scholarly journals LIQUIDITY MANAGEMENT AND FINANCIAL PERFORMANCE OF TEACHERS DEPOSIT TAKING SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN KENYA

2020 ◽  
Vol 5 (2) ◽  
pp. 1
Author(s):  
Charles Kai Mwangudza ◽  
Ambrose Jagongo ◽  
Fredrick W.S. Ndede
Keyword(s):  
Financial Performance ◽  
Management Practices ◽  
Target Population ◽  
Unique Contribution ◽  
Moderator Variable ◽  
Liquidity Management ◽  
Study Objective ◽  
External Borrowing ◽  
Loan Losses ◽  
Descriptive Survey

Purpose: The study objective was to establish the effect of liquidity management on the financial performance of Teachers DT Saccos in Kenya and to evaluate the moderating effect of the size on liquidity management and financial performance of Teachers DT Saccos in Kenya. Methodology: This study adopted a post-positivist research paradigm to interpret the effect of liquidity management on the financial performance of deposit-taking Saccos in Kenya. The study adopted a descriptive, survey research design. The target population was 18 Saccos classified under teachers' based DT SACCOs according to SASRA records of December 2017 (SASRA, 2018). Census Methodology was used. The study used a data capture form that has been designed by the researcher to collect the data on the independent variables of liquidity management, moderator variable size and dependent variable which was DT Saccos financial Performance. Data were analysed using a combination of descriptive and inferential statistics with the statistical package STATA. Analysed data was presented using graphs and tables. Findings: The study established that there was a significant effect of capacity and purchased funds on the financial performance of Teachers DT Saccos. The study also established that cash position, total deposit, and core deposit had an insignificant effect on the financial performance of Teachers DT Saccos and that size of the Sacco affects the relationship between liquidity management and financial performance of Teachers DT Saccos. Unique contribution to theory, practice and policy:  The study recommended the development of a more robust liquidity monitoring policy as well as enhancement of the oversight on liquidity management practices. The study also recommended that Teachers DT Saccos should reduce the provisions of loan losses as well as their reliance on external borrowing. Further, the study recommended future studies using other factors influencing liquidity in the Teachers DT Saccos. Lastly, the study recommends a comparative study using other financial intermediaries with similar deposit and asset features such as Deposit Taking Micro Finance Institutions.

scholarly journals INFLUENCE OF CORPORATE STRATEGIES ON FINANCIAL PERFORMANCE OF OIL MARKETING COMPANIES IN KENYA

2018 ◽  
Vol 3 (1) ◽  
pp. 45
Author(s):  
Anne Ingabo ◽  
Dr. Allan Kihara
Keyword(s):  
Financial Performance ◽  
Survey Design ◽  
Target Population ◽  
Primary Data ◽  
Unique Contribution ◽  
Diversification Strategy ◽  
Oil Companies ◽  
Corporate Strategies ◽  
Positioning Strategy ◽  
Descriptive Survey

Purpose: Strategy is the direction and scope of an organization over the long term, which achieves competitive advantage in a changing environment. Strategic marketing is an organization’s process of defining its strategy and making decisions on allocating its resources to pursue this strategy, including its capital and people. The main purpose of the study was to stablish the influence of corporate strategies on financial performance of the oil marketing companies in Kenya Methodology: This study adopted descriptive survey design. The target population for this study was23 oil companies in the oil industry in Kenya. The study used primary data which was collected through self-administered questionnaires. The researcher utilized mixed method which included qualitative and quantitative techniques in analyzing the data. Results: The findings showed that all the strategies under study lead to significantly affects financial performance Oil Marketing Companies in Kenya. The greatest variation in performance is led by diversification strategy diversification at 0.398 increase, followed by positioning strategy will lead to 0.376, Mergers and acquisitions strategy, at 0.355 and finally Outsourcing strategy at 0.332. This means that if companies employ these strategies especially diversification and positioning strategies, then their investment opportunities will increase thereby increasing their revenue and financial performance Unique contribution to theory, practice and policy: In order for Oil marketing Companies to enhance their financial performance through outsourcing strategy, they need to take outsourcing idea a step further to collaborate with competitors so as to find shared solutions. The Oil marketing companies in Kenya also need to train their personnel so as to appreciate the concept of outsourcing strategy, and the best practices and systems that will enhance their financial performance.

scholarly journals Mobile Loan Frequency of Repayment as a Predictor of the Financial Performance of SMEs in Urban Informal Settlements in Kenya

2021 ◽  
Vol 2 (2) ◽  
pp. 97-113
Author(s):  
Margaret Murage
Keyword(s):  
Civil Society ◽  
Financial Performance ◽  
Survey Design ◽  
Informal Settlements ◽  
Civil Society Organizations ◽  
Design Data ◽  
Study Objective ◽  
Urban Informal Settlements ◽  
Descriptive Survey ◽  
Intended Use

This study explored the effect of repayment timelines on the financial performance of SMEs in urban informal settlements in Kenya. This study adopts the descriptive survey design. Data were collected from 120 SMEs in the 6 wards of Mathare Sub-County. Data was collected using semi-structured questionnaires. It was analysed using descriptive and inferential statistics. From the study findings, it is evident that repayment timelines influenced the application for mobile loans. The ability to pay mobile loans without problems due to flexible repayment times also enhanced the performance of the respondents’ businesses. While loans with short repayment periods discouraged the businesses from borrowing due to immense pressure, long repayment periods were preferable since it meant that the stock purchased could be converted to cash. Budgeting could also be made easy due to the certainty of cash flow in long and flexible repayment periods. Lastly, a long repayment period meant that the intended use of the money borrowed could be realized. The study made the following recommendation based on the study objective. In this regard, most of the various mobile loan providers should put in place flexible repayment plans to make their loans appealing. They should also market their mobile loan products to make them visible since only 4, Safaricom-Fuliza, M-Shwari, Tala, and KCB-Mpesa were the most used. Civil society organizations in collaboration with mobile loan providers should also carry out capacity building campaigns among SMEs in informal settlements.

scholarly journals Analyzing Effect of Alternative Banking Channels on Financial Performance of Burundi Commercial Banks: Evidence from Kenya Commercial Bank in Burundi

2020 ◽  
pp. 1-11
Author(s):  
Nkeshimana Carlos ◽  
Martin Onsiro Ronald
Keyword(s):  
Financial Performance ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Strong Relationship ◽  
Target Population ◽  
Internet Banking ◽  
Sample Population ◽  
Mobile Banking ◽  
Significance Level ◽  
Descriptive Survey

The study sought to assess the effect of channels of alternative banking on financial performance of Kenya Commercial Banks in Burundi. The specific objectives were: to examine the effect of mobile banking on financial performance of Kenya Commercial Bank, Burundi; to assess the effect of internet banking on financial performance of Kenya Commercial Bank, Burundi; to examine the effect of auto teller machines on financial performance of Kenya Commercial Bank, Burundi; and to assess the effect of agency banking on financial performance of Kenya Commercial Bank, Burundi. The study employed descriptive survey research design as well as correlation research designs. Based on information obtained from KCB, the target population for the study was 37 employees and 114 customers. The researcher used Slovin’s formula to define the sample population n = 60 (14 employees and 46 customers). A questionnaire was used for data collection. The data was qualitatively and quantitatively analyzed. The results of the study showed that there was a strong relationship between the different banking distribution channels and the financial performance of KCB Bank. It also found that 14.1% of the total variance in financial performance of KCB Bank could be attributed to alternative banking channels. The remaining 85.9% of the variance in financial performance could be attributed to other determinants of financial performance that were not the focus of this study. ANOVA statistics revealed that the regression model was ideal since it had a significance level of 0.0%. The study also found that mobile banking, Automated Teller Machine, agencies and Internet banking affected the performance of commercial banks in a positive and statistically significant way. The study recommends that Burundian commercial bank sought to invest heavily in alternative banking as this will lead to an improvement in banks' financial performance. The study also recommended that KCB should examine the competitive environment and determine the means to achieve the goal of interoperability, and continue to make electronic banking products available, offering various types of bank cards adapted to the needs of each client.

scholarly journals The contribution of loan management on the financial performance of umurenge savings and credits cooperatives in rwanda

2020 ◽  
Vol 10 (1) ◽  
pp. 64-86
Author(s):  
Alphonse Nsengiyumva ◽  
Jean Bosco Harelimana
Keyword(s):  
Financial Performance ◽  
Quantitative Methods ◽  
Management Practices ◽  
Positive Impact ◽  
Secondary Data ◽  
Simple Random Sampling ◽  
Total Sample ◽  
Qualitative And Quantitative Methods ◽  
Credit Cooperatives ◽  
Descriptive Survey

The study analyzed the contribution of loan management on the financial performance of Umurenge Savings and Credit Cooperatives in Rwanda. The study adopted the use of descriptive survey using both qualitative and quantitative methods for a total sample size of 78 clients who have received more than two times the loan. Purposive and simple random sampling was used for this purpose. Primary and secondary data were collected and then analyzed. The study found that loan management determinants used such as membership enrolment, client appraisal, credit risk control and collection policy impact on financial performance respectively at 23,9%; 24,1%; 39,2 % ; 28,4%.Loan management practices have a high influence on the SACCO’s financial performance during the five years.The correlation results imply that suitable loan management in a saving and credit institution has a positive impact on financial sustainability and profitability and on financial efficiency and productivity as they move in the same direction (R=0.980).

ROLE OF CASH PLANNING TECHNIQUE ON FINANCIAL PERFORMANCE IN PUBLIC HOSPITALS IN KAJIADO NORTH SUB-COUNTY

2017 ◽  
Vol 2 (7) ◽  
pp. 1
Author(s):  
Sarah Tarus ◽  
Dr. Dennis Juma
Keyword(s):  
Financial Performance ◽  
Online Survey ◽  
Medical Officer ◽  
Target Population ◽  
Public Hospitals ◽  
Payment Systems ◽  
Planning Technique ◽  
Development Goals ◽  
Descriptive Survey

Purpose: The purpose of this study was to determinethe role of cash planning technique on financial performance in public hospitals in Kajiado North sub-county.Methodology: The study adopted a descriptive survey design.The target population for this research study consisted of government/ public hospitals. The target population wasfour government hospitals and medical centres located in townships of Kajiado North sub –county. This study therefore used all the 30 accounts/ finance employees and the 6 six senior medical officer/ superintendents.The questionnaires were distributed via drop and pick and email, also online survey was used and this minimized the problem of non-response rateResults:The study sought to find out how cash planning affects financial performance, the study did confirm that cash planning affects financial performance. The study established that majority of the respondents agreed that indeed cash flow was well managed at these public hospitals. The overall mean obtained on financial performance was 3.95 indicating a strong mean that is leaning towards agree in a five point likert scale. The combined effect model that was computed explained the variation in financial performance of public hospitals in Kajiado north Sub County.Policy recommendation: The study recommended that the there is need to strengthen cash collection avenues by encouraging payment in other forms and move from cash payments, with the advent of M-pesa and cash payments to banks where this can be audited for proper payment systems’,  The study also recommended that there is need to digitize accounts records since with the huge number of persons seeking services, it becomes a big challenge to audit all receipts and to do areconciliation between cash and bank. The study further recommended there is need to modernize equipment at these hospitals using these funds/ monies as majority of the operations is funded by the exchequer this is in line with devolution and also in promoting sustainable development goals.  

scholarly journals EFFECT OF ACCESS TO FINANCE ON FINANCIAL PERFOMANCE OF PROCESSING SMES IN KITUI COUNTY, KENYA

2019 ◽  
Vol 4 (1) ◽  
pp. 75
Author(s):  
Muli Dickson Mbuva ◽  
Kevin Wachira
Keyword(s):  
Financial Performance ◽  
Critical Role ◽  
Chief Executive ◽  
Target Population ◽  
Primary Data ◽  
Unique Contribution ◽  
Access To Finance ◽  
Developed Economies ◽  
Descriptive Research ◽  
Job Opportunities

Purpose: The SMEs play critical role in creating job opportunities and growth of the economy.  Currently, the rate at which the new firms formed have stagnated and those with less than 5 years are closing down is very high. This has triggered research on the financial performance of the SMEs especially in areas with high levels of poverty since most studies concentrate on developed economies and urban centres. This study investigated the effect of access to finance on financial performance of processing SMEs in Kitui County. Methodology: Descriptive research design was applied to conduct the study. The target population was the 25 processing SMEs in Kitui County where for each firm; the Chief Executive Officer, the finance manager and the Chief accountant were considered as respondents giving rise to a total of 75 respondents. An interview and Semi- structured questionnaires were used to collect primary data from the respondents. The data was inspected for completeness, accuracy, reliability and consistency then analysed using SPSS Version 20 Software. Descriptive statistics such as mean, and the standard deviation were computed to describe the data collected. Moreover, inferential statistics at 95% confidence level were used. Results: The findings of the study indicated that financial performance positively correlated with the access to finance. The findings were supported by the literature reviewed by the study. With reference to the findings, various recommendations were made. Unique Contribution to Theory, Practice and Policy: To start with, the study recommended financial institutions to create favourable policies to enable SMEs access loans easily. Secondly, the study recommended government to offer incentives and funding to SMEs at a lower cost to boost their financial performance. Finally, the study recommended more studies to identify other factors that influenced the financial performance of SMEs in Kenya.

scholarly journals EFFECT OF RISK MANAGEMENT PRACTICESON FINANCIAL PERFORMANCE OF COMMERCIAL STATE CORPORATIONS IN KENYA: A CASE OF JOMO KENYATTA FOUNDATION

2018 ◽  
Vol 3 (2) ◽  
pp. 19
Author(s):  
Emmy Chelangat Rop ◽  
Dr. Gladys Rotich
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Management Practices ◽  
Statistical Significance ◽  
Secondary Data ◽  
Unique Contribution ◽  
Reputational Risk ◽  
Strategic Risk ◽  
Operational Risks ◽  
Level Of Significance

Purpose: Risk if not well managed could lead to dissatisfactory performance of most organizations. Risk management should be at the central part of an organization’s operations by integrating risk management practices into Systems, processes, and culture of the entire organization. This study sought to establish the effect of Risk management practices on financial performance of Commercial state corporations in Kenya, a case of JKF. Methodology: The study adopted a descriptive study. The total population of the study was the employees of JKF. According to 2014/2015 Kenya National Audit office report, there are 119 employees of JKF. The study used secondary data which was collected from published reports and audited financial statements for five years for periods between 2011 and 2016. The collected data was analyzed using descriptive and inferential statistics. The study adopted regression analysis and statistical significance was measured at the 5% level of significance. R2 was used to determine strength of the relationship of the variables under study. Results: The study found significant relationships between financial performance of commercial state corporations and operational, financial and strategic risk management practices to an extent of 98.7%, 92.7% and 87.4% respectively. The findings indicate that there is a fairly strong positive relationship between reputational risk management practices and financial performance to an extent of 56.2%. Efficient management of operational risks leads to lower operating expense and increased profitability. Practices that lead to general reduction of liabilities would positively affect firm’s financial performance. Unique contribution to Theory, Practice and Policy: The study recommended that state corporations should comprehensively implement risk management good practices as outlined in their “MWONGOZO” guidelines. Further it was recommended that future studies should be carried out to include all state corporations based on data from a longer duration.

scholarly journals Promoting Performance of the Building Construction Industry through Risk Identification: A Case of Exchequer Funded Building Construction Projects in Machakos County, Kenya

2020 ◽  
Vol 5 (6) ◽  
Author(s):  
John Malu Nzioki ◽  
Mary Nyawira Mwenda
Keyword(s):  
Construction Projects ◽  
Management Practices ◽  
Target Population ◽  
Risk Identification ◽  
Building Construction ◽  
Primary Data ◽  
P Value ◽  
County Governments ◽  
Level Of Significance ◽  
Descriptive Survey

Project failure is an increasingly worrying challenge in Kenya. In implementation of exchequer funded building construction projects, the challenge is real. The study examined the influence of risk management practices on the performance of exchequer funded building construction projects in Machakos County. Little research has been conducted on risk identification and its influence on performance of exchequer funded building construction in Machakos County, this study intended to on build onto the already existing body of knowledge. The study was informed by Agency theory and it employed a descriptive survey research design. The target population was 585 National Construction Authority registered contractors and sample size was 232 respondents. In this case the sample selected is deemed to be representative enough of the whole population and therefore valid and genuine generalizations can be made. Methodology involved in collection and analysis of primary data. Descriptive and inferential statistics were used to analyze data. Quantitative data was tabulated and analyzed using frequencies, percentages, means and standard deviation. Test statistics computed to establish degree of relationship between the variables was Fisher test. The findings depict that risk identification leads to the performance of exchequer funded building construction Projects by factor of 0.237 with P values of 0.008. At 5% level of significance and 95% level of confidence, this is statistically significant as the P-Value is lower than 0.05. The results for testing the hypothesis were (P=0.008<0.05)as the P-Value is lower than 0.05. The study therefore rejects the null hypothesis. The study concludes that there is significant positive relationship between that risk identification leads to the performance of exchequer funded building construction Projects. Further research can be done to assess the risk identification in other county governments and national government projects in Kenya and other countries in order to establish whether the explored factors can be generalized to influence the performance of exchequer funded building construction Projects. The findings of this paper will be used to serve as a longer-term safeguard against risks in construction of buildings in Kenya.

scholarly journals EFFECT OF USAGE OF DERIVATIVE FINANCIAL INSTRUMENTS ON FINANCIAL PERFORMANCE OF NON-FINANCIAL FIRMS

2018 ◽  
Vol 3 (2) ◽  
pp. 1
Author(s):  
Mercelline Nafula Waswa ◽  
Dr. Joshua Matanda Wepukhulu
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Financial Risk ◽  
Financial Structure ◽  
Target Population ◽  
Time Frame ◽  
Annual Reports ◽  
Unique Contribution ◽  
Financial Firms ◽  
The Impact

Purpose: The purpose of this study is to examine the effect of derivative financial instrument utilization on the financial performance of non-financial firms recorded at the Nairobi Securities Exchange. The objectives that guided this study are to assess the impact of use of derivatives in risk management on financial performance of non-financial firms listed on the Nairobi Securities Exchange (NSE). Methodology: The study embraced the regression model. A census of all the 47 non-financial firms listed at the NSE as at December 2017 constituted the target population where only 11 listed non-financial firms were financial derivative instruments users. The study utilized qualitative and quantitative research techniques especially the utilization of descriptive research design. The data for this study was collected using questionnaires, audited financial statements and annual reports of individual firms for the multi year time frame covering 2013-2017 (the two years comprehensive). Results: The study discovered that greater part of the firms (66.67%) utilizes Forwards, 22.22% utilize Swaps and 11.11% utilize Futures and Options for financial risk management. From the study the outcomes were as per the following: presence of debt in the financial structure of the non-financial firms listed at the NSE does not influence its financial performance as estimated by return on assets (ROA), use of derivatives in efficiency in trading influences the financial performance of the firms, use of derivatives in price stabilization is statistically significant and utilization of derivatives in price discovery does not influence the financial performance of the firms. By and large, the performance of the recorded non-financial firms at the NSE amid the time of study was 8.13 with a standard deviation of 10.67. Unique contribution to Theory, Practice and Policy: The study recommended that firms should combine both debt and equity in their financial structure. It is therefore incumbent on firms’ managers and financial advisors to continuously study the market and advice on the appropriateness of the proportions of the various sources of finance based on market circumstances at any given time.

scholarly journals Effect of Earnings Ability on Financial Performance of Savings and Credit Societies in Kenya

2017 ◽  
Vol 2 (5) ◽  
pp. 56
Author(s):  
Prof. Willy Muturi ◽  
Jane J. Barus ◽  
Dr. Patrick Kibati ◽  
Dr. Joel Koima
Keyword(s):  
Financial Performance ◽  
Reliability And Validity ◽  
Target Population ◽  
Legal Framework ◽  
Unique Contribution ◽  
Linear Regression Models ◽  
Secondary Sources ◽  
The Social ◽  
Institutional Capital ◽  
The Government

Purpose: The purpose of this study was to establish the effect of earnings ability on financial performance of savings and credit societies in Kenya. Methodology: The study employed an explanatory research design. The target population was 83 registered deposit taking SACCO’s in Kenya that have been in operation for the last five years. The sample size for the study was all 83 SACCOs that have remained in existence since 2011-2015. Census methodology was used in the study.  Both primary and secondary sources of data were employed.  Multiple linear regression models were used to analyze the data using statistical package for the social sciences (SPSS) and STATA. A pilot study was conducted to measure the research instruments reliability and validity. Descriptive and inferential analysis was conducted to analyze the data. The data was presented using tables and graphs. Results: Based on the findings the study concluded that earnings ability influenced the financial performance of savings and credit societies in Kenya. This can be explained by the regression results which showed that the influence was positive and also showed the magnitude by which earnings ability influenced the financial performance of savings and credit societies. The univariate regression results showed that earnings ability influenced the financial performance of savings and credit societies by 6.438units. Unique contribution to theory, practice and policy: The study recommended for continuous review of credit policies, establishment of irrecoverable loan provision policies, development of sound staff recruitment policies and the use of appropriate financing mix. Further, the Government should review legal framework to ensure that institutional capital is used to grow SACCO’s’ wealth.

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