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dc.contributor.advisorJagongo, A. O.
dc.contributor.advisorNdede, F.W.S.
dc.contributor.authorNyagah, J. M.
dc.date.accessioned2012-07-09T07:59:35Z
dc.date.available2012-07-09T07:59:35Z
dc.date.issued2012-07-09
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/5311
dc.descriptionDepartment of Accounting and Finance, 86p. The HF 5681 .N9 2011
dc.description.abstractThe study aimed at investigating the effects of receivables management on financial performance of Technical, Industrial, Vocational and Entrepreneurial Training (TIVET) institutions and was carried out in Nairobi province, Kenya. There is slow growth of TIVET institutions with available statistics showing over 60 % of TIVET Institutions country wide have approached the Ministry of Higher Education Science and Technology, Directorate of Technical Education, Bursaries and Grants department every year requesting for funding of their operations citing difficulties in fees collections from students as the main cause of their cash flow problem. Many institutions have closed with no information available to explain these trends. Research is needed to demonstrate how receivable management account for financial performance of these institutions. The study targeted all TIVET institutions in Nairobi that were registered by the Ministry of Higher Education, Directorate of Technical Education by the end of December 2010. There were a total of 241 TIVET institutions both public and private in Nairobi by the end of December 2010. The public TIVET institutions were 20 while private TIVET institutions were 221. The study used 48 TIVET institutions which was equivalent to 20 % of the total population. The researcher decided to take 20 percent of 241 institutions. The primary data was be collected by use of a questionnaire while secondary data was collected from secondary sources which include records from the Ministry of higher Education science and technology. The findings were presented using bar graphs, pie charts and frequency tables. The study established that that there is a positive relationship between receivable management and the financial performance of TIVET institutions. There was a clear indication that most TIVET institutions extend credit facilities to the students. The study found out that the rate of receivables conversion is very slow and affects liquidity as well as financial performance of the institutions. The study also found that quite a number of TIVET institutions face challenges meeting their short term obligations due to their funds being tied in receivables. On average the receivables conversion period is 93 days and since most TIVET institution offer short courses there are instances where students have completed their course or dropped out of the institution without paying their fees. The study established a very strong positive relationship between cost of receivables management and the financial performance of TIVET institution. The costs of stretching payables to finance receivables were found to be very high as well as fee receivable collection and administrative costs. Finally, the study established that other factors such as Political-legal, economic and cultural factors also affect the financial performance of TIVET institutions regardless of their strong receivable management procedures. The study recommends that all TIVET institutions be educated on the need to use formal procedures in receivable management so as to enhance the receivable collection process by ensuring consistency and uniformity of collection techniques. TIVET Institutions should adopt cost effective method of receivable management such as Information and Communication Technology (lCT) and also Credit Management Information systems (CMIS). Lastly, the study recommends a partnership between the TIVET institutions and the independents examination bodies be formed so that the examination bodies can be channelling students' certificates through the TIVET institutions which will act as a security against bad debt.en_US
dc.description.sponsorshipKenyatta Universityen_US
dc.language.isoenen_US
dc.subjectAccounts receivables --Training institutions --Management
dc.titleAn investigation of the effects of receivables management on the financial performance of technical industrial, vocational and entrepreneurship training (TIVET) institutions in Kenyaen_US
dc.typeThesisen_US


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