ABSTRACT FDI has grown significantly over time. According to the World Bank Economic report 2014, foreign direct investment in Kenya has increased from as low as 2 million US Dollars in the early 1990’s to 944.3 million US Dollars in 2014. A review of literature reveals that, the relationship between FDI and macroeconomic variables is contradictory. Mixed results have been evident with some results indicating that macro-economic variables like interest rate have a positive impact on foreign...
ABSTRACT The study aimed at establishing the effects of regional financial integration on economic growth and intra-regional trade in East African Community (EAC) Countries. The motivation was based on the conflicting views on the effect of regional financial integration on economic growth and intraregional trade. In order to achieve the objectives of the study, both quantitative and qualitative data were used. Data for the period 2000 to 2009 for Kenya, Uganda, Tanzania and Rwanda were emplo...
ABSTRACT A great proportion of the population living in urban areas of Kenya especially in Nairobi City County reside within the informal settlements. These informal settlements are prone to water related challenges such as failure to access piped and safe water. It is this situation that has continued to attract attention of governmental and non-governmental organizations which have kept on supporting water related projects to solve such menace. Available information revealed that over 50 pe...
ABSTRACT Kenya seeks to meet the Millennium Development Goals, under the guidance of The Kenya Vision 2030. The leading challenge to this course remains the soaring debt servicing obligations, capturing a significant portion of the national budget. Kenya has been borrowing externally at higher rates and continually expanding the debt ceiling. The government will therefore in future spend a significant portion of its revenue repaying the debts at the cost of important local investment. The gov...
ABSTRACT Macro-economic theory suggests that there exists a causal relationship that runs from the Budget Deficit to Current account deficit, a concept referred to as the Twin Deficits Hypothesis. Further analysis has pointed towards an extension of this relationship running up to the Financial Account through the Savings-Investment Imbalance, a concept known as the Triplet Deficits Hypothesis. Presence of the triplet deficits implies that all the accounts are in deficit making internal balan...
ABSTRACT Education is regarded as both type of consumption and investment .People want schools sometimes, as they want TV sets- a status symbol. They want their children to learn to read because they will enjoy life more a result. These are just some of the consumptions benefits of education. Future levels of production are not developed simply on labour and physical capital- but on technical knowledge and the skills of the labour force and these are provided by education (Maureen Woodhall, 1...
ABSTRACT The Kenya government recognizes education as a critical tool in transforming the society. It spends a lot of funds on education in relation to the national budget. However, despite the continued increase in government investment in secondary education, education resources are never adequate to match the ever increasing enrolment rates. In connection to this, several public secondary schools have mobilized their scarce resources to establish IGAs in order to supplement the government ...
ABSTRACT The effect of government size on economic growth has given rise to conflicting views among economists. Some view a large government size as harmful to economic growth due to inefficiencies inherent in government. The other group of economists argues that a larger size of government is likely to enhance economic growth. Kenya’s public expenditure has been experiencing rapid growth since 1963, while GDP growth over the same period has not followed the same path. The main objective of...
ABSTRACT To determine the correct mix of dividend and retained earnings and how it affects profitability has been a subject in Literature of financial management. This research came in to contribute to the on-going debate by examining the relationship between dividend pay-out and financial performance of manufacturing firms listed in the Nairobi Securities Exchange. The key motivation was to establish if the findings of this study are consistent with prior empirical studies as found in both S...
ABSTRACT In the developing nations of Sub-Saharan Africa, providing households with modern energy services is a critical step towards development. A large majority of households in the region rely on traditional biomass fuels for cooking, which represent a significant proportion of energy used in the domestic setting. The disadvantages of these fuels are many: they are inefficient energy carriers and their heat is difficult to control; they produce dangerous emissions; and their current rate ...
ABSTRACT The main purpose of this study was to determine the effect of energy price liberalization on economic growth in Kenya. Energy sector is an important component of economy, and just like other goods and services, energy price affects its demand, supply and use. The use of energy is embedded in the production function that leads to economic growth. In Kenya, the energy sector contributes about 9.49 percent of GDP with the petroleum sector, electricity sector and fuel wood sector contrib...
ABSTRACT Agricultural activities contribute about 33% of the East African Community‟s Gross Domestic Product (World Bank, 2009), 80 per cent of the populace depend on agriculture directly and indirectly for food, employment and income, while about 40 million people in EAC suffer from hunger. Intra-EAC trade is very low, that is, at 9 per cent of the total regional trade, but it is on upward trend. Agricultural trade accounts for over 40 per cent of the intra-EAC trade. This study investigat...
ABSTRACT The Constituencies Development Fund is one of the decentralized efforts started by Government of Kenya to tackle poverty and regional imbalances in Kenya since 2003. It has allocated over 40 per cent of the resources annually to education sector including bursaries. However, doubts have been cast over time as to whether the Fund’s expenditure is effectively targeted towards meeting the needs of the poor as anticipated especially in the education bursaries that take substantial reso...
ABSTRACT This study investigated the dynamic linkage between foreign equity flows and equity returns at the Nairobi Securities Exchange (NSE) since foreign equity flows are expected to induce a surge in domestic stock prices and consequently a fall in price when foreign equity investors exit the domestic stock market. An increase in the stock prices attracts foreign investors in to the domestic stock market. The main objective of this study was to understand how stock prices in Kenya influenc...
ABSTRACT The development of microfinance in Kenya is seen as a catalyst for promoting household welfare and performance of micro and small enterprises (MSEs). Through various policy frameworks, the sub-sector has recorded considerable increases in; microfinance gross lending, usage of informal microfinance and the number of licensed microfinance banks. Despite these developments, households continue to face low levels of welfare while MSEs continue to suffer from high levels of financial excl...