Browsing by Author "Matumo, Gabriel"

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    Effect of Government Regulations on the Relationship Between Return on Investments and Financing of Water Investments In Nairobi Peri-Urban Markets in Kenya
    (2014) Kimani, Maina E.; Ngugi, Nahashon; Matumo, Gabriel
    For any economic development it is important to finance infrastructure such as water and sanitation. Water has historically been viewed as public good not as a market commodity and thus water utilities have not been able to generate sufficient internal revenue to ensure sustainable financial investment. There is a low level of investment in the sector by both public and private players especially in peri-urban areas in Kenya. Many people in these areas still do not have access to basic water resulting to millions of illnesses and death every year from water related issues. Scarcity of water in peri-urban areas has created investment opportunity yet there is little participation of private players. The study explored effect of government regulations on the relationship between return on investments and financing of water investments in Kenya. The study adopted cross-sectional survey research design. The accessible population for this study was 1500 small scale water providers registered by Water Service Regulatory Board. A two stage sampling technique was used to obtain a sample population of 150 small scale water service providers. The study utilized self administered semi-structured questionnaire and content analysis for collecting data. Structure Equation Modelling (SEM) was used to measures the relationship between return on investments and financing of water investments. The findings of the study indicated government regulations influences financing of water investments, low return on investments, among small scale water service providers limits supply of water in peri-urban markets. It was therefore recommended that the government should enhance tariff reviews, performance monitoring and efficient metering and billing. This would lead to high return on water investments. Water utilities will thus be able to generate sufficient internal revenue to ensure sustainable financial investment. The results of the study will be of great importance to both public and private water utilities. This will contribute to greater understanding of various challenges that the utilities go through in trying to make water accessible to peri-urban population.
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    Factors influencing development of financial derivatives markets: a survey of listed companies in Kenya
    (2013-05) Matumo, Gabriel; Kimani, Maina E.; Ngugi, Nahashon
    The Kenyan economy is becoming more and more open with international trading constantly increasing and as a result Kenyan firms become moreexposed to foreign exchange rate fluctuations. The relative price changes affect the firms’ competitive market position, leading to changes in cash flows and ultimately, in firms value. While it was observed that firms use a variety of instruments to manage financial risks, it was not clear whether the full potential of these instruments is being realized since not all firms use derivatives and notall firms use all types and more important, whether they are used appropriately. The study found out that the use of financial derivatives instruments by quoted companies in Kenya is mainly influenced by legal and regulatory framework, market environment, operational efficiency and the role offinancial market intermediaries. Hence the study concluded that there is need of building upon existing financial derivatives instruments so as to enhance efficiency and effectiveness in their use in Kenya as modern tools for financial risk management.
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    The impact of front office Sacco activity on Sacco performance in Kenya; A case study of Meru South and Maara district in Tharaka Nithi County in Kenya
    (2013-05) Ngugi, Nahashon; Matumo, Gabriel; Kimani, Maina E.
    While Savings and Credit Co-operative Societies (Saccos) are an autonomous Association of Persons united voluntarily to meet their economic and social needs, their performance has been affected by low capital base. Their capital base is low, thus limiting loanable funds to members. To cope with this problem, many Saccos have introduced Front Office Sacco Activity (FOSA), in order to strengthen their capital base and liquidity level. FOSAs offer simple banking services to members/customers, thus improving their working capital. This study is meant to find out the impact of FOSA operations on Sacco performance in Kenya; A Case of Meru South and Maara Districts in Tharaka Nithi County. The Research Design was descriptive in nature. The intended population of the study was the three Saccos with Front Office Sacco activity in the two districts. The county has four SACCOs with FOSAs but one started operation with FOSA since inception. The researcherused Secondary Data in this study for a period of six years. This included three years before and after operating FOSAs. Correlation analysis was used to analyze the data. The findings of the study revealedthat FOSAs can improve the performance for Saccos.