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Assessment of Internal Audit Practices on Financial Performance of County Government of Mandera, Kenya
Full text linkThe key goal of this study was to assess internal audit practices on financial performance of county government of Mandera. The investigation also sought to institute the influence of audit schedule, audit planning, financial reporting, and competence on financial performance of county government of Mandera, Kenya. The theories included; agency theory, shareholder, and stewardship theory. The study utilized a descriptive design. The study was conducted in the county government of Mandera and the target population was 432 staff working in finance and accounting, procurement, and human resource departments including the director for internal audit, internal auditing officers, accountants, and clerks in accounting and finance department. Using stratified sampling techniques, the study sampled 207 respondents. The study gathered data using structured and semi-structured questionnaires. The reliability of these tools was measured at r=0.7. The collected data was analyzed through SPSS version 22 where descriptive statistics which include frequencies, means, and standard deviations were used. Inferential statistics such as correlation was also used to establish the relationship between variables. The study found that audit planning, audit schedule, financial reporting, and audit competency had a positive and significant effect on financial performance of county government of Mandera (β=0.422, p=0.000). The study also found that audit schedule had a positive and significant effect on financial performance of county government of Mandera (β=0.224, p=0.002). Further results indicated that financial reporting had a positive and significant effect on financial performance of county government of Mandera (β=0.181, p=0.002). Results also indicated that audit competency had a positive and significant effect on financial performance of county government of Mandera (β=0.259, p=0.002). The study recommends that the Management of county governments in Kenya should implement effective internal audit practices to enhance performance. It also recommends that the management of the county governments in Kenya should bear the responsibility of equipping their firms’ internal audit functions with adequate resources to enable them to develop effective annual risk-based audit plans
Public Procurement Legal Framework and Performance of National Transport and Safety Authority, Kenya
Full text linkA legal framework encompasses the laws, regulations, and policies that are put in place to govern an organization or an activity. The PP legal framework covers the whole scope of PP, all stages of the procurement process, methods of procurement, ethics, and transparency. Despite the enactment of the Public Procurement Asset and Disposal Act 2015 which was touted to promote transparency, ethical practices, and professionalism in public procurement, the Public Procurement Oversight Authority estimated that procuring entities in Kenya were paying around 60% more than the prevailing market prices and many procurement activities still suffer from neglect, lack of open competition and corruption. The purpose of the study was to examine the public procurement legal framework on procurement performance of National Transport and Safety Authority. The objectives of the study were to determine the effect of procurement laws, internal procurement policies, bidding documentation, and circulars on performance of National Transport and Safety Authority. The study adopted a descriptive research design. The study unit of observation was National Transport and Safety Authority Nairobi and Coast regions. The unit of analysis was procurement staff of the National Transport and Safety Authority in two regions. Data was analyzed using descriptive and inferential statistics. The study findings showed that procurement laws, circulars, internal procurement policies, and bidding documentation had a positive and significant influence on performance in NTSA. The study recommended that the NTSA procurement staff adhere to procurement laws, internal procurement policies, and circulars, and bidding documentation was done procedurally
Legal Framework and Financial Corporate Compliance in Public Universities in Kenya
Full text linkOne of the important components of corporate governance that improves accountability and transparency in an institution\u27s financial management is financial corporate compliance. The emergence of alarming cases of financial impropriety in Kenya\u27s public universities has intensified the demand for financial accountability in the public sector and exposed the boards and management to increasing scrutiny. Public organizations have reported cases of inadequate or absent financial compliance, and public universities have also cited comparable circumstances in audit reports. It is unclear, however, what the causes of this compliance are or what function corporate governance plays in it. The purpose of this study was to investigate the effect of the legal framework on financial corporate compliance at Kenya\u27s public universities. The study adopted a descriptive survey research design. The study\u27s target population was 40 accredited public universities in Kenya. The data were gathered through the use of extensive, quasi-structured questionnaires. The study used descriptive statistics such as frequency distribution tables, percentages, and measures of central tendency such as the mean. Chi-square and correlation analysis were used to establish the relationship between the study variables. The study discovered that the legal framework had a considerable impact on financial corporation compliance during the study period and had a favorable impact on it. These results show that Kenya\u27s public universities are accredited by the commission on higher education and operate by its rules, which increases financial corporate compliance. The study recommends all public universities to be keeping track of all activities required to be adhered to by the public institution finance department more regularly to ensure the smooth running of the institutions. It is also recommended the university management facilitate regular training for the officers in the finance department to equip them with the relevant information of the newly amended policies by the government to govern the finances used to run public universities
E-Banking Strategy and Performance of Commercial Banks in Kenya
Full text linkThe study focus was on the role of e-banking strategy on a bank’s performance in the country. The specific objective is to investigate the role of mobile money strategy, agency money strategy, internet money strategy, and the A-T-Ms strategy on banks\u27 performance in the country. A descriptive research design was employed for this study. The study targeted 39 banks that were in operation during the period of 2016 – 2020. Therefore, the total number of observations was 195. A secondary dataset was employed for the study which was obtained from various sources including the annual reports and publications of banks, the CBK, and Communication Authority of Kenya. The data analysis employed inferential and descriptive statistics. In descriptive statistics, percentages and frequencies are employed while inferential statistics included correlation and regression analysis. According to correlation analysis, agency banking (r = 0.578, p = 0.000), mobile banking (r = 0.536, p = 0.000), ATM banking (r = 0.644, p = 0.000) and internet banking (r = 0.431, p = 0.000) have a significant relationship with banks performance. The research concluded that use of agency banking, mobile banking, ATMs, and Internet banking had positive outcomes and significantly affected performance of banks. The study also concluded that these e-banking strategy had a positive and significant effect on both ROA and ROE of commercial banks. Therefore, they had a positive and significant effect on performance of commercial banks. The study did a recommendation for commercial banks that there is a need for an investment in advanced technology, a new way of doing things, and capacity enhancement to increase utilization of e-banking services. Additionally, banks ought to put in resources to train, educate, and enlighten their customers on the benefits of utilizing e-banking services
Assessment of Debt Securities on Performance of Commercial Banks in Nyeri County, Kenya
Full text linkThe study investigated the effect of debt securities on performance of commercial banks in Nyeri County, Kenya. The study used quantitative descriptive research design and target population comprised 16 commercial banks in Nyeri County, Kenya. The respondents comprised 194 respondents in various departments. The study analyzed descriptive statistics like frequencies, percentages and mean. Inferential statistics including correlation and regression analysis were also used. The result of secondary data on financial performance pointed the gross profit had the highest average mean of 3.2 while net profit had the lowest mean. An observation of the years indicated that the gross and net profits for the banks were highest in 2019, followed by 2022 while 2020 recorded the lowest annual profits. Debt securities had a Pearson correlation coefficient r=0.312** at α < 0.000 and a 99% significance level. Therefore, the null hypothesis was rejected since the R-value was less than 1. The study concluded that performance was positively impacted but some products such as commercial papers were unattractive to clients due to high risks of poor performance in wealth generation. This situation was fueled further by the low training on its applicability towards boosting the income levels of both the bank and client’s portfolio. The study recommends that the branch managers should develop policy structure that requires mandatory frequent training on staff to understand how not only main stream banking products operate but also securities such as commercial papers. Further, the board of management should assess the risk-return aspect of selected debt securities like the types of commercial papers to ascertain the ones which are riskier than the rest
Microcredit Risk Management Strategies and Loan Portfolio Quality of Microfinance Institutions in Kenya
Full text linkThe study investigated the effects of Microcredit risk strategies on the loan portfolio quality of microfinance institutions in Kenya. The analysis is based on a panel dataset of 14 microfinance institutions in the period 2017 to 2021. The study was guided by the following theories the institutional theory, the theory of information asymmetry, the theory of delegated monitoring and the modern portfolio. The study will be useful to the MFIs managers and will help them devise good policies to ensure borrowers are well screened to improve portfolio quality while improving the cases of loan defaults. The study adopted a desktop methodology. Desk research refers to secondary data that which can be collected without fieldwork. The quality of loan portfolio has been affected most by nonperforming loans and has affected largely the microfinance institution’s profitability and their financial performances, there have not been adequately featured in any of the studies reviewed. To the academicians and researchers, they will be furnished with relevant information regarding microcredit risk management and loan portfolio quality of the Microfinance institutions in Kenya. This will also contribute to the general body of banking sector and form a basis for further research. The regulators of Bank Sector will use it to formulate stringent policies to tame the rising cases of non-performing loans, evaluating how successive their approach has been identifying the gaps and adjust
Regulatory Framework and Financial Corporate Compliance in Public Universities in Kenya
Full text linkOne of the important components of corporate governance that improves accountability and transparency in an institution\u27s financial management is financial corporate compliance. The emergence of alarming cases of financial impropriety in Kenya\u27s public universities has intensified the demand for financial accountability in the public sector and exposed the boards and management to increasing scrutiny. Public organizations have reported cases of inadequate or absence of financial compliance, and public universities have also cited comparable circumstances in audit reports. It is unclear, however, what the causes of this compliance are or what function corporate governance plays in it. The purpose of this study was to determine the effect of regulatory framework on financial corporate compliance at Kenya\u27s public universities. The study adopted a descriptive survey research design. The study\u27s target population was 40 accredited public universities in Kenya. The data were gathered through the use of extensive, quasi-structured questionnaires. The study used descriptive statistics such as frequency distribution tables, percentages, and measures of central tendency such as the mean. Chi-square and correlation analysis were used to establish the relationship between the study variables. The study findings indicated that regulatory framework affects positively financial corporate compliance during the period of study and its effects are significant. The study also found that the universities are regulated by accredited regulatory bodies as stipulated by the constitution. This study recommends that the government should employ thorough accountability measures and policies that will make every officer in public universities be held responsible for every activity he/she has undertaken on behalf of the university that may lead the university to incur some expenditures
Influence of Asset Allocation on Financial Performance of Commercial Banks in Nairobi County, Kenya
Full text linkThe study evaluated the influence of asset allocation on financial performance of commercial banks in Nairobi County, Kenya. Descriptive research design was used in data collection process among 38 commercial banks in Nairobi County, Kenya. Therefore, the study obtained a sample size of 11 banks using a simple random sampling method whose 24 portfolio managers, 21 risk officers, and 36 portfolio management officers, were used as respondents. Data was analyzed using descriptive statistics and regression analysis. The R-value was 0.702 while R-square was 0.692, which indicated that asset allocation had a 69.2% influence on financial performance. The p-value was 0.004 which was less than 0.05 hence enabling the study to reject the null hypothesis that asset allocation had no significant influence on financial performance of commercial banks. The study concludes that the institutions had minimally invested in an advanced variety of investment software that would aid them in allocating assets to various investment vehicles. The banks had invested in establishing ICT hardware but not in the advanced software part. As a result, the staff were overburdened with portfolios that required them to be present at all times for monitoring. Therefore, when they burnt out, most of them resigned for more efficient investment institutions, thereby leaving the client’s assets at risk of losses. The study recommends that the bank board should release funds to finance various installations of updated software. The management should also go ahead and source trainers to train the investment staff on how best to utilize the software to make the best out of it
Asset Quality and the Financial Performance of Commercial Banks in South Sudan
Full text linkBanks are of great and noteworthy importance in preserving and promoting the advancement of diverse economic sectors, making them crucial components of the economy. They shift the resources\u27 attention from areas with surpluses to those with deficits. However, majority of nations have encountered banking issues that have necessitated significant banking system reforms. The issues are primarily the result of domestic factors including poor banking supervision, ineffective management, and insufficient capital. Making sure companies participating in the sector are managed prudently is a crucial aspect of bank regulation. The primary aim of this study was to determine the effect of asset quality and the financial performance of commercial banks in South Sudan. An explanatory research design was used in the study. The target populace was commercial banks in South Sudan. There were 29 commercial banks that existed in South Sudan between 2017 and 2021. The study used purposive sampling to sample 23 banks that were in operation between 2017 and 2021. Secondary information was used in the study. For analysis, the obtained information was cleaned and imported into STATA 17. Descriptive statistics and regression analysis was conducted. The inferential statistics used were correlation and regression. Descriptive outcomes showed that the mean asset quality ratio from 2017 to 2021 for the commercial banks in South Sudan was 0.262, with the least asset quality ratio being 0.622 and the most being 4.395. Trend outcomes were clear that asset quality was inconsistent amongst South Sudan commercial banks. Outcomes were clear that asset quality negatively but significantly impacted by the performance. The study concluded that asset quality had a negative and noteworthy impression on financial success. As a result, the report advises banks to refrain from holding too many loans relative to their overall assets, as this reduces liquidity and negatively impacts the bank\u27s ability to operate. The study suggests that banks implement appropriate credit risk management procedures. This is because inadequate credit risk management procedures lead to a large percentage of nonperforming loans, which eventually have a negative impact on commercial banks\u27 profitability
Determinants of Inventory Management in Public Hospitals in Mombasa County, Kenya
Full text linkSound inventory control and management facilitate several actions and desired results that would increase the performance level of an organization to great heights. This study sought to investigate the determinants of effective inventory management in public hospitals in Mombasa County, Kenya. The specific objectives were to determine the effects of information technology, material handling, staff competencies, and storage facilities on inventory management. The study was guided by Resource Based View Theory. The study adopted a descriptive survey design. The sample size for the study was 41 members of staff from Public Hospitals. The study established that increase in the staff competencies and storage facility results in an increase in effective inventory management. Further, increase in information technology and materials handling results in a decrease in effective inventory management. The study recommended that public hospitals should consider both academic qualification and experience in hiring its staff, automating material handling techniques to enhance the safety of materials, and must ensure maximum security and safety of stores and hospitals at large. Top management in public hospitals must embrace and attain the required standards of knowledge on matters of inventory control and management. The hospital management and leadership must and should embrace the use of technology to enhance most effective and efficient delivery of services to the public