MST-Department of Accounting and Finance

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    Working Capital Management and Financial Performance of Small and Medium Enterprises in Wajir County, Kenya
    (Kenyatta University, 2023-06) Abdi, Mohamud Abdille
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    Foreign Direct Investment and Financial Performance of Manufacturing Firms Registered with Kenya Association of Manufacturers
    (Kenyatta University, 2022-10) Abdullahi, Isse Farah
    Manufacturing firms in Kenya have been marred with unprecedented losses even despite government concerted efforts to attract the inflows of foreign direct investors in the manufacturing sector. The worst-hit include: Mumias Sugar Company that recorded a net loss for the periods of 2017 and 2018, East African Portland Cement that also posted net loss for the financial year 2019, Nzoia Sugar Ltd, Sony and Chemelil both recorded losses in the financial year 2014/15. Therefore, it is on this grounds that this research sought to establish the relationship that exist between foreign direct investment and financial performance of manufacturing firms that are registered by Kenya Association of Manufacturers. More specifically, this study sought to determine the effect of foreign equity shareholding, foreign board membership and foreign technological flow on financial performance of manufacturing firms that are registered with Kenya Association of Manufacturers while considering the moderating effect of political risk. The study was informed by the endogenous growth theory, resource view, agency theory and the modern portfolio theory. It was also anchored on pragmatic philosophy. The study used both correlational cross-section survey design targeting firms in the manufacturing sector that are registered by Kenya Association of Manufacturers. This study covered the data obtained from 2017 to 2021 because it was the most current and it was likely that secondary data would easily be obtained across the same. A census was conducted on all the 81 targeted firms. The research employed data primary and secondary sources guided by questionnaire and data collection sheet respectively. The study instrument had been pilot tested to ensure it was valid and reliable enough. A test for normality and autocorrelation was also carried out, after which the collected data was analyzed quantitatively using descriptive and inferential statistics. The data was presented in form of tables, charts and narratives. The study established that foreign equity shareholding
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    Diaspora Remittances and Financial Inclusion in Kenya
    (Kenyatta University, 2021-01) Arthur, Emmanuel Kwesi
    Financial inclusion is important in maximising the developmental impact of diaspora remittances. It formalises remittance inflows, reduce transfer costs and facilitate their investment into productive activities. It plays a multidimensional role in facilitating domestic and international transactions through financial institutions to mobilise migrants’ savings remitted back to their home country and to broaden the credit availability to those at the diaspora and the citizens within. The Kenyan government’s commitment to include the Kenyan diaspora into the national development process led to the launching of Kenyan Diaspora Policy in 2015 as part of the Kenya’s vision 2030 blue print of which financial inclusion is a pillar. Despite this policy interventions by government, the influence of the policy interventions on financial inclusion is not known. This study sought to check if the policy interventions achieved its objective. It examined the effect of diaspora remittances on financial inclusion in Kenya for a quarterly period from 2008 to 2018. The specific objectives of this study were to examine the effect of formal diaspora remittance received per corridor, transaction cost per corridor and remittance channels per corridor on financial inclusion in Kenya. The study also tested the moderating effect of diaspora policy on the relationship between diaspora remittances and financial inclusion. This study was anchored on pure altruism theories, financial literacy theory, asymmetric information theory and financial growth theory. Descriptive and causal research designs were employed in this study. The target population comprised 2 commercial banks and 19 money remittance providers registered with Central Bank of Kenya while the sample population is quarterly data from 2008 to 2018. The census and stratified sampling design were utilised where census method was first used to include the formal diaspora remittance inflows for the ten-year period and then stratified into corridors for the period under study. Secondary data from the Central Bank of Kenya, Kenya National Bureau of Statistics and World Bank was analysed using time series multiple regression analysis. Diagnostic tests were carried out to ensure the time series assumptions were not violated. The results of the study shows that formal diaspora remittances had a positive and significant effect on financial inclusion, remittance transaction costs had a negative but significant effect on financial inclusion while remittance channels had a positive and significant effect on financial inclusion in Kenya. Although diaspora policy had a significant effect on the relationship between diaspora remittances and financial inclusion, the effect was weak. The study recommends that remittances might be volatile due to economic uncertainties hence sound macroeconomic policies and favourable business environment may be put in place by policy makers to maximize the potential benefits of these inflows. Government may consider formulating and implementing policies that seeks to reduce transaction costs within Rest of the World since it greatly affects financial inclusion in Kenya. The financial sector particularly commercial banks may be restructured to embrace formal transfer of diaspora remittances at a cheaper fee. The use of Fintech and MPesa could be greatly encouraged since it turns to positively impacts of financial inclusion. The study also recommended that the everincreasing threat of terrorism necessitates the close monitoring of international flows of funds, which is considerably easier to accomplish when funds flow through transparent, formal channels
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    Financial Innovations and Performance of Tier 111 Commercial Banks in Kenya
    (Kenyatta University, 2022-12) Mwangu, Resa James
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    Corporate Governance and Financial Performance Of Quasi-Government Organizations in Kenya
    (Kenyatta University, 2023-06) Manduku, Erick Obegi
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    Principals’ Financial Management Capabilities and Financial Health of Public Secondary Schools in Nyeri County, Kenya
    (Kenyatta University, 2022-06) Munyalo, Andrew Joseph
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    Budgeting Process and Absorption of Budgetary Allocation for Development in the State Department of Livestock, Kenya
    (Kenyatta University, 2023-02) Okongo, Edmund Wafula
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    Loan Characteristics and Financial Performance of Small and Medium Enterprises in Bungoma County, Kenya
    (Kenyatta University, 2023-07) Wakhungu, Mathew Maruti
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    Financial Risk and Cost Efficiency of General Insurance Companies in Kenya
    (Kenyatta University, 2022-07) Chepkirui, Sharon
    Insurance companies play a key role in protecting customers from the risks that they are insured against them occurs. In order for insurance firms to meet this objective they incur costs that are related o this and so the firms should be financially sound and meet every need as it arises. Cost efficiency is the manner in which the processes and products are transformed to minimize costs in order (0 add value to the firm. Cost efliciency is enhanced through different strategies to make directions, drive innovation, and reduce operational costs as well as to minimize financial risk. There has been increasing inputs in the insurance industry in terms of wages for highly qualified stafY, costly digital software and competition from both insurance and banking sector which may reduce the profitability. General insurance companies in Kenya have been underperforming in recent years leading to massive losses as a result of increased costs and reduced revenues leading to reduced efficiency. The study sought to ascertain the effect of financial risk on the cost cfficiency of general insurance in Kenya. Specifically: credit risk, liquidity risk, interest rate risk, and foreign exchange rate risk on cost efficiency and finally to evaluate the moderating effect of capital adequacy on the relationship between financial risk and cost efficiency. This study used the Neoclassical Theory of the Firm, the Arbitrage Pricing Theory, Theory of Optimal Capital Structure and the X-efficiency Theory. Explanatory research design, and Data Envelopment Analysis model was employed to analyze general insurance companies from 2015 to 2019.DEA and panel data logit model was also adopted. The study targeted 38 general insurance companies in Kenya and formed a sample size of 38 using the census method because of the small number. The study conducted descriptive and inferential analysis. Correlation and logit regression analysis to establish the relationship between the variables. The study found that credit risk and cost efficiency were negatively and significantly related (B=-5.6018, P=0.0123). This mecans that cost efficiency would . increase with a decrease in credit risk. The study also showed that liquidity risk has a negative and significant effect on cost efficiency (=-15.1983, P=0.001). This implies that when liquidity gap increases then the cost efficiency of a firm decreases significantly. Moreover, interest rate risk was positively and significantly related to cost efficiency ratio (B=9.277, P=0.004). This implies that when liquidity gap increases then the cost efficiency of a firm decreases significantly. The study also revealed that foreign exchange risk negatively affects cost efficiency (B=-0.1093, P=0.027). This implies that the bigger the position an insurance firm holds in foreign markets relative to local markets, the more exposed they are to fluctuations in exchange rates. The study therefore concluded that credit risk, liquidity risk and foreign exchange risk had a negative influence on cost cfficiency while interest rate risk had a positive influence on cost efficiency of general insurance companies in Kenya. Finally, it can be concluded that capital adequacy moderates the relationship between financial risk and cost efficiency among insurance firms in Kenya. The study recommends that general insurance companies should have sufficient capital reserves in order to be able to handle financial risks they are exposed to should they occur and that the IRA should set up policies that guide the industry and enable insurance companies to improve their cost efficiency and reduce their exposure to different forms of financial risk. The study also reccommended that further research be conducted on other factors that may affect cost efficicncy apart from those discussed in the study.
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    Financing Options and Growth Rate of Real Estate Development Companies in Kenya
    (Kenyatta University, 2021-04) Njoroge, Geoffrey Muturi
    Financing decisions have been a challenge to real estate developers in Kenya. This has been attributed by capital intensiveness of the projects. It is anticipated that real estate sector should develop at the same rate compared to the demand. In Nairobi County the annual demand is Two Hundred Thousand houses whereas the units supplied is Fifty Thousand on yearly basis thus outlining a deficit of One Hundred and Fifty units. Past studies shows that where a healthy financial market triumphs, investors have options for projects funding. This current study seeks to establish the effect of financing option on real estate growth in Kenya. The specific objectives were; to establish the effect of mortgage financing, retained earnings, private Equity, joint venture and moderating effect of firm size on relationship between financing options and growth rate of real estate development companies in Kenya. The study was anchored by the following theories namely: lien theory of mortgage financing, pecking order theory, transaction costs theory, resource dependency theory and housing cycle theory. The target population of this study comprised of all the seventy-two companies who are members of the Kenya Property Developers Association (KPDA). The sample size comprised of twenty three companies. This study used descriptive research design with a regression model with the regressor being real estate growth rate which was expressed in growth rates of housing units for each firm. Therefore, this study followed panel data analysis as individual firm data was collected for a time span of five years 2014 to 2018. Results showed that mortgage financing positively but immaterially affected growth rates of real estate development companies in Kenya. Further results showed that retained earnings as source of financing option reduced significantly growth rates of real estate development companies. Private equity was found to improve growth rates of real estate development companies positively. Joint venture too positively but inconsequentially influenced growth rates of real estate development companies in Kenya. Lastly, firm size was found to be a non-moderator but rather an explanatory variable and impaired growth rates in a significant manner. Private Equity had significant influence on growth rate hence it was highly recommended for consideration in housing development.
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    Strategic Management Practices, Performance, Kenya Airways Limited, Nairobi City County, Kenya
    (Kenyatta University, 2024-11) Mutie, Francis Ndambuki
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    Internal Control Systems and Revenue Collection Performance of the Government of Kericho County, Kenya
    (Kenyatta University, 2023-06) Kipkurui Koros Benard
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    Microfinance Services and Financial Performance of Small of Scale Women Enterprises in Kilifi County Kenya
    (Kenyatta University, 2023-12) Kalama, Faith Shaha
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    Internal Audit Practices and Financial Performance of Nairobi City County Government, Kenya
    (Kenyatta University, 2023-11) Murage, Andrew Chiuri
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