7 research outputs found
Electronic Taxpayer Education and Tax Compliance of Manufacturing Small and Medium Enterprises in Nairobi City County, Kenya
No full textTo enlighten taxpayers regarding their tax information, the Kenyan tax authorities have made tax education a top concern. To promote voluntary tax compliance and boost national revenue, this kind of education is essential. Low tax compliance among SMEs limits revenue generation from the government and, consequently, inefficient government expenditure since it makes it harder for the state to amass family earnings, which are vital assets for speculating. This study sought to investigate how electronic taxpayer education affects the compliance with tax laws of manufacturing SMEs in Nairobi City County, Kenya. The study used a descriptive research approach and 641 manufacturing SMEs in Nairobi were the study\u27s targeted audience. Output showed that electronic taxpayer education positively affected tax compliance in a significant manner as it relates to manufacturing SMEs. The conclusion arising from this outcome is that electronic taxpayer education plays an important role in manufacturing SMEs\u27 tax compliance as most of them can access tax information electronically in their comfort zones. Policy makers should increase the utilization of electronic means to educate taxpayers on the need to pay taxes and the consequences of non-compliance to tax laws in Kenya. It is recommended that the Kenya tax authority should enhance the education of taxpayers via electronic means as most of the participants in the manufacturing SMEs are said to easily access electronic media that would enhance their competitive advantage over other firms in Kenya
Capital Adequacy and Financial Performance of Deposit Taking Savings and Credit Cooperative Societies in Kenya
No full textDT SACCOs are significant in the stimulation of the economic growth in Kenya, besides contributing to the stability of the country’s financial system. The financial institutions promote investments and through financial inclusion to the household economies. In the year 2022, the DT-SACCO segment had a 5.71% ratio of total assets to the national GDP. Though prudential regulations to guide these financial institutions have been set, several DT SACCOs had their licenses revoked or renewed conditionally. Besides, the trend of ROA in this segment has been erratic and inconsistent, implying that the segment has not been consistently utilizing the assets maximally. The study was guided by Information Asymmetry theory and inclined toward positivism philosophy while adopting explanatory research design. Secondary data for period 2018 to 2022 were collected using data extraction sheets. The target population was 176 while the sample size was 159, which derived by utilizing the inclusion-exclusion criteria. Data was analyzed using STATA, where both descriptive statistics and inferential analysis were conducted. Results showed that capital adequacy had a significant effect on the financial performance of DT SACCOs in Kenya. This implies that higher capital ejected into these financial institutions, the higher the ROA, and vice versa. Rigorous regulations and policies on capital levels/adequacy ratio should therefore be put in place by the regulator to enhance the financial performance
Effect of Financial Technology on Financial Performance of Commercial Banks in Kenya
No full textPerformance in the financial markets is an essential component in the study of finance. Over the last decade, Kenya's commercial banks have increased their use of different types of financial technology (2011-2021). Mobile banking, agency banking, internet banking, and automated teller machines are just some of the various forms of financial technology available today. The purpose of this study was to evaluate the impact that financial technology has had, if any, on the overall financial performance of commercial banks in Kenya. The specific goals were to establish the effect of mobile banking on financial performance; to determine the effect of internet banking on financial performance; to determine the effect of agency banking on financial performance; to determine the effect of ATMs on financial performance; and to establish the moderating role of bank size on the relationship between financial technology and the financial performance of commercial banks. The research was predicated on the technological adoption model, the financial intermediation theory, the diffusion of innovation theory, and the profit maximization theory. The positivist research philosophy was used for this study, and a panel longitudinal research methodology was used for the research. The population of the study was the 38 commercial banks that have been in continuous operation throughout the last decade. The study was a census. Secondary information was gathered on an annual basis, and it covered a span of ten years (January 2012 to December 2021). The data was evaluated making use of descriptive statistics as well as inferential statistics entailing correlation and panel multiple linear regression analysis. The current research conclusions revealed that financial technology fairly explains financial performance and the current research discoveries also revealed that the financial technology is sufficient in predicting financial performance. Additional study findings were that mobile banking, internet banking, agency banking, adoption of ATMs, and bank size had positive significant correlations with financial performance. Moreover, findings were that adoption of ATMs had a significant negative link with financial performance. Meanwhile, mobile banking and agency banking had negative insignificant link with financial performance. Finally, both internet banking and bank size had a positive insignificant relationship with financial performance. Policy recommendations to the government officials and policy formulators in the Treasury and the CBK to not mainly advocate for financial technology policy as a means of boosting bank financial performance and it is recommended to the policy makers to utilize other policies when aiming to boost bank financial performance. Recommendations are also generated to the bank management and consultants not to mainly consider financial technology will significantly boost the banks’ financial performance.
Keywords: Financial Technology, Financial Performance, ATM, Mobile banking, Internet banking, Agency Bankin
Credit Risk Management and Liquidity of Commercial Banks in Kenya
No full textLiquidity has remained a challenge among commercial banks in Kenya. For instance, the ratio of loans against deposits of the said banks stood at 0.740969, 0.74092, 1, 0.713654 and 0.795822 with an average value being 0.798273 across the period 2018, 2019, 2020, 2021 and 2022 respectively. This implies that most of the commercial banks did not have adequate assets as compared to deposits needed to finance customer loan requests which provide evidence of liquidity concerns among commercial banks in Kenya. This study examined the effect of credit information sharing, loan loss provisioning, and lending requirements on the liquidity of commercial banks in Kenya. Guided by relevant financial theories, it adopted a positivist, explanatory approach using both primary and secondary data from 39 banks between 2018 and 2022. The questionnaire was pilot tested before data gathering process among 4 credit managers from commercial banks in Kenya. The reason for pilot testing was to determine reliability of questionnaire while its validity was ensured by supervisor and two experts in the field of finance. Processing of the gathered data was done descriptively and inferentially and presented in tabular and graphical forms. Multicollinearity, normality was conducted as diagnostic tests before regression analysis to test its assumptions. The ethical issues that were considered in this study included appropriate citation and referencing of the information reviewed to avoid plagiarism and voluntary participation by respondents. The findings were that credit information sharing (p<0.05), loan loss provisioning (p<0.05) and lending requirements (p<0.05) had significant effect on liquidity of commercial. The study concluded that credit risk management and liquidity of commercial banks in Kenya are significantly related with each other. It was recommended that Credit Managers working among commercial banks in Kenya should invest in latest technologies for carrying out timely credit information of customers with the licensed Reference Bureaus. The loan officers working with commercial banks in Kenya should diversify into loan portfolio in order to remain stable and have meaningful contribution to the growth of an economy. Managers working with commercial banks in Kenya should effectively invest in lending requirements like land title deeds and logbooks in order to improve on their credit risk management which in turn can allow them achieve optimal and required liquidity levels.
Key words: Credit risk management, liquidity, credit information sharing, lending requirements and loan loss provisionin
Effect of Savings Generated After Repayment of Women Enterprise Fund Loan On Profitability of the Women-Owned Enterprises in Kajiado County, Kenya
No full textWomen-owned enterprises in Kajiado County demonstrate lower profitability compared to neighboring counties despite comparable growth rates in enterprise numbers. This study investigated the effect of savings generated after repayment of Women Enterprise Fund loans on the profitability of women-owned enterprises in Kajiado County, Kenya. Anchored on the Free Cash Flow Theory, the study employed a positivism philosophy and explanatory research design, targeting 8,100 women entrepreneurs who accessed the Women Enterprise Fund between 2018 and 2022. Using Yamane's formula, a sample of 381 respondents was selected through stratified random sampling across five sub-counties, achieving a 72.4% response rate. Data was collected using structured questionnaires and analyzed using Stata version 17, employing descriptive statistics. The findings revealed a strong positive correlation between savings and profitability (r = 0.930, p = 0.000). Regression analysis demonstrated that savings significantly and positively affect profitability (β = 2.255, p = 0.000). The study concludes that savings constitute a critical determinant of enterprise profitability, providing financial resilience and reinvestment capacity. It recommends strengthening savings incentive programs, linking savings behavior to loan eligibility, implementing financial literacy training emphasizing savings management, and establishing accessible savings infrastructure. Further research should explore sector-specific effects and additional profitability determinants in other counties.
Keywords: Women Enterprise Fund, Savings Mobilization, Enterprise Profitabilit
Entrepreneur's Innovativeness on Access to Venture Capital by Small and Medium Enterprises in Nairobi City County, Kenya
No full textDespite the effort made by the government of Kenya to support the growth of SME sector by creating enabling environment through appropriate legal and regulatory procedures, and in spite the fact that banks have recently made micro-credit accessible to MSEs, there is no indication that the sector is growing. Empirical evidence shows that most of these enterprises fail due to poor/lack of access to finance. Access to venture capital by the small and medium enterprises could be a plausible alternative but unfortunately research has pointed out that majority of the enterprises do not access venture capital financing, which is considered an important option for small and medium enterprises trying to grow. This study therefore sought to investigate the effect of entrepreneur's innovativeness on access to venture capital by small and medium enterprises in Kenya. The study adopted the explanatory non-experimental research design and positivism philosophy guided the study. Target population of the study was 334 Small and medium size enterprises ranked by KPMG between 2008 and 2017 in their annual survey. Proportionate random sampling technique was used to select the firms. Data was collected by use of questionnaire, using drop and pick method. Both descriptive statistics and inferential statistics were used to analyze the data. Nested multinomial logit model was used. The results reveal that the influence of an entrepreneur's innovativeness on access to venture capital financing is statistically significant. From the findings, it is recommended that SMEs should continue investing in enhancing entrepreneurial innovativeness as it increases the propensity of their enterprises from accessing venture capital financing.
Keywords: Entrepreneurs, Innovativeness, Access, Venture Capital, Financing, SMEs, KPM
Impact of Climate and Soil Variability on Crop Water Productivity and Food Security of Irrigated Agriculture in Northern Togo (West Africa)
No full textWest Africa is subject to frequent yield losses due to erratic rainfall and degraded soils. At the same time, its population is expected to double by 2050. This situation is alarming in northern Togo, a West African dry savannah area, where rainfed maize is a staple food. Thus, it is necessary to improve agricultural productivity, e.g., by evaluating and introducing alternative irrigation management strategies, which may be implemented in this region. For this purpose, the present investigation focused on evaluating the potential of deficit and supplemental irrigation, as well as assessing the impact of climate and soil variability on maize yield under irrigated agriculture using irrigation optimisation strategies in northern Togo. The Optimal Climate Change Adaption Strategies in Irrigation (OCCASION) framework was adapted and employed to address the research objectives. It involves: (i) a weather generator for simulating long-term climate time series; (ii) the AquaCrop model, which was utilised to simulate the irrigation during the growing periods and the maize yield response to given irrigation management strategies; and (iii) a problem-specific algorithm for optimal irrigation scheduling with limited water supply. Five irrigation management strategies viz. T1: no irrigation (NI), T2: controlled deficit irrigation (CDI) and T3: full irrigation (FI) in the wet season, T4: controlled deficit irrigation (CDI) and T5: full irrigation (FI) in the dry season were assessed regarding their impact on maize yield in northern Togo. The results showed high variability in rainfall during the wet season, which led to substantial variability in the expected yield for NI. This variability was significantly lessened when optimised supplemental irrigation management strategies (CDI or FI) were applied. This also holds for the irrigation scenarios under the dry season. Finally, these findings were validated by an irrigation field experiment conducted at an agricultural research institute in northern Togo. Under a moderate level of deficit irrigation during the vegetative and reproductive growth stages, the above-ground biomass and the maize grain yield were reduced. However, a moderate level of deficit irrigation during the vegetative growth stage could result in similar values of water productivity to that of fully irrigated treatment. It was found that, based on the values of the statistical indicators, AquaCrop has accurately simulated the maize grain yield for all the irrigation strategies evaluated. The results of this study revealed that climate variability might engender a higher variability in the maize yields of northern Togo than soil variability does. Large- and smallscale water harvesting, access to groundwater, and irrigation infrastructures would be required for implementing the irrigation management strategies assessed in this study.:Declaration iii
Declaration of Conformity v
Dedication vii
Acknowledgements ix
Abstract xi
Table of Contents xv
List of Figures xvii
List of Tables xix
List of Acronyms and Abbreviations xxi
1. Introduction 1
1.1 Background and Problem Statement 1
1.1.1 Global Fresh and Agricultural Water Use 1
1.1.2 Erratic Rainfall, Rising Temperatures, and Soil fertility depletion in West Africa 2
1.1.3 Transboundary Water Issues in West Africa 3
1.1.4 Agriculture and Water Use in Togo 3
1.2 Objectives of the Study 4
2. State of the Art 6
2.1 Relevant Agroecosystems, Farming Systems and Irrigation Management in West Africa 6
2.2 Key Performance Indicators: Water productivity and Food Security 8
2.3 Common Approaches Used to Evaluate Crop Water Productivity 9
2.4 Key production Factors: Climate, Soil and Management 9
2.5 Crop Yield Modelling 12
2.6 Integrated Modelling 13
3. Novel Framework for Optimising Irrigation Systems in West Africa 15
3.1 Model-based Sensitivity Analysis of Climate and Management Impact on Crop Water Productivity, Water Demand and Food Security 15
3.2 Experimental Validation of the Farm Model and Management Strategies, Soil Data Analysis and Modelling 17
3.3 Joint Stochastic Analysis of the Impact of Climate and Soil Variability on Crop Water Productivity and Food Security 19
4. Overview of Publications 21
4.1 Potential of Deficit and Supplemental Irrigation under Climate Variability in Northern Togo, West Africa 21
4.2 Impact of Irrigation Strategies on Maize (Zea mays L.) Production in the Savannah Region of Northern Togo (West Africa) 22
4.3 Impact of climate and soil variability on maize (Zea mays L.) yield under full and deficit irrigation in the savannah region of northern Togo, West Africa 23
5. Conclusion and Outlook 26
References 28
A. Selected Publications of the Author 37
A.1 Potential of Deficit and Supplemental Irrigation under Climate Variability in Northern Togo, West Africa 39
A.2 Impact of Irrigation Strategies on Maize (Zea mays L.) Production in the Savannah Region of Northern Togo (West Africa) 61
A.3 Impact of Climate and Soil Variability on Maize (Zea mays L.) Yield under Full and Deficit Irrigation in the Savannah Region of Northern Togo, West Africa 81
B. Histograms of distributions of the expected maize yield in northern Togo (scenarios in the third paper) 12
