Financial Risk Management Literacy and Its Effect on Financial Sustainability: Insights from Micro, Small and Medium Enterprises in Kakamega County
| dc.contributor.author | Shitambasi, Hesborn Kisambo | |
| dc.contributor.author | Makori, Daniel | |
| dc.date.accessioned | 2026-02-03T05:58:46Z | |
| dc.date.available | 2026-02-03T05:58:46Z | |
| dc.date.issued | 2025-10 | |
| dc.description | Research Article | |
| dc.description.abstract | The objective of the study was to investigate how financial risk management literacy affects financial sustainability of MSMEs in Kakamega County. The study was anchored on prospect theory. Descriptive survey research design was adopted in the study in which the population comprised of 645 managers and proprietors of MSMEs in the county drawn from trading, manufacturing, distribution and service sectors in the county. The study sample comprised of 247 proprietors selected using stratified sampling technique. Primary data collected using structured questionnaires was utilised in the study. Collected data was analysed using SPSS version 26. Both descriptive statistics and inferential analysis were used in data analysis. Descriptive statistics included mean score and standard deviation. Inferential analysis included Pearson's correlation coefficient and multiple regression analysis. The coefficient of determination (R²), F-statistic, beta coefficient and p-values were used in interpreting results. Results showed that MSMEs demonstrated only modest levels of financial risk management literacy and MSMEs achieved financial sustainability only to a limited extent, as many struggled with profitability, cash flow adequacy, and revenue growth. Correlation analysis results showed that financial risk management literacy showed a strong and positive correlation with financial sustainability. Regression analysis confirmed that financial risk management literacy had a positive and statistically significant effect on financial sustainability. It was thus concluded that financial risk management literacy had a positive and statistically significant effect on financial sustainability of MSMEs in Kakamega County. | |
| dc.identifier.citation | Kisambo Shitambasi, H., & Makori, D. (2025). Financial risk management literacy and its effect on financial sustainability: Insights from micro, small and medium enterprises in Kakamega County. Journal of Finance and Accounting, 9(5), 12–25. https://doi.org/10.53819/81018102t7075 | |
| dc.identifier.issn | 2616-4965 | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/32235 | |
| dc.language.iso | en | |
| dc.publisher | Stratford Peer Reviewed Journals and Book Publishing | |
| dc.title | Financial Risk Management Literacy and Its Effect on Financial Sustainability: Insights from Micro, Small and Medium Enterprises in Kakamega County | |
| dc.type | Article |