Browsing by Author "Nyakarimi, Samuel N."

Now showing 1 - 9 of 9
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    Analysis of factors influencing access to credit services by women entrepreneurs in Kenya
    (IISTE, 2014) Karanja, John Gakuu; Mwangi, Anthony Kiragu; Nyakarimi, Samuel N.
    The purpose of this study was to analyze the factors influencing access to credit services by women entrepreneurs in Kenya; a case of Isiolo town. Entrepreneurship has been regarded as a major contributing factor to the economic growth and poverty alleviation both in urban and rural areas. Organizations for Economic Co-operation and Development (OECD) reports indicate growing phenomena of women entrepreneurship both in developed and developing countries. In some countries, women-owned businesses are increasing at a very rapid pace in terms of both numbers and turnover. The scope of the study was selected from financial lending institutions in Isiolo County and women entrepreneurs targeting those who are members or have accounts in these financial institutions. There are 6 registered FIs operating within the Isiolo town which has a total of 18 management employees and 20 registered women entrepreneurs. The researcher conducted a census on the FIs managers and as well as women entrepreneurs in Isiolo town from the target population. To analyze the data, the researcher applied the chi-square testing the hypothesis of the study. The study recommends that the financial institutions should establish lending procedures which will attract women entrepreneurs and accommodate them in access of credit. It also recommended that the financial institutions should encourage the use of affordable collaterals that will ensure that women entrepreneurs are able to access credit. Lack of affordability collateral was one of the challenges that was highlighted as hindrances to women accessing credit. The financial institutions should ensure that they train women entrepreneurs on investment opportunities in order to increase purposes of credit for women entrepreneurs. This will ensure women entrepreneurs will always have a purpose to do with credit advanced to them by financial institutions.
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    Application Of Internal Control System In Fraud Prevention In Banking Sector
    (2020-03) Nyakarimi, Samuel N.; Kariuki, Samuel N.; Kariuki, Peter
    The main purpose of the study was to establish the effect of internal control system on fraud prevention in banking sector in Kenya. The study involved all the banks where branch managers, operations managers and cash supervisors were sought for the study. The study analysed 117 questionnaires from respondents. Factor analysis was used to reduce the number of variables for analysis purposes. Correlational research study and structural equation model were applied in the study to establish the relationship between variables and in analysis of hypotheses. The study found that control environment and control activities have no statistically significant effect on fraud prevention whereas risk assessment, monitoring of activities and communication of information have statistically significant effect on fraud prevention. Discussions based on the results and related studies were provided. Limitations of the study were highlighted. Recommendations based on the findings were provided. The recommendations were on policy, practise and further research in the same or related areas.
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    Earning Management: Analysis of Non-Banking Firms Listed in Nairobi Securities Exchange using Beneish M-Score and Altman Z-Score
    (2021-02) Nyakarimi, Samuel N.
    Earning management or manipulation has been that has been used for a long time by the management of various firms to adjust financial reports to meet certain objectives. This practice has been used even for fraudulent and selfish activities. The purposes of the research were to ascertain the levels of earning manipulations and financial distress of non-banking firms listed in Nairobi securities exchange. The latest financial statements were used as the source of information. The Beneish five-variable model was used to determine the presence of earning manipulations. Altman’s Z-Score was used to test the financial distress. The analysis revealed that 58.3% of the firms were not involved in earning manipulations. Further data showed that 41.7% of the analysed firms were in financial distress. The study recommends restitutions by fraud perpetrators through earning manipulations, change of auditors approach to certification of financial reports by including ratios calculations and financial bailout by the government and owners of the businesses in case of financial distress based on economic hardships.
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    Financial Statements Manipulations Using Beneish Model and Probit Regression Model. A Case of Banking Sector in Kenya
    (2020-03) Nyakarimi, Samuel N.; Kariuki, Samuel N.; Kariuki, Peter
    The main objective of the study was to establish whether the banks in Kenya were involved in financial statement manipulations. The study involved all the banks registered and operating in Kenya and whose financial statements are published for public consumption. Beneish five-variable model was first used to categorize the banks as likely non-manipulators and likely manipulators. The probit regression model was used to determine non-manipulators and manipulators based on the averages derived from non-manipulators using Beneish five-variable model. The results obtained showed that 78.8% of all banks were not involved in financial statement manipulations while 21.2% were involved in financial statement manipulations. The study concluded that some banks that were involved in financial statement manipulations. The study recommended that both internal and control auditors should compute individual indices to determine whether the preparers of financial statements were involved in manipulations. Further it was recommended that the organizations should enhance and strengthen the ICS to seal the loopholes utilized in financial statement manipulations.
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    Internal Control System and Fraud Prevention in Banking Sector in Kenya
    (University of Embu, 2020-11) Nyakarimi, Samuel N.
    The main objective of the study was to determine the effect of the internal control system on fraud prevention in the Banking Sector in Kenya. Studies have been carried out by different researchers some focused-on fraud in commercial banks and others on internal controls in government departments. This study filled the gap by focusing on the effect of internal control system on fraud prevention in banking sector. Research was based on control environment, risk assessment, communication of information, and monitoring as independent variables, compliance with prudential regulations as moderating variable and fraud prevention as dependent variable. Theories that guided the study include; agency, fraud management lifecycle, fraud triangle and fraud diamond theories. The study captured various empirical studies to provide more information on the study on this research area. Pragmatism philosophy, the research designs applied were descriptive and correlational. The study utilized mean and standard deviations for descriptive research design. The study involved all banks registered and operating in Kenya and the respondents were all branch managers, operations managers and cash managers or supervisors in all headquarters or offices of these banks. Questionnaire was used for primary data and secondary data schedule for secondary data correction. Coding of data was undertaken for processing and analysis. Document analysis was used to analyse qualitative data. ANOVA test was applied to test the overall significance of the model, to test multicollinearity to determine whether there is inter-correlation among independent variables, the variance inflation factor was used, to test autocorrelation and heteroscedasticity, Durbin-Watson test and Breusch-Pagan test respectively were applied. Exploratory factor analysis was applied to extract factors where principal component analysis and varimax rotation methods were applied where seven factors were extracted. Confirmatory factor analysis was used to determine construct bias and validity and was concluded that there was no bias and the research instruments were valid. Further analysis on determination of model fit involved chi-square, comparative fix index, root mean square for error approximation, pclose and standardized root mean residual and was found that the model fit well except for SRMR. Karl Pearson’s coefficients of correlation were used to test the strength and to show the direction of association of variables and the tstatistics was applied to test the hypotheses. The hypotheses tests were based on structural equation modelling and it was found that risk assessment, communication and monitoring had significant effect on fraud prevention whereas control environment and control activities had insignificant effect. Further it was found that compliance with prudential regulations has no significant moderating effect on the relationship between control environment and fraud prevention and risk assessment and fraud prevention. The study applied Beneish model and probit regression in analysis of secondary data and it was found that financial statement manipulation is rife in seven banks thus those banks have weak ICS and are not capable of preventing fraud. Recommendations from study are that new ways of strengthening ICS should be established and that the government should review regulations. Further research should be carried out with cross sectional research design that will include questionnaire, interview and secondary data schedule.
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    Internal control system as means of fraud control in deposit taking financial institutions in Imenti North Sub-County
    (IISTE, 2015) Nyakarimi, Samuel N.; Karwirwa, Mary
    The purpose of the study was to establish the relationship between internal control systems (ICS) and fraud control in deposit taking financial institutions. ICS was analyzed based on its component which include; Control Environment, Risk Assessment, Control Activities, Information and Communication and Monitoring. The Researcher set out to establish how ICS could be used to control fraud in financial institutions. The researcher set study objectives and hypotheses that assisted in establishing the relationship sort. The research was conducted using both quantitative and qualitative approaches using Stratified random sampling, ANOVA and Descriptive Research Designs. Data was collected using Questionnaires from the operations managers and supervisors, from various deposit taking financial institutions in Imenti North Subcounty. A sample of 92 respondents from a population of 120 was used for this study. Data was analyzed using the Statistical Package for Social Scientists (SPSS) where conclusions were drawn from tables and figures derived from the Package. The study found that the financial institutions analyzed recruit through vetting on competences and integrity, the organization structure reflects chain of command, there are proper follow-up of delegated responsibilities and the employees are promoted and compensated fairly. On risk assessment the study revealed that the institutions have proper mechanisms of mitigating risks, financial documents are properly kept, and there are processes of identifying and estimating risks. Though there was agreement that there are no cases of missing documents to authenticate transaction the analysis reflected a low mean than in other parameters. In analyzing control activities it was found that transactions are undertaken by authorized personnel, reconciliations are done regularly, proper accounting principles are applied and there is proper segregation of duties. Further the study showed that there is job rotation and verifications are done to reduce chances of forgery. The study revealed that the institutions have developed means of passing information, the employees are informed of their roles, besides engaging external parties to verify financial statements they also act upon the findings quickly. In monitoring organizations have evaluation mechanisms, they also have plans on activities and ensures that the laid down rules are followed. Research study found that there are continuous checks to ensure controls are working well. The study established a significant relationship between ICS and fraud control. The researcher recommends that the management of these institutions should establish proper mechanisms of promoting qualified and deserving employees, also the institutions should ensure fair remunerations based on qualification, responsibilities and output of employees. The study recommends that the financial institutions establish and manages knowledge or information management system within the institution, so as to enable all parties within the institution to freely access and utilize necessary official information that will enable the employees to embrace and appreciate their roles in enhancing vigilance against fraudsters.
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    Moderating Effect of Government Regulations on Internal Control System and Fraud Prevention. A Case Banking Sector in Kenya
    (2020) Nyakarimi, Samuel N.; Kariuki, Samuel N.; Kariuki, Peter
    The main purpose of the study was to establish the moderating effect of government regulations on the relationship between internal control system and fraud prevention in baking sector. Structured questionnaire was used as tool for data collection. The study was based on all banks registered and operating in Kenya and the questionnaires were meant for branch managers, operations mangers and cash managers in head offices of all banks. One hundred and seventeen questionnaires were distributed and officers from 33 banks out 39 banks returned fully filled questionnaires. The questionnaires were analyzed using Structural equation Model (SEM). The findings indicated that the government regulations have significant moderating effect of control environment and risk assessment. However, there was insignificant moderating effect on control activities, communication and monitoring of activities. The study suggested that further studies and analysis should be undertaken to establish those legislations and regulations that should be enhanced, abolished and also establish need of new laws to enhance the functions of internal control system.
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    Risk Assessment and Fraud Prevention in Banking Sector
    (2020) Nyakarimi, Samuel N.; Kariuki, Samuel N.; Kariuki, Peter
    The objective of the study was to assess the effect of risk assessment on fraud prevention in banking industry in Kenya. The study involved all banks in Kenya. Descriptive and correlational research designs were used in this study. Factor analysis was undertaken to reduce the factors and remain with factors that had higher loading which was determined through the use of Eigen values. Correlation analysis was applied to determine the strength and direction of relationship between variables and regression analysis based on structural equation modelling (SEM) was used to test the hypothesis. The descriptive analysis showed that the respondents strongly agreed that the parameters put in place are capable of preventing fraud in banks. The hypothesis testing showed that risk assessment has significant effect on fraud prevention in banking industry in Kenya. From the results of tests, it was concluded that the risk assessment mechanisms put in place to assess the risks have significant effect in fraud prevention and as such they should be enhanced to completely prevent fraud in banking sector. Keywords: Risk assessment; Banking sector; Fraud prevention; Kenya.
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    Use of Control Activities in Fraud Control in Financial Institutions a Case of Financial Institutions in Meru Town, Kenya
    (2016-08) Nyakarimi, Samuel N.; Shano, Mohamed; Rukangu, Simon
    The purpose of the study was to establish the relationship between Control Activities and Fraud Control in Financial Institutions (Banks and Microfinance Institutions). Control Activities analyzed were Internal Checks and Segregation of Duties. The researchers set study objectives and hypotheses that assisted in establishing the relationship that was required. The research study was conducted using both quantitative and qualitative approaches. Stratified random sampling was used and data was collected using Questionnaires from the managers and supervisors, in various financial institutions of Meru town, Kenya. A sample of 84 respondents from a population of 106 was used for this study. Data was analyzed through SPSS using Chi square and Descriptive statistics. In analyzing the selected control activities it was found there were enhanced internal checks that involved peer review and verifications of transactions to reduce chances of forgery, also it was revealed that proper segregation of duties and job rotation have been embraced to increase transparency. In conclusion Research study found that there are continuous checks to ensure controls are working well. The study established a significant relationship between control activities and fraud control.