MST-Department of Accounting and Finance

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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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    Operational Risk Management Practices and Performance of Kenya Revenue Authority in Collection of Tax Revenue in Kenya
    (Kenyatta University, 2023-11) Kariuki ,Stephen Maina
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    Financial Dollarization and Exchange Rate Volatility in Kenya
    (Kenyatta University, 2023-11) Ndungu, Elizabeth Nyokabi
    Globalization, which is supported by improved technology, more accessible communication channels, and increased international trade, has made it simpler to move, trade, and hold assets and liabilities in foreign currencies. Annual dollarization trends are rising worldwide. United States Dollar/ Kenya Shillings (USD/KES), Great British Pound/ Kenya Shillings (GBP/KES), and Euro/ Kenya Shillings (EUR/KES) exchange rates have all fluctuated recently. As a result of this trend, the economy suffers, import prices rise, debt service obligations rise, and companies that do business internationally are left vulnerable. The purpose of this research was to analyze the relationship between exchange rate volatility in Kenya and four different financial variables: loans denominated in foreign currency, reserves denominated in foreign currency, deposits denominated in foreign currency, external public debt and the moderating effect of inflation. The design used in the investigation was a descriptive survey design. The study targeted 35 commercial banks. Since the population is finite, a census of 35 banks was selected for the study. The yearly financial statements of commercial banks and the website of the central bank were sifted through, and the information was then summarized using a data gathering sheet. Data was gathered over the course of five years (2014 to 2018). The researcher obtained an introductory letter from the graduate school at Kenyatta University before beginning the data collection process. Afterwards, the National Commission for Science, Technology, and Innovation (Nacosti) granted a research permit, allowing the use of the secondary data collected. Vector autoregressive models were there for applied in the study for the purposes of analyzing the relationship between the identified independent and dependent variables. The multivariate time series analysis diagnostic tests comprised multicollinearity, heteroskedasticity, autocorrelation, Augmented Dickey Fuller Tests and Johansen test of cointegration which are aimed to conform with the standard procedures for conducting multivariate time series analysis. A research permit was obtained from NACOSTI to allow for the collection of data from commercial banks and CBK. In addition, a research authorization letter was obtained from Kenyatta University before proceeding with data collection. The study discovered that deposit dollarization in the form of foreign currency deposits had little effect on the USD, GBP, Japanese Yen (YEN), and EUR to KES exchange rates. Similarly, foreign currency reserves failed to yield a significant influence on the four exchange rates the USD/YEN/GBP/EUR rates. The results also indicated that USD/YEN/ GBP/EUR rates to the KES have failed to exhibit a substantial positive link to loan dollarization in the form of external public debt and a significant negative relationship with the GBP/KES rate. Foreign exchange loans had little to no effect on any of the four rates. The results of the moderation analysis demonstrated that inflation failed to yield significant moderating effect on the relationship between financial dollarization and exchange rate volatility of all the four-exchange rate. The findings of this study can be used by CBK to comprehend the various factors that affect changes in Kenya's exchange rate and get a sense of financial dollarization in the country. The study recommends for policymakers to make necessary adjustments as far as financial dollarization is concerned so as to avert adverse effects of fluctuations in the exchange rate for the identified currency. The study recommends for additional studies to be conducted within the financial institutions especially in the banking sector in order to draw comparisons with the findings of the current research. This study proposes more research on: the penetration of financial dollarization in other financial institutions other than commercial banks, the level of financial dollarization in the East African region countries in the last 5 years and whether there is any impact to exchange rate in the region and the rising external and Jocal debt in Kenya and impact on inflation taking into account the interest rate capping
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    Treasury Management Practices and Financial Performance of Deposit Taking Savings Credit Cooperative Societies in Kericho County, Kenya
    (Kenyatta University, 2023-04) Mutai, Gideon Kiplangat
    Saccos are unable to accumulate savings and deposit fast enough to meet members' credit needs. e-platforms that provide fast loans exacerbate this issue. A loan, unlike in banks, requires multiple inputs to fund. This forces saccos to acquire expensive commercial bank loans to satisfy their members' desires, incurring high borrowing expenses. Treasury management practices cannot be understated, especially in terms of saccos' long-term financial performance in Kenya. This research sought to find out how treasury management practices affects performace of Deposit Taking Savings and Credit Co-operative So thin Kericho County, Kenya. Sacco’s in Kenya have been investing for a long time with the goal of increasing their capita. The objectives of this study were to the effeet of liquidity policies, cashflow forecasting and Members deposit on financial performance of Deposit Taking Savings and Credit Co-operative Socicties within Kericho County, Kenya, Kenya visa vie regulations and external environment factors. Significance of this study will benefit policy-makers both in the government and Savings and Credit Co-operative Societies, particularly in terms of enhancing policy deliberations in this area. The study also provided a new body of knowledge to scholars. The scope of study was Kericho County, Kenya, Kenya due to factors such its diversity in the types of Savings and Credit Co-operative Societies and the sporadic nature of previous studies on the subject. The issue that this study was try to solve is whether Deposit Taking Savings and Credit Co-operative Societies Societies have implemented competent treasury management practices in their day today treasury operations, and whether they have been able to boost their liquidity as a result of this approach and overall financial performance, guaranteeing compliance with the Sacco Societies Regulations 2010 relating to liquidity ongoing maintenance. On literature review the study was anchored on Baumol’s EOQ Model of Cash Management, MillerOrr Cash Management Model and Stakeholders Theory, The study adopted a descriptive research design where the researcher went to the saccos of interest to collect information on treasury management practices and financial performance of saccos in Kericho County, Kenya, Kenya. The population of this study was 171 respondents from Employee, Matatu, Farmers and Youth Based Saccos within Kericho County, Kenya. From the population stipulated no sample was drawn and instead a census of all the respondents were taken. Data was collected by means questionnaire method which had both closed and open ended . a pilot study was done to prove the validity and reliability of data collection instrument. Both descriptive and inferential statistics and with the help of statistical tools such as SPSS and Excel were applied to analyze the data obtained. A series of multiple regression analysis (standard and step wise) was applied since they gave net impact estimates and explanatory power. The study concluded that treasury management practices had a positive and a significant effect on financial performance of deposit taking Saccos in Kericho County. Based on descriptive and inferential analysis, the study concluded that liquidity policies influenced the financial performance of deposit taking Saccos to a very great extent, The cashflow forecasting was found to influence the financial performance 1o a great extent. Cash budgeting and members deposits influenced the financial performance of the Saccos to a great extent.Other studies should be done on factors ouside this study that were identified by the coefficient of determination model that contributed 1o the financial performance of Deposit Taking Savings and Credit Co-operative Socicties,
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    Working Capital Management Practices and Financial Performance of Manufacturing and Allied Firms Listed at Nairobi Securities Exchange Kenya
    (Kenyatta University, 2024-10) Chuol, Manyuon Dhieu
    Manufacturing and allied firms in Kenya play a very important role in economic development. Nevertheless, the companies have seen fluctuations in their financial returns along with a downward trend in their overall performance. Various studies have been done but do not clearly indicate the extent to which the various components of working capital affect the performance of the firms. Further study is necessary to explore the diverse impacts of these factors on the financial performance of organisations. The objective of the study was to ascertain the relationship between working capital management practices and financial performance of manufacturing and allied firms listed in NSE. The specific objectives of the study was to; to determine the effect of inventory turnover management practices on financial performance, to ascertain the effect of accounts receivable management practices on financial performance and to determine the effect of accounts payable management practices on financial performance of firms listed in Nairobi Securities Exchange The key theory to anchor the study was be: Keynesian liquidity preference theory, financing advantage theory, Transactions costs theory, Net trade cycle theory and theory of Arbitrage Pricing. Explanatory research design, cluster random sampling was used in the study. The target population was 9 manufacturing and allied firms listed in the NSE. The research employed secondary data sourced from financial reports as published in the NSE manual and KNBS for the time frame spanning from 2010 to 2020. Panel regression analysis and Pearson’s product moment correlation analysis was employed for inferential analysis while means and standard deviations were utilized for purposes of descriptive analysis. Various diagonistic tests shall be carried out including normality, Multicollinearity, heteroskedasticity, autocorrelation, stationary test and test for fixed or random effect. The first objective sought to ascertain the effect of account receivable management practices on financial performance of manufacturing and allied firms in Kenya listed at the Nairobi Securities Exchange, regression analysis results showed that account receivables was significantly positively related to financial performance as showed by P- value of 0.004. Inventory management practices showed statistically significant positive effect as indicated by P-value of 0.030 while Account payables management practices showed that there was a statistically significant positive effect with P- value of 0.365. Finally, cash management practices showed that cash management practices had a positive effect on financial performance as evidenced by a γ = 0.419 with a P-value =0.004 at 5% level of significance. The study concluded that Manufacturing firms should prioritize account receivables management to improve operations and finances, Kenya's listed manufacturing and allied firms may benefit from improved inventory management, Management considers accounts payable in financial performance, Kenyan listed manufacturing and allied firms may benefit from cash management and that Size affects working capital management and financial performance of listed manufacturing and allied firms in Kenya. The study therefore recommends that Manufacturing enterprises should have a system that flags early supplier payments and that Manufacturing enterprises should buy qualified raw materials and goods just-in-time.