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 ...
Abstract Kenya has experienced persistent current account deficits that have remained underneath the threshold that economists would consider sustainable. At the point when a nation runs steady current account deficit for a long period, it raises worries about the sustainability of this deficit. The persevering current account deficit has led to increase of liabilities to the rest of the world that are financed by the capital account surplus. These should be paid back in the long run. There ...
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 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 Most studies on private capital inflows and economic growth are cross-country and give more weight to foreign direct investment than the other components of private capital inflows. In addition, the question as to whether it is private capital inflows that promote economic growth or it is economic growth that attracts private capital inflows has not been investigated in Kenya. This study investigated the causality between foreign direct investment, portfolio investment and cross-bor...
Abstract Statistics show that remittances to Kenya have been increasing over the years. Studies on the effect of remittances on economic growth in Kenya are limited and have not included private capital inflows as one of the determinants of economic growth. This study investigated the effect of remittances on economic growth in Kenya. Data was sourced for the World Bank's African Development Indicators and various Economic Surveys and Statistical Abstracts for the period 1970-20 IO. The stud...
Abstract This study attempted to empirically examine the effect of labour diversity on firm’s productivity in Kenya. To achieve this objective primary data was collected from various firms. Thereafter analysis was done using Feasible Generalized Least Square method (FGLS). According to the study, firms that had more labour diversity in terms of skills and gender were more productive. But ethnic diversity had no impact on productivity. This is a crucial finding given the ongoing debate on t...
Abstract The study was done to investigate the effect of FDI on economic growth in Kenya, to determine the influence of institutional quality on the effect of FDI on economic growth, and to determine the effects of structural breaks on economic growth in Kenya. This was based on the failure of the reviewed studies to capture the role of institutional quality in this effect. Markets that are likely to persist in low-quality-institution jurisdictions are those in which exchange is simultaneous...
Abstract Foreign Aid, Foreign Direct Investment and Remittances remain important and stable source of foreign capital inflows to developing countries, as they bring in large amounts of foreign currency that help sustain the balance of payments. Studies have for years examined the nexus between aid and growth, FDI and growth and to a limited extent remittances and growth. While the focus has largely been on the first two nexuses, there is an increasing literature on the remittance-growth nexu...
Abstract Purpose: The purpose of this study was to establish the effect of real interest rates, exchange rate, inflation and competitiveness on FDI in Kenya. Methodology: The study used annual time series data for the period 1970-2016. The sources of data included World Bank Indicators and Kenya National Bureau of Statistics annual reports. Data was collected for the variables real interest rates, exchange rates, inflation rate, competitiveness/ease of doing business and FDI. The data for al...