Effects of Working Capital Management on Profitability of Deposit Taking Microfinance Institutions in Nairobi City County – Kenya
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Date
2024
Journal Title
Journal ISSN
Volume Title
Publisher
IJARKE
Abstract
The aim of this research was to ascertain how working capital management affects the profitability of Deposit Taking
Microfinance Institutions in Nairobi City County, Kenya. The specific objective was to finding out how accounts payable
management affects the deposit of Deposit Taking Microfinance Institutions in Nairobi City-County, Kenya. The study was
based on Liquidity Preference Theory (LPT). The study used a descriptive research methodology the target population was all
14 Deposit Taking Microfinance Institutions in Nairobi City-County, Kenya registered, regulated, and operating from 2018 to
2022. The study employed census sampling technique. The research utilized panel data for a five-year period (2018–2022).
The results were presented in tables for simplicity of perception. The study concluded that there was significant connection
between the cost-effectiveness of Deposit Taking Microfinance Institutions and accounts payable management. The researcher
concluded on several issues one of them being that Deposit Taking Microfinance Institutions should concentrate more on
sustainability measures on accounts payable management as a unit change in APM led to the highest increment on
profitability. The researcher further recommend that other sectors of the economy apart from the Micro-finance institutions be
examined as well as other factors of variables of Working Capital Management can be considered
Description
Research article