EdinBurg Journals
Not a member yet
1173 research outputs found
Sort by
Influence of E-Procurement on Supply Chain Management Performance in Kisii County
Full text linkThe study sought to investigate the influence of e-procurement on supply chain management performance in Kisii County. The research adopted descriptive research design. The target population in this study was 40 County Government employees. The study employed the use of primary sources of data where the researcher used questionnaires. Quantitative data was analyzed through the use of frequency distribution, mean scores and standard deviations. Chi-Square test was used to determine whether there is significant association between the study variables. From the chi-square test, the study concluded that there is a positive and significant association between dependent variable (supply chain management performance) and the independent variable (e-procurement). This means that e-tendering, e-invoicing and e-payment have a positive and significant influence on supply chain management performance. The study recommended that institution should provide the supplier with access credentials for the supplier portal. This will increase users’ access to information in the e-procurement (electronic procurement) service with effective internet and thus an increase in chances of selecting the best supplier company for e-tendering. The system should enhance government financial controls and improve accounting, recording and reporting through proper systems of invoicing with regard to both the supplier and the institution. Automated procurement process should be specific with requisition, tendering, contract warding and payment. The goal of the e-procurement in the institution should be to enhance the quality of public service delivery in the county and to provide timely, transparent and accurate financial and accounting information across both national and county government
Effect of Interest Rate Capping on the Payment of Corporation Tax by Tier Three Banks in Kenya
Full text linkThe interest rate charged on loans and the rate of interest paid on bank deposits, which translates to cost of funds both have a significant impact on the profitability of any commercial banks and hence the corporation tax paid therof. In September 2016, the Banking Act was amended through insertion of clause 33B controlled lending interest rates to a maximum of 400 base points above CBR rate and interest on deposits to not less than 70% of the CBR rate. This study sought to determine the effects of interest rate capping on the Corporation tax paid by the tier three banks in Kenya. Specifically, the study examined the effect of profitability margins, loan book quality, cost of bank deposits, and cost of overheads on the payment of corporation tax by tier three banks in Kenya. The study utilized descriptive research design and targeted 18 tier three commercial banks leaving out Mayfair and SBM banks that were new, and those that had either been acquired by other banks or were under receivership or statutory management as at December of 2018. The findings indicated that cost of overheads have a positive and significant relationship with corporation tax payment by tier three banks (β=0.148542, p=0.016), profitability margin has a positive and significant relationship with corporation tax payment by tier three banks (β=0.315405, p=0.000), interest rate capping (control variable) had a negative and significant relationship with corporation tax payment by tier three banks (β=-3.08364, p=0.001), cost of deposits have a negative but insignificant relationship with corporation tax payment by tier three banks (β=-0.05854, p=0.398), while loan book quality has a negative but insignificant relationship with corporation tax payment by tier three banks (β=-0.00443, p=0.795). Based on the findings, the study concluded that the introduction of interest rate capping had a negative and significant effect on corporation tax payment by tier three banks in Kenya. From the findings, the recommends that the government through the National Assembly should reconsider removing the interest rate capping. This is because it has adverse effects to all stakeholders including the government, banks and customers
Effect of Organization Redesign Strategy on Performance of Commercial Banks in Nairobi County, Kenya
Full text linkThe capping of interest rates by the Central Bank of Kenya in September 2016, led to massive downsizing by commercial banks in Kenya to reduce costs, survive and generate profits. However, by the end of the financial year 2017 when banks that downsized were releasing their financial reports some banks had made a profit like Kenya Commercial Bank, Cooperative bank, while others including Family bank, Barclays among others had made losses. Therefore, it is not clear whether downsizing has a positive or a negative impact on banks’ profitability. The survey looked at the impact of organization redesign strategy on commercial bank financial performance. A descriptive research design was used. The research targeted 12 commercial banks in Kenya. The research targeted three managers from each bank in the following categories: senior, middle and supervisory level. Therefore, the target respondents were 36 managers. A census approach was adopted since the population size is not large. Data was gathered using structured questionnaires issued to bank managers. The data collected was quantitative and was sorted to ensure completeness. Findings revealed that organization redesign strategy had a positive and significant effect on commercial bank financial performance in Nairobi County. The study recommends that banks should diversify to increase their income levels. Banks also need to invest more in innovation, agency, and digital banking as the main drivers of bank diversification and distribution channels for banking products. Banks are also encouraged to unite to work together and survive in the market
Financial Characteristics and Market Value Added for Non-Financial Firms Listed at the Nairobi Securities Exchange in Kenya
Full text linkThis study intended at assessing why in the recent past, market value added for most firms in Kenya has been on a downward streak, and whether their financial characteristics manipulate their market value-added, or otherwise. The specific objectives included: to investigate the effect of firms’ total assets, investment strategies, effective tax rate, and assets utilization on firms’ market value-added. The research paper embraced a descriptive research design. The target population was 36 non-financial businesses listed at the Nairobi Securities Exchange. Panel regression analysis was used. The findings indicated that effective tax rates had a negative and considerable impression on the market value-added of non-financial corporations. Further, conclusions divulged that investment patterns had a constructive and foremost effect on the market value-added of non-financial firms. Though, the size of a firm and assets utilization had no significant influence on the market value-added of non-financial firms. The study concluded that effective tax rates and investment patterns are significant determinants of market value added on non-financial firms. The study advocated that the government should contemplate slashing the tax rates correlated to non-financial firms. The management of non-financial firms should develop apt investment models to guide and inform the way a firm makes key investment determinations
Effect of Social Media Education on Tax Compliance among Motor Vehicles Spares Traders in Suburb Area of Nakuru Town, Kenya
Full text linkTax compliance is the extent to which the tax payers strive to do as per the requirement by the relevant tax laws that have been set up by countries. Compliant tax payers are those that make timely declaration of their tax positions. In addition, compliance by taxpayers is dependent on economic incentives embedded in the tax structure. Compliance with tax payers also relies on the effectiveness of the tax structure and administration in detecting and punishing non-compliant taxpayers. The objective of the study was to assess the effect of social media education on tax compliance among motor vehicles spares traders in Suburb area of Nakuru town, Kenya. This study employed an explanatory research design. This study target population was 300 motor vehicles spare traders operating in the suburb area of Nakuru town. The sample size of the study was 150-motor vehicle spare traders operating in the Nakuru town suburb area. This study collected primary data using structured questionnaires. The study found that social media education is positively related to compliance to taxation. The study concluded that it is important and significant to include the element of taxpayer education by use of social media. The study recommends that the KRA needs to scale up its social media engagement of the enlightenment of taxpayers since the use of social media platforms is very convenient given the advent and advantages brought about by use of smartphone technolog
Assessment of Innovative Money-Collecting Systems Strategy for Mobilizing Own-Source Revenue in Isiolo County Government
Full text linkThe county governments are expected to mobilize their own-sources revenue to bridge the gap in equity share. Despite the elaborate national fiscal policies and legislative frameworks on own-source revenue mobilization, many county governments, including Isiolo, have continued to report deficiency and inability to increase their own-source revenue, adversely affecting service delivery. This study was set out to assess the innovative money-collecting systems strategy for enhancing own-source revenue in Isiolo County. The rational expectations theory of technology guided it. A cross-sectional descriptive survey research design was applied. Data was collected from the revenue-generating departments and county assembly-budget and finance committee. Since the target population (60) was small, all were included in the study. The content, construct, face validity, and reliability were applied to check the quality of the questionnaire used in data collection. Mean, frequencies, percentage, and factor analysis were computed using statistical package for social sciences, while regression analysis was used to test the hypothesis. The study found that Isiolo County heavily relied on equity share to execute its functions despite gazetting own-source revenue streams. One drawback was the weak innovative money-collecting systems strategy. The study noted a weak electronic revenue collecting system, hence, loopholes in own-source revenue mobilization initiatives. The need to re-address innovative money-collecting systems strategy was evident; hence the county government should adopt e-billing, e-payment, and security controls systems in collecting own-source revenue. The findings have implications on systems for collecting own-source revenue, budgetary allocation and further affect practices in collecting own-source revenue in Isiolo County government and others
Influence of Relationship Management Process on Performance of Financial Market Intermediaries in Kenya
Full text linkThe purpose of the study was to establish the influence of relationship management process on performance of financial market intermediaries in Kenya. The study reviewed existing literature related to the study variables. The study adopted a cross sectional approach, with study population being 218 employees in 109 financial market intermediary firms. The study used a census approach. The study employed primary data. Primary data was collected through questionnaire. A pilot study was conducted to measure the research instruments reliability and validity. Descriptive and inferential analysis was conducted to analyze the data while multiple and simple regression analysis were used to measure firms’ performance as influenced by supply chain automation. The data was presented using tables, graphs and charts. The study findings revealed relationship management have positive and significant association with firm performance. Based on the findings the study concluded that relationship management processes influenced the performance of financial market intermediaries in Kenya. The study recommended that the financial intermediaries should fully automate their relationship management processes. This will lead to improvement of the firm’s performance. For instance, in a supply-chain network, there are multiple players including first, second, and third-tier suppliers, contract manufacturers, original equipment manufacturers (OEMs), distributors, and retailers. These can however be broadly categorized as suppliers and customers. For successful supply chain operations and profitability, there is need for coordination between all these players in order to enhance efficiencies in forecasting demand, and hence conducting joint scheduling, and joint product development
Influence of Collateral Requirements on Performance of Micro and Small Enterprises Business in Isiolo North Sub-County
Full text linkEntrepreneurs have established restricted access to informal and formal credit as a major constraint to the growth of MSEs in Isiolo County. The County is also characterized by high level of unemployment, particularly among the youths, nomadic life and low educational levels and all these can be attributed to limited access to credit. The high poverty level is indication that the MSE businesses in this County are not doing well. The objective of the study was to determine the influence of collateral requirements on performance of MSE’s business in Isilo North Sub-County. The study adopted a descriptive survey research design. The unit of analysis was 120 micro and small enterprises within Isiolo town. The study found that collateral requirements have a statistically significant and negative relationship with performance of MSE’s business in Isiolo North Sub-County. The study concluded that collateral demanded by the financial institutions was not affordable, that the lending institutions did not allow non-tangible collateral and that, based on the amount of the collateral offered, the financial institutions gave credit. The study recommends the need for financial institutions to review aspects related to collateral requirements. They should particularly make collateral affordable to clients and also introduce a variety of collaterals that MSE owners can manage. For instance, given that most people in Isiolo keep livestock, financial institutions should consider livestock as one of the collateral to secure loan
Effect of Main Stream Media Education on Tax Compliance among Motor Vehicles Spares Traders in Suburb Area of Nakuru Town, Kenya
Full text linkA major challenge facing both developed and developing countries in the world is non- compliance with current tax laws and obligations. There are several reasons why tax payers do not comply with tax laws, including poor education, complex tax laws, low risk of being caught and a culture of corruption. In Kenya, the authority mandated with tax revenue collection is faced with the challenge of tax compliance among the tax payers. What this one means therefore is that Kenya Revenue Authority does not meet its tax collection targets. Due to tax revenue collected not being enough to finance government development and recurrent expenditure, the government is forced to turn to both domestic and foreign debts. The purpose of this study was to determine the effect of main stream media education on tax compliance among motor vehicles spares traders in Suburb area of Nakuru town, Kenya. This study employed an explanatory research design. This study target population was 300 motor vehicles spare traders operating in the suburb area of Nakuru town. The sample size of the study was 150-motor vehicle spare traders operating in the Nakuru town suburb area. The study found that main stream media taxpayer education is significant in influencing taxpayers’ decisions to comply to taxation systems. The study has concluded that taxpayers’ education through main stream media enlightens the motor vehicles spare traders on the need to pay taxes. In addition, the education programmes impact positively on the ability and willingness of the tax payers to file their returns. This type of education changes the attitude of the tax payers towards paying their obligatory taxes to the tax authorities and thus, leads to increased tax revenue collection. The business traders need to acknowledge the information updated on the social media platforms, newspapers as well as the ones advertised on national televisions. The study also recommends introduction of tax education to the Kenya Education curriculum both for primary and secondary education to better prepare learners who are future tax payers to the importance of tax compliance at an early age
Influence of Lending Procedures on Performance of Micro and Small Enterprises Business in Isiolo North Sub-County
Full text linkGlobally, MSE business is regarded as a critical economic development pillar. In Kenya, it is estimated that over 80% of employment opportunities are provided by the MSE sector (KNBS, 2019). According to sessional paper no. 10 of 2012, Isiolo County has been identified as a gateway for development of Northern parts of Kenya. Consequently, the county is emerging as a hub for entrepreneurial opportunities and has attracted businesses of all kinds (Muriithi, 2017). Nonetheless, businesses in Isiolo County still face serious challenges that impede their performance. The objective of the study was to establish the influence of lending procedures on performance of MSE’s business in Isiolo North Sub- County. Descriptive sample test architecture was used in this report. This study considered the target population of 120 MSEs. The study found that lending procedures have a statistically significant and positive relationship with performance of MSE’s business in Isiolo North Sub-County. The study concluded that lending procedures had a significant predictive ability to influence performance of MSE’s business. The study recommends the need for financial institutions to improve the lending procedures in order to allow more MSE businesses access to credit. In particular, the financial institutions should make the loan application process simple, review loan repayment period and conduct proper client evaluation