Stratford Peer Reviewed Journals and Books
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Interest Rate Risk and Market Value of Firms in Kenya: A Gray Rhino perspective on Commercial Banks Listed at the Nairobi Securities Exchange
No full textThe effect of interest rate risk exposure on the market value of commercial banks have become increasingly significant in the modern financial economy due to the interconnected financial systems. Interest rate risk has a positive influence on bank development indicators, but this relationship diminishes at high-interest rate fluctuations. Interest rate risk has impacted on investments and aggregate demand, making the loans become too expensive hence triggering the default risk and liquidity risks locally. The purpose of this study was to identify the impact of interest rate risk on the market value of commercial banks listed at the Nairobi Securities Exchange. A census of all the listed firms was adopted. The study utilized secondary data from published financial statements and market share data from the Nairobi Securities Exchange database. The study adopted the structural equation model for analysis. The measurement model was applied to test the validity and quality criteria for the variables. The structural model was then employed to establish the research objectives of the study. Bootstrapping path analysis results showed that interest rate risk had a significant negative impact on the market value of commercial banks in Kenya. The results suggest that high levels of interest rate risk erodes the market value of banks which has a chain effect on the economy. In addition, bank size was found to partially moderate the relationship between interest rate risk and market value. These results are consistent with the Basel III framework where banks are required to maintain sufficient net assets to cushion against systemic risks. The study recommends that banks should undertake hedging against the interest rate risk and stop solely relying on fixed investments such as government bonds. Instead, they should diversify into investments with floating interest rates.
Keywords: Interest rate risk, bank size, market value, commercial bank
Management Fee and Yield of Money Market Unit Trusts in Kenya
No full textManagement fee is a critical factor in the performance of money market unit trusts. Investors expect money market unit trust schemes to deliver above-market financial returns, relying on the expertise of professional managers to justify the fees charged. However, many of these schemes struggle to consistently outperform the market, leading to diminished portfolios and missed investment opportunities. This underperformance can be attributed to various factors, including the impact of management fees on net returns. Thus, this study investigated how management fees impact unit trust yields in Kenya. The study employed an explanatory research methodology, utilizing panel data analysis over the period from January 1st, 2013, to December 31st, 2022. Data were collected from secondary sources, including Capital Markets Authority, Central Bank of Kenya, Kenya National Bureau of Statistics, and unit trust performance reports. The findings revealed that management fees significantly influenced the yield of money market unit trusts in Kenya. Higher management fees were associated with lower yields, highlighting the importance of balancing fees and returns. The study found a consistent negative association between management fees and yield across different types of money market unit trusts, with insurance-affiliated funds showing the strongest negative correlation. Regression analysis indicated that a one-unit increase in management fees was associated with a 0.62176 decrease in yield, with management fees explaining 2.90% of the yield variations. Furthermore, inflation directly impacted fund yields and moderated the effect of management fees on yield performance. Based on these findings, the study recommends that fund managers critically examine and optimize their fee structures, balancing operational costs with competitive returns. Regulators should implement policies to promote fee transparency, consider setting guidelines or caps on management fees, and encourage performance-based fee structures. Investors should carefully evaluate fee levels when selecting funds, considering the trade-off between fees and potential yields. The study concludes that efficiency in fund management, rather than higher fee structures, may be key to generating superior yields in Kenyan money market unit trusts.
Keywords: Management fee, yield of money market unit trusts, Keny
Risk Attitude, Socio-Demographic Factors, and Betting and Gambling Behavior among Employed Youths in the Banking Sector in Kenya
No full textBetting and Gambling have increasingly become prevalent among employed youths in Kenya, particularly within the banking sector, raising concerns about financial stability and responsible behavior among professionals. Despite gambling often perceived as a leisure activity, emerging patterns show that some individuals resort to taking personal loans, liquidating assets, or selling property to sustain gambling habits, resulting in financial distress. Youth aged between 18–35 years make up approximately 35% of the population and form a significant proportion of the workforce, particularly in urban sectors such as banking and finance. This study investigated the influence of risk attitude and socio-demographic factors specifically gender, educational level, and economic status on gambling behavior among employed youths in Kenya’s banking sector. Grounded in Prospect Theory and Expected Utility Theory, the study examined how individual risk preferences and socio-demographic attributes shape gambling decisions among financially literate populations. An exploratory research design was adopted, targeting bank employees aged 18–35 years. Primary data were collected through structured questionnaires and analyzed utilizing both descriptive and inferential statistics, including regression analysis. The results indicated that risk attitude had a statistically significant effect on gambling behavior, leading to the rejection of the first hypothesis. Educational level also significantly influenced gambling behavior, resulting in the rejection of the second hypothesis. Gender, however, was statistically insignificant, and the third hypothesis was not rejected. Economic status was found to have a significant effect on gambling behavior, leading to the rejection of the fourth hypothesis. The study concludes that risk attitudes, educational level, and economic status serve a critical role in shaping gambling behavior among employed youths in the banking sector, while gender does not significantly influence such behavior. In view of the findings, the study recommends that young professionals should understand and manage their risk attitudes to strengthen risk management strategies, leverage educational opportunities for informed decision-making, and address economic pressures that influence gambling tendencies.
Keywords: Gambling, Socio-Demographic Factors, Socio-Demographic Status, Risk Attitude
Effects of Carbon Markets Pricing on Competitiveness of Key Industries in Kenya
No full textCarbon markets aim to reduce greenhouse gas emissions, but their effects on industry and the economy are not fully understood in Kenya. This study examines the societal and economic impacts of carbon markets in Kenya, focusing on carbon emissions costs and their effects on industrial competitiveness. The study analyzes 8 key industries which together contribute over 60% of Kenya’s GDP and a large portion of formal sector employment. These sectors are both emission-intensive and trade-exposed, making them sensitive to carbon cost variations. In this study, the benchmark price of US43 per metric ton. However, if carbon costs exceed 5% of sectoral value-added surpassing the global threshold or prices rise above US35–55), most sectors remain below the 5% competitiveness threshold. The study recommends gradually increasing carbon prices while considering industries' capacity to adapt, balancing emission reduction goals with economic sustainability. Integrating the CETS with complementary energy policies such as petroleum levies will help reduce emissions. These findings provide policymakers with evidence for implementing the Kenya’s Climate Change (Amendment) Act 2023, designing the CETS framework, and formulating green fiscal policies that balance decarbonization goals with industrial competitiveness.
Key Terms: Carbon Trading, Industry competitiveness, GDP, carbon emissions, Carbon market price; Carbon emissions cos
Market Positioning and Customer Retention in Savings and Credit Cooperative Societies in Kiambu County, Kenya
No full textCustomer retention remains a critical challenge for Savings and Credit Cooperative Societies (SACCOs) in Kenya, with attrition rates rising by 12% over the past five years despite SACCOs controlling over KES 1.5 trillion in assets. Many SACCOs struggle to clearly communicate their unique value propositions and differentiate their services in an increasingly competitive financial landscape, resulting in diminished member loyalty and reduced organizational sustainability. This study examined the effect of market positioning on customer retention in SACCOs in Kiambu County, Kenya. The research was anchored on Relationship Marketing Theory, which emphasizes building long-term customer relationships through clear value propositions and differentiated offerings. The study employed a cross-sectional descriptive research design combining quantitative analysis. The target population consisted of 160 middle and top managers from 16 licensed deposit-taking SACCOs in Kiambu County. Using Yamane's formula and stratified random sampling, 150 respondents participated in the study. Data was collected using self-administered questionnaires and analyzed using SPSS version 28, employing descriptive statistics, correlation analysis, and multiple regression analysis. Results showed that market positioning had the strongest positive and statistically significant effect on customer retention (β = 0.662, p < 0.001), accounting for 43.2% of variance in retention outcomes. The study concluded that clear communication of SACCO's unique value proposition and effective differentiation from competitors significantly drives member loyalty. The study recommends that SACCOs invest strategically in marketing strategies that distinctly differentiate them from competitors and regularly review their positioning strategies based on market intelligence and customer feedback.
Keywords: Market positioning, customer retention, SACCOs, strategic management, relationship marketin
Blockchain Technology and Implementation of Extended Producer Responsibility in Plastic Waste Management in Nairobi City County, Kenya
No full textBlockchain technology has emerged as a transformative tool in plastic waste management, offering decentralized solutions that enhance transparency, traceability and compliance. Previously, Extended Producer Responsibility (EPR) in Kenya operated on a voluntary basis; however, the enactment of the Sustainable Waste Management (Extended Producer Responsibility) Regulations 2024 (Legal Notice 176/2024) made EPR mandatory for producers of plastic waste. Despite this regulatory shift, implementation has faced challenges including free-riding, non-compliance with EPR fee payments and weak regulatory enforcement. This study examined how decentralization of data fosters transparency in producer accountability, how tracking mechanisms improve plastic traceability, the potential of smart contracts to automate compliance and enforcement and how reward token mechanisms incentivize proper plastic disposal. These elements were analyzed in relation to their influence on payment of EPR fees, reporting of plastic waste volumes and end-to-end tracking of plastic across its lifecycle. A descriptive and exploratory research design was used. The target population comprised 250 stakeholders from NEMA, PROs (KEPRO and PAKPRO), blockchain experts and producers of plastic waste. Purposive and stratified random sampling produced a sample size of 152 respondents, from whom 137 valid responses were obtained, representing a 90.13% response rate. Data were collected using structured questionnaires, coded and analyzed using SPSS version 26. Descriptive statistics were generated, and multiple regression analysis was used to determine the influence of blockchain features on EPR implementation. The correlation was significant at the 0.01 level (2-tailed), while ANOVA results produced a p-value < .001, confirming statistical reliability. The study found that tracking mechanisms significantly strengthen accountability, smart contracts automate compliance and regulatory processes and reward token mechanisms effectively motivate behavioral change among producers, recyclers and consumers. While decentralization of data enhances transparency, it did not show a statistically significant direct influence on EPR outcomes. The study concludes that tracking mechanisms, smart contracts and reward token systems are the strongest predictors of effective EPR implementation and recommends prioritizing their adoption while integrating decentralization as a supportive transparency-enhancing feature.
Keywords: Blockchain Technology, Implementation, Producer Responsibility, Plastic Waste Management, Nairobi City County, Keny
Prediction of The Likelihood of Policy Lapsation Using Machine Learning Models: A Case Study of a Life Insurance Company Operating in Kenya
No full textPolicy lapsation, defined as the cessation of premium payments by policyholders resulting in termination of coverage, poses significant challenges to insurance companies in terms of revenue loss and customer retention. Lapses influence the profitability and liquidity of insurance companies through acquisition cost, and loss of income from renewal premiums; hence needs to be controlled and managed carefully. Leveraging a case study approach, this research explored the effectiveness of various machine learning algorithms in forecasting policy lapsation rates based on historical data and relevant policyholder attributes. Secondary data was obtained from a life insurance company operating in Kenya over the period 2018 to 2023 with 21,891 policyholders. Five classification models (Logistic Regression, Artificial Neural Networks (ANN), Random Forest, XGBoost, and AdaBoost) were trained and evaluated using comprehensive metrics including ROC-AUC, precision-recall AUC, sensitivity, specificity, and accuracy. The results show the strong prediction ability of ensemble models (Random Forest and XGBoost) and identified occupation type, sum assured and payment methods as critical predictors of lapsation. The best overall classifier is Random Forest with an accuracy of 80.6%, precision-recall AUC of 91.2%, and ROC-AUC of 88.2% with balanced specificity (80.1%) and sensitivity (81.1%). XGBoost showed a ROC-AUC of 87.5% and accuracy of 80.3%. The findings underscore the efficacy of ensemble methods, particularly Random Forest, in predicting lapsation risks, offering insurers actionable insights to proactively manage customer retention. This study contributes to the body of knowledge on actuarial analytics by validating machine learning applications in lapse prediction and provides a framework for implementing data-driven decision-making in insurance risk management.
Keywords: Life Insurance, Policy Lapse, Machine Learnin
Community Engagement; An analysis of Performance of Donor Sponsored Projects in Low Resource Countries
No full textDonor-sponsored projects complement government efforts in addressing developmental needs in communities, particularly economic empowerment and employment creation. Despite these interventions, communities in low-resource countries often remain impoverished, with some worse off than before project implementation. The desired outcomes frequently go unrealized, resulting in poor value for donors' investments. A critical but underexplored relationship exists between community participation and project performance, with community engagement serving as a vital component throughout the project cycle. Development stakeholders, including governments and donor consortiums, increasingly emphasize community participation as a prerequisite for project initiation. Western donors have expressed concern about project performance related to their sponsorship. This paper analyzes studies on community participation by different scholars, employing a systematic approach. From 122 articles identified through Google Scholar and Zotero, 25 were synthesized, and five most relevant articles were thoroughly examined. The analysis reveals that community participation is imperative for the success of donor-funded projects in low-resource countries. Participatory techniques positively impact project sustainability, with participatory planning and design influencing implementation effectiveness. The study emphasizes that successful approaches integrate participatory needs assessment, planning, implementation, and evaluation. The paper recommends strengthening of community participation in donor-funded projects, right from their inception to project closure and handover. Emphasis should be directed to community members’ commitment as they participate in the project cycle. The adequacy of project inputs, availability of community groups’ formation, capacity building, and level of acceptance, awareness, and resource provision should also be enhanced. Community people or beneficiaries have to be included in all phases of project development. The community also have to be trained on participatory practices in development involvements. Proper communication should be enhanced as a recommendation through the project management cycle as well clear distribution of roles for all stakeholders within water management.
Keywords: Community Engagement, Performance, Donor Sponsored Projects, Low Resource Countrie
Healthcare Access and Glycemic control: Utilization Patterns among Diabetic Patients at Kapkatet Sub-County Hospital, Kericho, Kenya
No full textDiabetes Mellitus (DM) presents a significant public health challenge, particularly in developing regions such as Kenya, where poor glycemic control remains highly prevalent. This study aimed to investigate healthcare access and utilization patterns in relation to glycemic control among diabetic patients at Kapkatet Sub-County Hospital, Kericho County, Kenya. Despite advancements in diabetes management, many patients struggle to maintain optimal blood glucose levels, increasing their risk of severe complications. A hospital-based cross-sectional study design was employed, with data collected through structured questionnaires and medical record reviews to evaluate socio-demographic, anthropometric, and clinical characteristics. The study sampled 300 adult patients diagnosed with Type 2 Diabetes Mellitus. Descriptive statistics were used to analyze data, summarized using frequencies and percentages. The study was conducted over four months, covering ethical approvals, participant recruitment, data collection, analysis, interpretation, and dissemination of findings. Ethical considerations were rigorously followed, ensuring patient confidentiality, informed consent, and compliance with ethical standards. The study achieved an 83.3% response rate. The findings revealed that while 81.2% of participants had access to diabetes clinics, only 58.4% adhered to regular follow-ups, with cost cited as a barrier by 46.0% despite 72.8% having health insurance coverage (predominantly NHIF at 66.4%), indicating that insurance alone does not fully mitigate financial burdens such as transportation, dietary needs, and medication expenses. The low adherence to follow-ups underscores the necessity for improved patient education, support systems, and telemedicine integration to address logistical challenges and ensure continuous engagement in monitoring disease progression and treatment adjustments. The study provides valuable insights into the determinants influencing glycemic control among diabetic patients at Kapkatet Sub-County Hospital. The findings highlight the need for targeted interventions, including enhanced patient education, financial support mechanisms, and adherence-focused diabetes management strategies to improve health outcomes in this population.
Keywords: Health care access, utilization patterns, Glycemic control, Kapkate
Effects of Forest Landscape Restoration Initiatives on the Socio-Economic Development of Smallholder Farmers in Rwanda: A Case of Bweyeye Sector, Rwanda
No full textThis study investigated the effects of Forest Landscape Restoration (FLR) initiatives on the socio-economic development of smallholder farmers in Bweyeye Sector, Rusizi District, Rwanda. While FLR efforts aim to restore degraded landscapes, conserve biodiversity, and support rural livelihoods, their socio-economic impacts remain unclear, particularly for small-scale farmers. The study had three specific objectives: (1) to evaluate FLR by mapping forestland cover change from 2003 to 2023 using Geographic Information System (GIS) tools; (2) to assess the effects of FLR using descriptive statistics from a survey of 332 smallholder farmers across five cells in Bweyeye; and (3) to analyze the relationship between FLR and socio-economic development using correlation and regression analysis. GIS results showed a significant forestland cover loss of 45.73 square kilometers over the 20-year period, mainly due to agricultural expansion and infrastructure development, despite high community participation in FLR activities. Descriptive findings indicated improved socio-economic conditions among FLR participants, notably in income, food security, education, and healthcare access. Correlation analysis confirmed a strong positive relationship between FLR initiatives and socio-economic development. The study recommends that policymakers implement balanced land-use strategies and that the Rwanda Forestry Authority strengthens monitoring systems to track tree survival and land cover changes. Future research should explore long-term FLR impacts on job creation and housing.
Key words: Forest Landscape Restoration, Socio-Economic Development, GIS Analysis, Agroforestry, Bweyeye sector, Rwand