Cash Management Practices and Financial Performance of Tea Processing Factories in Mount Kenya Region, Kenya
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Date
2024-10
Journal Title
Journal ISSN
Volume Title
Publisher
IAJEF
Abstract
The study objective was to determine the
effect of cash management practices on
financial performance of Tea processing
factories in Mount Kenya Region. The study
was anchored on Cash Conversion Theory.
The target population included 35 tea
processing factories situated in the Mount
Kenya region, with Managers of the
manufacturing units and accountants in
charge of the factories selected as the
respondents, totaling 70 participants. Primary
data was collected using a five-point Likert
scale questionnaire, and the analysis utilized
quantitative techniques. Robust cash
management practices, such as budgeting and
monitoring bank balances, correlate
positively with financial performance,
emphasizing the need for continued efforts to
optimize financial outcomes within the
industry. The study concluded that cash
management practices significantly affects
financial performance of Tea processing
factories in Mount Kenya Region. The study
recommended that the Tea factories need to
optimize cash management practices to
ensure financial discipline and sustained
growth. Regular monitoring of financial
performance indicators and fostering a culture
of financial literacy among employees are
crucial for enhancing financial health and
competitiveness in the sector.
Description
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Keywords
Citation
Njore, W. J., Ndede, F. W. S. (2024). Cash management practices and financial performance of tea processing factories in Mount Kenya Region, Kenya. International Academic Journal of Economics and Finance, 4(3), 277-291.