RP-Department of Applied Economics

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Impact of Covid-19 on the Financial Stability of Commercial Banks in Kenya
(European Journal of Economic and Financial Research, 2024) Mathenge, Noah Muthondu; Muniu, Joseph
Countries worldwide were gripped by the COVID-19 pandemic for the greater part of 2020 and 2021. COVID-19 spread to virtually all nations around the globe, causing a contraction of the global economy, and Kenya was no exception. Governments worldwide deployed social distancing, lockdowns, and curfews, which resulted in employee lay-off, business closure, and suppressed demand for commodities and services, eventually trickling down to commercial banks. The Kenyan banking sector experienced deterioration in asset quality which has been worsening since 2014 when it stood at 5.6 percent, reaching an all-time high of 14.5 percent in 2020 whereas Return on Assets which has also been declining since 2014, stood at 4.46 percent dropped to a record low of 2.07 percent in 2020 during the pandemic. This study, therefore, sought to determine how the financial stability of Kenyan commercial banks has been impacted by the COVID-19 shock. The study sought to specifically establish how both Z-score and capital adequacy of Kenyan commercial banks were impacted by the COVID-19 pandemic. Financial intermediation theory, Capital buffer theory, and Financial Instability Hypothesis anchored the study. The research design embraced was non experimental, while the financial stability proxy was Z-score. The study’s target population was 19 commercial banks in Kenya between the years 2015 and 2022, which had complete data on all the study variables. Annual bank-level data was obtained from Kenya`s Central Bank`s annual supervision reports from 2015-2022. Event study methodology was used while collecting data whereby, the event window was 2020-2021, the period before the event (COVID-19) was 2015-2019, and the period after the event was 2022. The study espoused a panel vector autoregression model in data analysis where the impulse response functions were generated. The researcher discovered that the COVID-19 pandemic adversely impacted Z-score and capital adequacy. Based on the research findings, the Government of Kenya ought to institute non-disruptive pandemic control measures such as proper hygiene and wearing of masks as opposed to quarantines and lockdowns, which are detrimental to commercial banks' operations and other businesses, ultimately leading to a decline in income for commercial banks. Moreover, since capital acts as a shock absorber for banks, Kenyan commercial banks should strive to achieve and maintain the minimum capital adequacy ratios set by the Central Bank of Kenya. This will ensure that commercial banks in Kenya cushion themselves against economic shocks generated by pandemics such as COVID-19.
The 2008 Global Economic Crisis and Public Expenditure: A Critical Review of the Literature
(Advances in Management & Applied Economics, 2014-04-10) Gatauwa, James M.
The United States of America subprime mortgage market precipitated the occurrence of the 2008 global economic crisis that has made financial disruptions the world over. Therefore there has been the need to evaluate the extent to which this crisis affected economies globally. Hence, the effect of the 2008 global economic crisis on public expenditure was reviewed. The paper concludes that economies whose public expenditures were significantly affected by the crisis were those closely integrated to the US financial markets, those with imprudent macroeconomic measures at the pre-crisis period and those with a high level of export dependence. Also the interrelation between macroeconomic factors and public expenditure as influenced by economic policy indicates that the crisis caused the macroeconomic factors to deteriorate. Hence this led to governments adopting economic policy measures that could curtail the crisis effect on public expenditure.
Impacts of Regional Integration and Market Liberalization on Bilateral Trade Balances of Selected East African Countries: Potential Implications of the African Continental Free Trade Area
(mdip, 2024-06-19) Onono, Perez; Omondi, Francis; Mwangangi, Alice
This study examined the effect of free trade on intra-African bilateral trade balances for Kenya, Rwanda, Uganda, and Tanzania to assess the potential implications of the African Continental Free Trade area. The four countries have experienced persistent trade deficits. Whether free trade within Africa can improve the national trade balances, and the drivers of bilateral trade balances are important questions for policy and strategic programmes for the countries to make the most gains from free trade area. The econometric model estimated for each country is an extension of the standard Keynesian model of trade balance to include determinants of bilateral trade flows from the gravity model. Quantitative analysis using panel regression was augmented with qualitative data from interviews with trade policy experts and trade officials from various African countries and focus group discussions with small-scale cross-border traders at the Busia and Namanga border posts in East Africa. Findings show that complete tariff elimination on intra–African trade may not impact the bilateral trade balances of Kenya, Rwanda, and Tanzania but could improve bilateral trade balances for Uganda by 6 percent. Within the free trade areas, Uganda’s bilateral trade balances were higher within the Common Market for Eastern and Southern Africa but lower within the East African Community, than outside these areas. Kenya’s trade balances were lower in the Common Market for Eastern and Southern Africa, than otherwise. On the contrary, no significant difference in trade balances is established for the membership of Kenya, Rwanda, and Tanzania in the East African Community; Rwanda in the Common Market for Eastern and Southern Africa; and Tanzania in the Southern African Development Community, when compared to trade balances with nonmembers. The importance of macroeconomic factors is demonstrated by the increase in bilateral trade balances with higher relative price levels of trade partners; the reduction with increase in relative production and expenditure capacities of trade partners; and improvements following a depreciation of home currency for Tanzania and Uganda, yet a worsening of trade balances in Kenya. A lack of harmony in documents required for cross-border movements within the free trade areas is reported as counterproductive. All African countries should therefore fully implement protocols and cooperate in the harmonization of trade procedures for the free movement of people and goods across borders. Country policies and trade programmes should pursue increased productivity in the leading intra-African export sectors and diversify exports via foreign direct investment in strategic sectors to substitute imports from outside Africa; reduce costs of production; increase the quality of products; and improve transport infrastructure.
Effect of Foreign Debt on Literacy Rate in Kenya
(EJEFR, 2024) Wafula, Gideon Makhanu; Njaramba, Stephen Githae
This paper investigated the effect of foreign debt on the literacy rate in Kenya. In the fiscal year 2021/2022, public debt as a percentage of gross domestic product was 67 per cent, which was higher than the debt ceiling of 55 per cent of gross domestic product. External debt accounted for 52% of this total debt as of 2022, exhibiting a consistent increase since 2013, surpassing domestic debt. The burden of servicing foreign debt may subsequently pose a challenge to the government in fulfilling its commitments in the education sector. Consequently, lower literacy rates impede a nation's socio-economic progress as literacy is critical for promoting peace and adopting new technologies, both of which drive development. This study used the primary school completion rate as a proxy for literacy. Secondary data published in international and national organizations from 1990 to 2021 was employed for analysis. The study’s theoretical framework was pegged on a consumer utility maximization of a merit-good education constrained by the government's financing. The relevant time series and diagnostic tests were performed on the data series and models. Auto Regressive Distributed Lag model was used for estimation using ordinary least squares. The findings were that foreign debt hurt the literacy rate in the long run and had a positive effect in the short run. The study recommends prudent management of foreign debt, so that it can facilitate improvements in the education sector.
Public Debt and Macroeconomic Stability among Sub-Saharan African countries: A System GMM Test Approach
(Cogent Economics & Finance, 2024-02) Sumba, Jerry Ogutu; Ochenge, Rogers; Mugambi, Paul; Musafiri, Collins Muimi
This study examined the effect of public debt on macroeconomic stability among 45 sub-Saharan African (SSA) countries for the period 2005–2022 using the two-step system Generalized Method of Moments (GMM). The study disaggregated public debt into domestic and foreign borrowing and determined the effect of each on inflation and economic growth. In agreement with recent studies, we found compelling evidence of negative effect of both domestic and foreign borrowing on economic growth and a positive effect on inflation among SSA countries. The empirical results reveal that a unit increase in domestic borrowing reduces economic growth by 0.06 percent and raises inflation by about 0.14 percent, while the same increase in foreign borrowing reduces economic growth by 0.01 percent and increases inflation by 0.05 percent holding other factors constant. These results imply that increase in public debt causes macroeconomic instability, and that domestic borrowing has a relatively larger impact on macroeconomic variables compared to foreign borrowing. The policy implication of the current study is that SSA countries should avoid excessive borrowing by operating a fiscal deficit within individual country threshold limits to contain growth in public debt. The SSA countries should also ensure borrowed funds are channeled into projects that bring revenue and other investment opportunities to amortize the debt stock.
Effects of Financial Sources and Socio-Cultural Factors on Performance of Women-Owned Manufacturing Enterprises in Kisumu City County, Kenya
(EJEFR, 2023) Otieno, Julia Adongo; Wawire, Nelson
Women-owned enterprises play a significant role in contributing to a country's Gross Domestic Product (GDP) by creating employment opportunities. However, the manufacturing sector in Kisumu City County, has witnessed poor performance, coupled with less than 10 percent of the women participating in this sector. Despite this poor performance and low participation rate, there has been limited exploration into the factors influencing the performance of women exclusively within this sector. Therefore, the study aimed to determine the effects of financial sources and socio-cultural factors on the performance of women-owned manufacturing enterprises. The study employed a descriptive research design. Data was gathered through a questionnaire administered to 48 women selected using a simple random sampling technique. Descriptive and inferential statistics were applied to analyze the data using Excel and STATA Software. The results of multiple regression analysis established that women who secured funding from banks during shortages and initial capital depicted high performance. Additionally, factors such as household size, spousal decision-making regarding property utilization, and spousal control over the enterprise earnings had a negative effect on the performance of women-owned manufacturing enterprises in this County. The study recommends that policies need to be formulated to finance informal sectors such as Chamas where the majority of women prefer to increase the amount of loan accessed. Additionally, women should acquire more advanced entrepreneurial skills that are instrumental in making independent decisions and having better control over productive resources without utterly relying on their spouses.
Interest Rate and Performance of Value Added Tax in Kenya
(IAJEF, 2023-10) Nyambu, James Kitogho; Mwiathi, Peter Silas
In order to provide basic necessities for its citizens, governments must rely on revenue from many streams, including taxes such, Personal income tax, value-added tax corporate taxes and other levies. In Kenya, the skewness of the tax structure lies strongly favouring value added tax and income Taxes as the two main tax revenue sources. Despite numerous tax reforms undertaken by the government, Kenya has had recurring national budget deficits similar to majority of SubSaharan African countries. In the year 2005 the budget deficit was at 0.90% and the trend has been upward to a deficit of 8.06% in the year 2020. Several variables, including interest rates, determine how much VAT is collected. In Kenya, interest rates have been unpredictable which forced the government to cap the interest rates in September 2016 at 14% aiming at protecting borrowers from excessive cost of credit. The capping was however repealed in November 2019 allowing commercial bank to be in control of their loan pricing based on the borrower’s risk profile. The purpose of this study was to determine how interest rates affect VAT's performance in Kenya. The Value Added Tax (VAT) receipts collected by the Kenya Revenue Authority from 1990 to 2020 are the primary topic of this descriptive research. Institutional archives provided secondary time series data, including those of the Central Bank of Kenya, the Kenya National Bureau of Statistics, and the Kenya Revenue Authority. Secondary data was collected in the course of the study by using data collection sheets. Descriptive and regression analysis, the study found that interest rate had negative effect on value-added tax collected in Kenya. The study thus recommends that the Government should regulate the rise in the level of interest rate in the country in order not provoke price instability in the country.
Effect of Diaspora Remittances on Economic Development in Kenya
(International Journal of Economic Policy, 2023) Fartun, Adan Issack; Nzai, Charles
Purpose: This study intended to establish the effects of remittances from Kenyans residing abroad on the country's economic growth from 1988 to 2021. The study specifically calculated how diaspora remittances would affect the country's absolute poverty from 1988 to 2021, as well as how they would affect gross domestic product and gross national product. Methodology: The study implored the error correction model to conduct the estimation due to the stochastic nature of remittances. The modified Granger causality test by Toda and Yamamoto was applied to examine the connections between GDP and remittances as well as the connections between poverty and remittances. Using STATA software, an econometric estimation was performed. Findings: According to the study, remittances per capita had a significant impact on Kenya's GDP, GNI, and degree of absolute poverty. It was discovered that GDP and GNI per capita were granger causes of remittance per capita, but neither absolute poverty nor remittance per capita were granger caused by absolute poverty. Unique Contribution to Theory, Policy and Practice: The report recommends that, in order to guarantee a steady stream of remittances into the country's economy, essential efforts be taken to stabilize the currency rate and inflation.
Household Heads Characteristics and Access to Water in Kenya
(ESJ Social Sciences, 2022) Omondi, Beatrice Anyango; Mdoe Idi, Jackson
Kenya has taken numerous steps in ensuring universal access to water among all households by 2030. However, the country may not achieve this by 2030 due to challenges related to the implementation of objectives including inadequate data on the indicators to allow for better policy formulation. The study aimed at finding out the effect of household head characteristics on access to water. The study employed multinomial logistic regression modeling using 2015/2016 Kenya Integrated Household Budget Survey data. Arising from the study findings, an increase in the income of the household head led to an increase in the household’s access to clean water. Education levels (primary, secondary, and tertiary) of household heads compared to no education increased the probability of household heads selecting clean water sources. Being employed as well as being male increased the probability of accessing clean water. Further, residing in a rural area by a household head reduced the probability of using clean water compared to residing in an urban area. Based on the findings, the study suggests that there is a need to develop a policy around the key and significant household head characteristics to improve access to clean water in Kenya.
Effects of Interest Rate on Housing Prices in Kenya
(IPRJB, 2022) Koome, Rodrick; Njaramba, Stephen Githae
Purpose: The objective of the study was to examine the effect of interest rate on housing prices in Kenya. Methodology: The study used annual quantitative data for period 1960 to 2017. It employed Nonlinear Autoregressive Distributed Lag (NARDL) in determining the effects of negative and positive series of interest rates on housing prices. Findings: A non-linear relationship between interest rates and housing prices was confirmed. Both the negative series and positive series of interest rate portrayed a negative effect on housing prices in short run. For long run, positive series have positive effect on housing prices while the negative series have negative effect. Unique Contribution to Theory, Practice and Policy: A completely developed theoretical model putting together all meaningful inter-linkages between macroeconomic variable and price of housing is absent. The only ultimate way to address the issue is through empirical means. The findings indicate the presence of a non-linear relationship between interest rate and housing prices. The Central Bank of Kenya can change the Central Bank Reference rate (CBR rate) to alter the cost of money and consequently housing prices. In formulating a policy change, the Central Bank of Kenya should be cognizant of both the non-linear relationship existing between interest rates and prices of housing and the different magnitudes of effect of the positive and negative series on housing prices. When housing prices increase, either an increase or decrease the interest rate by the CBK will result to a downward movement in prices of housing in the short run, but at higher magnitude from the interest rate decrease. For the long-run, a decrease in interest rate will decrease housing prices, making housing affordable and improving the standards of living for citizens. Any upward movement in interest rate will result to a long-run increase in housing prices making housing more expensive and consequently out of reach of most citizens.
Informality and Total Factor Productivity in Kenya
(IPRJB, 2022) Opondo, Mary Awuor; Etyang, Martin N.; Ayieko, Onono - Okelo Perez
Purpose: The Kenyan economy is largely informal. The objective of the study was to establish the effect of size of the informal sector on total factor productivity in the country. Methodology: The study was based on the dualist theory of the economy. Data covering the period 1974 to 2016 was sourced from government publications (Economic Surveys and Statistical Abstracts), the Global Financial Development Database and the World Development Indicators. A growth accounting exercise was conducted using the Cobb-Douglas production function based on the Solow growth model. This enabled the decomposition of output growth to the contributions of labour and capital with a residual, commonly referred to as the total factor productivity which was the dependent variable in the study. The study was non-experimental and utilized a longitudinal research design using macro-level data thus limiting the possibility of data manipulation. Various theoretically and empirically recognized determinants on TFP were included as control variables. The analysis was conducted using ordinary least squares. Findings: The findings show that the size of the informal sector has a negative and statistically significant effect on total factor productivity in Kenya. Given the large informal sector, the study concluded that there is need to increase productivity of the sector in the country for improved economic performance. Unique contribution to theory, practice and policy: From the study findings, the informal sector has a negative and statistically significant effect on total factor productivity in Kenya. The study recommends the development and implementation of policies to enhance productivity in the sector. These include market and technological development, improved infrastructure and access to credit facilities.
Effect of Exchange Rate Misalignment on Bilateral Trade Between Kenya and European Union: 2000-2016
(European Scientific Institute, 2021) Gachoki, Charles Munene; Okeri, Susan; Korir, Julius
The exchange rate is an important variable in international trade because a country's competitiveness is determined by the expectations on how trade reacts to its movements. To orient the economy outwards, Kenya has pursued various measures from the 1990s to the 2000s. Kenya also signed up for nonreciprocal trade with the European Union under the Cotonou agreement. Despite the export-oriented efforts, Kenya's trade has remained skewed towards imports and a widening trade deficit which seems to follow the weakening of the Kenya shilling. The main policy dilemma therefore, is how imports accelerated in an environment of unhindered European Union market access, hence the motivation of this study. The study adopted a dynamic modeling approach since previous and present values affect exchange rate and trade. The results show that the economic fundamentals drive the real exchange rate. In terms of misalignment, the exchange rate is overvalued to a maximum of 5.9 percent and undervalued up to 5.2 percent. The estimated misalignment hurts imports but has a positive, statistically insignificant effect on exports. The results of this study suggest that the monetary authority should ensure the exchange rate remains stable and within the 6 percent range while monitoring all the underlying determinants. Additionally, hedging instruments should be made available and affordable to traders.
Trade Openness and Female Employment: An Empirical Sectoral Analysis from Kenya
(International Academic Publisher, 2022) Gachoki, Charles Munene
Gender equality promotes a country’s development potential and is therefore considered to play an important role in economic development. This study probes the effects of economic determinants on female employment in the agricultural sector in Kenya by considering economic and social factors. The study employs the ARDL approach for the period 1980-2019. There is a longterm link between economic and social determinants and female employment in the agricultural sector, which has been validated empirically. The results indicate that per capita income, inflation and exports encourage female employment, while foreign direct investment, fertility rate and imports impact female employment in the agricultural sector negatively in Kenya. The main policy implication based on results is that trade openness in form of exports should be promoted to increase female employment in the agricultural sector in Kenya. There is a need to shift Kenya's imports from food-based to capital-intensive imports to promote women's employment in the agricultural sector. IJSB Accepted 19 August 2022 Published 25 August 2022 DOI: 10.5281/zenodo.7022792
Effects of Collective Action on Performance of Women-Owned Manufacturing Enterprises in Selected Counties in Kenya
(EJEFR, 2023) Tsuma, Faith Achungo; Wawire, Nelson
Micro, Small, and Medium Enterprises (MSMEs) are imperative in boosting manufacturing in Kenya. Stakeholders including the government have advanced initiatives to promote MSMEs by providing affordable loans and developing policies to help them thrive. Despite these efforts, there is sluggishness in the way manufacturing enterprises owned by women perform. Collective action could be employed to reverse this situation considering that most women are good at networking. This study’s objective is to determine the effect of collective action on the performance of womenowned manufacturing enterprises. The study uses the primary data collected by interviewing 55 women who owned enterprises. The women were selected through a simple random sampling technique and a structured questionnaire administered. This data was complemented by published data from government policy documents. Descriptive statistics, correlation, and regression analyses were done to establish the degree to which collective action influenced how women-owned manufacturing enterprises performed in Kenya. Spearman’s Rank correlation analysis established that collective action was strongly and positively correlated with the performance of womenowned manufacturing enterprises. This was further investigated through regression analysis and it was found that collective action positively affected those enterprises' performance. The study recommends that women who own enterprises in the manufacturing sector should embrace networking through belonging to a group(s) or business organization(s) in order to improve the performance of their enterprises.
Determinants of value added tax revenue in Kenya
(Journal of Economics Library, 2017) WAWIRE, Nelson H.W.
Past studies that have been undertaken on the responsiveness of Value Added Tax revenues to changes in GDP in Kenya have found a positive relationship. However, the studies omit key determinants of tax revenues, such as the nature of the tax system, institutional, demographic and structural features of the economy. Due to this omission, the estimated income elasticities are unreliable for planning purposes, a situation that might be responsible for the recurring budget deficits. The specific objectives of the paper are to establish the determinants of Value Added Tax revenue and assess yields response to changes in bases and reforms. The paper uses Paul Samuelson's (1955) the paper are fundamental general equilibrium analysis of the public sector to derive its main results. The estimation results show that GDP elasticity is less than the elasticities with respect to monetary GDP, suggesting the existence of an underground economy. It is also found that tax yields respond with substantial lags to changes in its determinants and revenues are sensitive to reforms and unusual circumstances. The study concludes that Kenya’s Value Added Tax revenue is very responsive to changes in its determinants especially international trade. There is the challenge of creating a stable Value Added Tax system.
An Empirical Analysis of Foreign Remittances, Education Index, and Human Development in Kenya
(EAJBE, 2023) Musyimi, Daniel Mutuku; Ng’ang’a, Peter
Every government pursues high living standards, appropriate education, and better-quality general wellbeing of its citizens. It is feasible that an economy on the right course of attaining sustainable development goals could flourish in human richness. Kenya endeavours to advance the wellbeing of her people. There has been a rise in human development from 0.468 human development index in 1990 to 0.575 in 2021. This is a 22.86% increase. However, this is low compared to economies with high levels of human development. Kenya is classified at the medium level, below the standards stipulated by the United Nations Development Programme. This classification recommends economies have a high or very high human development index. Numerous studies in Kenya have focused on foreign remittances and education expenditure. This offers diminutive consideration to remittances and human development. This paper seeks to fill this gap by focusing on foreign remittances, education index and human development. This area has only received derisory attention even though foreign remittance has been one of the crucial financial foreign inflows in the country. The paper espouses a nonexperimental research design to explain the effects of foreign remittances on human development by dint of education index conduit. The vector error correction model, a cointegrated vector autoregression model, is applied in this research to analyse data. This establishes a short-term relationship between foreign remittances and the education index while correcting the deviation from the long-term movement of these variables. Secondary time series data for the period 1990 to 2021 is used. Statistical analysis was conducted using E-views statistical package. This paper concludes that foreign remittances in Kenya have negative and significant effects on the education index in the short run. This indicates that a vast amount of remittances received in Kenya are not channelled to educational purposes. The long-run impact is statistically inconclusive.
Influence of Devolved Enterprise Funds on Household Welfare in Kenya
(IPRJB, 2023-05-26) Shibairo, Peter Misango; Ngaruko, Deus D. P.; Wawire, Nelson H. Were
Purpose: Devolved enterprise funds would contribute to increased entrepreneurship and household welfare in Kenya, leading to reduced poverty levels and improved living standards. The extent of the impact of devolved enterprise funds on household welfare in Kenya is uncertain. Despite the funds being available, many entrepreneurs in Kenya still struggle to access capital and other resources needed to start and grow their businesses. This has limited the potential benefits of devolved enterprise funds on household welfare. This study investigated the influence of devolved enterprise funds on household welfare in Kenya. Methodology: The study employed a nonexperimental pooled cross-sectional research design. The study targeted the households listed in the 2015/2016 Kenya Integrated Household Budget Survey which indicated the residence of households’ owners from which a random sample of 384 households was generated using the Fisher’s formula. Cross sectional data were collected from selected households using structured questionnaire. Random utility maximization theory was used to determine people’s choice, preferences and decision making. Simple linear regression model was used to estimate the relationship between variables. The data was presented in tables. Findings: Findings revealed that devolved enterprise funds had a significant positive influence on household welfare in Kenya. Therefore, household welfare will improve if devolved enterprise funds positively influence the welfare of many households in Kenya. Unique Contribution to Theory, Practice and Policy: The study recommends that efforts should be made to simplify and streamline the application and disbursement processes for enterprise funds, particularly for women and youth entrepreneurs who may face additional barriers to accessing funds.
Does Participation in Farmer Field School Extension Program Improve Crop Yields? Evidence from Smallholder Tea Production Systems in Kenya
(ijamad, 2019) Ateka, Josiah M; Onono - Okelo, Perez Ayieko; Etyang, Martin
Agricultural Extension services are among the most important rural services in developing countries. The services are considered to be a key driver of technological change and productivity growth in agriculture. In Kenya, like in the rest of the developing economies, agricultural extension has largely been delivered through supply–driven approaches. Due to perceived low impact of agricultural extension, the country is implementing the National Extension Policy (NEP) which advocates for demand–driven extension and participation of other players. Using the case of the smallholder tea sub-sector, this paper examines the effects the FFS extension on tea crop yields in Kenya. The FFS system uses participatory approaches including the demonstration of best sustainable practices in the farms and farmers learn by doing. Data for the study was collected from a sample of 525 farm households in Western Kenya using a multi stage random sampling procedure and analyzed using the propensity score matching (PSM) model which controls for self-selection endogeneity. The results show that participation in FFS extension increases annual tea yields by an average of 471.70 kgs per acre (p=0.009) while the farmer–funded train and visit system has no influence on crop yields. A part from showing the contribution of FFS to crop yields, the paper demonstrates that the supply–driven extension models including T&V are necessary to stimulate demand in the initial stages of implementing the FFS models. Based on the findings, investments to enhance FFS access among smallholder farmers are recommended.
Effect of Various Categories of Government Expenditure on Economic Growth in Kenya
(IJCAB, 2021) Kimani, Grace Wambui; Maingi, James
In Kenya, government expenditure has been changing tremendously in its composition and size. Noticeably, since Kenya’s independence, government expenditure has witnessed great expansion. However, the country has not achieved consistent economic growth for a long duration of time. Despite the increase in allocation of resources through increasing public spending, economic growth has not grown at the same rate. As such, economic growth did not consummate with the increase in allocation of resources through government expenditure. The study sought to determine the effect of education expenditure, defense expenditure, health expenditure and infrastructure expenditure on economic growth. It used an explanatory research design and secondary time-series data for the period between 1985 and 2018. Data on education expenditure, defense expenditure, health expenditure as well as infrastructure expenditure and economic growth was acquired from Kenya National Bureau of Statistics. The quantitative data was collected, edited and coded into Statistical software known as STATA version 14. Analysis of the quantitative data was based on descriptive as well as inferential statistics. Correlation analysis was employed to assess the strength of correlation between independent and dependent variables whereas regression analysis determined the weight of association between independent and dependent variables. Diagnostic test was performed to test for the regression model assumptions before carrying out regression analysis. The research focused on autocorrelation test, stationarity test, autocorrelation test, normality as well as heteroscedasticity test. The study revealed that education expenditure had a positive effect on economic growth in Kenya. The study found that defense expenditure had a positive effect on economic growth in Kenya. The results revealed that health expenditure had a positive effect on economic growth in Kenya. In addition, the study found that infrastructure expenditure had a positive effect on economic growth. The study concludes that government expenditure has a significant effect on economic growth in Kenya. The study policy implication of the study is that Kenyan government as well as policy makers should formulate policies and guidelines geared towards increasing education expenditure. This will help in ensuring adequacy in a trained, qualified and productive labor that is important in ensuring an improvement in economic growth. In addition, the government of Kenya should allocate at least 15 percent of their total expenditure to the healthcare so as to ensure a productive and healthy workforce. The government also needs to increase infrastructure funding as recommended by the World Bank to between 7 and 9 percent.
Information and Communication Technology Integration and Performance of the Independent Electoral and Boundaries Commission Kenya
(strategic journals, 2023) Bosire, E. E.; Mutuku, M.
The volatile political climate in Kenya was significantly exacerbated by several electoral frauds and transmission delays of the presidential results during this election. The Kriegler Commission suggested the adoption of technology in the electoral process in order to offer effective, transparent, auditable, and credible outcomes, among other significant reforms. The IEBC which was established in 2011 oversaw the general elections of 2013 and 2017. However, in both instances, the IEBC was questioned on how it conducted the elections. Kenya's Supreme Court decided that the latter round of presidential election results was invalid due to vote irregularities. The legitimacy of the official election results, which are frequently rejected, have consequently been at the center of Kenya's electoral crisis. This has eroded public confidence in the digital technologies at IEBC’s. There are significant obstacles to integration of ICT in election process due to budgeting and financial costs, lack of sufficient specialized knowledge, technological drawbacks, low levels of awareness, public employee resistance, information security, laws, necessary technology, and a lack of faith in e-Government. These factors are broadly categorized into technology characteristics, organizational, and individual factors. To this end, this study sought to determine the enablers and impact of ICT integration on performance of IEBC. Diffusion of innovation theory and the technology-organization environment model served as the study's foundations. For this study, a survey design was selected. The target population comprised of 373 permanent employees working at the IEBC headquarters as well as 200 politicians. Purposive, convenience and simple stratified random sampling were applied to select a sample size of 236 respondents. The findings of this study revealed that organizational-level factors, technology characteristics and individual-level factors positively and significantly influence performance of IEBC. This study recommended IEBC to pay particular attention to organizational-level factors that affect ICT integration as they ultimately affect its performance. In this regard, there is need for IEBC to ensure that it is well-equipped to use various innovative aspects, have a high availability of appropriate ICT equipment in the organization, utilize prior expertise in relevant ICT domains, conduct employee training to create a greater understanding, positive attitude, more usage, and diversified use of innovation, and provide adequate training and aiding staff when they encounter difficulties utilizing different technologies. Additionally, there is need to provide proper management support for the adoption and usage of various technologies, avail individual workers with incentives like recognition and awards for innovation adoption, and train them to promote effective completion of specific task performance.

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