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The Influence Of Risk Management Processes On Financial Performance Of Insurance Firms In Kenya
Get PDFRisk "management is deemed as a core factor for business competitiveness. “It facilitates a firm to
develop a unique strategy to minimize the potential losses and open a door for the exploitation of
new opportunities. In recent years, insurance companies have increased their focus on risk
management. Insurance companies are in the risk business and as such cover various types of risks
for individuals, businesses and companies. The general objective of this study was to establish the
influence of risk management processes on financial performance of insurance firms in Kenya.
The specific objectives assessed the influence of risk management planning, risk identification,
risk analysis and risk monitoring on the performance of insurance firms in Kenya. The study was
anchored on Risk Management Theory. Other theories included, Agency theory and contingency
planning theory. The target population of the study was 56 insurance firms. The unit of observation
in the insurance firms were the risk managers and accountants. Primary data was collected by
means of a structured questionnaire. The data was analyzed using descriptive and inferential
statistics. The study conducted normality test, multicollinearity and heteroscedasticity tests. A
regression model was used to test the influence of risk management processes on performance.
The hypotheses developed by the study were tested at 5% significance level. Findings revealed
that there was a significant effect of risk management processes on the financial performance of
insurance firms in Kenya. Risk management planning had a positive and significant effect on
financial performance of insurance firms in Kenya. Risk identification process had a positive and
significant effect on financial performance of insurance firms in Kenya. Risk analysis had a
negative and insignificant effect on financial performance of insurance firms in Kenya. Risk
monitoring had a positive and significant effect on financial performance of insurance firms in
Kenya. To keep abreast with the changing economic times, insurance firms need to be vigilant on
the measures they take so as to be able to minimize risk exposure. The study recommended that
insurance firms should practice risk management strategies in order to boost their performance
either in a financial or operational perspective. Moreover, an establishment of comprehensive risk
management of insurance firms should be made a prerequisite as it contributes to the overall risk
management systems. This study provides useful information to practitioners and academics who
are interested in identifying the various risks that insurance firms in Kenya often face. This would
go a long way in mitigating the risks before they occur
Factors Influencing Sustainability Of Community Based Projects In Samburu County In Kenya During Covid19 Crisis
No full textCommunity based projects are aimed at achieving social economic impact through advocacy on achievement of community needs, improving standards of living and empowering minority groups. Achievement of project impact is not guaranteed since they depend on donor funding, County government funding, National government funding, stakeholders support, ethical dilemmas and conflict of interest among stakeholders. This may delay implementation of specific projects that would jeopardize achievement of desired impact. Consequently, the study sought to examine factors influencing sustainability of community based projects in Samburu County. Explicitly, the study sought: To examine the effect of community engagement on sustainability of community-based projects in Samburu County; To find out the influence of project governance on sustainability of community-based projects in Samburu County; To evaluate the effect of project financing on sustainability of community-based projects in Samburu County; To ascertain the influence of project monitoring and evaluation on sustainability community-based projects in Samburu County. The study adopted descriptive research design and used questionnaires among 116 managers of the Community Based Organizations that were drawn through random sampling. Primary data was collected and was analyzed through use of SPSS version 25. Descriptive statistics using measures of central tendency, dispersion, percentage and frequency was adopted. Further, correlation and multiple regression analysis was used. Findings were presented in figures and tables. The study findings revealed that community engagement, project governance, project financing and monitoring & evaluation have a significant and positive effect on sustainability of community-based projects. Consequently, the study objectives are key when we talk of community-based project sustainability. The community based projects acts as a catalyst in economic development and growth in a county. Therefore, there is need to consider engaging the community from planning to the last stage of project implementation. The study also recommends that different sources of financing for community based project is important to ensure risk diversification and also to ensure enough funds are available to undertake a particular project as this will ensure no stoppages and hence a success. Training (capacity building) on project M&E be undertaken within the county government to enable them properly embrace stakeholders’ participation process so as to include all stakeholders in monitoring and evaluation of county government sponsored projects. Modern technology should be adopted to increase efficiency through increased budget allocations. The study further recommends that; Other studies should be conducted on the other factors effecting sustainability of community based projects Contributing 41.2% of Sustainability as the current factors studied contributed only 59.8% effect on community projects sustainability. Key terms used in this study were: Sustainability, governance structure, Human capital, information technology and stakeholders engagement
Effect Of Microfinance Institution Financial Practices On Performance Of Small And Medium Enterprises In Kajiado County, Kenya
Get PDFDespite the critical role SMEs play in the economy, their growth and success is always dogged by
myriad of challenges due to their limited ability to access expansion finances and bridging the
working capital deficits. However, MFIs comes in handy by playing a key role in financial
intermediation in so far as growth and Success of the SMEs is concerned considering that to a
large extent, they lack collaterals and other borrowing requirements imposed by commercial bank.
Alive to that fact, the study thence seeks to establish the nexus between microfinance institutions
practices and the performance of small and medium enterprises in Kenya. In doing so, the study
adopts a case study of Kajiado County specifically to examine the effect of microfinance lending
practices, microfinance savings practices, microfinance insurance practices and microfinance loan
recovery practices on financial performance of small and medium enterprises. This study adopted
descriptive research due to its ability to explore and offer detailed explanation on the study’s unit
of analysis, which in this case is the SMEs in Kajiado County. The study target population was
2851 SMEs registered in Kajiado County. However, the study sample was the 372 SMEs registered
in Kajiado Township within Kajiado County. Given the small size of the target population, the
study employed census. The study utilized secondary data collected using structured
questionnaires administered to the SME owners. STATA was used for data analysis in which
analyses included computation of measures of central tendency, as well as the measures of
dispersion. In addition to the descriptive statistics, correlation analysis of the study variables was
used to examine the relationship among the variables. To determine the specific effect of
microfinance financial practices on the SME performance, we relied on a linear empirical model
using a multivariate Ordinary Least Squares method. In addition, several diagnostic tests namely:
heteroscedasticity, multicollinearity, and autocorrelation tests were conducted. The study found
that microfinance lending practices to the SMEs has a negative and significant effect on the SME’s
profitability with one unit increase in micro credit likely to lead to 0.106 units decline in SME
profitability holding other factors constant. Further, microfinance savings practices was found to
have a negative and significant effect on the SME’s profitability with one unit increase in micro
saving likely to lead to 0.421 units decline in SME profitability holding other factors constant. In
addition, microfinance insurance practices was found to have a negative but insignificant effect on
the SME’s profitability with one unit increase in micro insurance likely to lead to 0.015 units
decline in SME profitability holding other factors constant. Lastly, microfinance loan recovery
practices were found to have a negative effect on the SME’s profitability with a single unit increase
in outstanding loan likely to increases SME profitability by 0.008 holding other factors constant.
The diagnostic tests results concluded the absence of heteroscedasticity, multicollinearity and
autocorrelation problems
Effect Of Credit Management On Asset Quality Of Microfinance Institutions In Nairobi Metropolitan
No full textEffective credit management ensures that clients are able to pay for the product/services rendered on credit. Management of credit is very critical for asset quality as it constitute an important part of the overall loan process. In Kenya, the aspect of non-performing loans has continued to be a significant issue among Kenyan MFIs. Therefore, the current survey sought to examine the effects of credit management on asset quality of microfinance1institutions in Nairobi Metropolitan. The specific variables that the study sought to explore were credit policy, credit standards, credit terms and credit collection techniques of MFIs. The study was anchored on four key theories i.e., information asymmetry theory, transaction cost theory, credit risk theory and modern portfolio theory. The study adopted descriptive research design and also used cross-sectional data. The crosssectional data was obtained by combining both secondary and primary data involving all the 74 microfinance institutions within Nairobi Metropolitan area. Secondary data was obtained from published financial reports of all MFIs in Nairobi Metropolitan area. On the other hand, primary data was obtained using structured questionnaire. The target population for whom the questionnaires was administered composed of all 74 credit executives from all targeted microfinance institutions within Nairobi Metropolitan area. Collected data was analyzed with the aid of STATA Version Software and presented using tables and figures. The generated results were then be presented using frequency table, and figures. The researcher adhered to all ethical values in research particularly the confidentiality of the information obtained. On the effect of credit policies on asset quality of MFI, the study found out that there was a negative yet insignificant effect of credit policies on asset quality of MFIs in Nairobi Metropolitan. On the effect of credit collection techniques on asset quality, the study established that credit collection techniques are positively and significantly associated with asset quality of micro-finance institutions. On the effect of credit terms on asset quality, the study established that credit terms had a negative yet non-significant relationship with asset quality. Lastly, on the effect of credit standards on asset quality, it was revealed that credit standards had non-significant negative relationship with asset quality. It was concluded that a strong positive relationship between credit collection techniques and asset quality. Further, it can be concluded that investment in credit collection techniques can leads to better asset quality of MFIs in Nairobi Metropolitan. The study therefore recommended that MFIs in Nairobi metropolitan should not adopt a more stringent credit policy but a much more lenient policy for improvement in their asset quality. In addition, it was recommended that MFIs in Nairobi metropolitan should continue improving on their credit collection techniques/systems as a way of improving asset quality
Effect Of Macroeconomic Factors On The Firm Value Of Listed Commercial Banks In Kenya
No full textThis study evaluated the relationship that existed between macroeconomic variables and the firm value of the listed commercial banks in Kenya. From the available literature, it had been found that differing opinions and findings existed on the nature of the impact of macroeconomic variables on firm value. In addition, studies conducted to assess the link between macroeconomic factors and the firm value of listed commercial banks in Kenya were found to be scanty. Hence, it is not clear whether or not macroeconomic conditions influence the firm value of Kenya’s commercial banks. The internal factors may be regulated by each institution but not the macroeconomic factors. The main objective of this study therefore was to ascertain the effect of selected macroeconomic factors on the firm value of banks listed in Nairobi Stock Exchange. The macroeconomic factors selected constituted of inflation levels, economic growth, exchange rates and interest rates. Specifically, the study sought to investigate the influence of economic growth, inflation rates, interest rates and exchange rates on the firm value of Kenya’s listed commercial banks. The study was guided by the shareholder value theory, foreign exchange exposure theory, theories of inflation and the Keynesian economic theory. The study applied a descriptive research design. The study targeted all the listed commercial banks at the Nairobi Stock Exchange for the period 2008 to 2019. A census approach to sampling was applied. The study used secondary data collected using a secondary data collection template. Descriptive analysis and also inferential analysis were conducted when analyzing the data. A panel data regression model was used to show the relationship between macroeconomic factors and the firm value of listed commercial banks in Kenya. A statistical software, Stata was used to facilitate the data analysis exercise. The findings’ presentation took the form of tables and charts. The study established that three of the macroeconomic factors considered in this study namely economic growth, inflation rate and exchange rate had a significant effect on the firm value of listed commercial banks in Kenya over the study period. Interest rate however, was found to have insignificant effect on the firm value of these banks. Economic growth positively influenced the firm value of the listed commercial banks under study while inflation rate, exchange rate as well as interest rate negatively influenced the firm value of these banks. The study therefore concluded that macroeconomic factors particularly economic growth, inflation rate and also exchange rate are significant factors that influenced the firm value of listed commercial banks in Kenya and therefore, it was prudent for the management of banks to consider them when evaluating the factors likely to impact the value of their banks. Several recommendations were made to various parties among them the need for policy makers and economists at the Central Bank of Kenya in conjunction with other regulators to undertake sound planning in advance so as to influence macroeconomic variables in the right direction. The banks’ management should also strive to ensure sustained high firm value for the sake of the stability of their operations as well as good prospects for their banks in the future. This will enhance their survival. The banks’ management also ought to develop their banks’ capabilities to be highly sensitive in anticipating the effect of macroeconomic factors which are external forces to their firms and are unavoidable. The findings of this study would therefore benefit several key stakeholders such as the banks’ management, market and industry regulators, investors as well as other scholars pursuing related research
Factors Affecting Public Housing Development Projects In Nairobi County
No full textPublic housing is a critical aspect of any urban living space that is undergoing rapid development. Nairobi City County is the capital of Kenya, largest metropolitan area and the most populated city in East Africa. Housing remains a critical element in the psycho-social wellness of human beings. Increasing rural to urban migration, population explosion in urban areas has seen increased pressure on the housing system in urban region. The fundamental purpose of this research study is to establish and evaluate the factors affecting the development of public housing projects in Nairobi County. The specific objectives of the study aim to evaluate the impact of resource availability, corruption, planning processes and the influence of capacity building on the on development of Public housing projects in Nairobi County. The study is anchored on four theoretical models; Resource Dependency Theory, Theory of Constraints, Critical Chain Project Management (CCPM) Theory and Facilitation Theory. The study used descriptive research design. Target population of the study encompasses critical stakeholders in government and corporate sector who form the ecosystem of Public housing development projects implementation. The study shall leverage on structured questionnaire as the tool for data collection. Data analysis will employ both descriptive and inferential statistics using SPSS. A multivariate linear regression model shall be employed in the inferential analysis. Data diagnostics of the field survey results will be performed utilizing tests of multi-collinearity, heteroscedasticity, and auto correlation. After a thorough analysis of the data obtained, it was established that resources are most critical item in determining the outcome of housing projects thus they wield an overwhelming effect in the success or failure of housing projects. Corruption, planning and capacity building also have a significant effect and their prevalence or inadequacy may cause negative outcomes for housing development projects. In conclusion, availing the required resources, eliminating corruption, enhancing capacity building, and ensuring there is proper planning would augment the success of public housing projects in Nairobi County
The Influence Of Flexible Loans On Poverty Reduction Among Smallholder Farmers In Machakos County, Kenya
No full textPoverty remains a major prevailing feature among many communities in Kenya with ever increasing economic and social effects in the country. The study’s main objective was to evaluate the influence of flexible loans on poverty reduction among smallholder farmers in Machakos County, Kenya. The study’s specific objectives were to assess the influence of loan rescheduling, flexible credit limits, flexible terms of credit and flexible repayments on poverty reduction among smallholder farmers in Machakos County, Kenya. The asset scarcity theory, structural poverty theory and expected utility theory anchored the study. The study applied a descriptive cross-sectional survey design where structured questionnaires were utilized to collect quantitative data from households of Muthetheni ward, Mwala Subcounty, Machakos County. The study adopted random cluster sampling to select households that had taken an agricultural loan from microfinance institutions or development finance institutions in the preceding two years. The questionnaire was pre-tested on a sample of farmers and changes were made before the final study. The questionnaire was also examined for both reliability and validity. The collected data was analysed using descriptive and inferential analyses in order to respond to the research questions and test the hypotheses. Statistical package for social sciences (SPSS) was utilized for the study. The results of the analysis were presented in figures and tables. The study findings indicated that loan rescheduling, loan refinancing and flexible repayments option had a significant positive influence on poverty reduction among smallholder farmers in Machakos County, Kenya. The findings however, indicated that flexible credit limits had no significant influence on poverty reduction among smallholder farmers in Machakos County, Kenya. The study recommends to microfinance and development finance institutions to offer a variety of flexible loan products to smallholder farmers that suit the farmer’s needs and characteristics. Regarding loan rescheduling, micro lenders should seek to balance between assisting the farmers to repay the loan and the risk inherent in any rescheduled loan. Lastly, the study recommends to national government, county governments and other non-governmental organizations to form funds that will be able to offer flexible repayment options that meet the needs of farmers who have intermittent and seasonal cashflows
Effect Of Inventory Management Techniques On Operational Performance Of Star-rated Hotels In Nairobi City, Kenya
Get PDFInventory management is a key cog in the manufacturing industry, forming a key part of the
organizational strategic management decisions. In today‟s business environment that is
highly volatile, uncertain, complex, and ambiguous (VUCA), big savings can be achieved
through efficient inventory management. In the service sector, the field of inventory
management is gaining more traction because of the concerted efforts to minimize costs, meet
customer demand, maximize revenue and achieve strategic fit. The hotel industry is highly
volatile and greatly susceptible to external shocks, experiences cyclic demand fluctuations
and the hotel products are highly perishable. With this in mind, hotels must adopt different
inventory management techniques. The general objective of the study was to establish the
effect of inventory management techniques on operational performance. The specific
objectives of the study were; to establish the effect of strategic supplier partnership on the
operational performance, to determine the effect of vendor managed inventory on the
operational performance, to establish the effect of just-in-time practices on the operational
performance and to establish the effect of yield management practices on the operational
performance of star-rated hotels in Nairobi. The study used quantitative descriptive research
design and applied simple random sampling technique to select a sample of 30 hotels rated
between 3 and 5 stars. The respondents were 90 senior managers and data was collected by
the use of self-administered questionnaires. . Data was analyzed by Statistical Packages for
Social Sciences and was presented in frequency tables, pie charts and bar graphs. The study
established that inventory management practices helped hotels reduce cost, boost efficiency,
improve product quality and boost room yield. Yield management was identified as the most
preferred inventory management practice followed by SSP, JIT and VMI. The regression
results showed a positive correlation between inventory management practices and
operational performance. The study recommends the deepening of strategic relationships with
core suppliers, exploring more VMI and JIT arrangements as well as adoption of automated
demand tracking and distribution systems. The study recommended further studies on the
impact of inventory management techniques in star rated restaurants
Developing an e-Learning Theory for Interaction and Collaboration Using Grounded Theory: A Methodological ApproachUsing Grounded Theory: A Methodological Approach
No full textGrounded Theory (GT) is becoming an increasingly prevalent research methodology in many fields.
Although researchers use it in qualitative and quantitative studies, it is more popular with qualitative
studies, as evidenced by the citations from previous research. This paper aims to document and present
how we used GT in our qualitative research to construct an e-learning theory for interaction and
collaboration. It also includes the justification of GT. We adopted and adapted the constructivist GT
(CGT). Therefore, this paper discusses the CGT methodology, its philosophical, ontological and
epistemological perspectives. It also includes the research design that captures how we sampled the
participants, collected, analyzed and interpreted the data, and how we documented the research findings
in the context of CGT. It also includes the justification of the decisions we made and the extent to which
they align with CGT. Using CGT, we listened to, observed and captured e-learners’ and e-tutors’ stories and
experiences which yielded rich and insightful data that informed the development of the e-learning theory
for interaction and collaboration. We also present the challenges we experienced when using CGT and the
strategies we used to overcome them. Finally, we have included the methodological insights we drew
from using CGT in our research. This paper has presented the CGT design strategy; thus, it will be helpful,
especially to novice and future researchers aspiring to use the methodology to conduct their research