Financial Process Reengineering and Financial Performance of Commercial Banks in Kenya

Abstract

Africa faces a problem of youth unemployment. This rate is even worsening gradually over the years especially due to economic recession facing many countries. Kenya has experienced high rates of unemployment and has introduced projects that can be able to help the youth. The Youth Enterprise Development Fund was launched in order to address the youth unemployment issue by ensuring they provide loans and equip the youth with appropriate skills to creatively engage in economically beneficial activities. However, lack of supportive implementation structures has occluded the youth from accessing such loans. This research project aimed at establishing the influence of stakeholders on the implementation of the youth enterprise development fund project. This research was based on four independent variables to get four specific objectives: to determine the influence of the government, the project beneficiaries’ influence, the project team influence and the project sponsor influence on the implementation of the YEDF Project Machakos County, Kenya. The theories applied were: The stakeholder theory, the theory of change and the theory of participation. The study used a descriptive research design. The target population for this research was 100 projects under the YEDF. The respondents were the project managers. Sample size was determined using Fisher’s formula to get 78. The data collection instrument was through a structured questionnaire which was structured into a 5 scale Likert scale of strongly agree to strongly disagree. Prior to actual data collection, the questionnaire was subjected to a pilot test in order to test the validity and the reliability of the statements. Content validity was tested using expert judgement by the supervisors. Cronbach’s alpha was used to test reliability and a value of 0.7 was considered acceptable. The questionnaire was self-administered to the respondents by the researcher after obtaining permission from the university administration and the Machakos County Management. The data was analyzed using descriptive and inferential statistics using Statistical Packages for Social Sciences and was presented through tables and graphs. The relationship between government influence, project beneficiaries’ influence, project team influence and the project sponsor influence and YEDF projects’ implementation was found to be positive and significant. The study concluded that stakeholders influence YEDF projects’ implementation. The study also concludes that the government, project beneficiaries, project sponsors and project team positively and significantly influences the implementation of YEDF projects. The study recommended that the government should set polices rules and regulations and laws governing the implementation of such projects that are favorable. Project managers are also recommended to remain steadfast in their support for the project by coming up with strategies that they can effectively adopt to ensure successful implementation of the projects. Other stakeholders such as the project team and project beneficiaries and sponsors are also recommended to take up their responsibilities positively in order to ensure proper implementation of the projects.