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Item Corporate Governance, Cost of Capital and Profitability on Non-Financial Firms Listed in Nairobi Securities Exchange, Kenya(International Journal of Scientific and Research Publications, 2026-03) Ngue, Elizabeth Minoo; Jagongo, AmbroseCorporate governance has become a fundamental topic in corporates management due to its pivotal obligation in enhancing accountability, transparency and profitability. Non-financial firms listed in Nairobi securities exchange Kenya have been greatly affected by corporate governance mechanisms and consequent cost of capital which significantly and jointly affect their profitability. Corporate governance has been known to have a great influence on the eventual profitability of listed firm. The declining profitability of nonfinancial firms poses a challenge to the realization of the Sustainable Development Goals and Vision 2030 as a whole. The period before, during and after COVID 19 is critical since its impact needs to be closely monitored.The study therefore looks to examine the effect of corporate governance, cost of capital on performance of non-financial firms listed in Nairobi Securities exchange Kenya. Specifically, to determine the effect of board independence on profitability of non-financial firms listed in NSE, Kenya, to determine the effect of ownership structure on profitability of non-financial firms listed, to determine the effect of audit committees and government codes on profitability of non-financial firms listed and to determine the moderating effect of cost of capital on the relationship between corporate governance and profitability of non-financial firms listed in NSE, Kenya. The study will be anchored on Stakeholder theory, Modern Portfolio Theory, Agency Theory, Pecking order theory and Trade-off theory. Secondary data from published audited annual financial statements will be gathered from the NSE, Kenya website to be utilized in this inquisition for the period 2016-2025.Descriptive analysis and correlation analysis will be utilized. Multiple linear regression and panel regression will be usedItem County Financial Management Practices and Locally Generated Revenue in the County Government of Marsabit(International Academic Journal of Economics and Finance (IAJEF), 2026-03) Malla, Qabale Dida; Gitagia, FrancisCounty governments in Kenya occupy a central position in promoting fiscal decentralization, delivering services, and stimulating local economic growth. They are tasked with raising locally generated revenue (LGR) to support devolved functions, complement national transfers, and strengthen fiscal independence. The viability of devolution therefore rests on the soundness of county financial management systems, which shape their ability to fund operations, provide essential services, and ensure accountability. Despite these responsibilities, counties such as Marsabit continue to experience revenue shortfalls that compromise service delivery and expose fiscal vulnerabilities. This study investigated the effect of financial management practices on LGR in Marsabit County, focusing on revenue diversification and budgetary control. Covering the period 2019 to 2024, the study was guided by Portfolio Theory and Budgetary Control Theory. A descriptive research design was employed, targeting 73 respondents consisting of 13 finance officers, 53 revenue collection officials, and 7 policymakers. A census approach was adopted to avoid sampling error and capture the perspectives of all relevant officers. Both primary and secondary data were used. structured questionnaires formed the basis of primary data, while audited financial statements and budget implementation reports provided secondary evidence. Diagnostic tests including tests for normality, multicollinearity, heteroscedasticity, autocorrelation, and linearity were performed to validate the strength of the regression model. Data analysis was carried out using SPSS, applying descriptive statistics such as means, medians, modes, and measures of dispersion, as well as inferential analysis through correlation and multiple regression. The correlation results revealed positive and significant associations between revenue diversification, budgetary control and locally generated revenue. Regression analysis showed that revenue diversification practices and budgetary control practices had positive and statistically significant effects on LGR. The study recommends that counties adopt innovative and technology-driven diversification strategies, strengthen participatory and transparent budgetary processes National oversight bodies such as the Commission on Revenue Allocation and the Office of the Controller of Budget should enhance monitoring and provide technical support to counties to institutionalize accountable and innovative financial practices.Item Executive Remuneration Structure and Corporate Firm Value Among 25 Index Listed Firms at the Nairobi Securities Exchange, Kenya(International Academic Journal of Economic and Financial Research, 2026-03) Omondi, Elvis Owino; Aluoch, Moses OdhiamboPurpose: This study examined the effect of executive remuneration structure on corporate firm value among the 25 Index listed firms at the Nairobi Securities Exchange. The research aimed to determine how fixed remuneration, shortterm incentives, and long-term incentives influenced firm value, considering the moderating role of financial leverage. Methodology: The study adopted a quantitative research design to examine relationships between executive remuneration components and firm value. The target population comprised firms listed under the Nairobi Securities Exchange 25 Share Index over a five-year period from 2018 to 2022. Secondary data were obtained from annual reports and financial statements of the listed companies. Data were analyzed using Econometric Views (EViews) software, applying descriptive statistics, correlation analysis, and panel regression. Findings: The findings indicated that longterm remuneration components had a positive and statistically significant effect on firm value. Conversely, fixed remuneration, short-term incentives, and other executive perks were not statistically significant in explaining variations in firm value. Financial leverage was found to significantly moderate the relationship between executive remuneration and firm value, with higher leverage increasing firm risk and weakening the positive influence of long-term incentives. Unique Contribution to Theory, Practice and Policy: The study contributes to corporate governance literature by providing empirical evidence on the effectiveness of executive remuneration structures in enhancing firm value in emerging markets. Practically, it reveals the importance of emphasizing long-term incentive schemes in executive compensation packages. From a policy perspective, the findings offer insights to regulators such as the Capital Markets Authority and corporate remuneration committees.Item Firm Characteristics and Financial Stability in The Insurance Sector: A Critical Review of Literature(2026-03) Nyamai, Jonathan Sila; Jagongo, AmbroseThis study underscores a systematic review of the extant literature examining the relationship between firm characteristics and financial stability. The review was theoretically anchored in the buffer theory of capital adequacy, efficiency theory, market power theory, and stakeholder theory, which collectively provide complementary perspectives on how internal firm attributes influence resilience and risk exposure. Adopting a systematic literature review methodology, the study synthesised empirical and conceptual contributions addressing the nexus between firm-specific factors and financial stability outcomes. The findings indicate that a significant relationship has consistently been identified between firm size and financial stability. Larger firms are frequently associated with greater diversification opportunities, improved access to capital markets, and enhanced capacity to absorb shocks, thereby strengthening their stability profiles. Accordingly, firm size emerges as an important determinant of financial resilience within the reviewed literature. Similarly, substantial empirical evidence supports a significant association between capital adequacy and financial stability. In line with the buffer theory, higher levels of capital serve as a protective cushion against unexpected losses, reducing insolvency risk and enhancing institutional soundness. The capital position of an institution is therefore widely regarded as fundamental to its long-term stability. With respect to liquidity, the literature also establishes a significant relationship with financial stability. Liquidity, reflected in the availability of cash and near-cash assets to meet short-term obligations, plays a critical role in mitigating funding risk and maintaining operational continuity. Firms with stronger liquidity positions are generally better equipped to withstand adverse financial conditions. Finally, the review identifies a significant association between operational efficiency and financial stability. Efficient resource allocation, cost management, and productivity improvements contribute to enhanced profitability and reduced vulnerability to external shocks. Collectively, these findings underscore the multidimensional nature of financial stability and highlight the importance of firm-specific characteristics in shaping sustainable financial performance.Item Managerial Overconfidence and Corporate Investment Decisions of Listed Firms in The Nairobi Securities Exchange, Kenya: A Theoretical Review(Stratford Peer Reviewed Journals and Book Publishing, 2026-03) Nzunga, Dennis Joseph; Jagongo, Ambrose O.Firms listed on the Nairobi Securities Exchange play a significant role in Kenya's economic development. Despite their strategic importance, many listed firms have exhibited inconsistent investment patterns, characterized by underinvestment in profitable projects, fluctuating capital expenditure levels, and declining financial growth over the past 6 years (2020 – 2025). These challenges have been attributed to factors such as high borrowing costs, macroeconomic volatility, limited access to long-term financing, and structural inefficiencies within the capital market. Consequently, concerns have emerged regarding the efficiency of corporate investment decisions among firms listed on the Nairobi Securities Exchange and the factors that influence their investment behavior. The study's general objective is to investigate the relationship between managerial overconfidence and corporate investment decisions of listed firms in the Nairobi Securities Exchange, Kenya. Specifically, the study will determine the relationship between earnings forecast bias and corporate investment decisions; assess the relationship between investment-cash flow sensitivity and corporate investment decisions; establish the relationship between CEO stock option exercise behavior and corporate investment decisions; establish the relationship between debt financing behavior and corporate investment decisions, and to determine the moderating effect of firm size on the relationship between managerial overconfidence and corporate investment decisions of listed firms in the Nairobi Securities Exchange, Kenya. The study will be guided by the pecking order theory, behavioral finance theory, agency theory, prospect theory (Kahneman & Tversky), and upper echelons theory. The empirical literature review will be drawn from international, regional, and local sources. Recent research studies in Kenya, African countries, and international markets will be investigatedItem Moderating Effect of Capital Inflows on the Relationship Between Systematic Risks and Stock Market Return Volatility Among Firms Listed at the Nairobi Securities Exchange, Keny(Stratford Peer Reviewed Journals and Book Publishing, 2026-02) Kinuthia,David Ngugi; Warui, Fredrick; Mithi, FestusThe study assessed the moderating effects of capital inflows on the relationship between systematic risks and stock market return volatility among firms listed at the NSE, Kenya. Volatility in the stock market in Kenya has been on the rise in the recent years. Capital inflows can impact stock market volatility by affecting overall market liquidity and investor sentiment. Sudden changes in capital flows, such as large-scale foreign selling or buying, can exacerbate market volatility as prices adjust to accommodate the influx or outflow of funds. Empirical studies found conflicting findings and displayed research gaps that this study sought to fill. The study was anchored on positivism philosophy and correlational research design. The target population was all 62 NSE listed firms listed between 2014 and 2024. Secondary data was collected from NSE, KNBS, CMA and world bank reports using data collection sheet. The data was analyzed through descriptive statistics and multiple regression. The study found that individual interaction terms were insignificant, including inflation (β = -0.0172, p = 0.428), exchange rate (β = 0.0368, p = 0.306), and interest rate (β = -0.0215, p = 0.389). Hence, capital inflows had no significant moderating effect on the relationship between systematic risks and stock market return volatility. The study concludes that capital inflows have no significant moderating effect on the relationship between systematic risks and stock market return volatility of firms listed at the NSE Kenya. The study recommends that regulatory bodies such as the CMA and CBK develop policies that encourage productive and long-term capital inflows. The CMA and CBK should establish early warning mechanisms that monitor capital flow volatility and its potential spillover effects on equity market stability. Market regulators should also enhance investor education initiatives so that market participants are better equipped to respond rationally to changes in capital flow patterns, thereby reducing sentiment-driven volatility in the Kenyan stock market.Item Effect of Climate Investment Funds on Financial Sustainability of Selected Non-Governmental Organisations in Kenya(Stratford Peer Reviewed Journals and Book Publishing, 2026-04) Wachira Muchemi; Mungai, John; Kariuki, GraceDespite the global shift towards sustainable financing, green financing accounts for less than 10% of total NGO funding in Kenya, underscoring a significant gap in the adoption of environmentally aligned climate investment funds strategies. This study seeks to examine the effect of climate investment funds on the financial sustainability of registered project-based NGOs operating in Nairobi, Kenya, particularly those engaged in poverty alleviation and development. The study was anchored on the Theory of Change. Guided by a positivist philosophy and a descriptive research design, the study targeted 114 project-based NGOs headquartered in Nairobi, selected from the 161 listed by the National Council of NGOs, using Fisher’s (1983) formula to determine sample size. Data was collected using structured questionnaires. Pilot study was undertaken at Hope in Action Association-Kenya to ensure appropriatness of the data collection instruments. The correlation and regression analyses revealed that climate investment funds significantly influenced the financial sustainability of NGOs in Kenya. Climate investment funds showed moderately strong correlations with financial sustainability, emphasizing their role in diversifying income streams, enhancing resilience, and attracting donor confidence. Regression analysis confirmed that climate investment funds significantly impact NGO financial performance, explaining 33.2% of the variation. The study concludes climate investment funds significantly boost NGO sustainability in Kenya. Climate investment funds provide both financial and strategic opportunities, enabling NGOs to align with global sustainability agendas while improving operational efficiency. The study therefore recommends NGOs and policymakers to adopt comprehensive, diversified, and well-regulated climate investment funds to secure both financial resilience and environmental impactItem Tax Reforms and Compliance among Small and Medium Enterprises in Bungoma County, Kenya(Global Press Hub, 2026-04) Kabisa, Kevin Namaswa; Musau, SalomeThis study critically examined the conceptual and theoretical frameworks underpinning tax reforms and their influence on tax compliance among Small and Medium Enterprises (SMEs) in Bungoma County, Kenya. SMEs are vital to economic development through employment creation, innovation, and contributions to government revenue; however, tax compliance among SMEs remains low, particularly in rural areas. A systematic literature review was conducted using peer-reviewed journals, government reports, and policy documents published between 2018 and 2025. The study adopted Economic Deterrence Theory, Institutional Theory, and the Slippery Slope Framework to analyze how enforcement mechanisms, institutional trust, and policy reforms affect SME compliance. Data extraction focused on technological, administrative, policy, and educational reforms affecting SMEs in Bungoma County. Findings indicate that technological reforms enhance efficiency in tax administration but are constrained by poor digital infrastructure and low digital literacy among SME owners. Policy reforms simplify compliance processes and promote voluntary adherence, while administrative reforms improve transparency and accountability. Educational reforms strengthen taxpayer knowledge, recordkeeping, and overall compliance. The study concludes that tax reforms significantly influence SME compliance, but their effectiveness depends on proper implementation, accessibility, and stakeholder support. Future research should empirically evaluate the impact of these reforms on SME behavior using quantitative methods, explore longitudinal compliance trends, and investigate the moderating effects of trust in tax authorities.Item Climate financing and growth of renewable energy in Kenya(Canadian Center of Science and Education, 2026-03) Jashon, Owano Ochola; Jagongo, Ambrose O.Kenya’s renewable energy sector has expanded rapidly over the past decade, with total installed electricity capacity rising from approximately 1,300 MW in 2010 to over 3,300 MW by 2024, and renewable sources accounting for nearly 85–90% of installed capacity. Geothermal capacity alone exceeds 950 MW, positioning Kenya as Africa’s leading geothermal producer. Despite this growth, renewable energy expansion remains structurally uneven. While grid-connected geothermal and wind projects have scaled significantly, disparities persist in rural renewable access, decentralized off-grid penetration, and sustained infrastructure investment. This uneven growth raises concerns regarding the determinants of renewable energy expansion and the effectiveness of financial interventions intended to accelerate the energy transition. Over the same period, climate finance commitments to Kenya have increased substantially. However, the extent to which climate financing translates into measurable renewable energy growth outcomes remains empirically underexamined. Existing studies largely treat climate finance as a direct driver of renewable expansion, with limited attention to the internal capital formation processes and policy conditions that shape this relationship. This study examines the effect of climate financing on renewable energy growth in Kenya over a ten-year panel period. Climate financing is disaggregated into financing mechanisms, financing uptake rate, and financing volume. Renewable energy growth is measured using installed renewable capacity, household renewable energy access, and off-grid consumption rate. The study introduces renewable energy capital formation, operationalized through renewable infrastructure capital expenditure and grid expansion investment, as a mediating variable. Green policy instruments, comprising feed-in tariffs, tax incentives, and tradable green certificates, are modelled as moderating variables. Adopting a positivist philosophy and a quantitative longitudinal design, the study employs panel regression techniques, including fixed effects and random effects estimations, to test direct, mediating, and moderating relationships. By integrating capital formation and policy conditioning effects into the climate finance–renewable energy nexus, the study provides structured empirical evidence to inform climate finance deployment, infrastructure planning, and green policy design in KenyaItem Market Volatility and Corporate Earnings: Implications for Kenya’s Insurance Sector(IJARKE, 2026-03) Gitau, Kimacia; Wamugo, Lucy; Omagwa, JobThe insurance industry represents a critical segment of the non-bank financial system and serves an essential function in promoting economic development across both developing and advanced economies. In Kenya, persistent profitability constraints have weakened sectoral stability, contributing to the failure of at least nine insurers over the past decade and highlighting underlying structural fragilities. This study examines the effect of market risk exposure on the profitability of insurance firms operating in Kenya. The analysis is anchored in Modern Portfolio Theory, Extreme Value Theory, and Institutional Theory, which collectively provide a conceptual basis for understanding risk–return dynamics and organizational responses within regulated environments. Guided by a positivist research paradigm and an explanatory design, the study assessed all 55 insurers licensed by the Insurance Regulatory Authority (IRA) as at 31 December 2022. Secondary data covering the period 2014–2022 were drawn from audited financial reports published by the IRA and the Association of Kenya Insurers, supplemented by macroeconomic indicators sourced from the Central Bank of Kenya and the Kenya National Bureau of Statistics. Descriptive statistics, Pearson correlation, and panel regression techniques were employed to evaluate the relationship between market risk factors and profitability. The empirical results indicate that interest rate risk exerts a positive and statistically significant effect on profitability, whereas inflation risk exhibits a negative but statistically insignificant influence. Foreign exchange risk shows a mixed effect, demonstrating a positive but insignificant relationship with ROE and a negative but insignificant association with ROA. The study recommends that insurers strategically capitalize on interest rate movements through investment in interest-sensitive assets, strengthen inflation-responsive pricing mechanisms, and diversify currency exposures to minimize potential adverse effects on profitability.Item Assessment of the Relationship Between Retained Earnings and Shareholder Value Creation: Perspectives from Listed Manufacturing Firms in Kenya(African Journal of Emerging Issues (AJOEI), 2026-04) Florence, Teresa Wanjeri; Omagwa, Job; Musau, SalomePurpose of Study: This study sought to analyze the effect of retained earnings on shareholder value in listed manufacturing firms in Kenya. Problem Statement: Generating shareholder value remains a fundamental objective within the global corporate sphere, closely linked to corporate profitability. The manufacturing sector in Kenya contributes approximately 18% to the country’s GDP and creates employment to over 2.3 million individuals across both formal and informal sectors. However, these firms consistently struggles to create and maintain shareholder value over the past decade. Despite a reported increase in shareholder wealth on the NSE in 2019, much of this growth was concentrated within a few companies, with East Africa Breweries PLC being the only manufacturing firm among them. Methodology: The study adopted a positivist philosophy and a causal research design. The target population included 21 listed manufacturing firms on the Nairobi Securities Exchange (NSE). Secondary panel data for the period 2012–2023 was extracted from published financial statements and analyzed using Stata software, employing both descriptive and inferential statistical techniques. Descriptive statistics, Pearson’s correlation, panel regression, multiple regression analysis were employed to analyze the data. Result: Retained earnings had positive and significant on shareholder value creation (β = 0.229617, p = 0.018 < 0.05), showing that reinvesting internal funds supports shareholder value. Recommendation: Retained earnings should remain the primary source of funding for listed manufacturing firms, given their strong positive relationship with shareholder value. In addition, firms should adopt dividend policies that balance investor expectations with the need for reinvestment in core operations.Item Short-Term Debt Financing and Shareholder Value: Evidence from Listed Manufacturing Firms in Kenya(StratfordPeer Reviewed Journals and Book Publishing, 2026-04) Florence, Teresa Wanjeri; Omagwa, Job; Musau, SalomeListed manufacturing firms in Kenya play a critical role in driving economic growth, contributing approximately 18% to the country's Gross Domestic Product (GDP) and creating over 2.3 million jobs in both formal and informal sectors. However, these firms have faced challenges in consistently generating shareholder value over the past decade, raising concerns about their ability to sustain value creation. While shareholder value has increased among listed firms in general, the performance of listed manufacturing firms remains notably weak. Previous studies investigating shareholder value have produced inconsistent findings, leaving uncertainty about how financial structure influences shareholder value in these firms. This study addresses this gap by examining how short-term debt financing affect shareholder value among listed manufacturing firms in Kenya. Anchored on the Modigliani and Miller Theory and the Trade-off Theory, the research adopts a positivist philosophy and a causal research design. The target population included 21 listed manufacturing firms on the Nairobi Securities Exchange (NSE). Secondary panel data for the period 2012–2023 was extracted from published financial statements and analyzed using Stata software, employing both descriptive and inferential statistical techniques.The study found that short term debt had a positive and significant effect on shareholder value (β = 0.284519, p = 0.015 < 0.05), suggesting that efficient use of short term borrowing to support liquidity and operations enhances value.In view of the findings, the study recommends that managers and regulators should focus less on altering ownership structures and more on limiting costly long term borrowing, supportingworking capital discipline, and deliberately growing and redeploying retained earnings to drive shareholder value. In addition, policymakers, especially the National Treasury,Capital Markets Authority, and Nairobi Securities Exchange, should consider formulating financial policies that encourage manufacturing firms toadopt balanced financingapproaches.Item Financial Practices and Program Efficiency of Non-Governmental Organizations in Nairobi City County, Kenya(International Academic Journal of Economics and Finance (IAJEF), 2026-03) Mutua, Martin N.; Jagongo, Ambrose O.The increasing demand for accountability and efficient utilization of donor funds has intensified pressure on non-governmental organizations (NGOs) to enhance program performance. In Kenya, particularly in Nairobi City County, NGOs continue to face challenges related to financial management practices, which undermine program efficiency in resource-constrained and donor-dependent environments. Program inefficiencies have been linked to weak financial systems, poor resource allocation, and limited organizational capacity. While external funding uncertainties persist, financial practices remain a critical internal mechanism that NGOs can leverage to improve program outcomes. This study aimed to investigate the effect of financial practices on program efficiency among NGOs operating in Nairobi, Kenya. The specific objectives were to examine the effects of liquidity management, budgeting practices, financial reporting quality, and financial sustainability on program efficiency, as well as to assess the mediating role of resource allocation efficiency and the moderating role of organizational capacity in this relationship. The study was anchored on Agency Theory, Pecking Order Theory, and Financial Accountability TheoryItem Tax Reforms and Compliance among Small and Medium Enterprises in Bungoma County, Kenya(Asian Journal of Economics, Finance and Management, 2026-04) Kabisa, Kevin Namaswa; Musau, SalomeThis study critically examined the conceptual and theoretical frameworks underpinning tax reforms and their influence on tax compliance among Small and Medium Enterprises (SMEs) in Bungoma County, Kenya. SMEs are vital to economic development through employment creation, innovation, and contributions to government revenue; however, tax compliance among SMEs remains low, particularly in rural areas. A systematic literature review was conducted using peer-reviewed journals, government reports, and policy documents published between 2018 and 2025. The study adopted Economic Deterrence Theory, Institutional Theory, and the Slippery Slope Framework to analyze how enforcement mechanisms, institutional trust, and policy reforms affect SME compliance. Data extraction focused on technological, administrative, policy, and educational reforms affecting SMEs in Bungoma County. Findings indicate that technological reforms enhance efficiency in tax administration but are constrained by poor digital infrastructure and low digital literacy among SME owners. Policy reforms simplify compliance processes and promote voluntary adherence, while administrative reforms improve transparency and accountability. Educational reforms strengthen taxpayer knowledge, recordkeeping, and overall compliance. The study concludes that tax reforms significantly influence SME compliance, but their effectiveness depends on proper implementation, accessibility, and stakeholder support. Future research should empirically evaluate the impact of these reforms on SME behavior using quantitative methods, explore longitudinal compliance trends, and investigate the moderating effects of trust in tax authorities.Item Asset Allocation and Profitability of Fund Managers Registered by Retirement Benefits Authority Kenya(international Academic Journal of Economics and Finance (IAJEF), 2026-01) Odhiambo, Linda A; Kosgei,Margaret; Gitagia,Francis K.Over the past decade, fund managers registered with Kenya’s Retirement Benefits Authority (RBA) have experienced declining and highly volatile profitability and returns on investment, raising concerns among financial practitioners and scholars. Persistent reductions in returns undermine investor confidence, erode value creation, and heighten systemic investment risk, underscoring the need to enhance profitability to ensure sustainable growth and stable investor returns. Despite professional expertise, Kenyan fund managers have struggled to optimize performance amid fluctuating market conditions. Since asset allocation decisions are widely recognized as critical determinants of profitability, this study examined the effect of asset allocation on the profitability of RBA-registered fund managers in Kenya. Specifically, the study assessed the influence of allocations to fixed income securities, equities, and real estate investments on profitability, while also evaluating the moderating role of market fluctuations. The analysis was grounded in established financial theories, including the Capital Asset Pricing Model (CAPM), the Fama–French Three-Factor Model, and the Arbitrage Pricing Theory (APT). A census of all 35 RBA-registered fund managers was undertaken, using secondary data drawn from audited financial statements covering the period 2015–2024. Panel regression analysis, Pearson correlation coefficients, and descriptive statistics were employed. Results revealed weak but positive correlations between asset allocation and profitability, with fixed income assets showing the strongest association. FGLS regression findings indicated that real estate investments had a strong and statistically significant positive effect on profitability, while fixed income securities exhibited a marginally significant positive influence. In contrast, equity investments had a significant negative effect on profitability. Furthermore, market volatility was found to positively moderate the relationship between asset allocation and profitability. The study concludes that increasing allocations to fixed income and real estate enhances profitability, whereas excessive exposure to equities diminishes financial performance.Item Mediating Effect of Strategic Optimal Portfolio Mix on the Influence of Portfolio Diversification and Financial Performance of Private Voluntary Pension Schemes in Kenya(Stratford Peer Reviewed Journals and Book Publishing, 2026-03) Njogu, Daniel Ngugi; Simiyu, Eddie; Mwenda, NathanPrivate voluntary pension schemes in Kenya are instrumental in providing supplementary retirement income and fostering long-term savings for members beyond mandatory public systems. However, these schemes continue to face substantial challenges in achieving consistent positive real returns therefore the study sought to assess the mediating effect of strategic optimal portfolio mix on the influence of portfolio diversification and financial performance of private voluntary pension schemes in Kenya. The study was anchored on Black-Litterman Theory, which blends investor views with market equilibrium returns to produce stable, intuitive, and diversified portfolios suitable for pension funds. A descriptive research design was adopted. The unit of analysis was 22 voluntary pension schemes and 28 registered umbrella retirement benefits schemes. The unit of observation was 50 finance managers, 50 investments officers and 50 fund managers. Since the study population is manageable the study adopted census technique to incorporate all the 150 respondents. Primary data were collected via self-administered semi-structured questionnaires, while secondary data on return on investment were sourced from annual financial statements covering 2019–2023. Instrument reliability and validity were established through a pilot test involving 15 respondents from five selected schemes, with Cronbach’s Alpha values above 0.7 confirming internal consistency. Data analysis utilized descriptive statistics and inferential statistics, with diagnostic tests (normality, multicollinearity, homoscedasticity, linearity) confirming model assumptions. From the findings the P-values were less than 0.05 confidence level therefore the study rejected the null hypothesis and based on the rule of significance, the study concluded that strategic optimal mix has a significant mediating effect on the relationship between portfolio diversification and financial performance of private voluntary pension schemes in Kenya. Accordingly, it is recommended that pension schemes invest in continuous professional development of finance officers on portfolio optimization and adopt formal policies encouraging diversification across asset classes to balance risk and return while safeguarding member interestsItem Financial Practices and Program Efficiency of Non-Govermental Organizations in Nairobi City County, Kenya(International Academic Journal of Economics and Finance (IAJEF), 2026-03) Mutua, Martin N.; Jagongo, Ambrose O.The increasing demand for accountability and efficient utilization of donor funds has intensified pressure on non-governmental organizations (NGOs) to enhance program performance. In Kenya, particularly in Nairobi City County, NGOs continue to face challenges related to financial management practices, which undermine program efficiency in resource-constrained and donor-dependent environments. Program inefficiencies have been linked to weak financial systems, poor resource allocation, and limited organizational capacity. While external funding uncertainties persist, financial practices remain a critical internal mechanism that NGOs can leverage to improve program outcomes. This study aimed to investigate the effect of financial practices on program efficiency among NGOs operating in Nairobi, Kenya. The specific objectives were to examine the effects of liquidity management, budgeting practices, financial reporting quality, and financial sustainability on program efficiency, as well as to assess the mediating role of resource allocation efficiency and the moderating role of organizational capacity in this relationship. The study was anchored on Agency Theory, Pecking Order Theory, and Financial Accountability Theory.Item Revenue Diversification and Sustainability of Commercial State Corporations in Kenya(IJCAB, 2026-04) Nyangaresi,Richard Bisera; Jagongo, AmbroseIn the face of globalization and rising economic pressures, the sustainability of commercial state corporations (CSCs) has become a critical concern, particularly in developing countries like Kenya. Many of these entities continue to rely heavily on government subsidies, leading to persistent financial instability, operational inefficiencies, and reduced service delivery. This study explores the role of revenue diversification in enhancing the financial sustainability of Kenyan CSCs, with a specific focus on the moderating effect of corporate governance. Drawing on global and regional experiences, the study examines four core diversification strategies—product/service expansion, market penetration, public-private partnerships, and non-core revenue streams. It also investigates how governance structures influence the effectiveness of these strategies in achieving long-term financial viability. Despite efforts by the Kenyan government to implement reforms and encourage alternative revenue generation, challenges such as weak oversight, political interference, and financial mismanagement continue to hinder progress. Through a panel regression approach incorporating moderation analysis, this study aims to provide empirical insights into the complex dynamics between diversification strategies and sustainability, offering practical recommendations for policy-makers and corporate leaders seeking to strengthen the resilience and independence of CSCs in Kenya. Keywords: Revenue diversification, sustainability, commercial state corporations, KenyaItem Big vs. Small Insurers; Does Size Matter? Moderating Effects of Firm Size on Liquidity Risk and Credit Risk on the Profitability of Insurance Firms in Kenya(IJARKE, 2026-01) Gitau, Kimacia; Wamugo, Lucy; Omagwa, JobThe insurance sector represents a major component of the broader non-bank financial system and plays a pivotal role in supporting economic activity across both developing and advanced economies. In the Kenyan context, declining profitability has been a prominent challenge, contributing to the financial distress and eventual collapse of at least nine insurance companies over the past decade. This study sought to evaluate whether firm size moderates the relationship between liquidity risk & Credit risk and the profitability of insurance firms operating in Kenya. The conceptual foundation of the research drew on several theoretical perspectives, including Modern Portfolio Theory, Agency Theory and Institutional Theory. A positivist philosophical stance and an explanatory research design guided the methodological approach. The study covered all 55 licensed insurance firms listed by the Insurance Regulatory Authority (IRA) as at 31 December 2022. Secondary data were obtained from audited financial statements available through the IRA and the Association of Kenya Insurers (AKI) digital repositories for the period 2014–2022, supplemented by additional information from the Central Bank of Kenya and the Kenya National Bureau of Statistics. Data analysis employed descriptive statistics, panel regression techniques, and Pearson’s product–moment correlation to assess the relationships among the study variables. Firm size was found not to be a significant moderator in this study, since it did not significantly change the decision rule in the model, indicating that the effects of liquidity and credit risks on ROE and ROA were consistent across insurance firms regardless of their asset scale.Item From Arrears to Earnings: Examining the Impact of Credit Risk on Kenyan Insurers(IJARKE, 2026-01) Gitau, Kimacia; Wamugo, Lucy; Omagwa, JobThe insurance industry is one of the non-bank financial industry with important roles in the economic sector of a country and contributes critically and uniquely both in developing and developed countries. However, in Kenya, poor profitability was a primary factor in the deterioration and eventual closing down of at least 9 insurance companies over the past decade. This investigation aimed to ascertain the effect of credit risk on profitability of Insurance firms in Kenya. The theoretical framework incorporated modern portfolio theory, extreme value theory and institutional theory. The study employed positivist philosophical approach and explanatory research methodology. The research encompassed a comprehensive examination of all 55 insurance entities registered with the Insurance Regulatory Authority in Kenya through 31st December 2022. Audited financial reports accessible through the Insurance Regulatory Authority and Association of Kenya Insurers digital platforms provided secondary data spanning 2014 through 2022. The Central Bank of Kenya and Kenya National Bureau of Standards supplied supplementary information. Analytical procedures encompassed descriptive statistics, panel regression methodology and Pearson's Product-Moment Correlation technique. Credit risk was found to have a negative and statistically significant effect on ROE, and a negative but insignificant effect on ROA. This suggests that an increase in unpaid or delayed premiums erodes firm profitability, especially from a shareholder value perspective. As a result, the study recommends that Insurance firms in Kenya should enhance their credit risk evaluation processes and underwriting standards, particularly for policyholders, corporate clients, and investment portfolios, to minimize defaults and claim-related financial losses.