, a model was constructed, enabling the derivation of conclusions and subsequent recommendations.
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.
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
Knowledge Management Practices and Employee Performance of Sireet Out growers Empowerment and Producer Company Limited in Nandi County, Kenya
(The Strategic Journal of Business & Change Management, 2023) Rotich, J. J.; Mutuku, M. K
This study examined the influence of practices of knowledge management on employee performance at Sireet Outgrowers Empowerment and Producer Company Limited in Nandi County. The specific objectives included knowledge sharing, knowledge culture, knowledge IT tools and knowledge creation. The theory anchoring the study included knowledge based view and supported by the resource-based view theory. The study took an explanatory and cross-sectional survey designs. Census survey of all 60 employees formed the sample size and was involved in answering the structured questionnaire. A pilot test was done using 6 respondents who checked for validity and reliability of the research instrument. The researcher collected the data and conducted analysis that included descriptive, correlation and regression. The findings were presented in tables and prose form for deliberations. The study found that knowledge management practices of knowledge sharing, knowledge culture, knowledge IT tools and knowledge creation influenced the performance of employees at the of Sireet Outgrowers Empowerment & Producer Company Limited in Nandi County. Knowledge IT tools had the largest influence on employee performance, followed by knowledge creation, knowledge culture and knowledge sharing. The study concluded that knowledge management practices had positive and significant influence on employee performance. The study recommends that the management of Sireet Company in Nandi County to embrace knowledge management practices as it seeks to improve performance of its employees. The management should invest in training programs for creation and sharing of information, develop firm structures and practices that create, share and utilize knowledge for improvement in performance of employees. Other organizations seeking to improve performance of its employees in embrace practices under knowledge management. This can be done through formal and informal trainings, investing in technological systems and tools, embrace cultures and practices for creating, sharing and using knowledge
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.
Public debt, private investments and unemployment rate in Kenya
(paperpublications, 2024-05-22) Mugo Benard; Mugendi, Charles Ndegwa
Abstract: The government of Kenya has put efforts to ensure that private investment in the country is boosted and hence reduce the unemployment rate. However, despite the government efforts in increasing the levels of private investment and lowering unemployment rates in the country, with increased government borrowing, private investment has continued to perform below expectations while the rate of unemployment continue to increase. While some researchers have attempted to assess the effect of public debt on private investment and unemployment the studies have found contradicting results. The major goal of this study was to ascertain how Kenya's public debt has affected both private investment and the unemployment. Assessing the impact of governmental debt on private investment and figuring out how it affects Kenya's unemployment rate were the specific objectives of the study. Longitudinal research approach was used where time series data from 2001 to 2021 was gathered. Secondary data was used. The World Bank, the Kenya National Bureau of Statistics, and the Central Bank of Kenya (CBK) provided the data for this report. To analyze the data, descriptive and inferential statistics were applied. The study established that domestic debt has a positive and significant relationship with private investment. However, the relationship between external debt and private investment was found to be negative but significant. On the contrary regarding the effect of public debt on unemployment rate, the study revealed that domestic debt has a negative but significant relationship with unemployment rate. External debt however was found to have a positive and significant relationship with unemployment rate. Based on the above findings the study concluded that public debt has a significant effect on private investment. For the second objective the study concluded that public debt has a significant effect on unemployment rate. Based on this, the government through its policy makers should come up with measures that would control the mount of borrowing by the government
Impact of Smallholder Banana Contract Farming on Farm Productivity and Income in Kenya
(Cogent Economics & Finance, 2024-05) Murigi, Michael; Ngui, Dianah; Ogada, Maurice Juma
Smallholder banana farmers in Kenya grapple with declining farm productivity and low market prices in a fragmented, broker-dominated market. To address these challenges, the Kenya National Banana Development Strategy advocates for the adoption of contract farming. This research utilizes Difference-in-Differences (DID) regression analysis to assess the impacts of smallholder participation in banana contract farming on farm productivity and income. The empirical results reveal positive impacts, emphasizing the potential of contract farming to enhance productivity, increase incomes for smallholder farmers, and invigorate rural economies. These findings provide valuable insights into the efficacy of contract farming as a strategy for addressing challenges in banana farming. To maximize this potential, the study recommends policy interventions, including increased government support, improvements in infrastructure and market accessibility, reinforced institutional backing, and the promotion of sustainable practices. These measures aim to secure enduring benefits for both farmers and food marketing firms in Kenya. IMPACT STATEMENT This study examines the effectiveness of contract farming in addressing the struggles of Kenyan smallholder banana farmers. The study finds that participating in contract farming leads to increased farm productivity and income for these farmers. These findings highlight the potential of contract farming to revitalize rural economies. To maximize these benefits, the research recommends policy changes, such as increased government support and improved infrastructure, to create a sustainable and mutually beneficial system for both farmers and food companies in Kenya.

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