Financial Management and Growth of Agro-Based Manufacturing Sector in Kiambu, Kenya
Ogum, Irene Atieno
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Agro - based manufacturing industries plays a significant role in the growth of world economies. In most economies, agro- based manufacturing industries have developed and grown significantly while in others the growth has rather been sluggish. To a large extent financial management practices playa crucial role in the growth of these agro-based manufacturing companies. In Kenya, key activities of the economy and the agro-based manufacturing are still sluggish. This is perhaps as a result of financial management practices in a developing country' such as Kenya which entrepreneurship is the pillar to its development. The growth of agro-based manufacturing sector in Kenya has been investigated from various dimensions like asset base, efficiency, capitalization and scarcely on the role of financial management practices. This study was 10 assess the effect of financial man~gement ractices on the growth of agro-based manufacturing sector in Thika, Kiambu County. Profitability and growth of shareholders value and assets were to be the measure of financial performance. The specific objectives of the study were to assess the effects of budgetary practices, financial planning, internal control and accounting practices on financial performance of manufacturing firms. The study was conducted among 17 agro-based companies in the manufacturing sector in Thika. The population of the study was 1020 staff of the enterprises. Sampling techniques of simple random, stratified and purposeful sampling were used to come up with a sample size of 104 respondents. Data was analyzed descriptively to come up with mean, standard deviation, tables and charts that gave meaning to the data. The study was expected to come up with findings and recommendation that was to offer a situational analysis of the state of manufacturing firms and ways of improving financial management practices and financial growth.