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Financial Structure And Financial Intermediation Efficiency Of Deposit Taking, Saving And Credit Cooperative Societies In Kenya
Get PDFFinancial structure is a concept that generally describes the manner in which a firm finances
asset through the combination of both debts, equity and any other hybrid security. “Financial
intermediation within the financial sector is very crucial in promoting financial services access
as well as ensuring the financial sector stability as a key component of the financial system.
Financial sector firms normally tend to exhibit a higher level of financial intermediation
efficiency than firms in other sectors due to their ability to transform savings received primarily
from household economic units into credit or loans for companies and others to invest in
buildings, equipment and other capital goods. Therefore, by enhancing their efficiency,
commercial banks are in a position to offer their financial services more effectively. SACCOs
in Kenya play a very significant role in financial intermediation as savings through them
translates to around 48.55% of the gross national savings. However, despite these
developments, SACCOs are still facing numerous challenges especially in terms of their overall
financial structure. For example, there was an increase in the amount of non-performing loan
ratio on SACCOS to 6.30 percent back in 2018 down from 6.14 percent of what had been
reported in 2017.Therefore, the study bridged this research gap by examining the relationship
between capital structure and financial intermediation efficiency of deposit taking SACCOs in
Kenya. The study adopted a descriptive research design. The study target population were all
174 DT-SACCOs in Kenya. Simple random sampling technique was adopted. The study
utilized secondary data taken from the financial statements submitted by each DTS to SASRA.
STATA was used for data analysis. The research was based on balanced panel data from 2017
to 2021. The study findings observed that leverage had a positive and significant effect on
financial intermediation efficiency of DTS operating in Kenya. The results also indicated that
non-withdrawable deposits held had a negative but statistically significant effect on financial
intermediation efficiency of DTS. Further, it was observed that share capital had a positive and
in significant effect on financial intermediation efficiency of DTS operating in Kenya. It was
concluded that maintaining high-level leverage is very crucial for deposit-taking SACCOs in
order to enhance their financial intermediation efficiency. It was also concluded that the
amount of share capital that a DTS has in terms of ordinary share capital, preference share
capital and reserves play a very crucial role in determining its overall financial intermediation
efficiency. It was recommended that DTS in Kenya should always ensure that they always
maintain high leverage level so as to ensure that they are able to diversify their investments as
well as helping them to set out a threshold for the expansion of their business operations. It was
also recommended that policy makers in Kenya that are concerned with DTS regulation should
ensure that that DTS across the country implement and adopt effective and sound financial
structure decisions in order to enhance their financial intermediation efficiency and thus
minimize the instances of DTS plunging into financial crisis that has caused many people
across the country to lose a lot of money in the past
Analysis Of Teaching-learning Resources And Hidden Educational Cost On Hundred Percent Transition To Secondary Schools: A Case Of Westlands Sub County, Kenya.
Get PDFIn spite of the hundred percent transition policy being in existence for the past four years, some
learners do not access secondary education. The study sought to analyze the effect of physical
infrastructure, teaching and instruction materials and hidden education cost on a hundred percent
transition to secondary school in Wetlands Sub County, Kenya. The specific objectives of the
study were to; examine the effect of school infrastructural facilities on a hundred percent
transition to secondary school, determine the relationship between the availability of teaching
and learning resources and one hundred percent transition to secondary school and to establish
the effect of hidden educational costs on a hundred percent transition to secondary school. The
study was guided by the Classical Liberal Theory. The study adopted a descriptive survey
research design. The target population for the study was all the 14 public secondary schools, 14
secondary school principals, 649 teachers, and 4411 secondary school students in Wetlands Sub
County. Purposive sampling was used to sample the principals while simple random sampling
was used to sample the teachers and students. The sample size for the study consisted of all the
principals, 247 teachers and 367 students. The main data collection tools were questionnaires.
Data collection instruments were piloted in 5 schools in Langata Sub County, part of the larger
Nairobi County. Test re-test technique was used to ascertain the reliability of the research
instruments. The validity of the instruments was ascertained by the experts in Educational
Leadership and Management in the School of Education at KCA University. Data was analyzed
using SPSS version 25. Data was analyzed using descriptive statistics, namely; frequencies,
percentages, mean, standard deviation and inferential statistics. Chi square test was used to test
the hypothesis. Findings of the study were presented using frequency tables, bar graphs and pie
chart. The study revealed that there was a statistically significant relationship between school
infrastructural facilities, teaching and learning resources, hidden costs and a hundred percent
transition to secondary schools in Westlands sub-county, Kenya. The study recommended that to
improve a hundred percent transition to secondary schools; school infrastructure, teaching and
learning resources and hidden educational costs should be put into consideration. The
government ought to allocate more funds for infrastructural development and provision of
adequate teaching and learning resources
Effect of Fundamental Firm Characteristics on Operational Efficiency of Microfinance Banks in Kenya
No full textThis study seeks to examine the effect of fundamental firm characteristics on the operational efficiency of microfinance banks in Kenya. The independent variables were: firm size, liquidity, leverage, cash reserves and asset tangibility. Descriptive research design was adopted, and study collected data from twelve (12) licensed microfinance banks in Kenya. This study adopted panel data regression model to analyse data with the assistance of STATA version 12. The analysed data was presented using tables and figures. The study found that firm size and asset tangibility had statistically significant positive effect on operational efficiency of microfinance banks in Kenya. The study further found that that liquidity, leverage and cash reserve had statistically insignificant negative effect on operational efficiency of microfinance banks in Kenya. The study recommends that microfinance banks should embrace asset tangibility on their strategic decision making and also that they can issue more debt as a strategy for more revenue generation. Also, the Central Bank of Kenya should formulate and enact a policy which makes commercial debt cheaper hence reduce cost of operations of microfinance banks so as to reduce interest rates in order to attract investors who will inject more funds into these financial firms. The study also recommends that microfinance banks ought to increase their network of branches countrywide to attract new customers to open new accounts and in so doing increase their deposits and that the Central Bank of Kenya should formulate policies that encourage microfinance banks to invest more in research and development and innovation so as to enable microfinance banks to design and develop competitive products or services that add value to the customers and which will foster their growth at large
Macroeconomic Factors and Stock Return of Firms Listed at the Securities Exchanges in East Africa
No full textThis study examined the relationship between macro-economic factors and stock returns of 96 firms listed in East African Stock Exchanges over the period 2016 - 2020. The macro-economic variables were foreign exchange rate, gross domestic product, interest rate and inflation rate. Regression analysis was used to examine the relationship between the variables. The results showed that foreign exchange rate negatively and significantly affects stock returns. The findings suggest that when the
foreign exchange rate of a country increases, it negatively affects stock performance and thus the returns of stocks decrease. Policies should thus be put in place to ensure foreign exchange rate is kept constant or lower in order to attract investors and enhance stock returns. The results also showed that gross domestic product positively and significantly affects stock returns. The findings imply that when gross domestic product of a country increases, stock returns increase. Policies should be put in
place that ensures growth in gross domestic product in order to enhance stock returns. The results also show that inflation rate negatively and significantly affects stock returns. The findings suggest that when inflation increases in a country it results in decrease in stock returns. Policies should thus be established to curb inflation and enhance stock returns. The results also show that interest rate negatively and significantly affects stock returns. The results imply that when the rate of interest increases in a country, stock returns decrease. Policies that ensure low interest rates should be put in place in order to boost stock returns. This study demonstrates that macroeconomic variables significantly affect stock returns. Therefore, we recommend that governments and other stakeholders should put in place proper macro prudential policies in order to encourage investments and boost stock returns. We also recommend that regulators and policymakers should come up with policies and regulations that will stabilize inflation, reduce or stabilize interest rates, stabilize or reduce exchange rates and also ensure growth in GDP. We suggest that future research may focus on data from developed and developing countries to compare and contrast the effect of macro prudential policies adopted in the various countries and its effects on stock returns
Effect Of Total Quality Management (Tqm) Practices On Service Delivery In Health Sector In Nairobi County, Kenya
Get PDFThis study sought to examine the influence of Total Quality Management practices on quality
services in healthcare sector in Nairobi County, Kenya. Specifically, this study examined the
influence of customer focus, quality improvement, employee involvement and management
support on quality services in healthcare sector in Nairobi County. The study adopted cross sectional descriptive design and targeted healthcare providers in five hospitals (three public and
two private) in Nairobi County including; Mbagathi hospital, Mama Lucy hospital, Pumwani
hospital, Coptic hospital and Aga Khan Hospital. Yamane (1967) formula was used calculate the
sample size of 115 respondents from healthcare workforce population of 1,652. Data was collected
using questionnaires and analyzed through descriptive and inferential statistics. The study found
that customer focus promoted effective assessments and follow-ups on patients and helped to build
strong relationships between healthcare providers and patients through effective communication
and continuous quality improvement through CQI teams and routine MDTs promoted service
quality while employee involvement enhanced motivation and productivity of staff. Management
support was essential in setting and ensuring implementation of goals and vision of healthcare
facilities, motivation of staff and resource mobilization to implement core services in healthcare
facilities. The study concluded that there is a significant relationship between TQM practices and
quality services in healthcare sector in Nairobi County, Kenya and recommended that healthcare
facilities (public & private) should bolster implementation of TQM interventions since they
promote quality of services
Status and Trends of Physical Activity Surveillance, Policy, and Research in 164 Countries: Findings from the Global Observatory for Physical Activity—GoPA! 2015 and 2020 Surveys
No full textBackground: Physical activity (PA) surveillance, policy, and research efforts need to be periodically appraised to gain insight into national and global capacities for PA promotion. The aim of this paper was to assess the status and trends in PA surveillance, policy, and research in 164 countries. Methods: We used data from the Global Observatory for Physical Activity (GoPA!) 2015 and 2020 surveys. Comprehensive searches were performed for each country to determine the level of development of their PA surveillance, policy, and research, and the findings were verified by the GoPA! Country Contacts. Trends were analyzed based on the data available for both survey years. Results: The global 5-year progress in all 3 indicators was modest, with most countries either improving or staying at the same level. PA surveillance, policy, and research improved or remained at a high level in 48.1%, 40.6%, and 42.1% of the countries, respectively. PA surveillance, policy, and research scores decreased or remained at a low level in 8.3%, 15.8%, and 28.6% of the countries, respectively. The highest capacity for PA promotion was found in Europe, the lowest in Africa and low- and lower-middle-income countries. Although a large percentage of the world’s population benefit from at least some PA policy, surveillance, and research efforts in their countries, 49.6 million people are without PA surveillance, 629.4 million people are without PA policy, and 108.7 million live in countries without any PA research output. A total of 6.3 billion people or 88.2% of the world’s population live in countries where PA promotion capacity should be significantly improved. Conclusion: Despite PA is essential for health, there are large inequalities between countries and world regions in their capacity to promote PA. Coordinated efforts are needed to reduce the inequalities and improve the global capacity for PA promotion
Stability in tax policy is key to investor confidence.
No full textEvery Second Thursday in the Month of June is a special day in Kenya’s fiscal calendar. This is the day everyone waits for anxiously. It is a day for surprises and reliefs, for hits and misses, for the goodies and losses- all contained in that treasured briefcase from the treasury. First we get the allocations, then comes the dreaded part – the spelling out of new tax measures.
Change in tax policy is inevitable, of course the government and its subjects must keep adapting to the economic dynamics. However, the changes must be well thought out, fair to the masses and most importantly predictable. It is not uncommon to see a new policy being implemented in one fiscal year only to be withdrawn in the successive period. The injudicious change in fiscal laws offend the second maxim in taxation which is certainty. Stability is a close relative to certainty. Certainty deals with a current situation while stability deals with how that situation will be in future. Stability implies that changes in tax policies should be in force for a specified period that is a fixed term from when they come into force until they are withdrawn. That idea sounds utopian but needs to be explored
Strategy Management of Institutional Investors: Under China's QFII Regimes
No full textIt has been nearly 20 years since the official establishment and implementation of the qualified foreign institutional investor (QFII) system in China. During this period, China's financial market has gradually opened to the outside world, as has its capital market. The Chinese government is constantly adjusting and improving the QFII system and policies according to the domestic and international situation. In response to the adjustment of China's policies, foreign investors should also adjust their investment strategies in a timely manner. This chapter will focus on the sources of QFII investment and explore the current investment potential of China's QFII. This chapter will first discuss the major issues in overseas investment research, then analyze the situation of QFII in different regions according to the QFII list, and finally, analyze the investment potential of each region and give suggestions based on these situations
Financial Determinants Of Microfinance Institutions’ Outreach In Kenya
Get PDFMicro Finance Institutions in Kenya have had increasing recognition since the 1990’s for the
role they play in providing financial services within the communities, through their
participation on poverty mitigation. However, the inconsistency of large number of MFIs in
providing financial help to alleviate the high poverty levels has been a major concern. The
increase in number of poor people within the society, has contributed negatively to the main
idea of MFIs in eradicating poverty. In addition, MFIs should ensure that they have the
financial capacity to offer their services to the poor people, families and communities.
Therefore, this study purposes to examine the financial determinants of MFIs outreach in
Kenya. The objectives of the research are to evaluate the effects of microfinance institution
size, liquidity, capital adequacy and operating efficiency on the outreach performance of
MFIs in Kenya. The research was directed by transaction cost theory, passive theory, capital
adequacy theory and liquidity preference theory. This study implemented a descriptive
research design. The target population for this study was 12 Micro Finance Institutions listed
with the Association of Micro Finance Institutions (AMFI), and are licensed by CBK and
running in Kenya as Deposit Takings Microfinance institutions. The panel data collected was
analysed through descriptive and inferable statistics such as multiple regression to determine
the influence of dependent variable and independent variables. The panel data analysis was
done using STATA software. Diagnostic tests were done and the results were as follows:
The research established that the operating efficiency affected outreach negatively and had no
significant influence on the MFIs’ outreach in Kenya. The study also found that capital
adequacy influence was positive however, had no significant outcome on the MFIs’ outreach
in Kenya. The research also showed that MFIs size had a significant effect on MFIs’ outreach
in Kenya. MFIs size affected outreach positively. Finally, findings discovered that the effect
of liquidity was negative and was significant on MFIs’ outreach in Kenya. The study
recommended that smaller MFIs should consider merging to bigger MFIs. This is to help the
institutions earn from the economies of scale. The microfinance institutions should keep low
their debts and maximize their equity. The MFIs should ensure that the equity is maximized
to enhance financial capacity to enhance the reaching of the poor efficiently. Lastly, MFIs
should consider matching between reducing the transaction costs involved with the outreach
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Internal Audit Practices, Top Management Support And Organizational Performance Of State Corporations In Kenya
Get PDFInternal auditing provides audit services to management at all levels thus improving
organizational performance. This study has conceptualized a relationship between internal
audit and organization performance. Extant literature has linked internal audit to organizational
performance. However, the notion has largely been superfluous and hence needs to be
grounded on empirical literature. Further, despite top management support moderating role in
the association between internal audit and organizational performance being implied, there
lacks empirical evidence. The study main objective was to examine the influence of internal
auditing on the organizational performance of State Corporations in Kenya. Specific objectives
were to: investigate the effect of professional competencies on organizational performance of
the Kenyan State Corporations; examine the effect of internal audit standards compliance on
organizational performance of Kenya’s State Corporations; establish the role played by internal
auditors’ independence on organizational performance, and to examine the moderating effect
of top management support on the relationship between internal audit and organizational
performance of the State Corporations in Kenya. The objectives had corresponding hypotheses
which were tested at a 95 percent level of confidence. The study employed a cross-sectional
research design and had a target population of 288 state corporations. The study adopted
criterion-based sampling and used a sample of 154 state corporations. Primary data was
collected from a single respondent in each of the corporations’ using semi-structured
questionnaires that were administered online. Out of the questionnaires sent 105 were filled
and returned. This was a response rate of 68.2 percent and was considered adequate for the
study. Through standard multiple linear regression and moderated multiple linear regression,
findings indicate a statistically significant relationship between internal audit and organization
performance. However, the internal audit could only explain 49.2 percent of the variations in
organizational performance. Results of the independent effect of the disaggregated internal
audit indicated positive and statistically significant effects of professional competencies,
internal audit standards and internal auditors’ independence with organizational performance.
The moderating effect of top management support gave rise to a marginal increase in the
explanatory power of the model at 5.87 percent, although the moderation was found not to be
statistically significant. The findings provide empirical grounding to the agency theory by
supporting the postulation internal audit characteristics yields to organizational performance.
The study further provides theoretical linkage contingency theory and stakeholder theories.
The study has offered recommendations to managerial practice and policy to both the state
corporations and the government regulatory agents