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Growth Related Challenges Facing Islamic Banking Windows In Kenyan Conventional Banks
No full textKenya’s Islamic finance business is rapidly developing, getting well incorporated and
mainstreamed into the worldwide financial architecture, nonetheless, not well comprehended by
the majority of Kenyans. Islamic banking provides for financing instruments where profits and
losses are equally shared by the bank and the customers in equitable proportion. They provide
better opportunities for the business to share the actual proceeds received by the investments to
the depositors. Islamic windows have become the stepping stones by providing opportunities to
build capacity at the minimal overheads while the conventional banks are re-structuring for
conversion. However, the Islamic windows are faced with growth challenges that need to be
addressed. This study looked at regulatory and Institutional frameworks; availability of Islamic
market and tradable financial instruments; competition from fully-fledged Islamic banks; and
socio-cultural factors and how they affect the growth of the Islamic windows. Descriptive and
Cross-section Survey Design was used for the study where questionnaire and interviews was the
instrument for data collection. A target population of 32respondentswasused comprising of (18)
bank management officials and (14) Sharia’h board members drawn from all the conventional
banks with Islamic windows in Nairobi. Descriptive statistics including arithmetic mean,
standard deviation, percentages and frequencies was used to analyze responses to the
questionnaires. Inferential statistics including multi-collinearity, regression, correlation analysis,
ANOVA model, and T-test will be used as significance test and specification tests. The results
were tabulated or presented in charts. The study showed that only regulatory framework was
significant in explaining the growth of Islamic windows. However the availability of Islamic
tradable instruments affected growth positively while competition from fully fledged bank and
socio-cultural factors affected growth negatively even though not significantly. The study
recommended for clear regulatory framework that will help conventional banks realize there
objectives of making profit as they embrace Islamic windows. There was a need to have
variation of products in the market so that customers’ expectations are met. Finally further
studies need be conducted to identify the other determinants of growth of Islamic windows
Relationship Between Financial Deepening Indicators And Stock Market Performance In Kenya
No full textFinancial deepening indicators play a big role in the stock market performance. The relationship between financial deepening and the economic growth in various economies is a well-documented subject but the relationship between financial deepening indicators and the stock market performance has little literature. The purpose of this study therefore was to find out the relationship between financial deepening indicators and the stock market performance in Kenya. The selected financial deepening indicators were financial savings, private sector credit, broad money supply and intermediation ratio on the stock market performance. For this, published quarterly time series data from January 2001 to June 2017 were obtained from the Central Bank and Kenya National Bureau Statistics. Financial savings (in trillions), private sector credit (trillions) and broad money supply (billions) were normalized using quarterly GDP. The intermediation ratio was computed as private sector credit/financial savings and multiplied by 1000 to normalize to the other data. Exploratory research was used to establish the relationship between the variables and as a pre-test analysis, data was tested for stationarity using the DF and Phillip-perron test and the data was found to non-stationary, it was then differences to be order I(1)- which is a requirement for cointegration. Johansen cointegration test was done indicating that the variables co-move towards a long-run equilibrium, a multivariate vector error correction model was run and the estimates obtained. The error correction term was also computed. Empirical results showed that all variables are adequately explained by their own lags and the lags of the other variables,the coefficients are also significant. The error correction model indicated that an increase in private sector credit by one unit in the previous quarter causes the stock market performance to increase by 48% in the current quarter. Variance decomposition tests and impulse response functions indicated how other variables respond to shocks in the other variables and the forecast errors for each of the predicted quarters. The implication of this study is that the policy makers who are; the Government, the Central bank of Kenya and the Capital Markets Authority ought to make policy decisions while considering the effect of the full market. This study concluded that private sector credit is the financial indicator variable that affects the stock market performance the most with a bidirectional relationship. The areas of further study include; comparative studies within the East African countries, use of models that test the volatility of the stock market and application of other indicators of financial deepening
The Effect Of Corporate Social Responsibility Disclosure On Financial Performance Of Manufacturing Firms Quoted On Nairobi Securities Exchange
No full textThe purpose of this study was to determine the effects of corporate social responsibility disclosure on the organizations financial performance. Specifically, the study examined the effect of environmental disclosure, community disclosure, employee disclosure and financial performance of quoted manufacturing companies in Kenya. The study was anchored on stakeholders theory, legitimacy theory and stewardship theory. The study employed census research design. The target population was all the manufacturing firms that are listed in the NSE from 2007 to 2017. The researcher identified manufacturing firms because they impact heavily on environment through waste and pollution they discharge and in addition they are capital and labour intensive organizations. This study used secondary data and content analysis of data from the published financial records and analysis of other reports of the companies. Stata version 12 was used to analyze the data using both descriptive and inferential methods. The findings were presented in form of tables and figures. It was expected that the study findings help business owners and managers to make more informed decisions on whether or not to adopt corporate social responsibility disclosure. The study also expected to help investors to understand the relationship between corporate social responsibility and financial performance which will help them design and allocate their portfolio in a manner that maximizes returns by investing in firms and organizations that make decisions based on ethical concerns. Further, the study also expected to enrich the discussion on corporate social responsibility and contribute to the existing literature and theories. The study found positive and non-significant effect of environmental disclosure, community disclosure and financial performance of quoted manufacturing companies in Kenya. Moreover, employee disclosure had inverse and non-significant effect on financial performance of quoted manufacturing companies in Kenya
Factors Affecting Implementation Of Constituency Development Funded Projects In Kenya
No full textProject implementation is a critical performance management tool in government projects
especially in aligning Kenya’s development agenda to Vision 2030 and Sustainable
Development Goals. CDF was mooted as one of the decentralized funds executed at
community level and a main precursor to the current devolved mode of governance. The gist
of CDF formulation is to ensure equitable economic, social and political developments across
the country, giving citizens an opportunity to identify and implements projects that suited
their specific needs. The challenge however, seems to be projects delays, stalled, poor quality
of projects and unsatisfied communities in the project cycle. The CDF projects are not
completed on schedule and on cost effective manner. The study sought to find out the factors
affecting implementation of CDF funded projects in Kilgoris constituency. The study was
guided by the following objectives; to find out whether budgetary allocation affects
implementation of CDF projects in Kilgoris, to determine the effects of community
participations on CDF funded projects in Kilgoris, to establish the effects of M&E on
implementation of CDF projects in Kilgoris constituency and to investigate whether
performance management affects implementation of CDF projects. The study was conducted
in Kilgoris constituency which is one of the five constituencies in Narok County. The study
was done through a descriptive survey research design as stated by Kothari (2004). A total
target population of 135 projects was used for the study. The research adopted census
sampling for 3 CDFCs members, 5 PMCs members, 12 technical officials and 39 project
beneficiaries. The sample of research size was fifty nine. Data was collected using structured
questionnaires and focused group discussions. The Data collected was subjected to SPSS
version 22 for analysis providing both inferential analysis and testing, utilizing Pearson’s
correlation and regression analysis techniques. Data was interpreted accurately on the
established research objectives. The study found that budgetary allocation had a positive
relationship with implementation of Constituency Development funded in Kilgoris
constituency; community participation had a positive relationship with implementation of
Constituency Development funded in Kilgoris constituency; monitoring and evaluation had a
positive relationship with implementation of Constituency Development funded in Kilgoris
constituency; and Performance Management had a positive relationship with implementation
of Constituency Development funded in Kilgoris constituency. The study recommends audit
on all the CDF projects to ensure the allocated funds are used appropriately and also the
community should have access to the budgetary information of the projects in progress
within their community; CDF committee should disburse funds to ensure that the projects are
fully implemented, this will reduce the number of stalled projects in the community; the
community should be involved in all stages of CDF projects because they contribute to the
success of project implementation; and there should be constant monitoring and evaluation of
the projects in all cycles of the project including after the project has been concluded. The
study therefore recommends replication of the research study in other constituencies in the
country to facilitate generalization of the research findings. The study also recommends
evaluation on the satisfactory performance of the CDF Funded projects
Effect Of Macroeconomic Factors On The Performance Of The Bond Market In Kenya
No full textA predictable and stable macro-economic environment leads to a robust bond markets in a country. The main objective of the study was to determine the effect of macroeconomic factors on the performance of the bond market in Kenya. Specifically, the study sought to determine the effect of foreign exchange rate on bond market performance in Kenya; to assess the effect of interest rate fluctuations on bond market performance in Kenya; and to investigate how inflation rate affects bond market performance in Kenya. This study adopted a longitudinal research design. The population in this study constituted the entire bond market in Kenya. The population of this study was drawn from quarterly bond market Index data for a period of 10 years from 2007 – 2017. Secondary data was collected for the study. The researcher obtained quarterly data for the variables. This study used descriptive and inferential statistics to analyze the data. Data analysis was done using STATAv13. Diagnostic tests were done to establish whether the model and variables are significant. The data was presented in form of tables. The long run regression results showed that the effect of macroeconomic factors on bond performance existed. The VECM findings showed that there was a short run relationship between the macroeconomic factors and bond performance. There was a negative effect of exchange rate and interest rate on bond performance. However, inflation rate displayed a positive relationship with bond performance in the short run. This study recommends that policies on exchange rate and interest rate be observed closely to control the variables as they affect bond performance negatively. The study also recommends a strict monetary policy and control of factors contributing to change in inflation rate in order to enhance bond performance. This study recommends further studies to be done using other macro-economic variables to understand their contribution to bond performance in Kenya
Strategic Factors Affecting Competitiveness Of Public Development Finance Institutions In Kenya
No full textAfter independence in 1963, Kenya government has consistently and continuously followed the world trend of ensuring development to the citizens. During 1960s and 1970s, development finance institutions (DFIs) proliferated around the world as financial intermediaries that aimed to improve social welfare. The Kenyan DFI’s especially the public, were formed around 1960's. They were to act as catalysts to economic growth with clear cut mandates, targeting specific sectors of the economy. The Kenya Vision 2030, speaks of development by aiming to transform Kenya into a newly industrializing, middle-income country, providing a high quality of life to all citizens by year 2030 in a clean and secure environment. It envisages a cut out role of the financial sector which embeds the DFI’s. Despite the government’s support, little or bare minimum seem to have been achieved by the public DFI’s. Coupled with the world desire through the United Nations call for sustainable financial development and need for governments to have sustainable approaches to budget financing for development projects, then there begs the question whether the DFI’s have been competitive enough in the local and international space. By end of year 2017, the government issued a circular to the executives of the DFI’s confirming the intention to consolidate the DFI’s into one. Currently, the government’s big talk is the big four agenda i.e., food security, healthcare, affordable housing and manufacturing that have now been allocated four hundred billion Kenya shillings in the 2018/2019 budget. The competitiveness of the public DFI’s has never been to test than now. This paper seeks to study and evaluate the strategic factors that affect the competitiveness of Kenyan Public DFI’s. The factors’ effect on the performance of the institutions then remains a clear pointer to the institutions, government and other interested players in Kenya development agenda to respond appropriately emphasizing to deliver meaningful development that mass Kenyans have desired for many years while the mirage of better lives will be extinguished. Descriptive research design will be applied for this study. A census of seven public DFI’s will be taken into consideration to examine panel data representing factors of competitiveness for ten years prior to year 2017 for each DFI. In descriptive statistics, the study will use mean, standard deviation and scatter plot. In inferential statistics, the study will use multivariate regression analysis to determine the relationship between the dependent variable (Competitiveness of DFI) and independent variables. The results of this study will be significant in reflecting how and whether long term plans that resonate to firm’s structures and international practices, innovation, funding and the government’s role in terms of policy helps the DFI’s either to thrive or deflate. The initial expectation is that there is unutilized space for the Kenyan Public DFI’s to fulfill their mandate more efficiently and effectively. The recommendations will zero in, up scaling efforts for Kenya DFI space to be competitive such as Industrial Development Corporation(IDC) of South Africa and others in developing and developed countries
Effect Of Interest Rate Components On Financial Performance Of Banks Listed At Nairobi Securities Exchange
No full textThis paper aim was to study the effect of the components of interest rates on the performance of
banks listed at the Nairobi Securities Exchange. The study determined the effects of each of the
five components of interest rates; real risk-free interest rates, liquidity premium, default risk
premium, maturity premium and expected inflation, through the application of time series and
regression Equation. The study used multiple correlations and multiple regression analysis to
determine the level and extent of effects, and to test the regression equation, as reflected by the
Return on Assets (ROA) of these banks listed at the exchange. The study analyzed data of these
banks from 2015 to 2017. The choice of banks was a result of the availability of information
through other channels like CBK, NSE, CMA and KNBS. The researcher did not encounter any
limitation throughout the research period because the data intended for use was readily available
and much of it is at no cost. The research results will assist policy makers and investors alike by
using the information in decision
Effect Of Integrated Financial Management Information System On Public Procurement Implementation In County Government Of Kajiado, Kenya
No full textThe roll out of the Integrated Financial Management System (IFMIS) in all government
institutions was aimed at improving the prudent management of public funds in Kenya. All
Government entities in the National and County government levels are required to use the IFMIS
in all transactions. Challenges in the use of the system are still evident in many government
institutions despite the system having been in use for several years. Reports of leakages of public
funds through corrupt practices are indications that the IFMIS has not fully achieved its intended
objective of securing public funds. The National Treasury has also admitted to the fact that the
IFMIS system has not been fully linked with public procurement. The purpose of this study was
to examine the effect of Integrated Financial Management Information system on
implementation of public procurement in the County Governments in Kenya. The specific
objectives are: to establish the effect of IFMIS components (IFMIS reengineering, procure-topay
and plan-to-budget) on public procurement implementation in County Government of
Kajiado. The research used descriptive research design. The target population comprised the 696
employees based at the county headquarters in Kajiado Town. A sample of 140 respondents was
drawn from the population using stratified random sampling. The collection of research data was
undertaken using research questionnaires. In analyzing the data, the researcher used SPSS
version 21 to calculate descriptive statistics and inferential statistics. The results of the analysis
are presented in form of frequency tables, bar charts and pie charts. The findings show that the
three factors IFMIS reengineering, procure-to-pay and plan-to-budget affect the implementation
of public procurement in County Governments. The regression coefficient for IFMIS
reengineering was 1.348, the coefficient for procure-to-pay was -1.171 and the coefficient for
plan-to-budget was 0.014. IFMIS reengineering and plan-to-budget have positive relationships
with public procurement implementation and an increase in either of the two factors will result in
a positive increase in public procurement implementation. The procure-to-pay is negatively
related to public procurement implementation and when it increases, public procurement
implementation decreases. IFMIS adoption and use in County Governments has been made
possible because of management commitment towards IFMIS, adequate change management in
the county governments and a supportive legal framework. IFMIS has supported and improved
public procurement in County Governments by ensuring that suppliers and paid on time,
effective and accurate budgeting is undertaken and that budgetary controls are effectively
enforced
A job matching system to transform casual job market in Kenya
No full textThis project objective was to come up with job matching application for use by casual workers and employers. The process of identifying challenges, opportunities, desired features and solution was designed to be a rigorous process, involving vast research and participant involvement. Casual job market is largely classified as informal sector, which is less catered for in many fronts. It has not been well served in terms of creation of innovations, sufficient to link- up the players in the industry. With high population of people engaging as either casual worker or employers, the researcher found a fertile ground to explore opportunities, and adopt data communication aspects. Questionnaires and focus group were constituted and used as quantitative and qualitative data collection tools. Extensive literature review was also conducted to explore existing casual matching models, and underlying technologies. The proposed casual job matching application was developed using evolutionary prototyping methodologies. The research produced 21 revisions of the artifact. The application is hosted on the cloud, and is distributed through play store and peer-to peer sharing. Prototyping came out as an important methodology in contribution of knowledge to research
Thresholds of physical activity associated with obesity by level of sedentary behavior in children: Physical activity, sedentary behavior, and obesity
No full textIt is unknown whether moderate-to-vigorous physical activity (MVPA) thresholds for obesity should be adapted depending on level of sedentary behavior in children