Stratford Peer Reviewed Journals and Books
Not a member yet
2323 research outputs found
Sort by
Level of Compliance with Capital Adequacy Guidelines and Technical Efficiency of Commercial Banks in Kenya: The Moderating Role of Bank Size
No full textThis research evaluated the extent to which commercial banks’ compliance with capital adequacy guideline levels positively or negatively impacts technical efficiency in Kenya. The research employed a quantitative approach using ten years’ data for all licensed commercial banks in Kenya. Data Envelopment Analysis (DEA) was used to determine the measures for efficiency, and the two-limit Tobit model and Maximum Likelihood Estimation (MLE) were used to determine the efficiency measure effects. The results showed that there was a positive and statistically significant relationship between commercial banks’ capital adequacy and technical efficiency. It showed that commercial banks with higher and better levels of capital had improved levels of efficiency. The study recommends that commercial banks maintain high levels of prudential compliance, as greater adherence to capital adequacy guidelines is positively associated with higher technical efficiency. The paper also recommends that regulators and policymakers consider bank size when designing and implementing prudential guidelines. It was further recommended that researchers examine this relationship across other financial institutions, including microfinance and cooperative banks, and over longer time periods to capture evolving regulatory and operational dynamics
Keywords: Capital Adequacy, Technical efficiency, Bank size, Commercial bank
Credit Insurance and Quality of Loan Portfolio of Microfinance Banks in Kenya
No full textThe microfinance sector in Kenya has been grappling with deteriorating loan portfolio quality, as evidenced by the 5.55 percent net non-performing loans ratio between 2019 and 2022, exceeding the International Monetary Fund and World Bank's 5 percent vulnerability threshold. The absolute value of non-performing loans escalated from KES 4.198 billion in 2019 to KES 5.718 billion in 2022, creating a critical contradiction where expanded insurance coverage coincided with worsening portfolio performance. Therefore, this study assessed the effect of credit insurance on loan portfolio quality in Kenya's microfinance banks. The research was grounded in risk management theory. The study employed a positivism research philosophy and descriptive research design, targeting all 14 Central Bank of Kenya-regulated microfinance banks. Secondary data spanning 2019-2023 was analyzed using STATA through descriptive and inferential panel regression techniques. Credit insurance was measured as the ratio of insured loan amounts to total loans issued, while portfolio quality was measured as non-performing loans to total loans ratio. The study found that credit insurance has a statistically significant and negative effect on loan portfolio quality in Kenya’s microfinance banks. The results show that each unit increase in credit insurance is associated with a 0.266-unit decline in loan portfolio quality (β = −0.266, p = 0.000), confirming the rejection of the null hypothesis. This indicates that, rather than strengthening portfolio performance, increased reliance on credit insurance may undermine loan quality within the microfinance sector. The study recommends that regulatory bodies, specifically the Central Bank of Kenya, enforce stricter oversight frameworks for credit insurance implementation in microfinance banks to mitigate identified moral hazard effects. Regulations should mandate complementary monitoring systems that maintain rigorous credit appraisal standards and borrower screening processes even when insurance coverage exists, preventing insurance presence from encouraging lax lending practices. Microfinance institutions should integrate enhanced loan supervision mechanisms alongside insurance adoption, including periodic portfolio reviews, borrower repayment behavior monitoring, and insurance claim pattern analysis to detect early warning signals of moral hazard.
Keywords: Credit insurance, quality of loan portfolio, Microfinance Banks, Keny
How Demonstration Farms Drive Adoption: Evidence from a 20-Year Scoping Review and Dynamic Payback Analysis
No full textDemonstration farms remain one of the most widely used but unevenly evaluated approaches to agricultural extension. This paper synthesizes evidence from a 20-year scoping review of 57 demonstration-farm interventions conducted between 2005 and 2025 across Sub-Saharan Africa, Southeast Asia, and Europe. Rather than estimating a single pooled effect size, the review maps patterns in yield response, adoption, institutional continuity, and economic performance across heterogeneous contexts. Median yield gains among participating farmers clustered around the mid-teens, with adoption typically increasing over successive seasons as peer observation and local credibility accumulated. To evaluate economic performance over time, the study applies Return on Investment (ROI) and a Dynamic Payback Analysis (DPA) that models cumulative farmer benefit against cumulative program cost across cropping seasons. Results indicate that demonstration farms tend to reach economic break-even within approximately 2–3 seasons, earlier where local governance and in-season troubleshooting support are present. The findings suggest that demonstration farms function less as short-term training events and more as durable learning infrastructure, generating compounding agronomic and economic benefits when embedded in local institutions. The analysis has implications for extension design, evaluation timelines, and funding strategies that seek sustained adoption rather than short-term reach.
Keywords: Farms Drive, Adoption, 20-Year Scoping, Dynamic Payback, Analysi
Influence of Specific Cultural Factors on the Demand for Private Security Services in Garissa Township, Kenya
No full textPrivate security services are indispensable for mitigating safety concerns in high-risk settings such as Garissa Township, Kenya, yet the precise drivers of demand among local entrepreneurs have remained under-investigated. This study set out to determine how specific cultural influences shape entrepreneurs' propensity to purchase private security services. Anchored in rational choice theory and institutional theory, the research adopted a mixed-methods embedded design, combining a quantitative survey of 182 entrepreneurs drawn from the Garissa Township Central Business District with qualitative insights from eight private-security firm managers. Stratified random sampling ensured proportional sectoral representation, while key informants were purposively selected. Multiple linear regression analyses conducted using SPSS version 28 revealed that historical experiences of insecurity (β = 0.195, p = 0.007) and greater trust in private security providers over public ones (β = 0.200, p = 0.006) were the dominant cultural drivers, while clan norms alone had no measurable effect (β = -0.080, p = 0.264). Trust deficits in state institutions were reflected in the negative coefficient for trust in public police (β = -0.191, p = 0.008). Qualitative data corroborated these patterns, with firms reporting a 40% spike in CCTV orders within 48 hours of terror alerts from Somalia and widespread scepticism towards police timeliness. The study concludes that experiential memory of past attacks and relative institutional trust jointly determine demand, and it proposes multi-stakeholder governance forums involving clan elders, religious leaders, and police commanders to expand equitable access to protective services while mitigating cultural barriers and addressing institutional trust deficits.
Keywords: Private security services, cultural factors, institutional trust, historical insecurity, Garissa Township, Keny
Digital Transformation and AI Adoption in Government: Evaluating the Productivity Gains, Implementation Barriers, and Governance Risks
No full textDespite the massive global investment in digital transformation and AI-driven public sector reforms, many governments continue to experience limited productivity improvements, disintegrated implementation, and growing governance risks. While digital platforms and AI tools are expected to enhance efficiency, transparency, and public trust, evidence shows persistent gaps between technological investment and realized performance outcomes, compounded by skills shortages, infrastructural deficits, regulatory weaknesses, and ethical concerns. This study evaluated the productivity gains, implementation barriers, and governance risks associated with digital transformation and artificial intelligence adoption in government institutions. The study adopted a desktop review research design grounded in a positivist research philosophy. An extensive review of peer-reviewed journal articles, policy briefs, institutional reports, and reputable governance and technology publications was conducted. Literature was systematically identified, screened, and analyzed based on relevance to digital transformation, e-governance, artificial intelligence adoption, public sector productivity, implementation barriers, and governance risks. Digital transformation and AI adoption are associated with productivity and efficiency gains in government, especially through automation, workflow optimization, and data-driven decision-making. However, these benefits are constrained by significant implementation barriers, including infrastructure limitations, human capacity deficits, organizational resistance, and fragmented institutional coordination. The study recommends that governments should pursue integrated and context-sensitive digital transformation strategies that align technological deployment with institutional reform, capacity building, and strengthened AI governance frameworks to ensure that productivity gains are sustainable, inclusive, and aligned with public values.
Keywords: Digital Transformation, Artificial Intelligence, E-Governance, Public Sector Productivity, Governance Risks, Government Institutions
Assessing the Influence of Foreign Direct Investment in the Development of Hospitality Industry in Kinigi Sector, Musanze District, Rwanda
No full textThis study investigated the influence of Foreign Direct Investment (FDI) on the development of the hospitality industry in Kinigi Sector, Musanze District, Rwanda, an area often overlooked by studies that predominantly focus on urban centers. The research addressed this gap by examining how capital inflows and infrastructure development, technology and knowledge transfer, and employment opportunities generated by FDI contribute to hospitality sector growth in a rural tourism hub. Anchored in investment and development theories, the study employed a descriptive correlational design with a mixed-methods approach. The target population comprised 555 hospitality stakeholders, from which a sample of 180 respondents was selected using stratified sampling techniques. Primary data were collected through structured questionnaires and interviews, while secondary data were obtained through documentary review. Reliability and validity were ensured using Cronbach’s alpha, expert review, and a pilot study. Data analysis involved descriptive statistics and inferential techniques, including Pearson correlation and multiple linear regression. The study achieved a high response rate of 96.7%, enhancing the credibility of the findings. Results revealed that FDI significantly influences hospitality development in Kinigi. Capital inflows and infrastructure development improved hotel facilities, road networks, utilities, and communication systems, with mean scores ranging from 3.91 to 4.13 and a strong positive correlation with hospitality growth (r = 0.731, p < 0.01). Technology and knowledge transfer enhanced operational efficiency, service quality, and staff competencies, reflected by mean scores of 3.93–4.11 and a strong positive relationship (r = 0.764, p < 0.01). Employment opportunities created through permanent and seasonal jobs, improved working conditions, and skills development also positively affected the sector, with mean scores of 3.95–4.10 and a correlation coefficient of r = 0.721 (p < 0.01). Overall, the findings confirm that FDI plays a critical role in driving rural hospitality development through infrastructure improvement, technology adoption, and employment creation, generating both sectoral growth and community socio-economic benefits. The study recommends prioritizing infrastructure investment, technology integration, skills development, and supportive policies to maximize FDI benefits. Future research should explore long-term impacts, environmental sustainability, financial outcomes, and cross-regional comparisons.
Keywords: Foreign Direct Investment, Development, Hospitality Industry, Kinigi Sector, Rwanda
Level of Compliance with Insider Lending Guidelines, Bank Size and Technical Efficiency of Commercial Banks in Kenya
No full textThis study examines the impact of level of compliance with insider lending guidelines on the technical efficiency of commercial banks in Kenya while exploring the role of bank size as a moderator. The study employed a quantitative, explanatory research design and a longitudinal panel dataset from 37 commercial banks in Kenya over the period 2013-2022. It used secondary data from publicly available sources, such as annual reports, audited financial statements, and the Central Bank of Kenya's regulatory publications. The Data Envelopment Analysis (DEA) model was employed to compute bank efficiency scores. Due to the censored nature of the dependent variable, the Two-limit Tobit model is used in the regression analysis, with parameter estimation conducted using Maximum Likelihood Estimation (MLE). Findings from this study establish considerable variability in compliance levels for banks, and those meeting or exceeding thresholds have relatively high technical efficiency compared with those not in compliance. Notably, this study establishes that bank size moderates the impact of compliance on technical efficiency; in this matter, large banks have better capacity to absorb the associated cost involved in insider lending controls. Therefore, this study recommends improved means for compliance in addition to ensuring improved bank controls from management.
Keywords: Insider Lending, Technical efficiency, Bank size, Commercial bank
Financing Options and Financial Growth of Small and Medium Enterprises in Kirinyaga County, Kenya
No full textSmall and Medium Enterprises (SMEs) are crucial to Kenya's economy, serving as its foundation and supporting numerous families. However, accessing financing remains a persistent challenge for these enterprises. While extensive research examines factors affecting SME performance and profitability in Kenya, few studies have explored constraints SMEs encounter in securing financing from various sources and how these challenges relate to overall performance. Most studies focus on industry or macroeconomic factors rather than financing options. This study investigated the effect of financing options on the financial growth of SMEs in Kirinyaga County, Kenya. Specific objectives assessed the effects of equity financing, debt financing, and informal financing on SME financial growth. The study's significance lies in its potential to inform SME owners and policymakers about effective financing strategies that enhance financial growth, ultimately contributing to sustainable SME development in Kirinyaga County and fostering a more robust regional economic environment. Theoretical frameworks including Pecking Order Theory, Trade-Off Theory, and Agency Theory guided the analysis, providing comprehensive understanding of how different financing options affect SMEs. The study employed a descriptive research design involving 139 SMEs selected through Yamane sampling strategy from 213 registered SMEs as of December 2023. A pilot test refined the questionnaire, ensuring clarity and relevance. Data collection utilized structured questionnaires, prioritizing ethical considerations including confidentiality and voluntary participation. Operationalization and measurement of variables defined key constructs related to financing options. Diagnostic tests assessed data quality. Data presentation included descriptive statistics (means and standard deviations) and inferential statistics to establish variable relationships, analyzed using SPSS version 23. Equity, debt, and informal financing demonstrated positive significant effects on SME financial growth in Kirinyaga County. The study concludes that equity financing provides essential capital for expanding operations, investing in new technologies, and increasing market reach. Debt financing enables businesses to invest in expansion, improve operations, and enhance market competitiveness. Informal financing provides crucial capital to SMEs struggling to access traditional bank loans due to stringent requirements. The study recommends that the County develop targeted financial literacy programs educating SME owners about equity financing options and effectively presenting business cases to potential investors. The government should create platforms for SMEs to showcase business plans and financial needs to potential investors and lenders, facilitating connections that could lead to better financing opportunities.
Keywords: Financing Options, Financial Growth, Small and Medium Enterprises, Kirinyaga County, Keny
Strategic Leadership and Service Delivery At Konza Technopolis Development Authority, Kenya
No full textKonza Technopolis Development Authority in Kenya has experienced challenges in service delivery, notably delay in provision of services and slow response to customer complaints. While strategic leadership has received attention in literature, its role in service delivery of the firm, especially in the context of Konza Technopolis Development Authority has remained unexplored. Thus, the general objective of this study was to establish how service delivery at KoTDA may be influenced by its strategic leadership. In specific terms, strategic direction and ethical practices were explored in relation to service delivery at Konza Technopolis Development Authority, Kenya. The Service Quality model, contingency theory, strategic leadership theory and human capital theory anchored the study variables. Descriptive survey design was adopted targeting employees working at Konza Technopolis Development Authority and investors (customers) adding to 255 respondents. From these, 156 respondents were sampled in strategic and random terms. Questionnaires gathered participants' insights. Pilot study was done using 6% of the sample size by respondents from Konza Technopolis Development Authority to validate and determine reliability of the instrument. SPSS guided quantitative analysis to be descriptively and inferentially conducted and content analysis for qualitative statistics. The study established that strategic direction (M=3.78, β=.362, p=.000<0.05) and ethical practices (M=3.69, β=.306, p=.018<0.05) were all practiced at Konza Technopolis Development Authority and they significantly predicted its service delivery. The study concluded that strategic leadership is a significant predictor of service delivery. It was recommended that senior managers working at Konza Technopolis Development Authority, Kenya should constantly review the vision and mission statements in response to the changes in the environment in order to influence service delivery. All employees working at the Konza Technopolis Development Authority, Kenya should be trained and guided on integrity and transparency issues through regular seminars and workshops.
Keyterms: Strategic leadership, Strategic Direction, Ethical Practices, Service Deliver
Internal Audit Function's Independence and Financial Reporting Quality in Deposit-Taking Saccos in Kenya
No full textFinancial reporting quality remains a critical concern for deposit-taking savings and credit cooperative societies (SACCOs) in Kenya, with recent scandals highlighting significant deficiencies in financial disclosure and transparency. This study examined the effect of internal audit function's independence on financial reporting quality in deposit-taking SACCOs in Kenya. Grounded in agency theory, the research adopted a cross-sectional design targeting 176 deposit-taking SACCOs regulated by SASRA. Simple random sampling was employed to select 122 respondents from finance, accounting, and internal audit departments. Data was collected using structured questionnaires and analyzed using descriptive statistics, correlation analysis, and multiple regression analysis. The study achieved a 76% response rate with 93 usable questionnaires. Findings revealed that internal audit function's independence had a moderate positive correlation (r=0.458) with financial reporting quality. Regression analysis demonstrated that IAF independence significantly predicted financial reporting quality (β=0.335, p<0.05, t>1.96), explaining 58.2% of the variance in financial reporting quality. The study concluded that strengthening the independence of internal audit functions is crucial for enhancing financial reporting quality in deposit-taking SACCOs. The study recommends that senior managers of deposit-taking SACCOs should remain committed to strengthening the independence of the internal audit function through clear organizational structures, adequate resource allocation, and protection of internal auditors from managerial interference. This research contributes to the understanding of governance mechanisms in cooperative financial institutions and provides practical insights for regulators and SACCO management.
Keywords: Internal Audit Independence, Financial Reporting Quality, Deposit-Taking SACCOs, Agency Theory, Kenya