Shikunyi, Lavina Ayiera2019-10-222019-10-222019-06http://ir-library.ku.ac.ke/handle/123456789/19850A Research Project Submitted in Partial Fulfilment for the Requirement of Award Degree of Master of Business Administration (Finance Option) of Kenyatta University, June, 2019Security companies have been operating in a dynamic business environment due to the security threats and rapid increase of new entrants in the market. Failures of these companies have been attributed to poor or ineffective financial practices. The aim of the study was to determine the impact of financial planning practices on the financial output of private security companies in Nairobi city county Kenya. The study sought to establish the extent which dividend policy, investment practices, and risk management have on financial performance of private security firms in Nairobi City County. This study was based on the Modigliani-Miller dividend irrelevance theory, agency theory and portfolio theory. A descriptive survey methodology was applied for this study and it targeted 41 staffs of private security firms in Nairobi City County. The study also collected both secondary and primary data. A questionnaire was utilized for primary data gathering while secondary data was retrieved from the annual financial reports of the security firms. The collected data was entered into E-views for statistical analyses; descriptive and inferential statistics. Based on the findings that dividend policies have a significant influence on ROA it can be concluded that organizations should always ensure that the dividend policies are sound and facilitate participation of the employees as well as contribute to greater returns. Based on the findings that investment practices have a significant influence on ROA it can be concluded that firms should always ensure that the investment practices are sound and facilitate participation of the employees as well as contribute to greater returns. On risk management, based on the findings that risk management have a significant influence on ROA it can be concluded that firms should always ensure that the proper risk measures are put into place to facilitate greater returns hence earning profits It is thus recommended that private security firms should always develop appropriate dividend policy which are informed by the changes in the environment and that accommodate environmental dynamism. Private security firms should always develop and implement appropriate investment practices which are informed by the changes in the environment and that accommodate environmental dynamism both locally and internationally. Private security firms should always develop and implement appropriate risk management measures which can protect theenThesis