Abstract Improvement of revenue collection in counties is the key to meeting their financial obligations leading to realization of their mandate to offer quality and timely services to the residents, the demand for which may exceed the available resources. Many counties have adequate revenue bases to finance the current level of services, but revenue collection levels are often low. According to reports by the Controller of Budget, revenue collection by 14 counties in Kenya fell below amount...
Abstract The telecommunication industry is continuing to change and mounting a lot of pressure towards efficiency in the business world enabling exploration of new opportunities in the rapidly widening digital environment. The fast changing environment has led the industry to focus on developing organization learning which guarantees future success in meeting the fast changing telecommunication market. The study focused on organizational learning on strategic positioning in telecommunication...
Abstract The steady growth on mobile and internet connectivity has increased growth in telecommunication industry. The changed environment has necessitated a new business model in the telecommunication industry structure aiming at building resource capabilities and strategic positioning in the fast changing business environment. The study established how organization processes led to strategic positioning in telecommunication industry. The study was carried out from the entire mobile and net...
Abstract The rapid development in the telecommunication industry has raised a question about the organizational assets and strategic positioning in a rapidly changing environment. The telecommunication industry is continuing to change and mounting a lot of pressure towards the fitness of organizational assets and strategic positioning. The demand for efficiency in the telecommunication industry has enabled exploration of organizational assets that guarantee desired strategic positioning. The...
Abstract Savings and Credit Co-operative Societies (SACCOs) are quasi financial institutions that mobilize savings, provide loans as well as other products to their members. Liquidity is considered as one of the serious concern and challenge for the modern era SACCOs. A SACCO having good asset quality, strong earnings and sufficient capital may fail if it is not maintaining adequate liquidity. The objective of the study was to assess the effect of liquidity management on liquidity of Savings...
Abstract In this paper, we explore the dynamic relationship between aggregate foreign equity inflows and aggregate liquidity of the Kenyan stock market using transactional foreign trading data and several liquidity measures. We employ vector auto regression with monthly gross foreign inflows, local stock market liquidity and returns over the period 2011–2018. We discover a one- way causality link from inflows to liquidity and that foreign investors promote rather than impede local liquid...
Abstract Information remains a crucial input in the banking industry. Banks are confronted with asymmetric information problems because of borrowers' informational opacity. Banks overcome this problem by accumulating information about their borrowers' creditworthiness, using their superior ability to collect and process information. Obtaining useful unique information about their borrowers can be costly for banks, but it provides a competitive advantage and a source of rents over the lifetim...
Abstract In this paper we examine the role of illiquidity and foreign investor preferences in asset pricing in the Kenyan frontier stock market. Since stock illiquidity and heterogeneous foreign investor preferences are pervasive features of this market, investors are likely to demand higher compensation for holding illiquid and less foreign investor-preferred stocks, thereby increasing cost of equity. We test this hypothesis by incorporating an illiquidity and foreign stock holding factor i...
Abstract This paper explores the role of macroeconomic conditions on systematic stock market liquidity in Kenya. The study first estimates the monthly probability of liquidity switching from a high to a low liquidity state using the Markov regime switching framework. Then, using ordinary least squares, the study identifies macro factors that significantly drive liquidity fluctuations. Importantly, monetary policy changes, exchange rate fluctuations and global risk aversion are found to signi...
Abstract The aim of this study is to investigate the performance measurement of the business process outsourcing sector in Kenya using the balanced scorecard approach. The components of the approach include financial, internal processes, customers, learning and growth. The study was carried out in all the registered business process outsourcing companies in Kenya and questionnaires administered to the marketing managers of the respective companies. To analyze data, descriptive statistics and...
Abstract The purpose of this study is to establish the influence of the political environment on the performance of the Business Process Outsourcing Sector in Kenya. The study covered all the 118 registered business process outsourcing companies in Kenya. Descriptive and inferential statistics were used in this study. The descriptive results indicate that the political climate in Kenya has not been conducive to the business process outsourcing sector. The inferential results indicated that t...
Abstract Value innovation is the cornerstone of blue ocean strategy. Value innovation strategy aims at making competition irrelevant. The concept of value innovation strategy is founded on the belief that a business can make its competitors irrelevant in its decision making while at the same time emerging an industry leader. The purpose of this study is to establish the influence of Value Innovation Strategy on the financial performance of manufacturing firms in Kenya. The target population ...
Abstract Small and medium enterprises are a key engine of economic growth in both developing and developed countries. Small and medium businesses being profit making institutions are expected to pay taxes to the government. Therefore, tax compliance is critical in all economies which recognize the role played by revenue collected from tax in national development. Nonetheless, developing countries are dominated by low tax compliance levels, in the face of the frequent appeal from tax collecto...
Abstract Purpose: To estimate the optimal levels of real economic growth rate needed to stabilize debt levels and carry out a stochastic debt simulation to determine the possible future debt path and its distribution in Kenya. Methodology: The paper used time series data from 1963 to 2015. Auto Regressive Distributed Lag (ARDL) bound test procedure was used to test for short run and long run relationships among the variables. A VAR model was estimated followed by a simulation process to fore...
Abstract Fiscal policy in Kenya has been unstable. Fiscal balance to GDP ratio worsened from a surplus of 0.2 percent to a deficit of 7.6 percentwhile debt to GDP ratio rose from 25.4 to 56.2 percent between 1963 and 2015. This was against deficit target of 4.8 and debt ratio of 41.4 percent in 2015. The continued build up of debt implies debt stabilization is not a priority and high debt may lead to adverse effects to the economy. The paper estimated the optimal fiscal balance to GDP ratio ...