MST-Department of Accounting and Finance
Permanent URI for this collection
Browse
Recent Submissions
Item Capital Flow and Financial Sustainability of Women Table Banking Groups in Embu County, Kenya(Kenyatta University, 2025-05) Muthuri, Julius KirimiPoverty among women in Sub-Saharan Africa remains a critical challenge, with many experiencing economic marginalization and limited access to financial resources. Table banking has emerged as an effective strategy to alleviate poverty by empowering women through access to microfinance services, enabling them to start or expand small businesses, save, and enhance their economic well-being. However, the financial sustainability of women's table banking groups, particularly in Embu County, has faced significant challenges, with groups reporting negative gross margins and underperforming national averages. Statistics indicate that only 4% of table banking groups in Kenya survive beyond their third year, and Embu County groups report fluctuating and lower gross profit margins compared to national benchmarks, emphasizing sustainability issues. This study sought to determine the effect of capital flow on the financial sustainability of women's table banking groups in Embu County, Kenya. Specifically, it assessed the effects of capital accumulation, capital apportionment, capital usage, and capital recycling on financial sustainability. Anchored on the Resource Mobilization Theory, Social Capital Theory, Life Cycle Hypothesis, and Financial Intermediation Theory, the study adopted a descriptive research design. The unit of analysis comprised 322 table banking groups, while the unit of observation was the group chairpersons or leaders. A sample of 82 groups was selected using Nassiuma’s formula and simple random sampling. Primary data were collected through structured questionnaires, which were subjected to a pilot test involving eight groups to establish reliability using Cronbach's Alpha and validity through content and criterion tests. Diagnostic tests, including normality, multicollinearity, autocorrelation, and heteroscedasticity, were conducted to ensure robust analysis. Feasible Generalized Least Squares (FGLS) regression results revealed that capital accumulation (p=0.076, <0.05), capital apportionment (p=0.023, <0.05), and capital recycling (p=0.003, <0.05) had a statistically significant positive effect on financial sustainability. In contrast, capital usage was found to have a statistically significant negative effect (p=0.034, <0.05) on financial sustainability. Correlation analysis showed that capital accumulation and capital recycling had a weak positive correlation with financial sustainability, while capital apportionment exhibited a strong positive correlation with financial sustainability. On the other hand, capital usage had a strong negative correlation with financial sustainability. The study concluded that increases in capital accumulation, capital apportionment, and capital recycling are positively linked to improved financial sustainability for women’s table banking groups in Embu County. However, rising capital usage may lead to challenges in maintaining stable financial outcomes. The study recommends that women’s table banking groups in Embu County focus on enhancing capital accumulation by promoting savings and effective resource mobilization. Furthermore, improving capital apportionment processes to ensure that resources are allocated to the most productive and impactful areas can further strengthen financial sustainability Additionally, encouraging effective capital recycling practices will help sustain and improve financial health over time. Lastly, caution should be exercised when increasing capital usage, ensuring it remains balanced and does not jeopardize the group’s overall financial sustainability. All ethical issues regarding authorization were sought from graduate school Kenyatta University and the National Council of Science and Technology.Item Firm Characteristics and Quality of Financial Reporting of Agricultural Firms Listed at the Nairobi Securities Exchange, Kenya(Kenyatta University, 2025-01) Mmasi, Dennis KuparaAgriculture plays an important role in ending extreme poverty and feeding the projected 9.7 billion people by 2050. Further statistics show that over 70% of Kenya’s population is employed in agricultural sector. It is further revealed that agricultural sector account for about 27% of the nation’s GDP. Because of its implications for employment, export earnings, and food security, the performance of this sector is the foundation of the nation’s economic well-being. Good financial reporting is critical in ensuring transparency, fostering accountability, and bolstering investor confidence within the sector. Even with the acknowledged importance of financial reporting, gaps still exist in empirical research exploring how firm characteristics influence quality of financial reporting (FRQ) among quoted agricultural companies. This inquiry sought to examine the effect of firma characteristics on FRQ of listed agricultural firms. Specifically, the study was carried out to ascertain the impact of profitability, leverage, growth, and liquidity on FRQ among listed agricultural firms. The data was obtained for the period spanning from 2019 to 2023. The project was hinged on agency theory, positive accounting theory, and signaling theory. The research followed a correlational study design to explore the set objectives. The target population constituted 7 listed agricultural firms. The sample size was obtained through a census of all the listed agricultural firms. The study employed secondary data obtained from company’s websites and audited financial statements to achieve the primary goal. Diagnostic tests such as linearity, normality, and homoscedasticity tests were done to determine the validity and reliability of the data. The data obtained was analyzed through both inferential statistics such as ANOVA regression and Pearson’s Correlation and descriptive statistics like standard deviation and mean. SPSS version 29 was used as the main tool of analysis. The study was guided by the ethical principles of privacy, confidentiality, integrity, and independence of the research. The results showed that firm growth, leverage, and profitability had weak negative effect on the FRQ. It was further revealed that liquidity positively and significantly influence FRQ. The study concluded that an increase in profitability, debt financing, and firm growth lowered FRQ while an increase in firm liquidity led to a higher FRQ. The study recommended that firms maintain strong liquidity positions because it is associated with better FRQ. Future research should determine the mediating role of corporate governance mechanisms on the relationship between firm characteristics and FRQ, and include other firms not listed at the NSE like private companies.Item Digital Financial Innovations and Financial Deepening of Commercial Banks in Nairobi City County Kenya(Kenyatta University, 2025-03) Mundia, Carol WanjiraLimited access to financial services remains a major challenge in emerging economies, particularly in Sub-Saharan Africa, where only 5% to 25% of households have a formal banking relationship. This financial exclusion constrains private sector growth and economic development. In Kenya, digital financial innovations have played a pivotal role in enhancing financial deepening, yet the extent of their impact remains inadequately explored. This study examined the effects of digital financial innovations on the financial deepening of commercial banks in Kenya. Specifically, the study assessed the impact of mobile phone banking, ATM banking, online banking, and agency banking on financial deepening. Additionally, it investigated whether bank size moderates the relationship between financial innovations and financial deepening. The study adopted a descriptive and explanatory cross-sectional research design and was conducted in Nairobi City County, where most commercial banks have their headquarters. The study was guided by the Innovation Diffusion Theory, Disruptive Innovation Theory, Agency Theory, and Market Power Theory. The target population comprised 39 licensed commercial banks in Kenya as of December 31, 2022. Secondary panel data were sourced from the Central Bank of Kenya’s annual banking reports, and multiple regression analysis was performed using SPSS version 20. The findings revealed that mobile phone banking, ATM banking, online banking, and agency banking had a statistically significant positive effect on financial deepening in Kenyan commercial banks. Furthermore, bank size moderated the relationship between financial innovations and financial deepening, indicating that larger banks contribute more effectively to financial inclusion. Based on these findings, the study concludes that mobile phone banking expands financial access in remote areas, ATMs enhance accessibility, online banking improves convenience, and agency banking strengthens financial outreach in underserved regions. Additionally, larger banks facilitate deeper financial integration by offering diverse financial products and services. The study recommends that commercial banks invest in user-friendly mobile banking interfaces, expand ATM networks, develop seamless mobile banking applications, and recruit more agency banking agents in rural areas. Furthermore, banks should leverage digital financial innovations to enhance their market presence. Future research should explore the long-term effects of financial innovations on financial sustainability and assess the role of regulatory frameworks in enhancing financial deepening. Ethical considerations, including data confidentiality and compliance with research guidelines, were observed throughout the study.Item Tax Attributes and Tax Compliance of Independent Oil Marketing Firms in Nairobi City County, Kenya(Kenyatta University, 2025-03) Muchina, Michael KahoiThe petroleum industry in Kenya is characterized by intense competition, with independent oil marketing firms playing a significant role in the distribution and retail of petroleum products. However, these firms face numerous challenges in complying with tax regulations, which affects both their operations and government revenue. This study sought to establish the effect of tax attributes on tax compliance among independent oil marketing firms in Nairobi City County, Kenya. Specifically, the study examined the influence of tax rates, tax awareness, taxpayers' attitudes, and deterrence measures on tax compliance. The study was guided by three theoretical frameworks: the Economic Deterrence Theory, the Ability-to-Pay Theory, and the Fiscal Exchange Theory. A census design was employed, targeting all 52 independent oil marketing firms in Nairobi City County. Data was collected using semi-structured questionnaires administered to managing directors, finance managers, and operations managers. Secondary data was obtained from published financial records and Kenya Revenue Authority (KRA) reports. Data analysis was conducted using descriptive and inferential statistics, including regression analysis. The findings revealed that tax rates, tax awareness, taxpayers' attitudes, and deterrence measures significantly influence tax compliance among independent oil marketing firms. Specifically, higher tax rates were found to reduce compliance, while increased tax awareness and positive taxpayers' attitudes enhanced compliance. Deterrence measures, such as penalties and audits, were also found to positively impact compliance, though their effect was less pronounced compared to tax awareness. The study concludes that tax compliance among independent oil marketing firms is a multifaceted issue influenced by both economic and behavioral factors. Based on the findings, the study recommends that the government should consider reducing tax rates to reflect the economic realities faced by independent oil marketing firms. Additionally, tax authorities should enhance taxpayer education and awareness programs to improve understanding of tax obligations. The study also suggests that the Kenya Revenue Authority (KRA) should adopt a more facilitative approach to tax enforcement, focusing on building trust and cooperation with taxpayers rather than relying solely on punitive measures. Finally, independent oil marketing firms should be encouraged to form associations to advocate for favorable tax policies and share best practices on compliance. This study contributes to the existing body of knowledge by providing insights into the specific challenges faced by independent oil marketing firms in complying with tax regulations. The findings have practical implications for policymakers, tax authorities, and industry stakeholders in designing effective strategies to enhance tax compliance in the petroleum sector.Item Risk Based Supervision and Profitability of Insurance Companies in Kenya(Kenyatta University, 2025-03) Mithamo, Mercy GathigiaThis research aimed to examine the effect of Risk-Based Supervision (RBS) standards on the financial performance of insurance companies in Kenya. The primary aim was to analyze how different RBS components—capital adequacy, actuarial valuations, investment assessments, and risk management—affected the financial performance of these companies. Additionally, the research explored the moderating effect of firm size on the relationship between RBS guidelines and profitability. A correlational research design was employed, utilizing a census approach to cover all 54 licensed insurance companies in Nairobi County. Data were collected through structured questionnaires and secondary financial records spanning a decade (2012-2022). The study used both descriptive and inferential statistical methods, including correlation and regression analyses, to examine the relationships between RBS guidelines and profitability. The model's significance was assessed using R-squared values, F-statistics, and p-values. To determine the moderating effect of firm size, a two-step linear regression analysis was conducted. The research anticipated that adherence to RBS guidelines would positively influence profitability, with firm size potentially amplifying or mitigating these effects. Findings offered insights into how regulatory frameworks impacted financial performance in the insurance sector and provided recommendations for enhancing regulatory practices to support industry profitability. As per the study, the profitability of insurance businesses in Kenya is significantly impacted negatively by capital adequacy (β = -1.07283, p<0.05), actuarial values (β = -0.75836, p<0.05), and investment assessment (β = -3.64890, p<0.05). There was a positive but statistically insignificant effect (β=0.097872, p>0.05) for risk management. No substantial moderating effect of firm size on the connection between Risk-Based Supervision guidelines and profitability was seen (β=0.0248, p>0.05). The model explained 47.85% of profitability variation (R-squared=0.4785). The study concluded that while regulatory measures and risk management practices are crucial for financial stability, they can have unintended negative impacts on short-term profitability. The negative effects of capital adequacy, actuarial valuations, and investment assessments suggest a need for more balanced approaches. The lack of significant moderation by firm size indicates that the impacts of Risk-Based Supervision guidelines are consistent across different company sizes, emphasizing the need for sector-wide strategies to manage these effects. The study recommended that regulators and insurance companies should collaboratively review capital adequacy requirements to balance stability and profitability. Develop more efficient actuarial and investment assessment processes to mitigate short-term negative impacts. Companies should enhance their investment strategies to better align with profitability goals while maintaining robust risk management practicesItem Internal Audit Function and Financial Accountability of Laikipia County Government, Kenya(Kenyatta University, 2025-03) Maina, Mumbi SusanGovernments worldwide face increasing pressure to strengthen financial accountability, optimize resource allocation, and enhance public service delivery.The prevalence of corruption particularly in the African region, has reignited the urgency for financial accountability and responsible stewardship. As a result, there is a growing global emphasis on ensuring financial accountability and the efficient use of public funds. The Auditor General reports consistently highlight significant challenges facing county governments in Kenya on financial resource management and accountability. Amongst the issues pointed out include inadequacy of financial support documentation, posting errors, over-expenditures and under-expenditures, consequently affecting the ability of county governments to deliver effective services to its citizens. Like many other organizations, Laikipia County Government has encountered challenges in overseeing its financial affairs and ensuring transparent utilization of public funds. This research sought to assess the effect of internal audit function on financial accountability in the county government of Laikipia, Kenya. The variables under examination included management support, professional competency, independence, and internal audit standards. The research was anchored on agency, stewardship, and stakeholder theory. The target population was 105 employees working in the finance and economic planning department of Laikipia County. From this population, a sample size of 51 employees was selected through stratified sampling. Data was collected through a uniform questionnaire. A representative sample of 10 respondents, mirroring the roles of those in the actual study, was randomly selected for a pilot study in Nyandarua County Government. Data was gathered, sorted, coded, and entered on SPSS version 20 for analysis. Descriptive statistical analysis was applied to provide a summary of the data using mean as well as standard deviation metrics. Correlation and multiple regression analysis were employed to explore relationships and provide insights into the variables. The outcomes were presented using tables and charts. Out of 51 distributed questionnaires only 48 were duly filled and qualified to be analyzed. The questionnaire was found to be reliable, and the data was normally distributed and homogeneous, with no intercorrelation between the variables under study. The model adopted in the study was confirmed significant using ANOVA. The research findings indicated a positive and statistically significant relationship between professional competence and financial accountability in the Laikipia County Government. Additionally, the study found that the independence of the audit function was a positive and significant predictor of financial accountability. Management support was also identified as positively and significantly influencing financial accountability within the Laikipia County Government. Furthermore, adherence to internal audit standards had a positive and significant impact on financial accountability in the Laikipia County Government. The research recommends that policymakers should: enhance the independence of the audit function in Laikipia County Government by structurally separating the internal audit section from the Finance and Economic Planning department to strengthen its oversight capacity; address understaffing in the internal audit section by recruiting qualified personnel to improve audit coverage and effectiveness; increase the funding allocated to support audit operations and acquire necessary equipment; implement measures to manage conflicts of interest, minimize management interference, and ensure adherence to auditing standards. To enhance effective financial accountability in the public sector, future research should examine factors influencing internal audit effectiveness.Item Financial Literacy and Personal Retirement Planning among Employees of Nakuru County Government, Kenya(Kenyatta University, 2025-04) Kiptoo, Naomi JelagatMany retired individuals encounter the difficulty of insufficient income to meet their living expenses. In order to address this issue, pension plans are established to assist retirees save a portion of their earnings throughout their employment. Pension plans serve as a form of retirement savings, often sponsored by employers or government entities, and are designed to provide financial support to individuals after they stop working. In Kenya, many employees still do not have any personal retirement plan as an alternative to pension income. Also, retirees face significant financial challenges, with over 80% struggling to make ends meet. This research aimed to ascertain the effect of financial literacy on personal retirement planning among employees of the county government of Nakuru. The study's specific objectives were to determine the effect of financial education, financial knowledge, demographic factors, and economic status on personal retirement planning among county government employees in Nakuru County, Kenya. Theories that informed the study were the Life Cycle theory, the Economic Theory of Retirement and the Theory of Planned Behaviour. The study utilized an exploratory and descriptive research approach. From a target population of 1536 permanent and pensionable employees, a sample of 257 pre-retirement employees was purposively obtained from Permanent and pensionable employees. A structured survey questionnaire was administered to the 161 respondents on a drop-and-pick basis. On the data and the subsequent binary logistic regression model, the researcher administered normality, validity and reliability, multicollinearity and model fit tests through the SPSS. As per the findings, financial knowledge, financial education and demographic factors had no significant effect but economic status had, on personal retirement planning. The study recommends development of women-focused retirement planning by Nakuru county government and a wider-scope study of financial knowledge and financial education as they relate to retirement planning.Item Budgeting Techniques and Quality of Financial Reporting in Nairobi City County, Kenya(Kenyatta University, 2025-05) Obonyo, Brian TirimbaHigh quality financial reporting is critical for fostering transparency, accountability, and informed decision-making in public sector governance. Every economy sector places a premium on financial reporting quality, which draws heavily from other functions within an organization. Nairobi County's financial reporting, however, has reportedly been of low quality due to bad financial choices, ineffective operations, stakeholder mistrust, and lost opportunities. Therefore, this study ascertained how budgeting techniques affects quality of financial reporting of Nairobi City County Government in Kenya. It evaluated influences of incremental, activity based and zero-based budgeting on quality of financial reporting. Theory of budgeting, resource-based view and complexity theories served as theoretical reviews. The study's framework was a descriptive study design. Responses were drawn from one hundred and twenty-two directors, internal auditors, finance officers and accountants of finance and economic planning department of Nairobi City County Government in Kenya. Stratified sampling approach was employed in selecting ninety-three responders who made up sample size with Yamane sample size formula. This study employed a quantitative approach, utilizing structured questionnaires to gather primary data. To ensure the robustness of the findings, the research instruments underwent a rigorous assessment of reliability and validity. Data analysis involved descriptive techniques (mean, standard deviation, percentages) to explore the data's central tendency and variability. Additionally, inferential analysis techniques, specifically multiple regression, were employed to identify and quantify relationships between variables. Furthermore, diagnostic tests for normality, heteroscedasticity, multicollinearity, and stationarity were conducted to ensure the assumptions of the statistical models were met. Results were displayed with graphs, charts, and tables. Ethical principles were upheld as required. Findings unveiled that incremental budgeting insignificantly and positively affect the quality of financial reporting; activity-based budgeting provided a significant and positive effect on the quality of financial reporting while zero-based budgeting unveiled an insignificant positive effect on the quality of financial reporting in Nairobi City County. This study contributes to the literature by providing empirical evidence on the comparative efficacy of budgeting techniques in county governance, addressing a gap in context- specific public sector research. The study concludes organizations should prioritize the implementation of activity-based budgeting practices to enhance their financial reporting quality effectively. The survey recommends that Nairobi City County should actively promote the adoption of activity-based budgeting practices throughout the organization. This can be achieved through targeted awareness campaigns, training programs, and workshops to educate financial staff and decision-makers about the benefits and implementation strategies of activity-based budgeting. Encouraging the use of this budgeting approach can further enhance the financial reporting quality. Future research could delve deeper into the reasons behind the statistically insignificant effects observed for incremental and zero-based budgeting using qualitative approach.Item Portfolio Diversification and Profitability of Commercial Banks in Kenya(Kenyatta University, 2025-05) Mutinda, Daniel MaweuThe global trend in commercial banking profitability has taken a hit, especially in the 2023 economic climate. It is intricate to control a bank’s portfolio efficiently, concurrently decrease income, lower risks and be bound to managerial and policy constraints. The main problem undertaken by this study was that of the gap that exists in the study of diversification in a portfolio and gainfulness of commercial banks in Kenya. Whereas diversification was seen as a strategy to mitigate risks and enhance profitability, there was limited empirical evidence of its influence on Kenyan commercial banks’ profitability. Numerous studies undertaken in Kenya and beyond have examined portfolio diversification. However, there is still a gap in understanding the direct association pitting variation strategies and the success of Kenya-based commercial banks; to seal in the existing literature gap; the study thus sought to investigate the effects of portfolio variation on the gainfulness of Kenya-based commercial banks. The study's general objective was to investigate the influence of product and service variation on the monetary profitability of Kenya’s financial entities. Four particular objectives guided this study: to uncover the effect of sectorial credit, revenue, deposit diversification and diversification of venture on the gainfulness of Kenya commercial banks. This analysis intended to determine the regulating influence of bank vastness on the link pitting banks’ multiplication of portfolios and their monetary profitability in Kenya. To guide the study, Modern Portfolio Theory, Liquidity Preference Theory, Transaction Cost Theory, and Arbitrage Pricing Theory were used. The study targeted the financial-related data for all 39 commercial banks in Kenya from the year 2018 – 2023. The study further conducted an empirical review of previous literature to identify study gaps. Descriptive and explanatory research designs were used, with data collection methods being secondary sources for quantitative data. Quantitative data analysis involved descriptive statistics; regression analysis was done to scrutinize the impact of portfolio diversification on profitability. Tests for normality, linearity, and Augmented Dickey-Fuller Test were conducted before adopting regression. The confidentiality and anonymity of participants were upheld and the data was only accessible to the researcher and the supervisor. Regression analysis revealed that sectoral credit diversification, deposit diversification, investment diversification and Revenue Source diversification are all positive and significant. Bank size moderates the relationship between portfolio diversification and profitability of commercial banks in Kenya. The study highlighted the need for further research on the long-term sustainability of diversification strategies, especially in Kenya's banking sector. The study suggested that banks in Kenya consolidate credit information, and cautiously diversify income streams to avoid financial risks. Strategic investments in government securities, real estate, and market securities are recommended. Further research is needed on sectoral credit diversification, long-term sustainability, and the influence of external factors on profitability.Item Prudential Regulations and Financial Performance of Microfinance Banks in Kenya(Kenyatta University, 2025-05) Wanjala, Lucy MachumaMicrofinance enhances the financial capacity of the economically disadvantaged, often ignored by commercial banks and other lending institutions, by offering services such as credits, insurances, and savings, thereby encouraging self-employment. Due to various variables businesses encounter, guidelines, decrees, and rules are necessary to regulate their operations, ensuring a fair structure for all institutions within a sector. This regulatory framework is essential for the financial industry, especially microfinance banks, to operate within set boundaries. This study general objective was to determine the impact of prudential regulations on the financial performance of microfinance banks in Kenya. The study specific objectives were to determine the effects of capital regulation, credit regulation, and liquidity regulation on their financial performance. Theoretical frameworks reviewed include stakeholder theory, capital buffer theory, and liquidity shiftability theory. The study's target population consisted of the fourteen (14) licensed microfinance banks in Kenya, employing a census of all these microfinance banks and an explanatory research design. The investigation utilized secondary data, which was sourced from the financial statements of selected microfinance banks in Kenya. This information encompassed data collected over a seven-year period, from 2015 to 2022. The data analysis involved multiple regression and descriptive analysis. Normality, multicollinearity, stationary, autocorrelation, heteroscedasticity, and diagnostic tests were performed on the data. To ensure ethical considerations, encryption key mechanisms safeguarded all local files, with access restricted to the researcher and supervisors. Findings revealed that capital regulation significantly (ρ = 0.013) and negatively (β = -3.3184) impacts financial performance; credit regulation has an insignificant (ρ = 0.961) and adverse (β = -0.0003) effect, while liquidity regulation significantly (ρ = 0.008) and inversely (β = -0.2173) affects financial performance. The study recommends that microfinance banks recognize the importance of capital management and ensure regulatory compliance. By implementing robust risk management practices, including regular capital level monitoring, stress testing, and strategic capital planning, these institutions can enhance their financial performance, attract investors, and maintain stakeholder confidence.Item Venture Capital and Financial Growth of Funded Small and Medium Enterprises in Nairobi City County, Kenya.(Kenyatta University, 2025-04) Maragia, Dancan SagweThe growth of the venture capital business globally has encouraged innovation and entrepreneurship, which has sparked the creation of wealth and jobs in several nations. In addition to financial support, venture capitalists offer the financed companies various non-financial services that add value, in form of different managerial support. By fostering wealth creation, economic growth, and job creation in their respective economies, SMEs become central in socioeconomic development. Despite their dominance and significance in developing nations like Kenya, these SMEs still have limited and fragmented access to sustainable finance that is necessary for their survival and growth. Because of their small size, constrained resources, perceived risk, and opaque business practices, SMEs have trouble getting access to financing. Many SMEs would close down, there would be an increase in job losses, and Kenya's GDP will decrease if this issue is not resolved. The study's main goal was to find out how venture capital affects small and medium-sized businesses' ability to expand financially in Kenya. In particular, this research examined the impact of venture capitalist control, managerial assistance, investment, and financing model on the financial growth of small and SMEs. The theories that underpinned the study were the financial liberalization theory, agency theory, social network theory and the pecking order theory. Both a descriptive research design and quantitative research methods were applied. The target population for the analysis consisted of 139 SMEs that have received venture capital funding. The study employed a census survey, wherein secondary data collected using data schedules supplemented primary data acquired via structured questions. The research variables were modeled using multiple regression analysis. The following diagnostic tests were used: multicollinearity, autocorrelation, heteroscedasticity, linearity, and normalcy. The Statistical package for social sciences was used to evaluate the data through descriptive statistics. Forms such as tables, graphs, and charts were used to visually portray the evaluated data. This study adhered to ethical guidelines. Results indicated that type of venture capital investment had a positive and significant effect on SMEs’ financial growth (β=0.167, P=0.034); venture capital managerial support had a positive and significant effect on SMEs’ financial growth (β=0.106, P=0.044), and venture capital financing model has a positive and significant effect on SMEs’ financial growth (β=0.133, P=0.003). SMEs' financial growth was positively, but not significantly, impacted by venture capital control (β =0.101, P =0.099). The study concluded that venture capital components except venture capital control contribute significantly to SMEs’ financial growth. The study recommended that entrepreneurs should consider a diverse syndicate of venture capitalists. The study also recommended that entrepreneurs should take advantage of venture capital managerial support. The study further recommended that entrepreneurs should review their venture capital financing model to achieve higher financial growth. In addition, the study recommended that entrepreneurs should review the venture capitalists’ level of control in the businessItem Venture Capital and Financial Growth of Funded Small and Medium Enterprises in Nairobi City County, Kenya.(Kenyatta University, 2025-04) Maragia, Dancan SagweThe growth of the venture capital business globally has encouraged innovation and entrepreneurship, which has sparked the creation of wealth and jobs in several nations. In addition to financial support, venture capitalists offer the financed companies various non-financial services that add value, in form of different managerial support. By fostering wealth creation, economic growth, and job creation in their respective economies, SMEs become central in socioeconomic development. Despite their dominance and significance in developing nations like Kenya, these SMEs still have limited and fragmented access to sustainable finance that is necessary for their survival and growth. Because of their small size, constrained resources, perceived risk, and opaque business practices, SMEs have trouble getting access to financing. Many SMEs would close down, there would be an increase in job losses, and Kenya's GDP will decrease if this issue is not resolved. The study's main goal was to find out how venture capital affects small and medium-sized businesses' ability to expand financially in Kenya. In particular, this research examined the impact of venture capitalist control, managerial assistance, investment, and financing model on the financial growth of small and SMEs. The theories that underpinned the study were the financial liberalization theory, agency theory, social network theory and the pecking order theory. Both a descriptive research design and quantitative research methods were applied. The target population for the analysis consisted of 139 SMEs that have received venture capital funding. The study employed a census survey, wherein secondary data collected using data schedules supplemented primary data acquired via structured questions. The research variables were modeled using multiple regression analysis. The following diagnostic tests were used: multicollinearity, autocorrelation, heteroscedasticity, linearity, and normalcy. The Statistical package for social sciences was used to evaluate the data through descriptive statistics. Forms such as tables, graphs, and charts were used to visually portray the evaluated data. This study adhered to ethical guidelines. Results indicated that type of venture capital investment had a positive and significant effect on SMEs’ financial growth (β=0.167, P=0.034); venture capital managerial support had a positive and significant effect on SMEs’ financial growth (β=0.106, P=0.044), and venture capital financing model has a positive and significant effect on SMEs’ financial growth (β=0.133, P=0.003). SMEs' financial growth was positively, but not significantly, impacted by venture capital control (β =0.101, P =0.099). The study concluded that venture capital components except venture capital control contribute significantly to SMEs’ financial growth. The study recommended that entrepreneurs should consider a diverse syndicate of venture capitalists. The study also recommended that entrepreneurs should take advantage of venture capital managerial support. The study further recommended that entrepreneurs should review their venture capital financing model to achieve higher financial growth. In addition, the study recommended that entrepreneurs should review the venture capitalists’ level of control in the business.Item Cash Management Practices and Financial Performance of Livestock Marketing Cooperative Societies in Marsabit County, Kenya.(Kenyatta University, 2025-06) Dae, Malle HidoIn the context of Kenya’s livestock sector, the performance of marketing cooperative societies remains a critical concern due to inconsistencies in financial outcomes and limited clarity on how internal financial practices affect operational sustainability. Despite their significant role in promoting rural economic development and offering market access to livestock producers, many of these cooperatives continue to struggle with issues of liquidity, poor cash flow management, and underutilization of financial planning tools. These challenges undermine their ability to deliver value to members and sustain operations effectively. The research problem addressed in this study centers on the persistent inefficiencies in financial performance among livestock marketing cooperative societies in Marsabit County and the unclear link between cash management practices and financial outcomes. To address this gap, the study explored the influence of specific cash management practices—including periodic cash planning, surplus cash investment, cash flow management, and credit line utilization—on the financial performance of livestock marketing cooperative societies in Marsabit County, Kenya. By examining these practices, the study sought to understand whether internal cash handling strategies significantly contribute to or detract from the economic performance and sustainability of these cooperatives. The study is grounded in Keynesian theory of money, free cash flow theory, and stakeholder theory, which provide a robust conceptual framework for evaluating how financial decisions impact stakeholder value and organizational health. A quantitative research approach was adopted to assess the relationships between cash management variables and financial performance. The research employed a descriptive research design to gather empirical data from the target population. Stratified random sampling was used to select 86 respondents from twelve active livestock marketing cooperative societies operating in the county between 2019 and 2023. Primary data was collected using structured questionnaires administered to finance department staff, while secondary data was sourced from financial audit reports available at cooperative offices and the Ministry of Cooperatives. Data analysis was carried out using SPSS Version 25, with descriptive statistics used to summarize the data and regression analysis applied to examine the relationship between variables. The study established that effective cash management practices—particularly periodic cash budgeting, proper investment of surplus funds, and consistent monitoring of cash flow—contribute positively to the financial performance of livestock marketing cooperatives. Moreover, the use of decentralized financial systems and software tools was identified as a key enabler for improving financial visibility and control across departments. The findings suggest that many cooperatives underperform due to a lack of structured financial planning and limited institutional capacity to manage liquidity risks. Based on these findings, the study recommends that managers of livestock marketing cooperative societies in Marsabit County should adopt and institutionalize formal periodic cash planning processes to enhance budgetary control. Societies should also develop clear investment strategies for surplus cash to generate additional income. Strengthening cash flow monitoring systems and adopting decentralized accounting software can also promote timely financial decision-making. Furthermore, the study suggests that credit lines should be strategically utilized to bridge short-term cash gaps without jeopardizing long-term financial stability. On the policy level, government regulators and cooperative development agencies are encouraged to create a supportive regulatory environment, invest in cooperative capacity building, and develop infrastructure that enhances market access and financial integration for rural cooperatives.Item Credit Appraisal Procedure on Credit Accessibility among Small Scale Traders in Githurai Market, Kenya.(Kenyatta University, 2024-05) Chirchir, Jared KipngetichThis study examined how small-scale traders in Githurai Market, Nairobi City County, were affected by credit appraisal methods and how easy it was for them to obtain credit financing. The study aimed to investigate the impact of credit appraisal procedures on credit accessibility for small-scale traders in Githurai 45 Market, Kenya. The research objectives were to examine various factors influencing credit access, including credit history, collateral, and income stability. A mixed-methods strategy was used in the study, integrating qualitative interviews with quantitative surveys. The sample size included 169 small-scale traders and 9 financial institutions (5 banks and 4 MFIs). The quantitative findings revealed that collateral availability, credit history, and business income significantly affect access to credit for small-scale businesses. Financial institutions rely heavily on collateral and credit scores during credit appraisal. Qualitative data highlighted the challenges faced by Githurai 45 Market small-scale traders in obtaining credit and the importance of financial literacy programs, streamlined loan application procedures, and alternative credit scoring models. The study found that there is need for collaborative initiatives between financial institutions and government-backed programs to enhance credit availability for underprivileged groups and reduce information asymmetry in credit access. The research findings are supported by theories such as the Credit Channel Theory and Information Asymmetry Theory. The study recommended reviewing credit appraisal criteria to include non-traditional measures, expanding government assistance programs, improving collaboration between stakeholders, encouraging financial literacy, streamlining loan application procedures, creating alternative credit scoring models, and partnering with technology companies. Further research is needed to explore alternative financing solutions and assess the impact of financial literacy programs on small-scale traders' access to credit.Item Prudential Regulations and Financial Performance of Commercial Banks in Kenya(Kenyatta University, 2025-04) Tenai, Salome JemutaiCommercial banks hold great significance as they assume a crucial function in the allocation and dissemination of a nation's economic resources. The pivotal roles undertaken by commercial banks, it is imperative that they remain sound in the aspect of liquidity, asset quality and capitals. A sound and healthy banking sector can only be ensured through prudential regulations. The Kenyan banking industry in recent years has been marred by dwindling financial performance. Some surveys have been performed on prudential regulations and performance of commercial banks financially; however, these studies have various research gaps which in turn forms the basis for this survey. The general objective was to determine prudential regulations effect on Kenyan commercial banks’ performance financially. Specifically considered was to evaluate the capital, credit and liquidity regulations effect on Kenyan commercial banks performance financially. The survey further assessed the interest rates moderating effect on the linkages concerning prudential regulations and commercial banks Kenya’s performance financially. The theoretical scope comprises of Agency, Capital Buffer and Liquidity Preference theories. The survey was guided by causal design of the research while secondary information was used for the time scope 2015 to 2021. The population of the survey comprised of the Kenyan forty-one commercial banks and a census of these banks was undertaken. Descriptive (mean and deviation from standard) and panel regression analysis techniques was applied in transforming the data into interpretable and usable forms. The results indicated that capital regulation had positive and insignificant effect on financial performance; credit regulation had a negative and significant effect on financial performance; liquidity regulation was insignificant and negatively affected financial performance of Kenyan commercial banks. Additionally, interest rate moderated the relationship between prudential regulations and financial performance with an inverse and insignificant sign in Kenya’s commercial banks. The survey recommends that the management of commercial banks should device a means or set out other policies that will enhance the effectiveness of capital regulations in enhancing the banks financial performance.Item Product Diversification and Financial Performance of Selected Microfinance Institutions in Kenya(Kenyatta University, 2025-05) Rimba, K KitsaoItem Capital Structure and Financial Performance of Tea Processing Companies in Kericho County, Kenya(Kenyatta University, 2025-04) Mibei, JosphatThe tea-growing sector plays a significant role in Kenya's economy. The financial performance of processing companies, particularly within Kenya's tea sector, has shown that financial performance has declined, as evidenced by the return on assets. Therefore, poor financial performance has raised several concerns among the stakeholders, a cause to which previous studies have not addressed conclusively. This pursuit of enhanced financial performance has led scholars and financial strategists to focus on capital structure as a critical component of financial strategies to improve firm performance. Therefore, this study examined how capital structure affects the performance of Kenyan tea processing enterprises in Kericho County. Specifically, the study scrutinized how financing of the tea growing companies in Kericho County using debt and equity financing will affect their financial performance. Additionally, the study assessed whether, firm size can moderate association between capital structure and the financial performance of tea processing companies in Kericho County. The study was anchored on Agency Theory, Modigliani and Miller's Proposition I and II and the Static Trade-Off Theory of Capital Structure. An explanatory research design was adopted, targeting three tea processing companies located in Kericho County, with a census approach employed to include all tea factories in the study. The research study used Secondary data primarily collected from the financial statements of these companies. Data was collected using documentary guides and data sheets. Before data analysis, diagnostic tests, including autocorrelation, multicollinearity, heteroscedasticity, model specification, and unit root tests, were conducted. The data was analyzed using inferential analysis and descriptive statistics including standard deviation, frequencies and mean. Inferential analysis focused on Pearson moment correlation to measure study variables correlation, and regression analysis to measure the strength of the study variables relationship. The panel data regression model was utilized. The results also depicted a negative correlation between return on asset, debt, and equity financing. Further, both debt and equity financing depicted a significant influence on the financial performance of tea processing companies. However, firm size had no moderating influence on the relationship between financial performance and capital structure. The study concluded that capital structure did not significantly influence the financial performance. Consequently, the study recommended that tea companies need to determine an optimal capital structure that maximizes returns and minimizes costs. This could involve a balanced strategy in leveraging debt and equity to finance operations and growth, thereby enhancing their financial performance. Above all the ethical considerations that govern research undertakings were adhered toItem Social-Economic, Business Loan and Follow-Up Characteristics and Repayment of Youth Enterprise Development Fund Offered By Commercial Banks in Trans-Nzoia County, Kenya(Kenyatta University, 2024-06) Mwangi, Kamau StephenYouth empowerment is vital for any nation. The Kenyan Government initiated the Youth Enterprise Development Fund (YEDF) to empower the youth. The objective of the fund was to provide loans for the youth to start income generating activities. Access to finances among the youth, women and many individuals in the informal sector running micro enterprises remains a great challenge at local, national and international levels. In Kenya, access to finances to individuals and groups who do not have conventional securities remains a great challenge. The Youth Enterprise Development Fund, the Women Fund and the Micro Small and Medium Enterprise Fund are among government initiatives established with an aim of making finances available and easily accessible in partnership with commercial banks to this class of the more vulnerable groups who would otherwise not be in a position to access bank loans. Statistics show that despite the uptake of these loans by youth enterprises, repayment is a big problem as many of them default. National loan recovery currently stands below 25% for the youths for the last 13 years the programme has been in place. However, there is limited evidence on factors behind higher rates of loan default among loan borrowers in Kenya. The purpose of the study was to investigate these factors focusing on youth enterprises in Trans Nzoia County in Kenya. Specifically, the study sought: to ascertain the borrower's social economic characteristics that influence loan repayment of Youth Enterprise Development Funds in Trans-Nzoia County, to ascertain how loan characteristics influence Youth Enterprise Development Funds payback in Trans-Nzoia County, to ascertain how business performance characteristics impacts repayment of Youth Enterprise Development Funds in Trans-Nzoia County, and to evaluate how repayment structure and follow-up measures impacts the repayment of Youth Enterprise Development Funds in Trans-Nzoia County. Information asymmetry, the moral hazard, experiential learning and planned behavior theories were adopted by the study to understand factors influencing loan repayment. The study employed a descriptive survey design. The study targeted youth enterprises in Trans Nzoia County together with the commercial banks which lend them money. The study employed stratified sampling design to select a total of 65 individuals who were interviewed with the use of a questionnaire. These individuals included: 5 bank officials, 5 group leaders and 55 group members. The study used primary data to source for information from the respondents. The questionnaire was utilized to collect data. The collected data was analyzed through the use of SPSS version 20.0 for windows and a panel regression model. Descriptive statistics was employed by the study to analyze data. Among the diagnostics tests conducted include normality tests, heteroskedasticity test, and multicollinearity. The study ensured that ethical considerations were adhered to. The study findings indicated that social economics factors, loan characteristics and business performance character tics influenced repayment of YEDF and that borrower’ follow-up characteristics do not influence repayment of YEDF. The¬ regression results showe¬d a slight increase of units in the loan repayment as social economic factors, loan characteristics and business performance characteristics increased, holding all othe¬r factors constant hence suggesting that borrower, social economic factor, loan characteristics and Business performance characteristics statistically influence loan repayment of YEDF. The¬ regression results showe¬d a slight decrease of units in the loan repayment, holding all othe¬r factors constant hence suggesting that follow-up measures do not statistically influencing loan repayment of YED.Item Automated Tax System and Tax Compliance among Large Taxpayers in the North-Rift Region in Kenya(Kenyatta University, 2025-05) Tarus, Mark KiplimoTax compliance is a key emphasis area of the Kenya Revue Authority in a bid to maximise revenue collection to finance government services. However, complex processes and ineffective methods of revenue generation continue to mar tax compliance especially among the large taxpayers in the North Rift. This study sought to investigate the influence of automated tax system on large taxpayers’ tax compliance in the North Rift region, Kenya. The specific objectives that the study intended to achieve included to determine the effect of online tax payments on tax compliance among large taxpayers in the North-Rift region, Kenya; to find out the effect of online submission and issuance of tax related documents on the tax compliance among large taxpayers in the North-Rift region, Kenya; and to analyse the effect of automated taxpayer reports and statistics on the tax compliance among large taxpayers in the North-Rift region, Kenya. The study was underpinned by the general systems theory, the Unified Theory of Acceptance and Use of Technology, and fiscal exchange theory. A descriptive research design was adopted by the study to guide data collection and analysis procedures. The study’s target population was 200 large taxpayers operating in North rift region, Kenya from which a random sample of 133 participants was selected with the use of Yamane’s (1967) formula. The study utilized structured questionnaires as a tool for data collection from 133 financial managers purposively selected from the 133 randomly selected large taxpayer companies in North rift region, Kenya. Data collected was entered into the Statistical Package for Social Sciences (SPSS) and quantitatively analysed using descriptive statistical techniques namely mean, percentages, and standard deviations, and inferential statistical analysis techniques namely correlation analysis and multinomial logistic regression analysis. The study followed ethical considerations such as asking for participants’ consent, maintaining given information confidentiality and obtain research permit from National Commission for Science, Technology and Innovation. The researcher was confident that the study findings were capable of being used to inform research, revenue collection practice, and academics. The findings were presented in figures and tables. The study established significant and positive influence of online tax payments (Coeff=0.108, Sig=0.032), online submission and issuance of tax related documents (Coeff=0.344, Sig=0.043), and automated taxpayer reports and statistics (Coeff=0.490, Sig=0.007) on tax compliance among large taxpayers in the North Rift region of Kenya. As expected, the results proved beneficial to researchers and academicians, Kenya Revenue Authority, and large taxpayers’ managers. Based on the study findings, tt was recommended that the Kenya Revenue Authority (KRA) reinforce its automated tax system infrastructure and actively engage large taxpayers in the North Rift while also pursuing legislative, administrative, and policy reforms to sustainably enhance tax compliance and boost long-term revenue collection.Item Mergers, Acquisition and Financial Performance of Commercial Banks in Kenya(Kenyatta University, 2025-05) Chengo, Fadhili DennisMergers refers to an agreement that unites firms in which one firm is formed after the event while Acquisition refers to the purchase and ownership of a controlling stake of the other firms share capital. Mergers and acquisitions has been a source of growth option for several firms; whose main goal is to maximize the shareholders’ wealth. Numerous scholars around the globe have failed to establish through a report which is conclusive on Mergers and acquisitions impact on financial performance of the resultant firm, by putting into consideration legislative amendments that may take effect, therefore providing the basis for this research. The goal was to discuss Mergers, acquisitions and Financial of Kenyan commercial Banks guided by the following variables forming the specific objectives: customer portfolio, market share, shareholders value and income diversification. The study also used monopoly-market power theory, theory of financial synergy, resource-based theory and agency to expound on the specific objectives. The causal design was used in the study; the research was conducted in Kenya with a target of 10 banks which merged during the period of study (2013-2021) out of 38 licensed to operate, and used secondary data captured from official Central Bank of Kenya, supervisory reports and statements showing the status of commercial banks under review. It further conducted predictive statistics that included multivariate regression and findings analyzed through excel and Statistical Package for the Social Sciences software (version 20) respectively data presentation done in form of tables.The study was restricted to banks based in Kenya: Combinations of businesses had a beneficial influence on profitability and dramatically manifested its outcomes as per findings reported. It supports the findings of lovestam, kiran and Ingham (2011), who examined the effects of mergers and acquisition on the 500 top companies (without focusing specifically on the banking sector). They findings illustrated through regression analysis that merged banks experienced an upward trend in return on equity, while correlation analysis depicted a strong relationship between the dependent variables and independent one, notably banks after merger would diversify their sources of income by using a variety of creative concepts in order to boost their profits