Department of Business management (BM)

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Impact of Customer Relationship Management as a Strategy for Competitive Advantage in Kenyan Public Universities: A Case Study of Moi University
(International Journal of Business, Humanities and Technology, 2014-07) Rajab, Nurwin Fozia; Shiamwama, Simon M.; Otiso, Kennedy Ntabo
The presence of the information technology revolution and, in particular, the World Wide Web is the opportunity to build better relationships with customers than has been previously possible in the offline world. By combining the abilities to respond directly to customer requests and to provide the customer with a highly interactive, customized experience, companies have a greater ability today to establish, nurture, and sustain long-term customer relationships than ever before. The ultimate goal is to transform these relationships into greater profits by increasing repeat purchase rates and reducing customer acquisition costs. The purpose of the study was to investigate the impact of customer relationship management on a company's sales performance and gaining competitive advantage. The investigators carried out a survey aimed to determine the effect of customer relationship management on customer loyalty in Moi University. The study adopted the case study research design and targeted a population of 25,013 broken into 1 vice chancellor, 12 heads of schools in Moi University, and 25,000 students. The targeted population was put into strata of three consisting of the vice chancellor, the heads of schools and the students. The sample size for the students was calculated using fishers formula, giving sample size of 100. Therefore the total sample size was 113. The sampling technique used was purposive sampling technique for the vice chancellor and heads of schools, the students were selected using convenience sampling technique. The data was collected using questionnaires and the interviews. The questionnaires were administered to the students and heads of schools while the vice chancellor was interviewed. The data was analyzed using descriptive statistics. The study will benefit the organizations especially institutions of higher learning in understanding certain aspects that could be considered in managing their Customer Relationship Marketing programme, products and services to be imaginative and entertaining.
INFLUENCE OF MONITORING PLANNING PRACTICES ON PROJECTS PERFORMANCE OF KENYAN STATE CORPORATIONS
(International Journal of Economics, Commerce and Management, 2015-08) Muchelule, Yusuf Wanjala,Amuhayav Iravo Mike
The main objective of this study is to investigate the influence of monitoring planning practices on project performance of Kenyan State Corporations. Complexity theory informed the study. Mixed research design was adopted and a target population of 187 state corporations was used. Simple random sampling were used to select 65 state corporations who forms the sample size. Data was collect using questionnaire. The collected data was analysed using descriptive and inferential statistics as well as qualitative methods. Findings from regression model showed that monitoring planning (β1 = -0.307) had negative significant effect project performance in Kenyan State Corporations. The implication is that monitoring planning results in declined project performance. There is thus need for further research on the same to establish the validity of this concept.
Brand Awareness and Its Effect on Performance of Public Sugar Manufacturing Firms in Western Kenya
(International Journal of Advances in Management and Economics, 2016-01) Faraji, Anduku Yatundu; Otiso, Kennedy Ntabo; Rajab, Fozia Nurwin
Many organizations in the global market have realized that branding is an important initiative that they can put in place to ensure survival in the market. The sugar industry especially in Kenya has increasingly become saturated, attracting new and retaining old customers has not only become difficult but also costly in terms of marketing. The purpose of the study was to establish the effect of branding strategies namely, brand awareness and personality on performance of public sugar manufacturing firms in Western Kenya. The target populations of the study were members of the four (Muhoroni, Nzoia, South Nyanza and Chemilil) public sugar manufacturing firms in Western Kenya. Purposive sampling technique was used to select the 12 managers while simple random sampling was used to select the 43 supervisors and 119 clerks. The data was analyzed by using descriptive and inferential statistics and the findings indicated that, Brand awareness and Personality had a positive and significant influence on the performance of public sugar firms, it was recommended that the management of SMFs should invest more and ensure effective use of these branding attributes by putting more emphasis on use of branding strategies in order to enhance performance.
Challenges Facing Implementation of Public Private Partnership Projects in Nairobi City County
(International Journal for Social Studies, 2016-01) Mulama Kevin, Muchelule Yusuf
This study addresses the issues that challenge the implementation of the public private partnership projects in Nairobi City County. Like all projects, implementation stage is always faced with challenges that have to be overcome to realize the desired outcome-in this case Nairobi City County has to be able to face the challenging situations which have to be dealt with in order to realize its development plan. This study has identified those challenges. The general objective was to find out the challenges that face the implementation of Public Private Partnership Projects in Nairobi City County. The specific objectives were: the examination of policy framework; institutional framework; legal framework; project planning; and project cost sharing among partners in a PPP at Nairobi City County. The problem being lack of effective policy, institutional and legal frameworks or poor planning of PPP projects. The Primary data was collected using interview guide and use of questionnaires while secondary data was collected through desk research. Through stratified sampling, Finance and Economic Sector was selected to participate in the study. This is the sector that deals with PPP project implementation. The study used primary data, which was gathered from respondents using a structured questionnaire, which was analyzed using descriptive statistics. Staffs of departments whose functions use the PPP strategy were given questionnaires that they filled and responded accordingly. The study found out that despite PPP Projects being under the Finance and Economic Sector most of the staff were not actively involved in PPP Project selection, the PPP Policy, Institutional and Legal frameworks are not adequate enough to permit effective implementation of PPP Projects. Equally the level of involvement of staff in project planning is also on a very low scale. In terms of Cost sharing respondents felt that it does not play a major role in PPP project implementation. The study also studied the contract agreements, minutes of council and/or county resolutions and quarterly reports to get secondary data. Content analysis was used to analyze the data collected. The study concluded that the main challenges facing the implementation of PPP Projects at Nairobi City County are ineffective policy, institutional and legal framework. The study recommends that staff in the relevant sector dealing with PPP be fully involved in project implementation from the policy formulation stage through planning to project completion stage. The staff also needs to be trained on Project Management.
Effect of Supplier Responsiveness on Procurement Performance In County Governments, Kenya
(IOSR Journal of Business and Management (IOSR-JBM), 2016-03) Rajab, Fozia Nurwin; Muchelule, Yusuf
The main purpose of the study was to establish the effect of supplier responsiveness on procurement performance. The researchers used a sample size 54 employees drawn from procurement department of Kakamega County. Stratified and simple random sampling was used in this study. Questionnaire was used to collect data. Data was analyzed through statistical methods such as means, standard deviation, frequencies and percentage. Inferential analyses were used in relation to correlation analysis and regression analysis to test hypothesis. Study findings showed that supplier responsiveness had positive and significant effect on procurement performance. Thus, supplier responsiveness plays a key role in increasing procurement performance. the study therefore recommends that there is therefore need for county government to source for supplier who respond in time and supply product within the given time.
Factors Influencing Completion of Water Projects in Kakamega County, Kenya
(International Journal of Research in Management, Science & Technology, 2016-08) Kanda, Edwin K.Yusuf,MamadiMuchelule,
Abstract – The main aim of this study was to investigate factors that influence completion of water projects in Kenya using Kakamega County as a case study. The specific objectives of the study were to determine the effect of client-related factors and contractor-related factors. The instrument of data collection was questionnaires. The target population consisted of 104 employees working for water projects in Mumias and Lugari, and also contractors and professionals who have been engaged in water projects in Kakamega County. Simple random and purposive sampling was used to select 90 respondents who formed the sample size. The response rate was 82%. The data was analyzed using descriptive statistics and correlation. The main factors that were associated with client included financial capacity, owner interference, the imposition of contract duration , decision-making ability, and change in project scope which had a positive relationship with project completion (r = 0.302, p <0.05). The contractor-related factors studied were financial capacity, equipment availability and quality, skilled workforce, site supervision ability, material availability, and control over sub-contractors which had a positive relationship with project completion (r = 0.668, p < 0.05). Therefore, both client-related and contractor-related factors had a significant relationship with project completion.
Effect of entrepreneurial orientation on the growth of micro finance institutions based in Nairobi, Kenya.
(JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY, 2017) WAINAINA, ALICE WANJIKU
Despite the impressive growth evident in the micro finance industry, its outreach still remains severely constrained. This study sought to examine the effect of entrepreneurial orientation (EO) dimensions on the growth of micro finance institutions as a strategy of capturing the large unexploited micro finance market. The specific objectives of the study were; to analyze the effect of risk taking propensity on the growth of micro finance institutions, to examine the effect of proactiveness on the growth of microfinance institutions, to examine the effect of autonomy on the growth of microfinance institutions, to examine the effect of innovativeness on the growth of microfinance institutions and to analyze the effect of competitive aggressiveness on the growth of microfinance institutions. The study examined a target population of 56 formal Microfinance institutions operating within Nairobi. It employed a census inquiry and collected data through questionnaires and face to face interviews. The target respondents were Chief Executive Officers, Owners, Branch managers, operational managers and Relationship managers. The study used mixed research design which involved the application of both qualitative and quantitative research techniques. Cronbach’s alpha was used as a measure of reliability and multiple regression analysis to test the hypotheses. The regression coefficient shows that the EO dimensions (independent variables) are positively and statistically significant in explaining the growth of MFIs. The regression coefficient shows that innovativeness is the most important variable. The study recommends the utilization of entrepreneurial orientation dimensions as a competitive strategy. It recommends the development of internal strategic measures that will promote innovation, proactiveness and autonomy in the management practices. The study recommends further research on effect of entrepreneurial orientation on Microfinance Institutions at different stages of growth. It also recommends a study on the impact of commercialization of microfinance institutions on alleviation of poverty.
The role of universities in enhancing democratic accountability, public engagement and participation
(DAAD, 2017-06) Ali, Adan Ali
Universities are globally respected institutions in the world as they play critical role of democratization and development in institutions, communities and societies. Although very rare in Kenyan, the goal of universities should be to enhance democratic accountability, public engagements and participation with a view to cultivate strong sense of citizenship. In order to achieve such strong sense of belonginess for the nation, the universities should have conducive environment that nurture dialogue, consultation, participation and association so that it brings out a fairly stable and all-inclusive progressive knowledge-based community. This is what I call democratic minded academicians, who cannot be influenced by clan, wealth, culture, gender, and other social factors. Therefore, democratic minded academicians can be a powerful instruments that help inspire social change in institutions, communities and societies. Academia should play pivotal in educating students, academicians and others to become champion of democratic accountability, public engagements, and patriotism, thus making them peace-loving and obedient citizens with national value orientations. With existence of value-oriented learners, mentors and leaders, the country can advance in democratic accountability, public engagements and social justice. Because academia has neglected their fundamental roles and responsibilities, politicians have taken advantage to have bad governance field-days in form of perpetuated hunger, ethnicity, conflicts, poverty, and corruption. Looking at communities surrounding established universities environment, there is little to show in terms of their effects, contribution and appreciation by institutions, and communities due to many physical, psychological and other invisible barriers between the communities and universities. Such barriers need to be identified and removed. It may be the same reasons why Kenyan universities are churning out half-baked graduates who are incapable of solving issues in society. Universities will only be appreciated if they play roles in addressing social, economic and political difficulties faced by communities and others. The purpose of this paper is to urge Kenya universities to play pivotal in educating students, academicians and others to become champion of democratic accountability, public engagements, and patriotism, thus making them peace-loving and obedient citizens with national value orientations.
Managing inappropriate behaviours of pupils with mild cognitive disabilities in selected inclusive primary schools: Changamwe Sub-county, Mombasa county, Kenya
(Journal of Autism and Other Developmental Disorders: Current Research and Practice, 2018) Macmbinji, V.; Zigler, R.; Maneno, R.
Introduction. The focus of this study was to investigate management of inappropriate behaviours of pupils with mild cognitive disability in selected inclusive primary schools in Changamwe Sub-county, Mombasa, Kenya. The study was guided by the following specific objectives: (1) To determine the prevalent inappropriate behaviours of pupils with cognitive disabilities in inclusive primary schools. (2) To identify the factors leading to inappropriate behaviours of pupils with cognitive disabilities. (3) To delineate the strategies teachers employing managing inappropriate behaviours of pupils with cognitive disabilities. (4) To determine the challenges teachers face in managing inappropriate behaviours among pupils with cognitive disabilities. The study was guided by the social learning theory of Albert Bandura. Materials and Methods. The study employed descriptive survey. The sample size comprised 10 deputy head teachers, 60 teachers and 30 pupils with cognitive disability. The total sample was one hundred (100) participants. The sample size was determined using purposive and random sampling methods. The researcher collected the data himself through the use of questionnaires, an interview schedule and an observation checklist. Qualitative data collected was analyzed using SPSS whereas thematic analysis was used for qualitative data. Results. The study established that academic inappropriate behaviors were the most prevalence among learners with cognitive disability as compared to the social and disruptive inappropriate behaviors. Hyperactivity and easy distraction were cited as the major factors leading to the inappropriate behaviors among learners with cognitive disability. Conclusions. We also discuss some recommended steps and effective strategies for improving the situation in schools.
Causes of climate change and its impact in the multi sectoral areas in Africa-Need for enhenced adaptation policies
(British Jounal of Applied Science and technology, 2018-05-11) Matata, Andy Cons,Ali Adan
Africa has experienced climate change since the late Holocene which intensified in the last century mainly due to factors such as the changes brought about by the colonial administration, which led to rapid population growth from improved healthcare systems and infrastructure, and organised agriculture. Recent studies on climate change and its impact on Africa indicate that the continent is more vulnerable to climate change than other continents because of inadequate resources. The effect of climatic change has worsened in the last fifty years, mainly due to heavy pollution and the greenhouse effect caused by the industries in the developed countries and in the newly industrialized nation such as India, China, Korea, Malaysia, Thailand and others. Recent studies on climate change in Africa has shown that population growth has led to decline of forest coverincreased land and environmental degradation, leading to severe ecological disruption. This change has wreaked and continued to cause severe damage to Africa’s infrastructure, health and economy. Global warming related floods have destroyed roads, crops, water sources, and killed both people, livestock and wildlife. Droughts too have caused similar problem if not worse destruction. Africa’s poverty makes it difficult for the people to mitigate their losses and to adapt to the conditions. It is, therefore, necessary for African countries and its leaders to adopt policies and laws which deliberately aim at addressing the problems created by climate change. These policies should be tilted towards adaptation rather than mitigation since African countries generally lacks the capacity. The objective of this paper is to create policy awareness on the causes of climatic change and its impact on sectoral systems in order to prioritise timely knowledge-based policy decision for stimulated green growth development opportunities. The findings and the conclusion are based on the available literature.
An Analysis of Approaches Used to Train Learners with Autism Spectrum Disorders Human Occupation Skills in Selected Special units, Mombasa County, Kenya
(Journal of Popular Education in Africa, 2019-01-01) Mange, Daniel Mbirithi; Macmbinji, Vincent O.; Mjomba, Ndung’u Lewis
This study aimed at finding out the instructional strategies used to train learners with autism spectrum disorders (ASD) human occupation skills. It was intended to establish whether teachers of children with ASD have adequate knowledge and skills to determine the educational needs of learners with ASD. It also investigated the existing instructional methods used in educating children with ASD human occupation skills, and established the level of awareness among teachers on the characteristics of learners with ASD. The stud employed quantitative approach. The target population was 435 respondents, 90 teachers and 345 learners with special needs. The sample comprised of 15 teachers and 30 pupils. Questionnaires were used to collect data from teachers. The researcher used an observation checklist to check the approaches used by teachers in training human occupations and characteristics exhibited by learners with ASD. Content validity will be determined by experts in the field of special needs. The tools were piloted in special units in Kilifi County, Kenya to determine their reliability. Data collected was analyzed using descriptive and inferential statistics using Statistical Package for Social Sciences (SPSS). Data was presented in graphs and tables. The study also found out that majority of the teachers preferred using Individualized Education Plan to train learner in human occupation skills. Further, the study found out that there were inadequate teachers trained in human occupation skills as well as managing learners with autism. The study found out that majority of the learners with autism had echolalia and lack of control of emotion and throwing tantrums. The study recommends that Ministry of Education Science & Technology should employ more teachers trained in Special Needs Education in special schools, review curriculum for teacher training colleges to inculcate management for learners with specific conditions such as ASD and more in-service training on special needs teachers regarding approaches for training learners with ASD.
Challenges Faced by Education Stakeholders in Inclusion of Individuals with Communication Difficulties into Education Mainstream-Sub-Saharan Africa: Case Study of Mombasa County, Kenya
(Journal of African Interdisciplinary Studies (JAIS):, 2019-02-01) Macmbinji, Vincent Otieno
This article sets out to answer the question “Challenges faced by education stakeholders in Inclusion of Individuals with Communication Difficulties into Education mainstream Sub-Saharan Africa”. Inclusion of Children with Communication Difficulties in the education mainstream has been a great challenge in many Sub-Saharan African countries. One of the Sustainable Development Goals (SDGs) is to give all Children Living with Disability (CDWs) those having communication difficulties among them; the opportunity to participate in the least restrictive environment so they can receive as much education as possible with their non-disabled peers. Many educators in regular schools and other stakeholders face a myriad of drawbacks in the process of trying the idea of having children with Communication Difficulty in the education mainstream. This article includes the background regarding the inclusion of Individuals with Communication Difficulties, literature review regarding inclusive education and challenges that teachers face in the process of trying the idea of inclusive education. Sample size included seventy (70) teachers. Data collected was analyzed using descriptive and inferential statistics. SPSS was used in analyzing quantitative data. Results of data analysis were presented using frequency distribution tables, bar graphs, and pie charts. The study established that experience in teaching learners with communication difficulty, policy regarding inclusion of learners with Communication Difficulties and the class size of learners (population) were the main challenges facing the teachers. The study recommended reforms in the curricula, in-service training for teachers, developing a policy for inclusion for children with Communication Difficulties.
Integrated therapy approach for children with autism spectrum disorder: case of Mombasa County, Kenya
(Journal of Popular Education in Africa, 2019-12-01) Macmbinji, Vincent O.
The focus of this study was integrated therapy approach for children with autism spectrum disorder. Autism spectrum disorder is a critical issue in as far as its diagnoses and management are concerned. Lack of early diagnoses and intervention makes a mockery of the stated developmental milestones that the children with autism are supposed to achieve. Therefore, the purpose of this study was to investigate integrated therapy approach for children with autism spectrum disorder in Mombasa County, Kenya. The sample size comprised 60 parents of children with autism spectrum disorder, 40 children with autism spectrum disorder and 20 occupational therapists. The total sample was one hundred (120) participants. The sample size was determined using specific random sampling methods. Data collected was done using questionnaires, an observation guide. Questionnaires were distributed to parents of children with autism spectrum disorder who are also members of Unleashing Potential in Autism (UPIA) whereas the observation guide was used to check the frequency of behaviours. Data collected was analyzed using descriptive and inferential statistics. SPSS was used in analyzing quantitative data. The qualitative data was informative in explaining and clarifying the quantitative data from questionnaires. Results of data analysis were presented using frequency distribution tables, bar graphs, and pie charts. The study established that social and communication, disruptive and stereotypic behaviours were the most prevalent behaviour among children with autism spectrum disorder. Stigmatization and discrimination from the community were found to be the major factors leading to low perception of parents with children with autism. There was emphasis on the use of swings, trampoline and Picture Exchange Communication System as an integrated therapy technique. Lack of support from the government, financial constraints and adequate equipment were the main challenges faced in implementation of integrated therapy approach. The study recommends that Ministry of Education Science & Technology in collaboration with Ministry of Health to conduct an awareness campaign on integrated therapy approach, community based rehabilitation programs should be initiated. A transformational approach should be implemented to make sure that all stakeholders in various special needs centres (occupational therapist, physiotherapist, psychologists, counsellors and speech and language practitioners) are fully involved in setting and reviewing policy guideline on integrated therapy approach for children with special needs.
THE ROLE OF SHARIAH SCHOLARS IN THE GROWTH OF ISLAMIC BANKS IN KENYA: A CASE STUDY OF FIRST COMMUNITY BANK
(2021-04-01) SIMIYU, EVANS WAFULA
This study aims to investigate the roles that are played by shariah scholars that contribute on the growth of Islamic Banks in Kenya. The main objectives were to determine the impact of shariah governance on the growth of slamic Banks in Kenya, to establish the extent to which Educating the Public's influences the growth of IBS, to determine the Product approval by Shariah scholars influences the growth of Islamic banks in Kenya. The Bureaucracy and Growth theories contributed much in the study as they elaborated well how an organization can be brought up. Shariah governance, Educating the Publics on the benefits of financial products and services offered by Islamic banks and Product approval are the key roles of shariah scholars thus listed as independent variables as they were found to be the influencers of the growth of slamic banking which is the dependent variable. To achieve this, the research was conducted in the form of a descriptive study method because it identifies patterns and trends of events. The targeted population was the managers of FCB. A simple random sampling technique was used to identify the 10 sample size elements. Questionnaires were used to collect the primary data from 20 managers drawn from the banks because it’s cheap, saves time and man power to collect data from the field. Collected data were analyzed using Microsoft Excel and Statistical package for social scientists to compute descriptive statistics i.e. frequencies and ranges. Finally, the presentation of the results was done by use of graphs, charts, tables etc. For clarity and each of understanding of the findings. In conclusion the study found that it was Shariah Governance, Educating the Publics on Islamic financing products and Product approval were the key roles of Shariah Scholars that were 65.90% of factors that contributed to the growth of slamic Banks in Kenya. The study recommended the IBS should review, emphasis on training, advertising and create awareness of their services and products to a competitive level. About recommendations on Further study, the other studies to assess the factors that influence the growth of Islamic banks using the secondary data as the present study uses the primary data, Further study to be carried out to determine what other factors remaining 34.10% as the present study established 65.90% explained by Shariah governance, educating the Publics and product approval.
DETERMINANTS OF CUSTOMER LOYALTY IN ISLAMIC BANKING: A CASE STUDY OF GULF AFRICAN BANK.
(2021-05-01) MOHAMED, HAMIDA
The main cause of this study was to establish factors that determined customer loyalty rates at Gulf African Bank. To achieve this, the study sought to analyze the effect of service quality levels on customer loyalty, to investigate the effect of service or product delivery channels on customer loyalty and finally examined the effect of service cost on customer loyalty rates at Gulf African Bank. The study adopted a descriptive research design using a quantitative methodology using Gulf African Bank as the case of the study. The population of the study was drawn from Gulf African Bank customers with accounts that had been both active in May and June 2017. A Stratified random sampling and Questionnaires was used in ease of data collection and for purposes of explaining contents of the questionnaire to customers. Data was shown using tables and figure. Key findings of this study revealed that most of Gulf African Bank customers perceived customer service quality levels to be good. Consequently, this enhanced the bank’s customer loyalty rates. This study concluded that there exists a positive relationship between the levels of customer service as well as customer loyalty rates. The higher the customer service quality levels the higher the loyalty rate for Gulf African Bank customers. The study concluded that use of technology in delivery of banking products and services enhances customer loyalty rates. While technology use in service delivery is key, the use of branches remains vital for customer service delivery. This study recommended that Gulf African Bank should continually improve its customer service levels. In addition, the study recommended that Gulf African Bank continually invests in modern, new and innovative platforms to deliver banking products and services; multichannel delivery of services and products to enhance customer loyalty rates .
FACTORS AFFECTING CREDIT RISK IN FIRST COMMUNITY BANK
(2021-05-17) NOOR, HAMDI AHMED
FACTORS INFLUENCING CUSTOMER CHOICE OF ISLAMIC BANKS IN KENYA
(2021-06-01) ALI, FATMA
The purpose of this study was to investigate factors influencing customer choice of Islamic banks in Kenya. The specific objectives were to evaluate the effects of quality of service, competition, information technology and managerial skills on customer choice of Islamic banks in Kenya The research is of significance to The Bank, Government of Kenya and other researchers. Descriptive research design was used whereby the researcher used primary and secondary data in the study as the primary data was collected through issuance of questionnaires. The questionnaire comprised both open and closed ended, which were distributed in top management, middle management and operational staff of the bank. Stratified random sampling techniques was conducted to obtain the sample size of the respondents. The target population for the study was 86 bank officials with a sample of 45 staffs. The findings were then analyzed quantitatively and presentation of data was by use of tables and figures. The findings of the study with 96% indicated that competition affects customer choice of Islamic banks in Kenya while 4% disagreed with the opinion. Respondent with 56% indicated that information technology do affect customer choice of Islamic banks in Kenya where us 44% disagreed with the idea. Respondents of 92% indicated that managerial skills affects customer choice of Islamic banks in Kenya while 8% denied. Respondents of 80% indicated that quality of service affects customer choice of Islamic banks in Kenya. The study recommends that competition should be encouraged through motivation amongst the bank’s staff to boost the quality of the service offered. Technological facilities and systems should be upgraded to solve complex scenes like queuing, quality service should be maintained at the highest level possible via putting more efforts like working overtime and managerial skills should be reviewed occasionally.
Macroeconomic variables and stock market performance: a case of Nairobi securities exchange
(2023-01-01) Saad, Zaitun
Nairobi Stock exchange (NSE) is playing a vital role in the growth of Kenya's economy by encouraging savings and investment, as well as helping local and international companies’ access cost-effective capital. NSE operates under the jurisdiction of the Capital Markets Authority of Kenya. Presently, NSE’s market capitalization closed at Sh1.976 trillion compared to the Sh1.986 trillion value in December 2022, representing a 0.49 per cent depreciation. The purpose of this study was to examine the effects of macroeconomic variables on stock market performance a case of Nairobi securities exchange. The study was guided by the following specific objectives; to find out the effect of changes in exchange rates on stock market performance at the NSE; to examine the effect of inflation rates on stock market performance at the NSE; to establish the effect of economic growth rate on stock market performance at the NSE; to determine the effect of changes in interest rates on stock market performance at the NSE and to establish the moderating effect of savings on the relationship between the macroeconomic variables and stock market performance. To conduct the study, the researcher adopted a correlational research design and relied on secondary data collected from the annual reports of the Kenya National Bureau of Statistics, Nairobi Securities Exchange, and Central Bank of Kenya for the period 2000-2021. The collected data was analyzed using Pearson correlation analysis and time series multiple regression analysis. E-Views version 9.0 software was utilized for the analysis. The Pearson correlation matrix was used to assess the strength of the relationship between stock market performance and macroeconomic variables. Additionally, a time series data model (ARDL-ECM) was employed to determine both short-term and long-term effects of macroeconomic variables on the NSE's stock market performance. The study also examined the moderating effect of gross domestic savings through Baron and Kenney stepwise regression. Furthermore, classical linear regression and ARDL bound tests were performed to establish the existence of a long-term co-integration relationship between macroeconomic variables and stock market performance. The study results finding show that the R-squared value of 0.948827 suggests that the independent variables explain about 94.9% of the variation in market capitalization, which is a strong fit. The adjusted R-squared value of 0.861103 is lower than the R-squared value, suggesting that some of the independent variables may not be adding significant explanatory power to the model. The findings of the study indicate that interest rates, inflation rates, and economic growth rate have significant effects on stock market performance, as represented by market capitalization, in the long run. However, no statistically significant impact was found for exchange rates. On the moderating variable Gross domestic savings was found not to be a significant predictor of stock market performance on the NSE in Kenya. These findings highlight the crucial role played by macroeconomic factors in shaping the NSE's stock market performance. In conclusion, the study suggests that interest rates, inflation rates, and economic growth rate are important determinants of stock market performance at the NSE. Policymakers are advised to consider the interplay between macroeconomic variables and stock market performance, and implement appropriate policies and measures to manage exchange rates, inflation rates, economic growth, and interest rates. This will create a stable and supportive environment for the NSE and foster sustainable stock market growth. The study also suggests that future research could explore the effects of other macroeconomic variables on stock market performance.
Effects of mobile banking on financial performance of small and medium-sized enterprises in Kajiado County, Kenya
(2023-06-01) Okello, Valentine Juma
Despite the widespread availability and adoption of mobile banking technology, research on its specific impact on the financial performance of Small and Medium Enterprises (SMEs) is lacking. The effective utilization of mobile banking by SMEs to enhance financial performance and the factors influencing its effectiveness remain unclear. This study aimed to examine the relationship between mobile banking adoption and the financial performance of SMEs. Objectives included determining the effects of mobile banking service costs and accessibility on financial performance, as well as assessing the extent of mobile banking adoption among SMEs in Kajiado County. A descriptive research design targeted a population of fifty-eight (58) licensed SMEs in Kajiado County. Primary data from questionnaires and interviews were coded for analysis. Normality tests confirmed a normal distribution of the data. Statistical analyses, including regression analysis and ANOVA, were conducted. The findings indicated a strong negative correlation (-0.974, p = 0.000) between mobile banking service costs and SME financial performance, demonstrating a significant relationship. The rejection of three hypotheses (r=0.351, p<0.05), (r=0.321, p<0.05), and (r=0.246, p<0.05) suggested a positive association between mobile banking service adoption and improved financial performance, including revenue growth and profitability. Specifically, mobile banking service costs had a positive and significant association with financial performance (r=0.665, p<0.05), while mobile banking service accessibility showed a positive and significant correlation (r=0.751, p<0.05). The study recommends collaboration between financial institutions and mobile network operators to reduce service costs and expand coverage, thereby encouraging greater adoption by SMEs in Kajiado County and enhancing their financial performance.