Browsing by Author "Wafula, Joshua"

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    PublicationOpen Access
    Effect of Forensic Auditing and Investigation Techniques on the Financial Performance of Deposit-Taking Microfinance Institutions in Kenya
    (International Research Journal of Business and Strategic Management, 2022-11) Mosoti, Jared Mobisa; Wafula, Joshua; Nyang’au, Andrew
    The Microfinance institutions in Kenya have experienced notable financial losses in the first 10 years since of the enactment MFIs act of 2006. Many of these have been occasioned by fraud which not only affects the MFIs, but the entire financial sector. In order to minimize the effects of these losses, these institutions’ deposit-taking microfinance have adopted the use of forensic auditing and investigation techniques that are used to investigate and deter financial improprieties. The study’s main objective was; to assess the effect of forensic auditing and investigation techniques on the financial performance of Deposit-taking Microfinance Institutions in Kenya. The study was guided by the fraud diamond theory. The study targeted all the Deposit-taking microfinance institutions in Kenya that were in operation between 2016 and 2020. The target population was 387 employees and managers of these firms that included: management and operations, Finance and credit control, Internal audit and Risk, External Audit, ICT, and Litigation departments of the Twelve Microfinance Institutions that were in operation in Kenya during the period of the study. The sample size was 281. The researcher used purposive and stratified Random sampling methods to select the sample. Both descriptive and inferential statistics were used in analyses. The findings showed that the micro-finance institutions used forensic auditing and investigation techniques in the fight against fraud. The findings further showed that the use of forensic auditing and investigation techniques have reduced incidences of fraud in the banking sector which have positively contributed to financial performance. The study concludes that there is a significant positive relationship between forensic auditing and investigation techniques and the financial performance of the deposit-taking microfinance institutions in Kenya. The study recommends that the management of microfinance institutions should invest more in auditing and investigation techniques and should implement the recommendations of external auditors
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    PublicationUnknown
    Effect of Mobile Banking Technology on the Financial Performance of Deposit-Taking Microfinance Institutions in Kenya
    (International Research Journal of Economics and Finance, 2022-10) Mosoti, Jared Mobisa; Wafula, Joshua; Nyang’au, Andrew
    The Microfinance institutions in Kenya have experienced turbulent times following the collapse of many banks in the 1990s. In order to minimize their operational costs, these institutions’ banks have adopted internet banking including ATMs, mobile banking, and internet banking where customers can access their accounts on their personal computers. The study’s main objective was; to assess the effect of Mobile Banking Technology on the financial performance of Deposit-taking Microfinance Institutions in Kenya. The study was guided by the conventional theory of financial deepening. The study targeted all Deposittaking microfinance institutions in Kenya that were in operation between 2016 and 2020. The target population was 387 employees, who include: management and operations, Finance and credit control, Internal and Risk, External Audit, ICT, and Litigation departments of the Twelve Microfinance Institutions that were in operation in Kenya during the period of the study 2016 and 2020. The sample size was 281. The researcher used purposive and stratified Random sampling methods whereby, in a situation where there was only one unit of observation, the entire population was involved in the study. The findings showed that the micro-finance institutions used mobile banking technology in capturing data and that this has reduced incidences of fraud in the banking sector. Further, the findings showed that mobile banking technology played a major role in the microfinance subsector and the use of cybercrime risk identification mechanisms has reduced incidences of fraud. The study concludes that there is a positive relationship between mobile banking and the financial performance of financial institutions in Kenya. The study recommends that the management of microfinance institutions should review the mobile banking systems continuously to identify loopholes in the system that can be exploited by fraudsters.
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    PublicationOpen Access
    Fraud risk management and financial performance of microfinance institutions in Kenya
    (International Journal of Research in Business and Social Science, 2023-12) Mosoti, Jared; Wafula, Joshua; Nyangau, Andrew
    Fraud is a thorn in the flesh of many organizations in both local and global business ecosystems, more so in the financial sector because of the liquid nature of their services. To curb this menace, Financial Institutions including Microfinance institutions implemented fraud risk management practices. While larger financial institutions afford raft measures for curbing fraud, MFIs contend with less sophisticated practices in spite of them being the most susceptible to financial improprieties. Further, the determination of the overall effect of these practices on financial performance is critical in evaluating their success. The objective of this study therefore was to find out how fraud risk management practices affect the financial performance of Microfinance Institutions in Kenya. The study was anchored on the fraud management life cycle theory and focused on twelve deposit-taking Microfinance Institutions that were in operation in the Nairobi region of Kenya between 2016 to 2020. The study adopted a descriptive research design using cross-sectional data computed from the average financial results for five years 2016-2020. The study used purposive and stratified Random sampling methods to select a sample of 281 respondents from finance, ICT, operations, Audit, and Litigation managers and staff. The study used descriptive and inferential statistics to analyze the data. The results showed that fraud risk management positively and significantly affected financial performance by curbing incidents of fraud and concluded that to improve financial performance microfinance institutions should implement fraud risk management since they had a positive and significant effect on financial performance. The study recommended that firms should invest substantially in fraud risk management to reduce incidences of fraud and improve financial performance. Further, the management of Microfinance Institutions should continually evaluate and update their practices to keep abreast with the ever-changing fraud antics