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An Assessment of the Factors Influencing the Effective Implementation of the CDF Projects in Balambala Constituency.
No full textA Project Report Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirement for the Degree of Masters in Business Administration (MBA)The purpose of this study was to determine the factors influencing the implementation of CDF projects with specific focus on Balambala constituency in Garissa Kenya. The study sought to determine how stakeholder relationships influences effective implementation of CDF projects, how monitoring and evaluation influences effective implementation of CDF projects, how management training impacts on the implementation of CDF projects and how CDF project planning impacts on the effective implementation of CDF projects.
The research design used for the study was descriptive based on a sample of 398 respondents from Balambala constituency. The research tool employed for the study was a structured questionnaire. Data was analyzed using descriptive statistics, regression and correlation analysis were used to infer conclusions on the data.
The study found a significant positive relationship between Stakeholder involvement and effective implementation of CDF projects, a moderate positive relationship to effective implementation of CDF projects, while monitoring and evaluation and management training reflected a weak insignificant positive relationship to effective implementation of CDF projects.
The main recommendation from the study is the need for constituency’s to make deliberate effort in enhancing Stakeholder relationships, incorporating project planning, and monitoring and evaluation to their project implementation processes. There is a need for constituency’s to lay the right structures to facilitate inclusion of these factors which are currently ill structured.
A similar study on factors influencing implementation of CDF needs to be done in an environment where the factors used in this study have been actively practiced for a period of time in order to ascertain the validity of the findings obtained in this research. Different models besides regression could also be used on similar studies to get an in-depth understanding of the relationships between the factors studied and CDF project implementation
Effect of IMIS (Integrated Management Information System) Strategy on the Achievement of Corporate Objectives: A Case Study of the Communication Authority of Kenya (CA)
No full textA Research Project Report Submitted to Chandaria School of Business in Partial Fulfilment of the Requirement for the Degree of Masters in Business Administration (MBA) – Strategic ManagementThe penetration of technological innovations in the corporate world has greatly revolutionized the process through which management obligations are undertaken. From the simple round-table executive meeting to the transfer of sensitive confidential data, has now completely transformed thanks to the integration of technological platforms. At the early times of technological innovations, only operations such as financial transactions that were automated. Today, all the administration processes such as, procurement, compliance, business forecast, recruitment have been virtualized and automated. This means that all the executive operation in the corporate world have now been automated and simplified. But in the long-run do such technological advances impact on the realization of corporate strategy? It’s this question that the study sought to answer. The study will seek to evaluate the extent to which Integrated Management Information System (IMIS) Strategy impacts on the realization of corporate objectives.
The study adopted descriptive research design in the process of conducting the field exercise. The study was carried out at the Communication authority of Kenya head office at Westlands Nairobi. Purposive sampling was used to identify the respondents to participate in the study. With the support of the IT department at CAK, the study established that only 200 members of staff interacted with the IMIS platform and they all formed our target population. A sample size of 70 respondents was selected, to participate in the study. A structure questionnaire was used as the primary tool for data collection. The study was carried out for a period of one month; all the respondents fully participated as the researcher concerted all efforts following up with respondents urging them to fill-up the questionnaire. The researcher was able to collect all the questionnaires from the respondents.
The study established that FMIS utilization significantly lowered the transaction costs incurred while undertaking financial obligations. The study found that Procurement MIS contributed to strengthening the levels of accountability for the procurement operations at CAK. The study also established that, Licensing, Compliance and Standards MIS, enhanced the efforts of detecting and identification of illegal licenses used by fraudulent telecom operators. Finally the study makes a finding that Frequency Spectrum Management module strengthened and improved the security of telecommunication systems in the country.
The study thus concludes that all the integral components of the IMIS system, notably; FMIS, Procurement MIS, Licensing, Compliance & Standards MIS, and the Frequency Spectrum Management MIS wield significant influence on the realization of corporate objectives.
The study recommends that CAK prepares a policy framework and lobby the government through parliament to enact more statutory powers to be conferred to the CAK to enable the institution effectively execute all regulatory duties using the capacity of IMIS system
Corporate Governance As A Response To Environmental Turbulence: The Role of Non-Governmental Organization’s Board
No full textA Research Project Report Submitted to the School of Business in Partial Fulfillment of the Requirement for the Degree of Master of Business Administration (MBA)The purpose of this study was to establish the relevance of good corporate governance in effectively responding to environmental turbulence and examine how the key roles and responsibilities of boards for local NGOs are aligned to corporate governance principles and practice. Subsequently, the study was guided by three research questions: What are the sources of environmental turbulence for NGOs?; How is corporate governance a response to environmental turbulence in NGOs?; and How are the board roles and responsibilities aligned to corporate governance?
A case study design was utilized, and involved the study of 10 non-profit organizations. The researcher adopted a judgmental sampling technique that drew respondents from selected and known NGOs. The researcher’s experience in working with NGOs provided useful networks and contacts from which to sample. For the first two research questions, the study sought information from CEOs and at least two board members as respondents, which for 10 organizations totals to at least 30 respondents. A total of 25 duly filled questionnaires were sent back from nine organisations representing 83 percent response rate. For the third research question, which is linked to investigating alignment of board roles and responsibilities to corporate governance, 29 board members including CEOs were interviewed by the researcher constituting 97 percent of the expected sample. For the purpose of this study, the response rates were considered adequate to make the necessary inferences.
Primary data was collected in two ways: through interviewing those who hold leadership and board responsibilities in a variety on NGOs, and filling of questionnaires. The questionnaire was designed to address the first two research questions, while the interviews mainly targeted to address the third research question. The resulting information and data that were obtained were entered into predesigned Excel sheets for further analysis and interpretation by use of descriptive statistics. Comments were coded so as to provide common themes to enable analysis and reporting.
From the results, the key sources of internal turbulence in order of importance include raising adequate funding/ resources, sustainability of impact/ programmes, sustainability of the organisation and recruiting for strong leadership and management. On the other hand, the key sources of external turbulence for NGOs in order of importance include compliance with regulatory and legal framework, realigning organizational mission to stakeholder demands, donor demands and technological obsolescence. The research also established that board members understood corporate governance to mean mostly accountability to key stakeholders regarding work and funds received, compliance with regulatory and legal framework, and adherence to national and local codes, standards and principles. There was also a general agreement and alignment on key principles and practices of corporate governance with exception on borrowing to finance operations, which may be attributed to the fact that NGO work is largely charitable and any borrowing would not be justifiable in the context of their non-profit nature. The larger divergence was only realized on developing strong leadership for results and accountability, which is nonetheless surprising since this would be seen to be one of the drivers for organizational sustenance.
In conclusion, the study revealed that NGOs are confronted by internal and external environmental turbulence that threaten sustainability of impact of their programmes as well as the organisations themselves. Similarly, the study established that there is a close alignment between board roles and corporate governance. However, there is a divergence between corporate governance practices that should assure appropriate response to environmental turbulence and the appropriate key board roles and responsibilities.
Consequently, one of the recommendations is for the boards of local NGOs to be adequately exposed to and capacities built on critical issues of board functions that are relevant in responding to turbulence. In addition, attempts should be made by boards of local NGOs to strategically map out environmental turbulence that affects their organisations and intervene with relevant response strategies that ensure growth and sustainability. For future, it would be important to explore similar study focusing on both international NGOs and donors as well to determine levels of successes for various approaches in dealing with turbulence
The Influence of Enterprise Resource Planning System on Organizational Performance: Case Study of Kenyan Engineering Consultancy Firms
No full textA Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Master of Science in Organizational Development (MOD)Empirical evidence suggest the ERP adoption facilitate organizational processes and activities including sales, billing, marketing, human resource management, quality control and production thus ensuring general performance. However, despite the adoption of ERP systems by Kenyan and Kenyan-based companies in the engineering consultancy industry of ERP system, little academic attention has gone to the assessment of the impacts of ERP adoption in the industry. The lack of academic attention on the effect of ERP on the performance of consultancy impedes scholarly understanding of the relationship between ERP adoption and the performance of engineering consultancy firm. The purpose of the study was to determine the influence of enterprise resource planning (ERP) system on organizational performance. The study sought to answer the following research questions, namely; what is the impact of ERP system on financial performance? What is the impact of the ERP system on organizational learning? What is the impact of the ERP system on internal processes?
The study’s research methodology was as follows, it used a descriptive research design. This is design deemed essential and appropriate in describing the relationship between ERP and organizational performance. As such, a descriptive research design permitted the researcher to collect information regarding the ERP system and to describe how it affects the performance of engineering consultancy firms. The population for the study comprised of employees of engineering consultancy firms from which 41 individuals were sampled for participation in the study. It used the stratified random sampling to ensure that every individual in every level of selected engineering consultancy firms’ workforce was represented in the study. Structured questionnaires were used to collect the relevant data over a period of one week. The study results were presented using descriptive statistics while inferential statistics were also used for further analysis of data. The research used Statistical Package for Social Sciences (SPSS) program version 21 for data analysis.
The study found that the majority of the respondents thought that ERP systems had a positive impact on the financial performance of the firm. The study found that the respondents thought ERP had a positive outcome for virtually all the aspect of financial performance including the firm’s profitability, the rate of ROI, competitive advantage, the operational costs and the firm’s market share. However, the study found that a few respondents were however not sure of the nature of ERPs impact on rate of ROI and the firm’s market share.
The study also determined a greater number of respondents considered ERP to have a positive impact on the firm’s organizational learning processes. It established that decision-making process, business process, productivity, task performance, managerial control and customer satisfaction were all positively affected by the ERP systems in their firms. Nonetheless, a significant number of the respondents revealed that they were not sure of the impact of ERP on customer satisfaction. With regard to the impact of ERP on firms’ internal processes, the study again established that the majority of the respondents thought that the impact of ERP on the internal process was positive. The respondents indicated that ERP systems had a positive impact on the monitoring process, access to information, the process of HRM, internal communication and the accounting process.
It concludes by contending that the impact of ERP on the financial performance of the engineering consultancy firms is mostly positive. This is mainly because the vital aspects or measures of financial performance are affected positively by ERP systems. It also argues that the process of organizational learning is a principal beneficiary of the ERP systems in a firm that adopts the system. The impact of ERP systems on the management of information within the firm has direct benefits in the facilitation of task performance, customer satisfaction, decision-making and managerial control. Furthermore, it reiterates that ERP systems, by their nature facilitate the internal process within the organization, which facilitates the efficient and timely performance of tasks. The systems are capable of facilitating information storage, access and transmittal in real time.
The study recommends that the management of the engineering consultancy firms in Kenya as well as the firms in other industries in Kenya needs to appreciate the value of ERP systems on organizational performance and adopt the systems as part of their performance strategy. Similarly, as part of their performance strategy they must adopt ERP systems as a strategy of enhancing firm’s overall performance through ERP systems potential for the enhancement of business processes such as decision-making, productivity, task performance and managerial control. The researcher further recommends that firms should adopt ERP systems due to their potential to generate a positive impact on firms’ internal processes. For further research, the researcher recommends that there is need for further research to investigate why despite the relative positive impact that ERP systems have on the performance of the engineering consultancy firms in Kenya, few firms have adopted the systems
Factors That Facilitate the Advancement of Women to Top Leadership Positions in the Public Service: A Case of the Communications Authority of Kenya
No full textA Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)The general objective of the study was to determine the factors that facilitate the advancement of women to top leadership positions in the Public Service. The study sought to determine the extent to which networking facilitates the advancement of women to top leadership positions in the Public Service; the extent to which soft skills facilitate the advancement of women to top leadership positions in the Public Service and the extent to which organizational policies and procedures embraced by the
Public Service facilitate the advancement of women to top leadership positions.
The research design adopted by this study was a descriptive one. The target population comprised of 83 employees of the Communications Authority of Kenya in senior and middle management. Stratified random sampling technique was employed to determine the sample size. A sample of 50% was used, which translated to a sample size of 42. The study collected data using a structured questionnaire, which consisted of five sections. Primary data was obtained directly from the respondents, where the researcher used both personal administration and drop and pick later method. In data analysis, both descriptive and inferential statistics that entailed conducting Pearson’s correlation analysis was used to measure the relationship between variables.
With regard to networking and the advancement of women to top leadership positions, the study found that personal and operational networks enhanced advancement of women to top leadership positions. The study found that most of the respondents did not have time to attend networking events due to demanding work schedules. It also emerged that most of the respondents did not make use of strategic networks to advance their careers.
On soft skills and advancement of women to top leadership positions, the study established that both hard skills and soft skills are critical in the work place. Communication skills and responsibility ranked highest in terms of the soft skills required to advance to top leadership positions. It was however found that soft skills are rarely used as promotion criteria and had not been incorporated as part of the organization’s performance evaluation criteria.
With respect to organizational policies and procedures, the study established that more men than women would be considered during the recruitment for top leadership positions by the organization. The study also found that the policies to encourage the advancement of women to top leadership positions were inadequate and that promotion policies were not clear and well communicated to all. It also emerged that the organization did not have adequate policies on flexible working arrangements, which have been found to be instrumental to the advancement of women to top leadership positions.
Based on the findings the study concluded that networking facilitates the advancement of women to top leadership positions. The study also concluded that the application of soft skills facilitates the rise of women to top leadership positions in the organization. Organizational policies and procedures such as recruitment policies, promotional policies and polices of flexible working arrangements facilitate the women advancement to top leadership positions.
The study recommends that in view of the importance of networking, women should take every chance they get to develop networks and attend as many forums as possible that provide such opportunities to women. In cognizance of the importance of soft skills, the study recommends that employers should seek to improve their employees’ soft skills and change the organizational mindset to one that recognizes the importance of soft skills. The study recommends that requisite policies should be put in place and adequately communicated to facilitate women advancement to top leadership positions
The Effectiveness of the Balance Scorecard as a Tool to Measure Organizational Performance: A Case Study of CIC Group
No full textA Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)This study sought to analyze the effectiveness of the balance scorecard on organizational performance in relation to CIC Group. It was guided by the following research questions: how effective is customer satisfaction perspective of the BSC in measuring performance of CIC Group? how effective is financial perspective of the BSC in measuring performance of CIC Group? how effective is the internal business processes perspective of the BSC in measuring performance of CIC Group? and how effective is learning and growth perspective of the BSC in measuring performance of CIC Group? The target population under study was the employees of Upperhill, CBD, Buruburu and Westlands branches of CIC Group.
A descriptive research design was adopted and stratified sampling technique was used to obtain 196 respondents. A structured questionnaire was used to collect data from the respondents. Data was analyzed using SPSS and presented using frequencies, percentages, means, standard deviations and correlation tables. The study found that customer satisfaction perspective element of BSC adequately measures customer satisfaction and consequently the firm performance in CIC Group implying that CIC management has realized the importance of customer focus and customer satisfaction in their business as a measure of performance. The financial perspective of the balance scorecard was also found to adequately measure the performance of CIC Group with emphasis on cost efficiency and the ability to deliver maximum value to the customer at minimum cost and sustained stakeholder value.
Further analysis results indicated that internal business processes, learning and growth elements of BSC adequately measured the performance of CIC Group in terms of the efficiency of internal processes and procedures. The correlation analysis depicted a positive relationship between the customer satisfaction, financial, internal business processes and learning and growth perspectives of BSC and performance measurement within CIC Group with correlation coefficients of 0.471 (p-value 0.000), 0.309 (p-value 0.002), 0.248 (p-value 0.031) and 0.442 (p-value 0.032) respectively.
The study therefore concluded that all the four perspectives of BSC namely customer satisfaction, financial perspective, internal business processes and learning and growth adequately measure the performance of CIC Group. The study recommends that CIC Group enhance employees’ skills to ensure high quality products and services. This will improve the customer satisfaction and increase the market share as a performance measure perspective of BSC. In addition, CIC Group should enhance its financial reports to help its management reduce costs, increase profits and maximize the use of the organization’s assets
Factors That Influence Volatility In The Foreign Exchange Rate In Kenya
No full textA Research Report Submitted to The Chandaria School of Business for The Award of a Master’s in Business Administration Degree (MBA)The purpose of this study was to investigate the factors affecting volatility in the foreign exchange rate. The research was guided by the following research questions: How does interest rate affect the volatility of foreign exchange rate? How does inflation affect the volatility of foreign exchange rate? How does trade flow affect the volatility of foreign exchange rate? How does external debt affect the volatility of foreign exchange rate? The study used correlation and regression analysis to establish the effects of interest rates, inflation rates, trade flows, and external debt on volatility of exchange rates.
The data was obtained from Central Bank of Kenya, World Bank, IMF and Kenya national bureau of statistic for a period of 36 years from 1980-2016.The test for violation of assumptions of classical linear regression model was through diagnostic tests: autocorrelation, normality, and multicollinearity. Presentation of data was in tables and graphs.
Correlation analysis showed a positive and insignificant relationship between lending interest rate and official exchange rate. Regression results confirmed that the interest rate had a significant positive and significant effect on exchange rate. The relationship between inflation rate and official exchange rate showed a negative and insignificant correlation between inflation and official exchange rate. Regression results confirmed that inflation had a significant negative and significant effect on exchange rate.
The relationship between trade flow and the official exchange rate revealed a positive and insignificant correlation between trade flow and the official exchange rate. Regression results confirmed that trade flow had a significant positive and significant effect on exchange rate. The relationship between the official exchange rate and external debt showed a positive and insignificant correlation between external debt and official exchange rate. Regression results confirmed that the external debt had a significant negative effect on external debt. This implied that increase in external debt led to depreciation of local currency.
It was recommended that government expands its exports in order to balance the current account and provide revenue without incurring further debt. It should focus on reducing its imports and enhance more production and consumption of local goods and services. The government should also expand the money supply to lower the inflation rates through tight fiscal and monetary policies. This would increase output and lower interest rates, with net exports increasing to reach a new balance of payments. The government needs to pursue policies that encourage reductions in borrowing and increases in lending. This will lead to an increased level of exchange rate in Kenya over the long term
Slum Fire Fighting Strategies for Sustainable Development: A Case Study of Kibera, Nairobi County, Kenya
No full textA Thesis submitted to the School of Humanities and Social Sciences in Partial Fulfillment of the Requirement for an Award of Masters of Arts Degree in International RelationsSlum fires impose significant social and economic costs including loss of life, destruction of health, property, dwellings and jobs while the interlinked physical and social vulnerabilities expose the urban poor not to single but multiple risks. Disaster preparedness and mitigation are the main methods of protecting such communities against fire disasters. This study sought to examine fire safety mechanisms and their effect on prevalence of fire disasters in Kenya slums. Nairobi will further absorb another 5 million people in the next two decades who will seek residence in slums and will join the slum population which is already vulnerable and reeling with poverty and continues to lose life, property and livelihood due to fire disasters in slums. The site of the study was Kibera is a division of Nairobi Area, Kenya, and neighbourhood of the city of Nairobi, located 5 kilometres (3.1 mi) from the city centre. Kibera is the largest slum in Nairobi, and the second largest urban slum in Africa. The neighbourhood is divided into a number of villages, including Soweto East, Gatwekera, Kisumu Ndogo, Lindi, Laini Saba, Siranga, Makina and Mashimoni. A part from the low class, the majority of those who live in Kibera slum are poor who lived below the poverty line. Sampling was done for each of the eight villages which were divided into two clusters and from each, three households were selected using simple random sampling was done for each of the eight villages which were selected using simple random sampling and in each, one person chosen by purposive sampling to give a total sample size of forty eight persons. The study revealed that 46.9% of participants have experience ten and more incidents of fire in Kibera slum within a year while 36.7 % have witnessed fire disasters. The cause of most fires in Kibera slum is unattended stoves by drunken residents, electric faults, and congested houses made of combustible materials and presence of kerosene. Majority of the respondents did not know of any fire safety mechanism while some had poor knowledge about fire safety mechanisms. Neighbours were the most active group in fighting fire at followed distantly by the fire brigade at a very minimal percentage. The challenges faced by residents when coping with fire are poor infrastructure and lack of safety equipment and little knowledge over handling of inflammable materials. Many of the respondents also felt that community sensitization to fire preventive measures was the best option for sustaining effective fire safety mechanisms while approximately a third of them thought that putting fire safety measures in practice would help, while another group said that the government needed to ensure effectiveness of the fire brigade. Majority of the participants pointed to the need to increase awareness on how to mitigate and deal with fire disaster while others appealed to the government to provide safety facilities. Another group also felt that the need for efficiency and effectiveness of the fire brigade and improving the infrastructure such as roads would be solution to the challenge of fire disasters. Important recommendations for acting against fire incidents include the government increasing capacity in fire safety mechanisms by reducing prevalence of fire disaster s in slums through enhancement of disaster management capability by mainstreaming DM .Provision of effective capability for harmonized and standardized rapid response to disaster by coordinated participation of all stakeholders at all levels is also important. Other strategies are rapid and effective response to disaster, promotion of high compliance in construction against fire outbreaks in the slu
States’ Response to Refugee Crisis: The Case of Somali Refugees in Kenya
No full textA Thesis Submitted to the School of Humanities and Social Sciences in Partial Fulfillment of the Requirement for the Master of Arts Degree in International RelationsThe refugee movements around the world currently are contributing to the global refugee crisis. With increasing wars and conflicts in most states as well as effects of climate change, displacements of people are witnessed and neighbouring countries have to face the burden of accommodating the large numbers of asylum seekers and migrants moving into their territories. With these movements, states continue to face external threats to their security. States have the obligation to allow asylum seekers into their territories in line with international obligations. However, state security also should be put at the forefront. As states take in asylum seekers, they have to ensure their national interests are protected as well as their citizens. For any state, the protection of the homeland comes at the core of national interests to be pursued. It is evident that terrorist elements take advantage of the asylum space to get into asylum territories hence posing a threat to the national security of the asylum state. With these increasing threats from terrorist elements, states are forced to take stringent measures when allowing asylum seekers and migrants into their territories. Some states have responded to these threats by closing their borders while others have toughened their refugee policies. Kenya has not been left out in the trend of responding to the refugee crisis in the country. It has in the recent past adopted some measures that have put it in the spotlight for infringing on the rights of refugees and going against its international law obligations.
With the growing influx of Somali refugees in the country and being host to the largest refugee camp in the world, Kenya heavily feels the burden that is associated with hosting them for a prolonged time. Kenya feels that the influx has an effect on its national interests and especially security in the country and this has caused the government to react in various ways that has put it on the spotlight as regards its international obligations and the agreements it has signed and is bound with. The Government of Kenya has been accused of breaching the human rights of the refugees through its various responses such as the encampment policy, Usalama Watch, Operation Linda Nchi, forced repatriations, police operations and harassments on the urban refugees, also some of the policies it has implemented such as the Security (Amendment) Act and also the reaction on the closure of Dadaab camp following a terrorist attack on Garissa University. The Kenyan Government has cited protection of its citizens in the pursuit of its national interests as the basis for its actions and responses
Analysis on the Effect of Internal Factors on the Financial Perfomance of Firms in the Cement Manufacturing Industry in Kenya
No full textA Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)The purpose of this study was to evaluate the effect of internal factors on the financial performance of firms in the cement manufacturing industry in Kenya. The study has answered the following questions: How does ownership structure influence the financial performance of cement manufacturing firms in Kenya? How does capital structure influence financial performances of cement manufacturing firms in Kenya? How does the size of the firm denoted by assets influence the financial performances of cement manufacturing firms in Kenya?
The correlation research design was used to describe the various variables of interest. The target population was the cement manufacturing companies that are listed on the Nairobi Security Exchange. A comparative study of two cement manufacturing companies that are listed on the Nairobi Security Exchange was conducted. Data was analyzed by use of a multivariate regression analysis of quantitative data in order to determine the effect of internal factor ratios on the financial performance
The study has determined that internal factors and financial performance ratios were the driving force for cement manufacturing companies in relation to their financial health. Return on assets, return on equity and the return on sales were the key indicators of a firm’s financial performance while the debt to equity, debt ratio, long term debt to asset ratio, gearing ratio and the size of their fixed assets were effective indicators of their internal factors. The study also presented that ratios were effective representatives for the internal factors and financial performance of cement manufacturing companies. The predictive model comprising of ratios was found to be statistically significant to indicate the power of ratios on cement manufacturing companies’ financial performance using statistics to determine the level of significance. This study found that the Pearson correlation value was the strongest predictor of the how strong the correlation between the internal factors and financial performance was.
In relation to the size of fixed assets and its impact on financial performance Bamburi Cement Company had a significant negative relationship whereas EAPCC had a significant positive correlation between the size of their assets and their financial performance. In terms of the long term debt to asset ratio, EAPCC had a significant positive relationship with its financial performance whereas for Bamburi Cement Company was not significant.
EAPCC had a statistically significant negative relationship between its debt to equity, debt ratio and their gearing ratio and the size of their fixed assets and the firm’s financial performance, which implied that the organization should try and monitor the management of their capital structure. Bamburi Cement Company had a negligible relationship between its capital structure and the financial performance. This implied there was efficient management of its capital structure ratios.
The main recommendation from this study is that the cement manufacturing companies that are listed on the Nairobi Security Exchange should focus on the efficient management of their internal factors so as to produce consistent financial performance so as to keep the continuation of their business. Firms’ managers should wisely stick on their debt to equity ratio and the debt ratio so as to minimize their risk and to avoid bankruptcy. Firms’ managers should also monitor the relationship between internal factor ratios and the financial performance ratios. Especially the following ratios; gearing ratio, size of fixed assets, debt to equity ratio, debt ratio and the long term debt to asset ratio which have a significant impact on the financial performance