Department of Business

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Now showing 1 - 20 of 102
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    Agency Banking and Operational Performance of Commercial Banks in Kenya
    (University of Embu, 2020) Mbugua, Veronicah Njambi
    Agency banking roll-out in Kenya was meant to address the low financial inclusion in Kenya. As per the 2009 National financial access survey, 32% Kenyans bankable population is still totally out of the financial services orbit. Difficulties in accessing financial services main drivers are; long distance to banking channels and relative high costs of accessing financial services. In a bid to bridge the financial access divide and improve its access among the most vulnerable sections of the society, the Kenya government through the central bank amended the finance Act 2009 to facilitate use of third parties by banks to provide banking services. This study sought to establish the contribution of agency banking to operational performance of commercial banks in Kenya. The researcher was guided by objectives; to establish the impact of agency banking to operational performance of commercial banks in Kenya; to determine the operational challenges facing agency banking in Kenya and to establish the factors leading to the growth of agency banking. Data was collected by use of questionnaire. Data was analyzed and presented using descriptive statistical tools. The results were presented in a continuous prose form. The study showed that liquidity availability in the outlets affected banks performance in addition to leading to frustrated customers. The study also found out that agency infrastructure cost and security was a major influence to banks performance. The study therefore recommends that, banks should give more attention to security and find better ways of vetting their agents to ensure that large cash transaction are handled effectively
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    Budgetary Process and Financial Performance of Embu County Government, Kenya
    (University of Embu, 2019) Ngaira, Erick
    The rate of absorbtion of development funds by Kenyan County Governments has been low, a factor that has gnawed at it for years since the inception of County Government in Kenya. The study ought to cletennine the effect of budgetary process on financial performance ofEmbu County government. The respondents consisted of 33 staff members from sectoral accountants, budget office, finance office, lFMIS department and County Economist. The study adopted descriptive research design where a questionnaire was used to collect data. The researcher also utilized County Fiscal Strategy Papers, County Government Budget Implementation Review Reports, County Budget Review and Outlook Papers and other vital Government Reports. The study applied descriptive and inferential statistics. Inferential statistics was applied for the purpose of determining the relationship between dependent variable and independent variables where a regression analysis was clone using Statistical Package for the Social Sciences (SPSS) version 25. The research findings were presented via pie chart, bar charts and frequency tables. The study established that though Public Financial Management Act had been effectively adopted by the County in its budgetary planning, the public had not been effectively involved in budgetary planning, In addition, the County Government had fully improved on uptake of development funds. The study concluded that the two components of budgetary process that is budgetary planning and, budgetary monitoring and evaluation were significant and had influence on financial performance of the County. The study recommended that the County Government should that the audit committee is well constituted and there is adequate staff in finance, budget office, accounting procurement departments to prevent erroneous financial reporting. Furthermore, the study recommended that the County Government should make implementation of development projects a priority in order to improve on absorbtion of development funds. The study recommend that further studies should be undertaken on: budgetary process and financial Performance of County Governments in Kenya, factors affecting absorbtion of development funds by County Goverrunents in Kenya and another study on effect of public participation on budgetary planning by County Governments in Kenya
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    Challenges of E-Procurement Adoptions in Kenyan Public Sector (A case study of parastatal in ministry of Finance).
    (University of Embu, 2019) Mumo, Felix
    This study aimed to research e-procurement in the Public Sector with a view to investigate the challenges in adoption of e-procurement. Current literature on Public Procurement indicates a shift towards adoption of new technologies in Supply Chain processes that include e­ procurement. These technological changes in the external business environment are eliciting various responses from Supply Chain actors in the public sector. The level of public sector response is influenced by various factors posing as challenges to adoption of e-procurement. The existing literature indicates some of the challenges arising while responding to these technological changes include lack of employee competence, lack of management support, inadequate technological infrastructure for integrating e-procurement with other systems and concerns about security of e-procuremenl business transaction data and information. These perceived challenges are informed the purpose for this study. The study population included stale corporations under the Ministry of Finance. Due to time and financial constraints, the researcher carried out a simple random selection of three respondents from the procurement departments of all the 16 corporations giving a sample size of 48. Both primary and secondary data was used for the study. The research study used a questionnaire as a key instrument for primary data collection. Qualitative data was analyzed through content analysis. Quantitative data was analyzed through the use of frequency distribution, mean scores and standard deviations. In addition, one-way analysis of variance {ANOV A) tests was carried out. From the study, it was revealed that employee competency, lack of management Support, inadequate technological infrastructure and security of procurement transaction data was a challenge to e-procurement adoption in the organizations under review. The study recommended that among others, due to continuous turnover of the employees', continuous training for the incoming staff is required on e-procurement. In addition, formal recognition backed by management support of the electronic procurement transactions should be encouraged. Integration of the Organizations system and those of the suppliers, demonstration of the positive impact of the system, and installation of linkages between all Governments agencies should be encouraged.
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    Corporate Governance and Financial Performance of Microfinance Institutions in Embu.
    (University of Embu, 2020) Muriithi, Martha Wairimu
    The research examined the effect of CG on the financial performance of MFIs in Embu. CG deals with accountability and responsibility through implementation of guidelines and mechanisms to ensure good behavior and sound ethics in the organization. CG measures discussed were; board size, board gender diversity and CEO duality. The study used descriptive research design. Secondary sources were used to gather data for a period of 4 years, 2015-2018 This study will increase the body of knowledge on the effects of CG on the performance of MFIs in Embu county and in Kenya as a whole. This study will help executives to understand the need for CG in improving the performance of MFIs as well as helping them in making decisions. Policy makers will use this study as a basis for coming up with policies that will be used for better governance of MFIs. The study will also help the management in the attainment of the organizational goals since the whole organization will be governed by the set rules and policies. Additionally, this study will add more information to previous studies on CG by adding the effect of CG on the performance of MFIs. Information gathered from the study will help scholars to make further studies on areas that have not been covered on CG.
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    Corporate Governance and Financial Performance of Savings and Credit Cooperative Societies in Embu County
    (University of Embu, 2020) Gategwa Joseph, Njeri
    SACCOs have been growing in the recent past so as to meet the financial needs of many who cannot access the same services from the mainstream banking sector. However, the SACCCOs are faced by some challenges as they grow and corporate governance is one of the challenges faced by many firms to an extent of some SACCOs collapsing in case of failure to correct the maintenance and control challenge. Corporate governance is a concept which entails practices of the organization management and control and the relation among the persons who provide recourses for operations of the firm who include; shareholders, employees, the board of management, suppliers and customers. The purpose of this study was therefore to identify the relationship between corporate governance and financial performance of SACCOs in Embu County. In particular, the specific objectives were to study how board size, leadership influence and transparency, disclosure and accountability affects the financial performance of these SACCOs .The research problem was identified through the use of descriptive research design .Population of interest was ten SACCOs in Embu County .Data collection involved use of secondary data from SACCO annual published reports and any other literature from the targeted SACCOs. This data was analyzed through the use of descriptive analysis technique. The findings were presented in percentages and tabulations .The findings revealed that there a strong negative relationship correlation between board size and financial performance meaning that the fewer the board members the better the financial performance of SACCOs. Also, there is a positive relationship correlation between leadership influence and financial performance of SACCOs and there is a positive relationship correlation between transparency, disclosure and accountability and financial performance. The study therefore concluded that these factors can be used to measure financial performance in SACCOs
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    Corporate Governance and the Financial Performance of State Corporations: The Case of New Kenya Cooperative Creameries (KCC)
    (University of Embu, 2019) Maina, Martha Wanjiru
    Corporations performance by the performance contracting department at Corporate governance is a concept that involves practices that entail the organization of management and control of companies. It reflects the interaction among those persons and groups. which provide resources to the company and contribute to its performance such as shareholders, employees, creditors. long -terrn suppliers and subcontractors. It has been generally agreeable from many studies in the recent past that companies that have corporate governance systems in place also exhibit good performance. Thus corporate governance is increasingly being recognized as an important aspect of an efficient ,:111d effective board of directors, enhancing investment performance. This study sought to examine how Corporate Governance affects performance of state Corporations in Kenya. Well-governed firms have higher firm performance. Mismanagement, bureaucracy, wastage. incompetence and irresponsibility by directors and employees arc the main problems that have made State corporations (SCs) fail to achieve their performance. The poor performance of SCs in Kenya by 1990 led to outflow from central government to parastaials equivalent to 1 percent of the GDP in 1991. The objective of the study was to identify the relationship between performance, corporate governance and size of state corporations. The study used descriptive survey design. The target population for this study was 178 SCs in Kenya as presented by the report on Evaluation of the Performance of Public Agencies for the financial year 2010/2011 published in March, 2012 by Performance Contracting Department - Office of the former Prime Minister. Sample of 60 state corporations out of 178 was found ideal. Respondents were senior managers at these state corporations. Data were analyzed through descriptive statistics and multilinear regression technique. The findings were that the organizations that scored highly in corporate governance were also ranked highly in yearly ranking of state the current ministry of devolution. The empirical findings of this study are consistent with the guidance developed by capital Market Authority that companies should endeavor to attain the highest possible level of corporate governance. The study therefore recommends that financial monitoring should be clone thoroughly by the board and that State corporations should consider adopting conduct of regular Corporate Governance Audits and Evaluations.
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    The Effect of Capital Structure on Profitability of Microfinance Institutions in Kenya
    (University of Embu, 2019) Adela, Irene Adhiambo
    The challenges faced by microfinance institutions in their capital structure satisfied the conduct of this study, which assessed the impact of capital structure on the profitability ofMFls in Kenya. 11 has closely examined the impact of equity and debt on the profitability of MFls. The study adopted a cross-sectional design for survey research. The study used research questionnaires.to collect data. The instrument was pre-tested to collect data. To facilitate data analysis, the software package Statistical Package for Social Sciences was used. Both descriptive and inferential statistics formed a data analysis. The null hypotheses were tested at a confidence level of95%. The results of the analysis were presented in tables. The study found that equity did not materially affect the profitability of MFls. However, leverage had a significant impact on reported profitability. In addition, it has been shown that the capital structure generally has a significant impact on the profitability of MFls. The study concluded that the equity ratio ofMFls is increasing. The study concluded that leverage is the last funding option for MFls. The study recommended that owners of MF!s contribute more capital in emergency situations or that the source of funding is available only through capital injection. The study also recommended that more debt be used to finance the activities of MFls.
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    Effect of Credit Portifolio Management on Financial Stability of Microfinance Institution in Embu, Kenya
    (University of Embu, 2020) Wanjohi, Wanjiku Caroline
    The importance of this research is to examine the effect of credit management on institutions stability of microfinance in Embu Kenya. It sought to find out the relationship between credit portfolio management of MFIs and financial stability, to assess the effect of credit portfolio management on MFI profitability, to recommend strategies for enhancing MFI stability. To achieve this the research used an econometric approach using 4 MFIs that are registered with the central bank of Kenya with data from the institution's annual financial accounting report for a period ranging from 2012 -2019. With performance indicators, return on equity the research found the average credit collection period, performance cycle, diversification, and the liquidity variables to have a significant impact on return on asset variable of the MFIs understudy and performance cycle have a negative relationship with the return on asset. Average credit collection period, diversification, business size has an impact on the return on equity variable of the MFIs. Therefore, this study concludes that proper and efficient credit management is critical for the profitability and stability of the MFIs understudy hence, financial managers can create value for the shareholders’ investments.
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    The Effect of Effective Material Handling on the Profitability of a Manufacturing Company. A Case Study Bidco Africa Limited
    (University of Embu, 2019) Chira, Leah Wambui
    Managing materials in an efficient manner has a positive impact on any any organization since it allows organizations to reduce cost and meet customer's needs. The purpose of this study is to establish the effects of material handling on profitability at Bidco Africa Limited. This study will adopt descriptive survey design targeting some employees of Bidco Arica Limited from stores engineering, production and transportation departments. Stratified random sampling will be used in this study. Data will be collected by use of questionnaires which will be self-administered and they will include both open-ended and close-ended questions. . .
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    The Effect of Financial Innovation on the Growth and Performance of Saccos in Embu County
    (University of Embu, 2020) Onchonga, Octovius Mang’era
    In the current modern world financial innovation has since shown a significant influence on the growth and performance of SACCOS in the whole globe. The impact caused by financial innovation can either be positive or negative on the other hand. Financial innovation has therefore been portrayed in a number of ways such as the adoption of financial technology(fintechs), emergence of new financial services such the Insurance covers etc. This research was therefore geared towards revealing the effects of financial innovation on the growth and performance of SACCOS in Embu County. The research study used secondary data collected from various annual reports of these SACCOS, journals and also the internet to help compare the past data of the SACCOS in the past five years and be able to establish the impact and also to help determine the various areas that have received little or no attention and thus be able come up with stringent measures to improve on them. The study recommended that proper awareness and sensitization need to be effectively carried out because the implementation of the current financial technology seem to be difficult for some of the customers and those willing to join these Sacco’s. Once this is done the Sacco’s will experience a large number of the active customers and thus improve the performance which enhances growth
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    Effect of Financial Liberalization on Real Estate Prices in Kenya
    (University of Embu, 2020) Kakoko, Reuben C.
    The study established the impact of financial liberalization of real estate prices in Kenya. The study established the effect of central bank rates, commercial bank lending rates and inflation rates on real estate prices in Kenya .the study followed a descriptive research design and used secondary data. The study used average annual secondary data for period between 2006 to 2019. The independent variables CBR, interest rates and inflation rates were obtained from CBK websites, while the real estates were obtained from Centum consult .the study used excel spread sheet to organize the data SPSS version 24 to analyses the data .the study establish that study variables fluctuated throughout the period. The real estates prices grew each year since 2016 to 2019. Regression analysis results reviewed that there is a strong positive relationship between the independent variables (CBR, commercial bank lending rates and inflation rates).The concludes that a change in CBR cause the highest influence on real estates prices followed inflation rates. The study recommends that regulators and policy makers should uphold rules that ensure real estate prices remain affordable for the citizens .also the study recommends that future studies should be conducted to find out the relevant regulatory and policy issues that should be devel6ped and employed by regulatory policy makers in order to appropriately guided financial liberalization in the economy. Furthermore future studies could include more variables that affect real estate prices .also future studies should consider cross economy comparison
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    Effect of internal control systems on financial performance of government institution. A case study of the university of embu
    (UoEm, 2024-01-30) THIRIMA, PAUL KAMAU
    The aim of this study is to conduct a comprehensive revelation of the effects of internal control systems on the financial performance of government institutions. The study will be conducted at the University of Embu, which is currently undergoing a significant transformation as part of the country's education reform agenda. The study will target a sample size of 50 respondents from the institution in various departments that are finance related. The study will utilize a mixed-method approach that combines quantitative and qualitative data collection methods. A structured questionnaire will be used to gather quantitative data, while interviews with key informants will be conducted to collect qualitative data. The collected data will be analyzed using descriptive statistics, mean, standard deviation, and variances to examine the relationship between an effective internal control system and the financial performance of government institutions.In addition, the study will investigate the moderating effect of organizational culture, management support, and information technology on the relationship between internal control systems and financial performance. The project will recommend best practices for government institutions to adopt effective internal control systems, create a positive organizational culture, provide strong management support, and utilize information technology to enhance financial performance. The study will contribute to the existing literature on internal control systems in the public sector and provide practical implications for policymakers, managers, and practitioners at the University of Embu. The project will also highlight the importance of effective internal control systems in enhancing financial performance in government institutions, which will benefit the Kenyan economy by promoting transparency and accountability in the management of public funds.
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    The Effect of Internet Adoption on the Profitability of Commercial Banks in Kenya
    (University of Embu, 2020) Gatitu, Simon Njega
    Information technology has opened up new ways in which banks can carry out their operations in satisfying their consumer needs. The growing uptake of internet banking in the banking sector has helped in access to financial services tremendously. The study sought to determine the effect that the internet has on the profitability of commercial banks. It was guided by the following questions; what is the effect of cost on internet-based banking? What is the effect of technology issues on the adoption of internet banking? What is the effect of internet security on the internet-based transaction? What is the effect of profitability on the adoption of internet banking? The study used secondary obtained for various Central Bank of Kenya publications and journals. The study covered a period of 5 years from 2014 to 2018. The findings show that there is a significant positive relationship between profitability and internet banking. This is because internet banking cuts banks costs, increase commission income, reduce staffing levels, and make banking more convenient for customers. However, the banks are faced with cyber-attacks which have created doubt about the adoption of internet banking among customers and banks. The study recommends that banks should adopt internet banking as it fast, effective, and easy to use in delivery in their services. Banks should ensure internet banking security to boost consumer confidence. This is to create trust and security to avoid undesirable consequences in the face of a risky decision.
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    Effect of Inventory Management on Organisational Performance of Supermarkets: A Case Study on Naivas Supermarket Embu County.
    (University of Embu, 2019) Njoka, Jane Muthoni
    Inventory management is vital in every organization; a proper management of inventory ensures smooth running of business operations thereby instigation of better organization performance. This study therefore focuses on effects of various inventory management models on the organizational performance of various supermarkets in Embu town. This study seeks to establish types of inventory management systems used in the supermarkets, to find i -out the relationship between inventory management and sales and finally to enumerate the effects of inventory managemen! automation on the performance of Embu town supermarkets, The population of the study will comprise of 150 respondents. The study will use self-administered questionnaire instnunent in collecting primary data. Both qualitative and quantitative methods will be used to analyze data. All questionnaires will be adequately checked for data verification after the field work. Descriptive statistical measures such as frequencies, mean, percentages, standard deviation, mode and median will be used.
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    Effect of Inventory Management on performance of tea processing firms in Kenya
    (University of Embu, 2019) Kithinji, Kiogora
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    Effect of Loan Default on Financial Performance of Microfinance Insitutjons in Embu County: A Case Study of Bimas Limited- Embu County
    (University of Embu, 2019) Ogero, Simon Caleb
    This study ought to assess the effects of loan default on financial performance of microfinance institutions in Embu. The study attempts to provide means by which microfinance institutions in Embu County such as BIMAS will reduce loan default andimprove financial performance. The study has three objectives which are to identify causes of 1'oan de1;tult by MFls' clients, identify ways loan officers can use to ensure loan repayment is done on time. Give recommendations microfinance institutions could use to ensure loan repayment as scheduled and finally identify the costs of loan default on financial performance of microfinance institutions. Objectives were achieved through data collected from BIMAS by use of questionnaire for both Loan Officers and clients. The data collected was analyzed using SPSS version 22. :The findings from the study indicated that diversion of funds to unintended purpose, inability to' generate enough profits from business, high interest rates and clients having multiple loans affect' the ability to repay loans on time. Microfinance institutions to have proper loan appraisal, adequate monitoring of loans, use of third-party guarantors and have appropriate lending procedures' to minimize loan default. In conclusion, loan default had negative effect on fina;1cial performance of microfinance institutions (Birnas Limited) and their sustainability.
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    Effect of Mobile Banking on the Financial Performance of Commercial Banks in Kenya
    (University of Embu, 2020) Ntwiga, Nyakio Lisper
    Globalization brings about interconnection in the financial world, where organizations are using procedures with innovative financial products and services. Transactions such as,deposits, withdrawal of money, saving, are now being performed via mobile phones. This has enhanced efficiency and convenience in the financial sector compared to when people used to travel long distances to make queues in the banking premises to get these financial services. The financial service has enhanced cost-effectiveness through the ways of accessing bank accounts hence profitability. The general objective of my study was to investigate the effect of mobile banking on the financial performance of commercial banks in Kenya. The theories discussed for this study are the Financial Intermediation Theory and the Innovation Diffusion Theory. The methodology used was the use of Descriptive research design. The target population of the study focused on the 43 commercial banks in Kenya as of 31 December 2014, CBK. Secondary data was also sourced from CBK annual supervision reports. Descriptive statistics was used. Inferential statistics was also used for regression analysis. Data analysis was conducted using Eviews 9 Software and the collected data was presented in the form of graphs. The study findings indicated that number of mpesa users for cash storage and the number of mobile money transactions has a positive relationship with financial performance of commercial Banks while number of deposit account holders has a negative relationship with financial performance of commercial banks. This however concluded that there exists a weak positive relationship between mobile banking and financial performance of commercial banks in Kenya.
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    Effect of proper bookkeeping on the financial performance of small medium enterprises in embu county, kenya.
    (UoEm, 2024-01-30) GAKURUBU, ESTHER KIRIGO
    The goal of this study is to look at how proper bookkeeping affects financial performance of small medium enterprises in Embu County, Kenya. The research proposal was guided by the following research question; how does cashbook affect the performance of small medium enterprises? How does ledger recording and keeping impacts on performance of small medium enterprises? How proper keeping and recording of bank reconciliations affects performance of small medium enterprises. This study targeted a population of 33 SMEs in Embu County. A stratified random sampling technique was used to sample 30 respondents, at 5% margin error, which will represent 67% of the target population using Yamane’s formula. The data was collected by use of open and closed questionnaires, which was analyzed both qualitatively and quantitatively.