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EFFECT OF SELECTED BANK DELIVERY CHANNELS AND SUPPORT INFRASTRUCTURE ON PROFITABILITY OF COMMERCIAL BANKS IN KENYA
No full textFULL TEXTCommercial banking sector in Kenya is one of the most important facilitators of economic growth, driven by competition and government regulations which have led to innovations of various channels of bank service delivery; agency banking and mobile banking with the help of support infrastructure; credit reference bureaus and deposit protection as regulated by Central Bank of Kenya. Banks have got the capacity of reaching a higher number of unbanked customers to mobilize savings and thus make the banking sector more profitable. However, according to Bank Supervision Annual report 2014, five commercial banks in Kenya reported losses contrary to expectation; Credit bank Ltd, Consolidated bank of Kenya ltd, UBA Kenya ltd, Equitorial commercial bank ltd and Eco-bank Kenya ltd, while others such as Dubai bank Kenya, Imperial bank Kenya and Chase bank Kenya being taken under receivership thereby calling into the question of profitability of the Kenyan commercial banks. The main objective of this research therefore was to investigate whether; agency banking, mobile banking, credit referencing and deposit protection have any significant relationship on profitability of commercial banks operating in Kenya. Mechanism and magnitude of effects of such changes on the bank profitability have only been inferred from subjective evidence, but as far as the present study is concerned, it has not been subjected to empirical analysis to test a combination of bank delivery channels with support infrastructure. This research used longitudinal descriptive research design. The population comprised of 20 Commercial Banks licensed and registered under the Banking Act of Kenya, that have been in existence for the ten year study period 2006 to 2015 and with consistent financial reporting and format. A purposive criterion was used to select participating banks based on availability of data and consistency in the financial reporting, therefore providing accurate and representative findings. Secondary data was used from regulatory bodies such as Nairobi Securities Exchange Limited, Kenya Bankers Association and Central Bank of Kenya as they are considered to be of high validity and free from biasness. The researcher was limited to data availability and consistency through the ten year financial period of the study.Data was analyzed using inferential and descriptive statistics. Descriptive statistics included calculation of the mean, median, standard deviation, minimum and maximum. Inferential statistics consisted of correlation analysis and panel data regression analysis. The results and findings of this study indicated that, there was no enough evidence that the factors analysed affected return on equity; Agency Banking (r = -0.0699, p = 0.4187), (β= 0.0551, SE = 0.0179), Mobile Banking (r = 0.1179, p = 0.1834), (β= 0.0347*, SE = 0.0182), Credit Referencing (r = -0.02242***, p = 0.0087), (β= -0.0239, SE = 0.0157), and Deposit Protection (r = -0.0228, p = 0.7796), (β= 0.254*, SE = 0.153),However, some of the individual components such as Non interest income, deposit insurance and capitalization associated with the factors showed that they significantly contributed to the changes in return on equity.The study also concluded, therefore, that there are varied time lags for each of the factor’s effect to filter to income statement of the banks. The study recommended that banks operating in a fast changing business environment like in the Kenyan banking sector, innovation and first adopter strategies may help the banks sustain superior profitability amid tightening competition and focus on niche products as well. The government should also undertake back-testing for validity of support infrastructure due to changing business environment. The study therefore suggested a future study based on instrumented variables with time lags to complement this study
EFFECT OF INTERNAL CREDIT RATING ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA
No full textFULL TEXTInternal credit rating (ICR) was used in evaluating the level of risk associated with a loan applicant and assign probabilities that an applicant with a given credit score would be good or bad. It could also be used as abasis for loan approval, pricing, monitoring and capital allocation. Lending difficulties may arise due to Internal Credit Rating (ICR) systems failure to consider and analyze potential borrower’s information before loans are approved and released to them, making loan monitoring and capital allocation based on the associated risk profile difficult. In recent years spanning 2011 to 2014, there have been growing trend of bad loans, this study aimed at investigating the effects of ICR on the financial performance of commercial banks operating in Kenya for 10 year duration from 2006 to 2015. The specific objectives of the study were to: Establish the effects of ICR-based loan origination process on the financial performance of commercial banks in Kenya; examine the effects of ICR-based setting of credit terms and conditions on the financial performance of commercial banks in Kenya; assess the effects of ICR-based credit monitoring on the financial performance of commercial banks in Kenya; and analyze the effects of ICR-based capital allocation on the financial performance of commercial banks in Kenya. The study was intended to be useful to bankers, bank supervisors, and other stakeholders including scholars and the general public. The study used the longitudinal research design to describe and provide a profile of the relationship between the bank ICR systems and risk adjusted financial performance of the various commercial banks. The population of the study consisted of 20 commercial banks registered, licensed and operating in Kenya as at the period of the study. The20 banks was purposively analysed after a preliminary survey carried out to establish the availability of data for all Commercial banks. Therefore, the study population comprised the 20 commercial banks in Kenya, arrived at using the purposive selection criterion. The main data collection instrument was the secondary data collection schedule with data being collected from the yearly bank reports, Central Bank of Kenya annual reports and Kenya Bankers Association. Data analysis was conducted with the help of STATA computer program, providing descriptive and inferential statistics. The descriptive statistics comprised the mean, median, standard deviations, minimum and maximum. The inferential statistics on the other hand consisted of; correlation analysis and panel data regression analyses. The study findings indicated that ICR-based setting of credit termsand conditions(r = 0.2697***; p = -0.0016); (β = 0.177**; SE = 0.0849)as well as ICR-based capital allocation (r = -0.061; p = 0.4679); (β = 0.0720; SE = 0.0500)related positively with financial performance of banks, Additionally, the results in respect to the effects of ICR-based loan origination (r= 0.1828**; p = 0.0345); (β = 0.0217; SE = 0.0619) and ICR-based credit monitoring(r = -0.1765**; p = 0.0445); (β = 0.0818; SE = 0.121)showed that it did not have any effect on the financial performance of the commercial banks in Kenya.The study therefore concluded that the effects of ICR and firm performance is multidimensional and is influenced by firm specific as well as contextual factors. Hence the study recommended continual ICR updating, intense use of loan covenants and collateral, and improving information sharing capabilities. As an area for further research, the study recommended the same research factoring in all the banks and automated credit risk analysis for remote lending transactions
AN EVALUATION OF THE RELATIONSHIP BETWEEN PERSUASION AND CHOICE OF DAILY NEWSPAPER BY READERS IN KENYA
No full textFULL TEXTAn average consumer is exposed to a range of persuasion marketer generated communications seeking to get his/her attention and elicit some desired response. This communications may make decision making less demanding reducing the time and effort spent in selecting a product/ service (consumer involvement). Also the level of involvement a consumer places on a particular purchase has a bearing on the actual selection (consumer choice) that will be made. But, some of the persuasion messages are relayed at a speed that makes it impossible to comprehend the communications, raising questions on the nature of elaborations consumers make, and involvement level they experience, which ultimately influences choice of product or service they make. To better understand this concept the Consumer Involvement Theory (CIT) and Elaborate Likelihood Model (ELM) were used to evaluate persuasion and its relationship with consumer choice. The study postulated that all forms of persuasion have a positive and significant relationship with consumer involvement in the choice of daily newspapers by readers in Kenya; consumer involvement has a weak, positive and significant relationship with choice of daily newspapers by readers in Kenya; there is a significant difference between relationships of different forms of persuasion and consumer involvement in the choice of daily newspapers by readers of different gender in Kenya; and there is no significant difference between relationships of consumer involvement and consumer choice between male and female daily newspaper readers in Kenya. A multi stage sampling technique was employed to get a sample of 384 respondents who completed close ended questionnaires. The findings of this study revealed that a positive correlation existed between all forms of persuasion and consumer involvement. Self persuasion and subliminal persuasion predicted consumer involvement but interpersonal persuasion did not. Further, daily newspapers strongly displayed features of low involvement product purchase and the study results showed a weak relationship existed between consumer involvement and consumer choice. Generally, all hypotheses were supported with exception of the first one, which stated that all forms of persuasion have a positive and significant relationship with consumer involvement in the choice of daily newspapers readers in selected counties in Kenya. The study recommends that daily newspapers publishers should research further on their customers and/or potential customers to understand content that appeal to them more and then strategically infuse this in their dailies to gain a competitive edge. The newspaper publishers could also explore possibility of growth in their sales through online prints targeted at those within age ranges of 18 and 24 years as their computer literacy level is high (94.4%). Advertising clients are similarly advised to identify the daily newspaper with the highest readership when pitching their adverts. This is because a large percentage of daily newspaper readers (65%) do not purchase and read more than one daily newspaper. The findings of this study contribute to knowledge in the area of persuasion, consumer involvement and consumer choice, thus building on existing theories. Policy formulators will be sensitised by the findings related to subliminal persuasion‘s ability to influence, hence they can take appropriate steps in regulating its influence on consumers and challenges that may result. Marketers and advertising practitioners on the other hand, have knowledge generated by this study that is critical for strategic preparation of persuasive messages that will elicit desired outcomes
EFFECT OF SELECTED BANK DELIVERY CHANNELS AND SUPPORT INFRASTRUCTURE ON PROFITABILITY OF COMMERCIAL BANKS IN KENYA
No full textFULL TEXTCommercial banking sector in Kenya is one of the most important facilitators of economic growth, driven by competition and government regulations which have led to innovations of various channels of bank service delivery; agency banking and mobile banking with the help of support infrastructure; credit reference bureaus and deposit protection as regulated by Central Bank of Kenya. Banks have got the capacity of reaching a higher number of unbanked customers to mobilize savings and thus make the banking sector more profitable. However, according to Bank Supervision Annual report 2014, five commercial banks in Kenya reported losses contrary to expectation; Credit bank Ltd, Consolidated bank of Kenya ltd, UBA Kenya ltd, Equitorial commercial bank ltd and Eco-bank Kenya ltd, while others such as Dubai bank Kenya, Imperial bank Kenya and Chase bank Kenya being taken under receivership thereby calling into the question of profitability of the Kenyan commercial banks. The main objective of this research therefore was to investigate whether; agency banking, mobile banking, credit referencing and deposit protection have any significant relationship on profitability of commercial banks operating in Kenya. Mechanism and magnitude of effects of such changes on the bank profitability have only been inferred from subjective evidence, but as far as the present study is concerned, it has not been subjected to empirical analysis to test a combination of bank delivery channels with support infrastructure. This research used longitudinal descriptive research design. The population comprised of 20 Commercial Banks licensed and registered under the Banking Act of Kenya, that have been in existence for the ten year study period 2006 to 2015 and with consistent financial reporting and format. A purposive criterion was used to select participating banks based on availability of data and consistency in the financial reporting, therefore providing accurate and representative findings. Secondary data was used from regulatory bodies such as Nairobi Securities Exchange Limited, Kenya Bankers Association and Central Bank of Kenya as they are considered to be of high validity and free from biasness. The researcher was limited to data availability and consistency through the ten year financial period of the study.Data was analyzed using inferential and descriptive statistics. Descriptive statistics included calculation of the mean, median, standard deviation, minimum and maximum. Inferential statistics consisted of correlation analysis and panel data regression analysis. The results and findings of this study indicated that, there was no enough evidence that the factors analysed affected return on equity; Agency Banking (r = -0.0699, p = 0.4187), (β= 0.0551, SE = 0.0179), Mobile Banking (r = 0.1179, p = 0.1834), (β= 0.0347*, SE = 0.0182), Credit Referencing (r = -0.02242***, p = 0.0087), (β= -0.0239, SE = 0.0157), and Deposit Protection (r = -0.0228, p = 0.7796), (β= 0.254*, SE = 0.153),However, some of the individual components such as Non interest income, deposit insurance and capitalization associated with the factors showed that they significantly contributed to the changes in return on equity.The study also concluded, therefore, that there are varied time lags for each of the factor’s effect to filter to income statement of the banks. The study recommended that banks operating in a fast changing business environment like in the Kenyan banking sector, innovation and first adopter strategies may help the banks sustain superior profitability amid tightening competition and focus on niche products as well. The government should also undertake back-testing for validity of support infrastructure due to changing business environment. The study therefore suggested a future study based on instrumented variables with time lags to complement this study
The role of faith-based organisations in peacebuilding in Mt Elgon region
No full textPeace is defined as the absence of widespread physical violence. The term is derived from Galtung’s (1976) idea of positive peace where non-violence, social justice and ecological sustainability remove the causes of war by addressing the root causes of war.
The former UN Secretary General Boutros-Ghali in his article entitled Agenda for Peace defined peace building as the action to identify and support structures which would tend to strengthen and solidify peace in order to avoid a relapse into conflict (Boutros-Ghali, 1992).
According to Jeong (2003) a comprehensive approach to peacebuilding involves engaging a variety of actors working through different means to achieve peac
THE EFFECT OF FOREIGN PORTFOLIO INVESTMENTS ON STOCK RETURNS IN KENYA: EVIDENCE FROM NSE LISTED FINANCIAL INSTITUTIONS
No full textFULL TEXTThe study focused on the effect of foreAigBnS TpoRrAtfoCliTo investments on stock returns of listed
financial institutions in Kenya. Reversals of FPIs due to a shift in investor risk appetite may
have a drastic impact on the value of shares of financial institutions hence the effect on stock
returns. FPI instability complicates the financial performance of financial institutions hence
its stock returns. Uncertainties in the flow of FPI may result in unpredictable behaviour of
stock returns in Kenya’s economy and also at the firm level. These inflows can also cause
domestic currency appreciation if they are significant enough and thereby causing a mismatch
in assets and liabilities of financial institutions. The net effect of this is the possibility of
financial loss suffered by the financial institutions. The returns and general financial
performance of financial institutions are affected if bank loans were used to finance foreign
transactions. The objective of this study was to investigate the effect of foreign portfolio
investments on stock returns of listed financial institutions in Kenya. The target population of
the study was 21 financial institutions listed on the Nairobi Securities Exchange Limited. The
study used purposive sampling technique and concentrated on 14 financial institutions listed
on the Nairobi Securities Exchange Limited. Secondary data was obtained from Central Bank
of Kenya, Nairobi Securities Exchange Limited and Capital Markets Authority. The study
focused on monthly datasets of foreign portfolio equity sales, foreign portfolio equity
purchases, foreign portfolio equity turnover, exchange rate changes and stock returns
undertaken by foreign investors in Kenya’s listed financial institutions since January 2008 to
December 2014. This study adopted a causal research design as it seeks to tests for the
existence of cause-and-effect relationships among variables. The study adopted a panel data
regression using the Ordinary Least Squares (OLS) method where the data included time
series and cross-sectional data that is pooled into a panel data set and estimated using panel
data regression. Hausman test was carried out to determine whether to use random effects or
fixed effects regression model and findings indicated that random effects model was
preferable for this study. Results from panel estimation showed that exchange rate risk affect
stock returns of listed financial institutions in Kenya. The findings from the study would be
useful to the policy makers and regulators in making informed decisions and formulating
policies that would indeed contribute to effective management of foreign portfolio
investments in Kenya. The study concluded that financial institutions should device ways of
attracting foreign portfolio equity inflows as they improve the liquidity position of these
firms and hence increasing the returns. The study recommended that policies that would
attract foreign portfolio investment should be pursued in order to enhance stock returns and
that the government through Capital Markets Authority should enhance development of
corporate bond market
A ZIGBEE MODEL FOR TELEMETRY BASED WATER FLOW BILLING.
No full textFULL TEXTWater and Sewerage service providers in Kenya have encountered challenges in proficient collection of water billing data from customer’s meters. This necessitates the need to implement a proper data collection mechanism that can be implemented remotely, effortlessly, and accurately. Recent advances in telemetry now provide reliable water meter data. However no water utility has implemented a technology based, remote data collection strategy. A Zigbee WPAN-to-WAN solution for water meter data collection is thus a viable solution. This study addressed the ability to create a model, prototype and project for a water meter sensor network based on IEEE 802.15.4 ZigBee standard. The resulting mesh network allowed collection of data logged from the water meter sensors in real time remotely and accurately. The PPDIOO lifestyle approach was used to develop the model, prototype and set-up the project. Devices in the WPAN were identified using IPv6 to enable scalability. One FFD ZigBee device coordinated the WPAN and enabled multi-path forwarding of data collected to a Network Coordinator. The model, prototype and project developed in this study will serve to inform the development of Zigbee water meter networks with data collected consumed by third party software solution providers for purposes of analyzing, organizing and reporting
A Paper On The Influence of a Father on the Growing Child’s Self Esteem
No full textIntroduction and Background of Concept Paper.
Theoretical Framework and Physiological basis of Thesis.
Limitations of Attachment Theory.
Biblical Basis of Parenting.
An Analysis of Two Programs Focusing on Father Issues In Kenya.
Summary, Conclusion and Recommendations
EFFECTS OF STRATEGIC RESPONSES TO ADVANCES IN TECHNOLOGY ON ORGANISATION’S PERFORMANCE: EVIDENCE FROM TEXTBOOK PUBLISHERS IN KENYA
No full textFULL TEXTThe purpose of this study was to investigate the effects of strategic responses to advances in technology on organization‟s performance: looking at the evidence from textbook publishers in Kenya. More specifically, the study sought to evaluate how Change in Recruitment processes, Human Resource Development, Customer Relations Management and organizational policy change affect organization‟s performance. To achieve the objectives of the study, a descriptive research design was adopted where all 40 Publishing firms registered under the Kenya Publishers Association were targeted. The study relied solely on primary data which was collected using structured questionnaires containing mainly closed ended questions for ease of analysis. Data analysis was done using descriptive and inferential statistics with an aid of a computer software SPSS. Multiple regression and correlation analyses were applied in the analysis of the data to determine the relationship between the variablesThe correlation results, found that there was a strong positive correlation relationship, 0.572 with significance of p = 0.00< 0.05 between human resource management and performance of publishing firms. The study further indicated a weak positive relationship, 0.349 with significance of p = 0.037<0.05 between change in recruitment policies process and performance of publishing firms. In terms of customer relations management and organization performance, the study found a weak positive relation, 0.475 with significance of p= 0.000<0.05,whereas the findings portrayed a significant strong positive relationship between change in organization policies and performance of publishing firms , 0.634 with significance of p= 0.000<0.05 .The study findings indicated that Customer Relations Management, Human Resource Development and change in recruitment processes have insignificant effect on organization‟s performance while change in organizational policy was found to have a significant effect on organization‟s performance. This study recommends further research to be done on firms in other related industries, to find out whether similar results can be achieved. In addition, a similar research can be carried out incorporating other variables and see if they would have a significant influence on organizational performance