DSpace Repository :: Browsing by Author "Kimani, Elijah M."

Browsing by Author "Kimani, Elijah M."

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Assessment of Financial Factors Affecting Insurance Penetration in Nakuru Town, Kenya
(2016-09) Njuguna, G. W.; Kimani, Elijah M.
Over the past decade, insurance and banking firms have undergone transformation in the manner they offer their products and services in a bid to remain relevant in the insurance industry. Kenya, just like many developing countries is still at the infancy stages of absolute insurance cover. Records indicate that majority of Kenyans are presently not under any insurance cover. The study assessed the effect of financial factors on insurance penetration in Nakuru town, Kenya. The financial factors examined included administrative costs and agency costs. Blau administrative cost theory, agency theory, and S-curve theory guided the study. This study adopted a cross-sectional survey research design. The study focused on the 417 employees working with insurance firms in Nakuru town. A sample of 61 respondents was selected using stratified random sampling method. The study used a self-administered semistructured questionnaire to collect data. The research questionnaire was pilot tested. Data analysis constituted both descriptive statistics and inferential statistics. Descriptive statistics included means, modes and standard deviations. Inferential statistics included Pearson’s Product Moment Correlation and multiple regression analysis. Findings were presented in tables. The study found that all the financial factors investigated had significant relationship with insurance penetration. The study concluded that insurance firms incur administrative and agency costs that hamper insurance penetration. The study recommended that insurance firms need to arrest escalating costs associated with administrative functions and agency.
Effect of adoption of Financial Innovation on Performance of small and medium Enterprises in Kenya
(2016-04) Kimani, Elijah M.
Small and Medium Enterprises (SMEs) are the main drivers of economic and social development in emerging economies. They represent a large number of businesses in a country that generate wealth and employment. They are widely considered vital to a country’s competitiveness. SMEs are hailed for their pivotal role in promoting grassroots economic and equitable sustainable development (Pelham, 2010). According to Tufano (2013), innovation entails firms developing new products or new production processes to better perform their operations, in which case the new products could be based on the new processes. Adoption of financial innovation has been necessitated by the rapid change in technology. The SMEs have adopted new strategies of sustaining their growth due to stiff competition. Most SMEs have adopted innovation resulting in better performance, new products, growth and profitability (Lehtimaki, 1991). The objective of the study was to determine the effect of adoption of financial innovation on performance of small and medium enterprises in Kenya. The study adopted Schumpeter theory of innovation, Diffusion of Innovation and Technology acceptance theory to explain the relationship between financial innovation adoption and performance of SMEs in Kenya. The population of the study was the registered SMEs in Nairobi County. Primary data was collected using self-administered semi-structured questionnaires. Secondary data was collected from finance journals and 2 periodicals. Data analysis was done using Statistical Package for Social Sciences (SPSS) version 21 where inferential statistics were applied and multiple regressions employed to test the relationship between innovation and the financial performance of SMEs in Nairobi County. The findings revealed a positive relationship between adoption of financial innovation and performance of SMEs in Kenya. The study concluded that innovation has a positive effect on financial performance. The study also concluded that innovation increased profits for the company; innovation increases the company’s market share, increases savings for the company and reduces operating cost of the small and medium manufacturing enterprises. The study recommends that it is vital for businesses to take up innovation to raise the level of quality of the products they produce which would in the end raise the level of sales and increase the profit margins of the business.
Effect Of Financial Innovations On Performance Of Microfinance Institutions In Nakuru Town, Kenya
(Journal of Business and Management, 2016-10) Kimani, Elijah M.; Kibugo, Martin K.
Abstract: Innovation is described as the process by which, firms master and implement design, and the production of goods and services that are new to them. Innovations generally assume different forms such as product innovations, marketing innovations, micro MFIS, location innovation, and research and development innovation. Financial innovations include institutional innovation, product innovation, and process innovation. These innovations have eased the way of doing business for financial institutions including microfinance institutions. It remains largely unclear whether MFIs are adequately innovative in running their businesses given that they are faced by the challenge of limited growth and expansion. Performance and growth are related in that a firm cannot grow if it fails to post sound performance. The general objective of the study was to determine the effect of financial innovation on performance of microfinance institutions in Kenya. Specific objectives include examining the effect of institutional innovation, product innovation, and process innovation on performance of microfinance institutions. The study was guided by theory of induced institutional innovation, demand-supply theory of innovation, theory of innovation diffusion, and economic value added theory. Descriptive survey research design was used in this study. The target population comprised of all employees working with MFIs registered with AMF-Kenya and the accessible populations were 187 employees working with MFIs registered with AMF in Nakuru town, Kenya. Samples of 70 respondents were drawn from the study population using stratified random sampling technique. The study used questionnaire as the tool for primary data collection. Secondary data was collected using a data collection sheet. A pilot study was conducted before the main study with the aim of determining the reliability and validity of the research instrument. The study determined the validity of the questionnaire by use of content validity test. Reliability was tested using the Cronbach alpha coefficient. Data processing and analysis was facilitated by the use of the Statistical Package for Social Sciences. Data analysis encompassed both descriptive statistics and inferential statistics. Descriptive statistics such as means, mode, standard deviations, and variance was used. On the other hand, inferential statistics was in form of Pearson’s correlation coefficient, and multiple regression analysis. The result of the analysis was presented in form of tables, charts, and graphs. From the findings, the research concluded that there is a supervisory framework that monitors MFIs. Some of the innovations observed by MFIs in mobile banking include partnerships, financial trainings, branch networking and opening up new branches. It is was also concluded that innovations can be a source of competitive advantage if a firm understands customer needs, competitors’ actions and technological development and act accordingly to stay at par with rivals. The study recommended that in-order to enhance firm performance the management of microfinance ought to focus on the firm activities aligned towards renewing routines, procedures and processes in an innovative manner in a firm. This will positively improve the performance of microfinance.
Factors affecting access of women enterprise funds by women groups in Nakuru West Sub-County, Kenya
(2016-10) Mbai, Esther M.; Kimani, Elijah M.
Women’s involvement in entrepreneurship is necessary for economic growth of nations. Women in developed countries have access to capital and their acceptance as business owners has improved while in developing countries they face obstacles including lack of access to finance. This study sought to establish factors affecting access of women enterprise in Nakuru West Sub-County, Kenya. The study focused on the effect of credit rating on access to women enterprise fund. A descriptive survey research design was employed. A sample of 79 respondents was selected from a population of 376 using simple random sampling technique. A questionnaire was used for data collection constructed on a five point Likert Scale. The data was analyzed using Statistical Package for Social Sciences (SPSS) version 24 in form of both descriptive and inferential statistics presented in tables and discussions thereof. The study established that credit rating significantly affects access to women enterprise fund accounted for up to 22.5% of total variance in access to women enterprise fund. The study concluded that credit rating have a significant effect on access to women enterprise funds. The study recommended that group leaders should encourage members to enhance credit history to raise their access to financing.
Factors influencing Financial Management in Public Secondary Schools in Nakuru County, Kenya
(2016-09) Munge, M. N.; Kimani, Elijah M.; Ngugi, D. G.
Proper management of finances in secondary schools is very imperative to their operations. There are, however, serious financial challenges in public secondary schools in Kenya as characterized by unprecedented high fees charged on students. This study evaluated the factors influencing financial management in public Secondary Schools in Nakuru County. Specifically, it analyzed the influence of budget management and financial controls on financial management. The study was guided by budget, financial control, and agency theories. The study adopted a cross-sectional survey research design. The study targeted heads and bursars of public secondary schools in Kenya. The accessible population constituted all the 172 school heads and 172 bursars of public secondary schools in Nakuru County. Stratified random sampling method was adopted to draw a sample of 78 from the accessible population. A structured questionnaire was used to collect data. A pilot study was conducted before the main study in order to examine the reliability and validity of the research questionnaire. The Cronbach alpha coefficient was used to text reliability while the university supervisor was consulted to determine the content validity of the research questionnaire. Data analysis was aided by the Statistical Package for Social Sciences analytical tool. Data analysis encompassed both descriptive and inferential statistics. Study findings were presented in form of tables. The study established that budget management and financial controls positively and significantly influenced financial management. The study recommended that public secondary schools should have effective budget management mechanisms and strong financial controls.
Factors Influencing implementation of Public Financial Regulations by National Sub-County Treasuries in Nakuru County, Kenya
(2016-10) Mbithi, Patrick M.; Kimani, Elijah M.
Regulation is amongst the central instruments through which governments seek to deliver on their policy priorities. However, a lack of consensus on how regulation should be conceptualized can make studying its nature and effects problematic. Therefore this study assessed the factors influencing implementation of financial regulations in national Sub-County Treasuries in Nakuru County, Kenya. The study examined the effect of technology on the implementation of financial regulations. A descriptive research design was employed. The target population was 68 finance officers in the national Sub-County Treasuries in Nakuru. The study conducted a census. A questionnaire constructed on a five point Likert scale was employed for data collection. The data was analyzed using both descriptive and inferential statistic using Statistical Package for Social Sciences (SPSS). The study established that technology significantly influenced implementation of financial regulations. The study concluded that implementation of financial regulations is significantly influenced by technology. The study recommended that for effective implementation of financial regulations in national Sub-county treasuries, the government should reinforce the use of information technology in treasury operations. The national treasury should put systems in place to check for internal accountability among staff operations.
Factors Influencing Price Undercutting in The Insurance Sector in Nakuru County in Kenya
(2016-09) Kimani, Elijah M.; Mburu, Priscilla W.
A number of insurance firms in Kenya have been facing several challenges. The competition has been stiff in the sector which has occasioned price undercutting. This has resulted in reduced revenue, mergers of insurance firms, down-sizing, and even collapse of these firms. In this light, tackling uncompetitive practices such as premium undercutting is a critical issue to the sector which needs to be focused on. The study aims to determine the factors influencing price undercutting in the insurance sector in Nakuru County, Kenya. The study was delimited to establishing the effect of competition, cost of operations, profit margin goals, and product value on price undercutting in the insurance sector. The theory of competition, theories of cost, arbitrage pricing theory, and Bertrand price undercutting theory guided the study. A descriptive survey research design was adopted. The study targeted all employees working with insurance firms in Kenya where the accessible population will constitute 187 accounts and finance employees working with the 11 insurance firms in Nakuru County. Stratified random sampling was employed to draw 64 sampled respondents from the accessible population. The study used a structured questionnaire to collect data from the sampled respondents. The questionnaires were first pilot tested in order to ensure it was both valid and reliable for use in collecting data for the main study. The researcher first obtained the necessary permits and consents from relevant authorities. The collected data was analyzed with the aid of the Statistical Package for Social Sciences (SPSS) Version 21 analytical tool. The analysis was in form of both descriptive and inferential statistics. Descriptive statistics comprised means, modes, variance and standard deviations. On the other hand, inferential statistics was in form of Pearson’s correlation and multiple regression analysis. The results of the analysis was presented in form of statistical tables, charts and graphs. The study will be significant particularly to policy makers, practioners and scholars in the insurance sector in Kenya and beyond. From the findings the researcher concluded that huge costs go to marketing insurance products. Insurance firms also incur massive costs in terms of commissions to insurance agents. High labour costs in insurance sector leads to price undercutting. The study also concluded that insurance firms have different product lines, product value is factored in when pricing and finally different products are priced differently. The study recommended that there is need for insurance firms to use competitive strategy like timely introduction of a product and service, depending on the season and the target customers. Since majority of insurance offer similar products, Insurance should diversify their products. This will help them to have an advantage of their competitors.
Financial factors influencing growth of Horticultural sector in Nakuru County, Kenya
(2016-09) Kimani, Elijah M.; Tonui, J. K.
This study evaluated the financial factors influencing growth of horticultural sector in Nakuru County, Kenya. Of particular interest was the extent to which credit access and working capital affected the growth of horticultural firms. The study reviewed adverse selection theory and organizational theory of growth. A cross-sectional survey research design was adopted. The study targeted the 300 accounts, finance, and management staff working with the registered horticultural farms in Nakuru County. The sample size constituted 98 respondents. The study employed structured questionnaires. The research instrument was pilot tested. The data collected were subjected to relevant processing and analysis whereby the Statistical Package for Social Sciences software was used to aid in data analysis. Descriptive statistics tools were used. More so, inferential statistics were employed. The research hypotheses were tested at 0.05 level of significance. The findings of the study were presented in form of statistical tables. It was found that the influence of financial factors under study on growth of horticultural firms was significant. Working capital had the greatest influence on growth of firms. The study concluded that horticultural firms in Nakuru County highly invested in working capital and as such it influenced the firm’s liquidity. It was inferred that horticultural firms were able to access shortterm credit facilities. The study recommended that horticultural firms should source funds from various sources and negotiate for credit terms from such lenders as commercial banks. It is recommended that horticultural firms should effectively manage working capital.
Influence of Budgetary Controls on Service Delivery in County Government of Nakuru in Kenya
(2010-10) Kimani, Elijah M.; Ojwang, B.O.
In spite of collecting revenue from their jurisdictions, none of the county governments is financially autonomous. They have to rely on the disbursements from the central government. The general objective of this study was to evaluate the influence of budgetary controls on service delivery in the County Government of Nakuru in Kenya. Of specific focus was the influence of revenue maximization and performance adjustment on service delivery. A crosssectional survey research design was adopted. All the 121 employees working with accounts/finance department of Nakuru County Government comprised the accessible population. Stratified random sampling technique was adopted to draw a sample of 66 respondents from the accessible population. This study used a self-administered, structured questionnaire to collect data. A pilot study was conducted before carrying out the main study. The collected data was analyzed with the aid of the Statistical Package for Social Sciences. Data analysis captured both descriptive and inferential statistics. The results of the analysis were presented in form of tables. The study revealed that budgetary controls influenced service delivery in the County Government of Nakuru. Performance adjustments were found to be the most important in influencing service delivery. The study inferred that the county government has been striving to maximize revenue collection. Revenue maximization and performance adjustments were concluded to be important parameters in improving service delivery. The study recommends that the county government ought to seal all loopholes that funds may be lost while automating revenue collection. These county governments are further advised to be flexible enough in order to adjust their budgets in the wake of unforeseeable macroeconomic effects.

Browsing by Author "Kimani, Elijah M."

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