ABSTRACT The study investigates the effect of public debt on economic growth in Kenya, between 1980-2013.The choices of period was guided by data availability and escalation of Kenya’s public debt. The main problem is that, Kenya government has been relying heavily on public debt, aid and grants as a source of finance. This has resulted to a buildup of the level of public debt stock which has led to funds being diverted to debt servicing at the expense of economic development and domestic c...
ABSTRACT The existing literature links poor financial performance among non-financial listed firms in Kenya to long-term funding conduct of these firms. However, as important as longterm financing decisions are, they are made less frequently, while the day-to-day decisions involving the management of short-term financing components consume tremendous amounts of management time. Poor short-term financing decisions impair the firm’s ability to remain operating. This study therefore inves...
ABSTRACT Delinquent loans are on the rise both globally and locally leading to closures, receiverships and even collapse of institutions receiving and offering loans. Delinquent loans in the agriculture sector stood at 4% in the USA, 40% in India in 29015, 51% in Nigeria in 2012, 29,3% in South Africa in 2016. This rose from 5.45 Billion in 2009 to kshs8.383 Billion by 2015 in Kenya and at 22% specifically in the tea sector by June, 2017. The agricultural sector plays a very critical role in ...
ABSTRACT The purpose of this study was to analyze the effect of integration on stock market investment portfolio diversification in East African stock exchanges. The study was based on the Nairobi Securities Exchange, Dar-es-salaam Stock Exchange and Uganda Securities Exchange with the target population of all the companies whose common stocks were traded over the sample time period. Covering a period of 100 months between January 2000 and April 2008, the researcher analyzed the pair-wise ind...
ABSTRACT The study sought to establish the effect of bank size and financial risk exposure on financial performance of commercial banks in Kenya. The specific objectives of the study were: to determine the effect of bank size on financial performance of commercial banks in Kenya; to establish the effect of financial risk exposure on financial performance of commercial banks in Kenya; to determine the moderating effect of macroeconomic variable on bank size and financial performance of Commerc...
ABSTRACT Ethics has been a momentous consideration in many professions including business, politics, medicine, law, and almost every other area of our society. In order for investors to delve into financial markets, there is a need for intermediaries to act in a fair manner and bound by legal regulations co-ordinated with financial ethics. Investor confidence, which is speculative in nature has changed in imperative ways through time and these changes have significant consequences for financ...
ABSTRACT The exits of purchasing power parity stipulates that different countries differ in prices for goods when a common digit is applied and therefore, random changes in exchange rate has often been implicated to be the key cause of fluctuations in prices leading to more risk in the assets pricing models. This implies that Exchange rate is a crucial variable that affect both the international competiveness of both multinationals and investor’s wealth as they participate in internati...
ABSTRACT Kenya seeks to transform into a middle-income country by 2030 with target annual growth rates of 10 percent. However, this target has not been realized since growth rates are under 10 percent while 36 percent of the population lives below the poverty line. While this has been interpreted as an underperformance by various studies, this study attempted to show that the economic growth witnessed in the years 2007 to 2018 pointed to a resilient economy characterized by an average steady...
ABSTRACT The lower tier commercial banks in Kenya have been recording declining performance over the recent past especially in the wake of tight regulatory controls and shifting operating environment. Poor financial performance has cost several lower tier banks dearly to the extent that some had to be put under receivership. Recently in the financial year 2017, most banks in tier II and III posted poor financial results with previous superb performers posting big losses. To thrive, the commer...
Kenya is currently implementing the Second Medium Term Plan of Vision 2030. Growth objectives underpinning the Vision 2030 required the rate of growth of the economy to have risen from 6.1% achieved in the year 2006 to 10% in the year 2012. However, the economy recorded only 4.5% and 5.7% growth in the year 2012 and the year 2013 respectively. Even so, the government has continually spent substantial amounts of money annually to finance key Sectors in implementing Vision 2030 flagship pr...
ABSTRACT Commercial banks undertake significant roles in the economic resource allocation of countries. The financial intermediation roles performed by banks are however largely dependent on profitability. The fluctuating profitability trend of commercial banks in Nigeria is bringing about high concerns among various stakeholders. The study sought to assess the effect fundamental risk factors on profitability of commercial banks in Nigeria. The specific objectives were to establish the effect...
Some firms listed at the Nairobi Securities Exchange, in the non-financial sector, have continued to record poor performance as evidenced in declining share prices. This study sought to establish the effect of financial management practices on financial performance of non-financial firms listed at the Nairobi Securities Exchange. The independent variables of the study were liquidity, Capital budgeting and Leverage. The main objective of the study was to establish the effect of financial ...
i-Tax is the new system that has been developed by the Kenya Revenue Authority (KRA) to ensure online submission of tax returns and other taxation related transactions. Despite the increasing need to raise the level of revenue collection and enforcement so as to provide public services, developing countries still face the challenges of low tax compliance. This leads to frequent tax reforms aimed primarily at closing short-term revenue gaps. The Kenya Revenue Authority presented the i-tax...
ABSTRACT Commercial banks in Kenya often record inconsistent financial performance with some ending up under statutory receivership due to inability to meet their commitments to the stakeholders. Central Bank of Kenya usually put sound risk management guidelines to be followed by all the commercial banks yet losses are experienced in the banking sector. This study sought to investigate the effects of financial risks on performance of Commercial banks in Kenya. Specifically, the study sought t...
ABSTRACT Revenue efficiency is recognized as a major ingredient in sustainable growth in insurance business. The growing complexity in the insurance business characterized by the constant change in the operating environment has increased the significance of the effect of revenue efficiency in resource utilization in the sector. The continuous decline in revenue efficiency in the Kenyan insurance has affected profitability and sustainability of insurance companies. The main objective of this s...