Abstract Stable commercial banks stimulate economic growth by facilitating value exchanges. The stability of commercial banks in Kenya has been a concern because of the waves of collapse that have dotted the history of the banking sector. Studies on the drivers of bank stability are essential for providing policy directions to improve bank stability. Due to existing conflicting empirical evidence, this study further analyzes the relationship between competition, profitability, risk-taking be...
Abstract Banks create liquidity which in turn improves capital allocation and accelerates economic growth. Liquidity creation is essential and critical as it may lead to a stable financial system and provide growth opportunities. Liquidity has been observed to be more unstable in developing countries than in developed nations. Despite the rise in minimum deposits, commercial banks in Kenya, a developing country, struggle to optimize their profits due to reduced liquidity creation capacity. T...
Abstract Agriculture is very important to any society’s future. In most developing and developed countries, it is the major backbone of the economy and its production over the last three to four decades has increased significantly. In 2018, the agricultural sector boosted the Gross Domestic Product globally by 4% and in 2020, its average contribution was 35 percent to the Gross Domestic Production (GDP) and 65 percent to foreign exchange earnings in Kenya. Agriculture provides the main sou...
Abstract Tourism has evolved into a vital sector of Kenya’s economy by contributing to employment, alleviation of poverty, Gross Domestic Product (GDP), foreign exchange earnings, and a balance of payments surplus. Tourism is a productive economic activity that needs a stable macroeconomic environment for continued growth. Kenya’s Vision 2030 highlighted tourism among the economic pillars that will spur its achievement. The vision posits an annual growth rate of 10%. However, since Kenya...
Abstract/Overview In option pricing the rate of change of asset price with time can be viewed to be directly proportional to the Walrasian [6] excess demand. Scholars such as Jacques [3] and Onyango [4], have used the excess demand concept with linearised demand and supply functions to derive and solve both deterministic and stochastic logistic differential equations for stock price. The underlying assets in option pricing are unique and can be seasonal and periodic like for electricity, ...
Abstract Globally, revenue is viewed as a critical element of any state as it provides needed finances used to support key government projects such as investment in human capital, infrastructural development, and administering services to citizens and businesses. Kakamega County initiated revenue reforms in 2019 to improve revenue collection. However, the county is still experiencing massive deficits and shortfalls in its revenue collection which has hindered the completion of key projects a...
Abstract For any government to effectively carry out its primary function and other subsidiary functions, it requires adequate funding. Taxation generates public funds to governments through structured approaches. The amount of tax revenue realized or expected by any state is determined and influenced by various economic factors ranging from micro to macro-economic. In Kenya, tax revenues have, for quite some time, remained low relative to the effort and tax policies in place. This study exa...
Abstract ABSTRACT Development of the real estate sector immensely contributes to the economic growth and development of the country through upgrading the living standards of the people by providing better infrastructural facilities, social amenities, telecommunication facilities and better housing. Kenya in recent years has experienced a surge in the growth of real estate in the suburbs of its major towns and cities. This has been brought about by the increasing pressure for modern housing u...
ABSTRACT This study examined the impact of currency depreciation on the economy of the countries of the West African Monetary Zone (WAMZ). This was done through the use of a sample of six member countries including: Nigeria, Sierra Leone, Liberia, Ghana, Gambia and Guinea. The scope of the study included the period 2000 to 2017. The analysis was carried out using the Seemingly Unrelated Regression method of estimation. The results revealed that currency depreciation has a negative and non-s...
The grant difference of lifestyle indices which constitute moral hazard discussed between other ministries who hold health insurance policy and ministry of Justice who don’t is significant (75). If I have health insurance that takes care of my bills, then I have less incentives to invest in maintaining my health because when I get sick the financial consequences will be borne by someone else, therefore, I am going to eat, smoke more, drink more, exercise less and be merry. I am going to cho...
Abstract Savings and credit cooperatives (SACCOs) form an integral part of the financial sector across the globe. However, in pursuit of their wealth creation goals, these cooperatives are exposed to numerous risks that threaten their performance and survival. One such risk is interest rate risk arising from variations in interest rates as a result of unpredictable movements in interest rates. This variation in interest rates may adversely affect the value of such institutions. In spite of t...
Abstract Based on a panel data of 19 Sub Saharan countries for the years 1982-2000, this study explores the determinants of economic growth in the region. Given that economic growth is essentially seen as a dynamic phenomenon, the study employs the Generalized Method of Moments (GMM) to account for the factors that influence the growth of economies in the region. The study results indicate that physical capital formation, a vibrant export sector and human capital formation significantly cont...
Abstract Developing countries are facing a formidable unemployment challenge due to a combined effect of slow economic growth and rapid increase in population. In Kenya, Economic Recovery Strategy (ERS) estimates that 500,000 jobs would be created annually with 88% of these generated by small and medium size enterprises. Yet, the attrition level is alarming. It has been shown that for every 100 new enterprises started in a year, 60 percent close down within the first year, and those that sur...
Abstract The governance of tea factories managed by Kenya Tea development Agency (KTDA) is by factory company directors who are elected by tea farmers (the shareholders). The major expectation from the directors by the farmers is high returns from the tea sales. Since tea industry in Kenya is a price taker, the directors cannot determine the price of the tea in the international market and are not able to meet the farmers’ expectations. To improve the returns, the directors can improve the...
Abstract This study aims at determining the influence of county cash management on household effects in Kenya. This is a qualitative research that has utilized both primary and secondary data from county governments and the National Treasury respectively. The sample has been developed from the Kenya National Bureau of Statistics list of households in Kenya. The result indicates that effective cash management would enhance household welfare, leakages and lack of prioritization among others no...