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Capital Level and Financial Stability of Commercial Banks in Kenya
Full text linkThe soundness of banks\u27 finances serves as the foundation for the entire financial sector because they are essential to promoting economic growth. A commercial bank\u27s financial stability should be assessed with specific emphasis given to domestic and foreign issues that affect how the bank operates and figuring out the amount of their influence on the status and operations of the commercial bank. Nevertheless, the impact of the company\u27s capital, liquidity, and asset quality on the financial stability of commercial banks has not been studied. This study aimed to evaluate the effect of capital level on licensed commercial banks’ financial stability in Kenya. The research was anchored by capital buffer theory. The explanatory research design was adopted to analyze thirty-nine banks for the period 2016 to 2022 based on the census approach. The study outcomes were arrived at using secondary data obtained under the guidance of the secondary data collection schedule. The assessment of the investigation was evaluated premised on descriptive and panel approaches. The findings indicated that capital level had a positive and significant effect on the financial stability of commercial banks. The study recommended that commercial banks should adopt strategies and measures that will enable them to increase the capital level leading to an increase in financial health
Influence of Supply Chain Management Practices on Service Delivery at the Judiciary Headquarters in Nairobi, Kenya
Full text linkPurpose: Service delivery is a fundamental aspect of public organizations, playing a critical role in fulfilling the expectations and needs of the public. As a result, organizations are called upon to improve the efficiency of their supply chain. The primary goal of this research was to find out how supply chain management techniques affect the quality of services provided at the Kenyan Judiciary Headquarters in Nairobi. The specific objectives were to find out how e-sourcing techniques, collaboration, inventory management and supplier management relationships practices affect service delivery.
Methods: The study was grounded on the transaction costs theory, institutional theory, resource dependence theory, and the Kaizen theory. The study used a descriptive design, targeting 235 employees working at Judiciary Headquarters in Nairobi. A stratified random selection technique was used to pick the 149 participants that made up the sample size. Interview guides and structured questionnaires were used for data gathering. All the data was processed and analyzed in SPSS V.24.
Results: The multiple regression analysis revealed a strong model fit, with an R² value of 0.610, indicating that the independent variables explain 61% of the variance in service delivery. Specifically, e-sourcing practices, collaboration, and supplier relationship management were found to have significant positive effects on service delivery, with standardized coefficients (Beta) of 0.367, 0.328, and 0.312, respectively. Inventory management also had a positive impact, though to a lesser extent (Beta = 0.215). The ANOVA results confirmed the overall model’s significance with an F-statistic of 31.45, p < 0.001. These findings underscore the crucial role of effective supply chain management practices in enhancing service delivery performance.
Conclusion: The study concludes that targeted improvements in these areas can significantly enhance service outcomes, and it recommends further investment in e-sourcing systems, fostering collaboration, and strengthening supplier relationships to improve overall service delivery
Transaction Monitoring Effect on Profitability of Commercial Banks in Kenya
Full text linkCommercial banks\u27 performance is fundamental to the economy as providers of financial services. In offering this service, commercial banks are exposed to a range of risks that negatively affect financial position and ultimately influence profitability. Profitability is indicative of a bank\u27s stability and potential for growth. Enhancing commercial banks\u27 profitability contributes to shareholder return on investment. In June 2018, five banks were fined a total of Kshs. 392 million by the Central Bank of Kenya for breaching anti-money laundering regulations. Consequently, banks had to invest resources to improve their anti-money laundering measures. Consequently, raising operational and compliance overheads. This study sought to determine the effect of transaction monitoring on profitability of commercial banks in Kenya. The research employed an explanatory research design. The targeted population comprised all the thirty-nine regulated commercial banks as of December 31, 2021. The study period was eight (8) years (2014 to 2021). Respondents were chosen through purposive sampling. Primary data was gathered using structured questionnaires, while secondary data was derived from audited financial reports of commercial banks and the annual banking supervision report from the Central Bank of Kenya. Subsequently, the collected data underwent analysis employing descriptive statistics and regression analysis. The research results disclosed that transaction monitoring positively and significantly influenced commercial banks profitability. Consequently, bank managers should incorporate transaction monitoring into their operations to augment the overall efficacy to detect and report potentially suspicious activities, and to strengthen operational controls
The Influence of Information Technology on Firm Performance; The mediating and Moderating Role of Supply Chain Collaboration and Market Turbulence among Food Processing Industries in Ghana
Full text linkPurpose: This study focused on the influence of Information Technology (IT) on Firm Performance with boundary conditions of mediating and moderating the role of Supply Chain Collaboration (internal and external) and Market Turbulence among Food Processing Industries in Ghana.
Methods: Quantitative research approach was applied in this study focusing on SMEs from four regions in Ghana (Accra, Ashanti, Eastern and Bono). Stratified random sampling technique was employed to come out with a total sample size of 400 participants constituting CEOs, senior managers and divisional heads of FPIs.
Results: Findings from the study suggested that IT usage positively and significantly affect the FPI performance, especially through supply chain collaboration. Market turbulence was found to exert moderating effect on IT usage and supply chain collaboration.
Conclusion: It has been said that performance enhancement of the FPI SMEs can be possible through IT adoption, the influence of collaborative efforts of other SC partners especially firms operating in an unstable market (like Ghana) require strong SCC to improve their performance
Impacts of Harvest Process on the Onions Chain Management in Singida Urban District
Full text linkThe agriculture sector is a key player in Tanzania\u27s economic growth, which contributes to 45% of Gross Domestic Product (GDP), creating 80% employment opportunities (Putter et al., 2007). In Tanzania, the supply chain of fresh vegetables does not yet have an identity to stand alone as a horticulture sector, despite there is support from Government and non-government to empower the sector so that it can be able to make the products on an international commercial basis. This study targeted warehouse operators, farmers, retailers, distributors, consumers, and key information personnel involved in onion production within the study area of Singida Urban District. The study used a sample size of 100 respondents less than the targeted sample size of 138 obtained from the estimated population larger than 1000. The data was to be collected from a sample of 138 respondent who is stakeholders, in the onions business however, due to different reasons such as time limit, schedule conflicts, and financial constraints data was collected from 100 respondents. Data analysis for both descriptive statistics and inferential statistics was made possible with the help of Statistical Package for Social Science (SPSS-21 version) software. In the study, the research objective was to assess the impact of the harvesting process of onions in supply chain in Singida Urban District. Whereby, about 34.8% of farmers experience a loss of less than 5 kilograms during harvesting, while about 32.6% of onion farmers experience a loss of between 6 – 10 kilograms. This indicates that a lot of farmers start to experience loss even before their yields reach the market and one of the reasons for this could be the using of poor harvesting techniques and equipment
Influence of Ownership Concentration on Financial Performance of Listed Firms in Nairobi Securities Exchange, Kenya
Full text linkThe purpose of the study was to evaluate the influence of ownership concentration on the financial performance of listed firms in the Nairobi Securities Exchange, Kenya. For this study, the target population is represented by several companies from different sectors listed on the NSE in Kenya from 2016-2020. The study used data from firms that were consistently listed in NSE from 2016 – 2020 the ones that were delisted and or suspended and that were listed after 2016 was not included, creating a sample size of 55 firms yielding a panel of 275 data points. The study adopted a purposive sampling approach since it satisfied the criteria of my study. The study used secondary data obtained from annual audited financial statements of listed firms using data collection sheets. The results showed that local ownership concentration had a negative and insignificant effect on financial performance using ROA. However, local ownership concentration had a negative and little impact on financial performance using ROE (r=-0.055, p=0.334). Further results showed that government ownership concentration had a negative and significant impact on financial performance using ROA (r=-0.107, p=0.008). However, government ownership concentration had a positive and insignificant influence on financial performance using ROE. In addition, results further showed that foreign ownership concentration negatively and significantly influenced financial performance using ROA (r=-0.072, p=0.205). However, foreign ownership concentration had a positive and insignificant impact on financial performance using ROE. The study also concluded that ownership concentration has a significant influence on the financial performance of listed firms in Nairobi Securities Exchange, Kenya using ROA {F=35.88, p=0.000)} with overall R Square of 0.250 but had no significant influence on the financial performance of listed firms in Nairobi Securities Exchange, Kenya using ROE {F=4.910, p=0.437)} with overall R Square of 0.105. The study recommends that there should be a substantial shareholding with a sizable number of shares to take control of the company\u27s performance with passion and interest
Firm Characteristics and Non-Performing Loans of Microfinance Banks in Kenya
Full text linkMicrofinance banks in Kenya have continued to experience challenges of loan defaults which negatively impact their asset quality and performance. As a result of loan default, many of these institutions have suffered significant losses. The goal of this study was to see how firm factors affect non-performing loans at Kenyan microfinance institutions. The specific objectives were to examine the impact of leverage, business size, liquidity, and capital sufficiency on non-performing loans. Institutional theory, credit crunch theory, and liquidity preference theory served as the research\u27s guide. The research design was descriptive. The analysis was premised on descriptive and inferential analyses. The findings showed that leverage significantly and favorably affected non-performing loans. Non-performing loans were negatively and significantly impacted by firm size. Microfinance banks\u27 non-performing loans were not significantly affected by liquidity or capital adequacy. The study\u27s conclusions suggest that lowering the debt ratio of microfinance banks will undoubtedly lead to a reduction in non-performing loans. By expanding the asset base, there is a greater chance that the non-performing loans of the microfinance banks will be reduced. Increasing liquidity and capital adequacy would not have a substantial impact on the non-performing loans of microfinance banks. The management of the microfinance banks should review the debt policies with aim of reducing over-reliance on debts, should strengthen the equity policy that will lead to low leverage, should develop strategic plans aimed at strengthening and growing the asset base. The management should particularly channel most of the payoffs from investment in asset acquisition. Policymakers in the financial sector especially CBK should streamline policy implementation toward loan defaulters. Academicians and researchers should review the empirical findings of this study in building their research work on related topics. 
Effect of Debt Leverage and Debt-Equity Leverage on Financial Performance of Commercial and Services Companies Listed at the Nairobi Securities Exchange, Kenya
Full text linkFinancial performance is very critical for firms, management, and other stakeholders of all organizations. All stakeholders are very interested in performance and are concerned about it. Measuring a company\u27s financial performance helps management in collecting information on how money is invested and how money flows inside and outside the company. The main aim of the investigation was to determine the effect of debt leverage and debt equity leverage and the financial performance of commercial and services companies listed at the Nairobi Securities Exchange, Kenya. The target population was Eleven (11) service and commercial firms listed with the NSE. Purposive sampling was used to sample 7 firms that have been consistently listed in NSE from 2017 to 2021. STATA, a statistical program that assisted in presenting descriptive and panel data models for analysis, was used to analyze the data. There was testing for diagnostic indicators such as normality, autocorrelation, multicollinearity, heteroscedasticity, and linearity. Tables and panel regression tables were used to display the results. Effective citations and participant permission, among other ethical issues, were followed. The research revealed that debt leverage had a sizeable impact on ROA. It was discovered that -debt-equity leverage had a considerable impression on the success of listed businesses and services. However, it was discovered that equity leverage did not meaningfully impact financial success. The policymakers at commercial and service firms should develop policies and regulations that can guide debt management among commercial and service firms. The policymakers at CMA need to develop suitable policies on debt
Supplier Sourcing and Performance of Total Energies Kenya Limited in Mombasa City County Kenya
Full text linkThe petroleum sector has been facing financial challenges leading to closure or merger of giant firms. This study assessed the effect of supplier outsourcing on the performance of Total Energies Kenya Limited in Mombasa City County, Kenya. This study is anchored on Transaction Cost Theory. A quantitative research method was adopted together with a descriptive research design. The study targeted a population of all direct employees of Total Energies Kenya Limited. The exact number of direct employees at Total Energies Kenya Limited is estimated to be 400 with other 300 indirect ones. The data was gathered with the help of questionnaires and analyzed through the computation of descriptive and inferential statistics. The study revealed that supplier sourcing had a positive and significant effect on procurement performance. The study concluded that supplier sourcing had a positive and significant effect on the procurement performance of Total Energies Kenya Limited and the organization\u27s performance as a whole in that it greatly reduced the cost of production increasing profitability, and also gave access to a variety of new products and services widening its market share
Digital Transformation and Financial Performance of Deposit-Taking Savings and Credit Co-Operatives in Nairobi City County, Kenya
Full text linkThe deposit-taking Saccos in Kenya have registered an increased amount of non-performing loans as well as a reduction in liquidity, which have affected their overall financial performance. There is little research on digital transformation and the financial performance of recipient pockets. Therefore, this study aims to examine how digital transformation affects the financial performance of Nairobi-based Saccos. Specific objectives include investigating the impact of mobile banking, ATM, agency banking, and Internet banking on financial performance. Financial intermediation theory, agency theory, and transaction cost innovation theory support this research. Explanatory research is used in this study. The target group consists of 44 licensed savers. 30 Saccos were included in this study. This study uses secondary panel data from 2017 to 2021. The method used is panel regression. Regression and correlation were also employed. The results showed that agency banking (β=0.046817, p<0.05) and internet banking (β=0.109425, p<0.05) had a positive and significant effect on the financial performance of Saccos in Nairobi districts. The results also show that mobile banking (β= -0.00945, p>0.05) and ATM (β=0.072028, p>0.05) have no significant impact on the financial performance of saccos by taking deposits in cities in Nairobi. The study concluded that the key factors improving the financial performance of Sacco\u27s deposit beneficiaries in Nairobi District were agency banking and online banking. This study also concludes that ATMs and mobile banking have no impact on deposit-taking saccos\u27 financial success. The paper makes recommendations for enhancing agency banking services for Saccos that accept deposits. The study also suggests enhancing the online banking system for managing Saccos that accept deposits. The research also advises the leadership of deposit-taking Saccos to review their policies on ATMs and mobile banking to identify any potential obstacles to taking appropriate action