School of Business and Economis

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Open Access
Effects of cost reduction strategies and guest satisfaction among 2-5 star hotels in the coast region of Kenya
(Mount Kenya University, 2023-03) Gaturu, Susan Wothaya
Today's high expenses for operation have led to the closing of certain hotels and a decrease in visitors. Hotels have had trouble managing client connections and obtaining certifications due to economic constraints that prevent good service delivery. Cost-cutting in the hotel industry has therefore become essential. The study's goal was to determine the impact of cost-cutting measures on customer satisfaction in 2 to 5 five-star establishments in the counties of Mombasa, Kwale and Kilifi along the Kenyan coast. The study's particular goals included identifying the effects of the management of supply chains tactics, outsourcing methods, conserving water and energy initiatives, and labor methods for reducing costs on consumer happiness. Department heads who were assessed to have information for the study served as respondents for the study, which concentrated on 2, 3, 4, and 5 star hotels. A sample of 205 respondents from a target population of 423 respondents. The study adopted cross sectional survey design and used questionnaires for data collection. The reliability of the data gathering tool was evaluated using the Cronbach Alpha test. Multiple regression was utilized to examine the course and magnitude of cost- cutting methods on satisfaction among customers in Kenya's Coastal region hotels, while descriptive statistics was employed to collect data on demographics. It was found that hoteliers in the Kenyan coastal region gave guests' happiness top priority and put a number of measures in place to raise and maintain visitor contentment. It was found, however, that not all tactics improved guest pleasure. The study found that measures to conserve water and energy enhanced client fulfillment in hotels along the country's coast. On the other hand, labor cost-cutting tactics had a detrimental impact on hotel visitors' pleasure. Cutting labor costs in order to increase guest pleasure has an adverse relationship with customer satisfaction (r=-0.1116). Customer fulfillment and measures to save water and energy have a favorable link (r= 0.09). It was determined through the summary of the model that variations in energy and water saving measures, as well as a decrease in labor costs methods, were responsible for 42.7% of the variations in satisfaction among visitors in hotels (R squared= 0.42). The findings of the research are significant for regulators since they can be used to create regulations for the hotel and restaurant industry that will aid hotels in maintaining and enhancing customer happiness. The results of the research can also teach hoteliers about how cost-cutting measures affect their clients. It also advocated adopting an organized outsourcing approach and setting up regulations to make sure hotels adopt conserving water and energy measures. The most recent and efficient supply chain management methods need to be taught to leaders
Open Access
Business Information Tewchnology Strategic Alignment Maturity and Business performance :A study of the Banking Insdustry in Kenya
(International Journal of Technology and Systems, 2018-12) Chege, Stanley; Wanyembi, Gregory; Nyamboga, Constantine
Purpose: The study aimed at establishing the relationship between the IT enterprise architecture maturity and the business performance for the banking industry in Kenya. Methods: The study involved analyzing qualitative data first and then the quantitative data. The study employed stratified sampling. The population was made up of 39 banks. The 6 Tier banks were the sample size of the study. The participants were the CEO, CFO and CIO of these banks. The study used correlation design (multiple regression). Results: The results from the assessment of the six Tier-one banks show that some banks clearly do a better job of imbedding the best practices in IT enterprise architecture. The higher alignment maturity levels are linked with better business performance measures including the ROA and NPM. Unique contribution to theory, practice and policy: Achieving significantly higher levels of IT enterprise architecture maturity across a wider range of organizations is a long-term journey. The journey in each organization begins with a complete assessment of how business views IT and how IT views business. The journey continues with how business and IT executives work together to close the gaps and improve the performance of the organization. And in the quest for continuous improvement within a dynamic global environment, the journey may never end.
Open Access
The effects of contractual requirements on financial perforance of mandera county government head office project
(Mount Kenya University, 2024-02) Billow, Hassan Ali
The study's purpose was to evaluate the effects of contractual requirements on financial perfor- mance: a case study of Mandera County Head Office. A project to build the head office of the Mandera County Government. The objectives was to determine the effect of compliance with reg- ulations and standards on the Mandera County Government Head Office Project's financial per- formance. To determine the effect on compliance with pre-qualification procedures of the Mandera County Government Head Office Project's financial performance. To investigate the effect of com- pliance with supervision practices on the financial performance of the Mandera County Govern- ment Head Office Project and to determine the effect of contract definitioncontracts on projects financial performance of Mandera County Government Head Office Project. Agency Theory, Stra- tegic Choice Theory served as the theories that’s guided the study. For this study, a case study research design was adopted. There were 120 responders in the target population. The study em- ployed a stratified random sampling technique. The study made use of the sampling table found in Appendix III by Krejcie and Morgan (1970), which shows that 92 is the sample size when the population is 120. The information was gathered through surveys, secondary sources, and annual reports. Quantitative methods were used to analyze the data. The SPSS program, version 21, and descriptive statistics like the mean, percentages, and standard deviation were used to examine the quantitative data. The dependent and independent variables in the study were compared using var- iance analysis and multiple regression analysis. The results of the analysis were displayed in tables. The study found out that respondents perceive the companies undertaking the projects to have some level of experience. The companies taking part in the bidding process, according to the re- spondents, are participating at a somewhat lower level. The majority of respondents think that oversight procedures have a significant impact on a project's financial performance. The majority of respondents firmly concur that contract definitions can significantly affect a project's financial performance. It can be concluded that respondents generally perceive the companies undertaking the projects as having some level of experience. Respondents generally believe in the importance and effectiveness of pre-qualification practices in project management. Respondents generally be- lieve in the importance and effectiveness of supervision practices in project management. Most respondents concur that contracts with clear definitions improve projects' financial performance. The study recommends that companies involved in these projects should communicate their expe- rience, reputation, financial stability, and compliance with regulations more effectively to alleviate any concerns among stakeholders. Companies should work on promoting their participation in the bidding process to improve their perception among stakeholders. Companies should communicate their effective supervision practices more effectively to stakeholders, emphasizing the impact on financial performance and the avoidance of delays. Given the importance of clear contracts in project management, it may be beneficial to focus on improving contract clarity and communica- tion regarding financial aspects and associated penalties.
Open Access
Influence of procurement management practices on operational performance of Nakuru Level 5 Referral hospitals in Nakuru county, Kenya.
(Mount Kenya University, 2024-07) Njiri, Josephine Wairimu
Every business needs procurement management since it is an essential component of every activity the firm engages in, making it a strategic and crucial role. This study looked into how procurement management procedures affected the level 5 referral hospitals in Nakuru County, Kenya, in terms of their operational performance. The study's goals were to ascertain how procurement planning affected operational performance; investigate the impact of vendor management on performance; assess the impact of e-procurement on performance; and investigate the impact of inventory management, procurement monitoring, and evaluation on the performance of Nakuru level 5 referral hospitals in Nakuru County, Kenya. Research design for the study was descriptive. Procurement workers and upper management at Nakuru level 5 referral hospital comprised the target population. In the investigation, stratified and straightforward random sample methods were applied. A survey instrument and an interview guide were employed to gather data. Content analysis was employed for the qualitative data and descriptive statistics for the quantitative data. To demonstrate the link between variables, regression modeling was created. Tables were used to depict the data. . The study indicates that the study indicates that there was a moderate positive and statistically significant correlation between procurement planning and operational performance in Nakuru Level 5 referral hospital in Kenya (r = 0.556; p < 0.05). The study indicates that there was a moderate positive and statistically significant correlation between vendor management and operational performance in Nakuru Level 5 referral hospital in Kenya (r = 0.586; p < 0.05). This implies that vendor management enhances performance operational performance in Nakuru Level 5 referral hospital in Kenya. E-procurement and operational effectiveness at Kenya's Nakuru Level 5 referral hospital showed a moderately positive and statistically significant association (r = 0.592; p < 0.05), according to the study. According to this, Kenya's Nakuru Level 5 referral hospital performs better operationally because to e- procurement. Procurement monitoring and evaluation and operational performance at Kenya's Nakuru Level 5 referral hospital showed a somewhat positive and statistically significant link, according to the study (r = 0.579; p < 0.05). At Kenya's Nakuru Level 5 referral hospital, inventory management and operational performance have a moderately favorable and statistically significant correlation (r = 0.597; p < 0.05), according to the study. To sum up, the operational performance of Nakuru Level 5 referral hospitals in Kenya with regard to inventory management, vendor management, e-procurement, procurement planning, monitoring, and evaluation have been evaluated. Hospitals should periodically identify and analyze patients' needs, according to the report, and have an online system in place that allows for electronic requisitions. This would guarantee a seamless progression of hospital operations, augmenting the operational efficacy of the Nakuru Level 5 referral hospital. The findings of this study recommend that more research be done to determine the difficulties with procurement management procedures at Kenya's Nakuru Level 5 Referral Hospital.
Open Access
Influence of strategic management practices on Performance of national health insurance fund
(Mount Kenya University, 2024-06) Munene, Vincent
Strategic management remains crucial for organizations, regardless of their size, as it defines their success in navigating the external environment while optimizing internal resources. This study addressed a contextual problem where the National Health Insurance Fund (NHIF) in Kenya struggles to fully achieve its performance objectives despite implementing strategic management practices. The research identified a gap in understanding how specific dimensions of strategic management practices—strategic intent, formulation, implementation, and control of strategy—affect NHIF's performance. Financial strategies, technology, human resource planning, and customer service, often mistaken as strategic management practices, were re-examined under the correct strategic management dimensions. The study employed a descriptive research design to examine the influence of strategic management practices on NHIF's performance, targeting a sample size of 135 respondents selected using stratified random sampling from a population of 206 NHIF employees. Data collection was conducted using structured questionnaires, and the tools were pre-tested for validity and reliability, yielding a Cronbach Alpha index of 0.715, indicating satisfactory internal consistency. Data analysis was performed using descriptive statistics, including mean and standard deviation, and inferential statistics, specifically multiple linear regression analysis. The regression model indicated an R-squared value of 0.887, suggesting that 88.7% of the variability in NHIF's performance could be explained by the independent variables: strategic intent, formulation, implementation, and control of strategy. The adjusted R-squared value of 0.884 further confirmed the model's robustness. Findings revealed that strategic management practices significantly influence NHIF's performance. Specifically, strategic intent, formulation, implementation, and control were positively associated with improved financial management, technological adoption, human resource optimization, and enhanced customer service. For instance, financial strategies, when aligned with strategic planning, demonstrated a significant positive impact (β = 0.01, p < 0.05). Similarly, the adoption of technology as a strategic tool also showed a substantial positive effect (β = 0.01, p < 0.05). The study concludes that strategic management practices exert a substantial and statistically significant influence on NHIF's performance. This highlights the necessity for NHIF to continually refine its strategic planning processes, embrace technological advancements, optimize human resource planning, and prioritize customer service to enhance overall performance and service delivery. The recommendations emphasize the need for NHIF to develop comprehensive strategic plans, invest in modern technology, implement effective human resource management practices, prioritize customer satisfaction, and engage in continuous monitoring and adaptation to remain responsive to the dynamic healthcare environment.
Open Access
Influence of stakeholders participation on performance of constituencies development fund projects in Nakuru town east constituency, Kenya
(Mount Kenya University, 2024-07) Njeru, Zachary Mwangi
The Kenyan government established the Constituency Development Fund (also known as the CDF), a decentralized fund, on the grounds that local governments are better able to comprehend the needs of their communities. The management of the CDF has had many difficulties since its establishment in 2003, one of which has been low stakeholder participation. The goal of this study was to determine how stakeholder participation affected the CDFs' performance in Kenya's Nakuru Town East Constituency. The purpose of this study was to ascertain whether or not stakeholder participation in the selection of CDF projects had an effect on CDF management. This study aims to ascertain the impact of stakeholders' involvement in project planning on CDF project performance, explore the impact of stakeholders' involvement in project implementation on CDF project performance, and evaluate the role of stakeholders in CDF project monitoring and assessment in Kenya's CDF Nakuru town East Constituency. The study's target population comprised of 160 respondents who were from the Nakuru town East constituency, who were representatives of CDF programs. Both quantitative and qualitative data were evaluated using descriptive statistics. The Statistical Package for Social Sciences (SPSS) version 20 was used to code and enter the data gathered from the questionnaires into a computer system for descriptive statistical analysis. Multiple regression analysis was employed in the study to examine the association between the variables. Presenting inferential statistics was done using Karl Pearson's coefficient of determination. In conclusion The study found that in the Nakuru East Constituency, project identification and CDF project performance had a moderately favorable and statistically significant connection (r = 0.527; p < 0.05). This indicates that through involving stakeholders and clearly defining the projects that are prioritized in Kenya's Nakuru City East Constituency, good project identification would increase the effectiveness of CDF programs. In addition, the study discovered that project planning and CDF project performance in Nakuru East Constituency had a moderately positive and statistically significant association (r = 0.663; p < 0.05). Project planning is an action plan that addresses the project process and offers the instruments required to plan out tasks and activities while accounting for all the demands, problems, and deliverables required to successfully engage stakeholders in the process and produce desired outcomes. The CDF project in the Nakuru East Constituency will be more effective because to this project's implicit design. Stakeholder participation, according to the researcher, is essential for project identification and for providing priority initiatives with clear guidance. As a course of action for the project process, the study suggested promoting stakeholder participation in project planning in order to give tools for organizing tasks and activities that will lead to good outcomes for CDF projects. The report also recommended encouraging stakeholders to be involved in project execution in order to ensure proper coordination of personnel and resources and project activities carried out in line with the project management plan. This will contribute to making CDF projects in Kenya successful.
Open Access
Central bank of Kenya regulatory requirement and financial performance of commercial banks in Kenya, case of Embu town.
(Mount Kenya University, 2024-09-09) Wario, abduba
Despite the 2013 CBK prudential standards' implementation, which governs commercial banks in Kenya, proposed project aimed at investigating the impact of various prudential standards set by the Central Bank of Kenya (CBK) on monetary ability of banks in Embu town. The study focused on three specific prudential standards: minimum capital requirements, reserve requirements, and central bank publication of commercial bank charges on loans. The study aimed in determining the connection between corporate governance and commercial banks' financial success. To achieve these objectives, the researchers planned to collect primary data from 22 significant bank officials selected randomly from the Kenyan Commercial Bank and the Family Bank in Embu Town. They will use a questionnaire to gather quantitative data. To examine data gathered, descriptive and inferential statistics were used. Theoretical foundations of research are Agency Theory and the Loanable Theory, which guide the interpretation and analysis of the findings. The ultimate goal of the study is to provide empirical data that can help Kenya's central bank in evaluating financial stability of commercial banks in Embu town. Potential benefits in this project include shedding light on impact of prudential standards on bank performance, providing insights into the effectiveness of corporate governance in the banking sector, and offering valuable data for further studies in this area. Fifty nine point one percent of Survey respondents are aged between 25 to 30 years thus most of participants are aged between 25 to 30 years in commercial banks. Sixty eight point two percent of survey respondent have degree and twenty seven point three percent of the respondents have masters level. Therefore most of respondents have degree level in their education. Forty five point five percent of respondents have worked for 2 to 5 years as credit manager in this institution, twenty seven point three percent of respondents have worked for 6 to 10 years and four point five percent of respondents have worked for 11 years and above thus most of the respondents have worked for 2 to 5 years. The research findings indicate that the financial performance is impacted by the regulatory requirements of the Central Bank of Kenya, specifically in terms of capital requirements.. Thirty one point eight percent of respondents depicted capital requirement structures of banks are highly regulated, eighteen point two percent of the respondents agree, while forty five point five percent of respondents were uncertain. The study recommends central bank should have a policy which ensures commercial bank should have adequate capital requirement. This policy will ensure banks are well regulated thus protecting the welfare of all the stakeholders. The bank should also supervise and oversight their systems which enables them to compute minimum capital requirements adequately.
Open Access
Determinants influencing loan repayment of government Funding on performance of youth groups, a case of youth fund in County government of Kwale, Kenya
(Mount Kenya University, 2024-07) Omwenga, Valentine Nyanchama
The County Government of Kwale established the Youth Fund with the aim of empowering its young population. Nevertheless, achieving this goal has been hindered by the occurrence of a significant default rate, leading corporations to incur losses by reducing the value of these debts from their revolving funds. The purpose of this study was to evaluate the impact of loan amount on the repayment of government funds provided to youth organizations in Kwale County Fund Kenya, objectives were to assess the impact of existing legislation on the repayment of government funds by youth organizations in the Kwale County Government. Examine how the borrowing process affects the repayment of government funding by youth organizations in the Kwale County Youth Fund. To determine the influence of group leadership on the repayment of government funding by youth organizations in the Kwale County Youth Fund. The study was grounded in empowerment theory, group funding theory, and joint liability theory. The study employed a descriptive survey methodology and focused on 860 young individuals from 60 distinct groups in several sub-counties under Kwale's county administration. A sample of 270 participants was chosen using stratified and simple random selection methods. The sole instrument for collecting primary data in this study was questionnaire. Data analysis was conducted using the Statistical Package for Social Sciences version 2.0. The data was presented using the measures of central tendency, specifically the mean, and the measure of dispersion, specifically the standard deviation. The data was displayed using frequency tables, histograms, pie charts, graphs, and percentages. Additionally, a univariate analysis was performed. Regression analysis was employed to utilize. Based on the findings the study concluded that the study indicates that was a moderate positive and statistically significant correlation between amount borrowed and performance of youth fund in Kwale county, Kenya (r = 0.531; p < 0.05). The study indicates that there was a moderate positive and statistically significant correlation between Kwale County Government Act and performance of youth fund (r = 0.591; p < 0.05). The study indicates that there was a moderate positive and statistically significant correlation between borrowing procedure and performance of youth fund (r = 0.589; p < 0.05). The study indicates that there was a moderate positive and statistically significant correlation between group leadership and performance of youth fund (r = 0.690; p < 0.05). Based on the findings of the study, the researcher recommended that amount borrowed by youth groups should be should be equal to Loan granted, grace period provided ought to be extended and loan interest should be determined by a borrower's or a group's capacity. The loan laws should be accommodative and borrowing procedure should be clear, motivating and efficient. The group leaders should possess leadership abilities and should be aware of the repercussions of loan default to enhance loan repayment and performance of youth fund in Kwale County, Kenya. This study suggests that future studies should be done to establish challenges facing accessibility of youth funds in Kwale county government in Kenya.
Open Access
Influence of corporate response strategies on performance of county pension fund in Nairobi county, Kenya
(Mount Kenya University, 2024-04) Wambile, Mary Christmas
Pension funds are very important to raise funds for employees and employers. However, Kenya's county pension funds are struggling with challenges mainly due to low employee morale, declining efficiency, lower profitability at the fund level and customer dissatisfaction. The main objective of this study was to determine the corporate response strategies that affect the performance of the Kenya County Pension Fund. The specific objective of the study was to find out the effect of product diversification; to strengthen the influence of the strategic alliance; assess the impact of staff training and development and identify the impact of differentiation in the Kenya County Pension Fund. The research was based on social security theory, Porter's five forces model, resource-based view and dynamic capability theory. This study adopted a descriptive design. The target group was 340 employees of the District Pension Fund. A sample size of 146 respondents was determined by proportional stratified random sampling. The research instrument of this study was questionnaires. A pilot test was conducted in Marsabit District to test the reliability and validity of the research instrument with Cronbach's alpha coefficients above 0.7. The collected data were presented in tables. Data analysis was performed using SPSS to generate descriptive statistics, which are means and standard deviations for regression and correlation analysis, as well as inferential statistics. Ethical considerations were followed at every stage of the study. Based on the results, the study concluded that there was a moderate positive and statistically significant correlation (r = 0.579; p < 0.05) between product diversification and performance of Kenya County Pension Fund. The study shows that there was a moderate positive and statistically significant correlation (r = 0.568; p < 0.05) between strategic alliances in Kenya County Pension Fund. The study shows that there was a moderate positive and statistically significant correlation (r = 0.5718; p < 0.05) between employee training and performance development in Kenya Pension Fund. The study shows that there was a moderate positive and statistically significant correlation (r = 0.594; p < 0.05) between the diversification strategy of Kenya County Pension Fund. This means that the diversification strategy will improve the performance of the Kenya Pension Fund. The researcher recommends entering a new market. The organization must respond to customer needs by developing new products and forming alliances with other organizations so that the organization can better serve the market and reduce costs. The organization should train staff with new skills to improve the performance of the Kenya County Pension Fund. This study suggests that future research should be conducted to establish product diversification strategies for the performance of the Pension Fund of Kenya.
Open Access
The effect of trade liberalization on economic growth in Kenya
(Mount Kenya University, 2024-07) Chukwu, Tochi Maryblossom
Trade liberalization and its impact on economic growth has been a subject of debate for many years both at international and local level. The debate has been lengthened by the fact that there are not theoretical underpinnings that directly link trade liberalization to economic growth or are there any absolute terms and conditions by which trade liberalization leads to economic growth. Trade liberalization is the removal or reduction of barriers to trade that ensures free movement of goods and services from one nation to another. Kenya liberalized their trade with the hope of having dynamic gains from trade, and that the liberalization will lead to economic growth and, consequently, improve welfare. However, its key development challenges still include poverty, inequality, youth unemployment, continued weak private sector investment, and the vulnerability of the economy to internal and external shocks. This study aims to examine the effect of trade liberalization on economic growth in Kenya and finding empirical answers to this phenomenon is what motivated this study. The objective of the study is to examine the effect of manufacturing output, foreign direct investment and import on Kenya’s GDP. Foreign direct investment, import and manufacturing output will be tested to determine their effect on the Kenyan economic growth. The underpinning theories for this study are the theory of comparative advantage, Heckscher-Ohlin factor endowment theory and the new trade theory. This study adopted descriptive research design. Time series data spanning 1990 to 2022 was used for the study. The data was meticulously sourced from the World Bank. Time series diagnostic tests were carried out on the data. This study adopted descriptive designs. Vector Autoregressive (VAR) model was applied. Results showed that Foreign direct investment inflows to Kenya(β= -17.345, p=0.005<0.05), imports of goods and services (β=2.259, p=0.045<0.05) and manufacturing output (β=8.421, p=0.001<0.05) had a significant effect on economic growth in Kenya. In conclusion, these findings imply that although foreign direct investment (FDI) may have negative effect on Kenya's economic growth, other factors such as imports and manufacturing output support economic growth. In order to support long-term economic growth, Kenyan policymakers are recommended to consider ways to draw in beneficial FDI while simultaneously emphasizing the manufacturing sector. Furthermore, trade policies that facilitate imports led-growth could also be beneficial for the economy. Future researchers are recommended to focus on trade liberalization and public budget this will examine the relationship between trade liberalization and government income and expenditure in developing nations.
Open Access
Automated procurement systems on performance of service industry in Kenya- a case of Kenya Airways.
(Mount Kenya University, 2024-06) Murungi, Roseanne Kiende
The research aimed at analyzing the effects of automated procurement systems in the service sector in Kenya in reference of Kenya airways. The study recognizes the importance of effective procurement performance in enhancing operational efficiency and service quality in service based institutions. By use of a systematic and comprehensive automated procurement system, the research aimed to provide valuable insights into improving procurement performance in the service sector in Kenya. Specifically, the study sought to establish the effect of automated procurement systems on procurement performance of Kenya Airways. The study adopted a descriptive research design. The target population of the study was 80 staff working in the Supply Chain department of Kenya Airways at its headquarters in Embakasi, Nairobi County. The research utilized primary data, that was gathered from the self-administered questionnaires. During data analysis, the research info was assessed via descriptive statistics utilizing the SPSS version 28.0 (statistical Package for Social Science ) as well as being presented via standard deviation, mean, frequencies as and percentages. Furthermore a linear regression assessment was utilized towards analyzing the relation between the variables of the research. The results revealed that the study respondents agreed that use of bar coding systems helped to ease inventory retrieval process, e-auctioning transactions disregarded discrimination as well as prejudice in the selecting the suppliers; desktop purchasing improved the level of competitive bidding and e-catalogue services improved supplier/customer relationships and communication. Thus, the study concluded that automated coding systems, e-auctioning transactions, desktop purchasing and e-catalogue services as e-procurement practices that played a significant role in enhancing procurement performance of Kenya Airways. The study recommended that Kenya Airways, and other all other parastatals and government departments by extension, should adopt a holistic approach in reforming their procurement processes that will not only be limited to automation of various procurement aspects but also building the capacity of their staff and suppliers on how to work on various e-procurement platforms.Therefore, the study concludes that automated coding systems, electronic auction transactions, computerized purchasing services and electronic catalogs are e-procurement activities that have played an important role in improve Kenya Airways’ supply chain performance.
Open Access
Effects of spreading interest rates on financial performance of commercial banks in Kisii town
(Mount Kenya University, 2024-05) Ngala, Ronald Khaggayi
Banks hold a central role in daily financial transactions, making it crucial for them to operate with effectiveness, efficiency, and competitiveness. One sensitive economic variable in this context is the interest rate spread, which should be harmoniously balanced to assure savers of optimal returns on their investments and to provide borrowers with reasonable lending rates. This study aimed to evaluate the influence of interest rate spreads on the financial performance of commercial banks in Kisii town. The study has multiple objectives, including assessing the impact of cash lending on the financial robustness of these institutions, investigating how loan repayment rates affect their financial health, and examining the influence of domestic savings rates on their performance. The research was grounded in the Profit Maximization and Dealership models, which offer theoretical frameworks for understanding the operational and financial dynamics at play. The methodology featured a descriptive survey research design. The target population comprised of 227 individuals employed in commercial banks in Kisii town. A census technique will be used to determine the sample size for the study. Data collection was primarily carried out through questionnaires and semi-structured interviews. To ensure the reliability and validity of the research instruments, a test- retest method was used for the former, while the latter will underwent validation through academic supervision. For data analysis, a combination of descriptive and inferential statistical tools were employed. Frequencies, percentages, and chi-square tests were utilized to interpret the collected data. Qualitative data gathered from interview schedules was subject to thematic analysis. The research findings were displayed through various graphical representations such as tables, figures, graphs, and charts. The study anticipated that its findings served as a valuable resource for commercial banks in Kisii town, aiding in the enhancement of their profitability and growth.
Open Access
Influence of ethical procurement practices on performance of Kitui county government, Kenya
(Mount Kenya University, 2024-07) Mumangi, Janet Mutune
The government has been making great efforts in averting the vices that have for long been associated with the procurement processes within government entities in Kenya. Main purpose of this study was to investigate the influence of ethical procurement practices on performance of Kitui county government. The specific objectives of the study included: to examine the influence of transparency practice on performance of Kitui county governments in Kenya; to establish the extent to which accountability practice influence performance in county governments in Kenya; to investigate how professionalism practice influence the performance of Kitui county governments in Kenya and finally to determine the influence of Competition in procurement on performance of Kitui county governments in Kenya. The study was underpinned in three theories; principal-agency theory, systems theory and utilitarianism theory. A descriptive research design was used and which employed both quantitative and qualitative methodologies. The researcher used the sampling method to sample all the 589 employees from seven departments as the total population. Data collection tool was mainly a questionnaire which was administered by the researcher to the respondents. These responses were therefore analyzed using SPSS software version 24 in order to draw results from them. The correlation and multiple regression analysis were conducted and the results presented in the form of frequency distribution table and charts upon which conclusions were done. To ensure the reliability of our findings, the researcher applied the internal consistency technique, leveraging Cronbach’s alpha. The findings indicate that there existed a positive and significant relationship between transparency practice and overall performance of employees in Kitui County government, Kenya with coefficient of correlation ( r = 0.617, p = 0.000). It was also observed that accountability practice has a positive relationship with performance of procurement process in Kitui County government, Kenya with coefficient of correlation ( r = 0.107, p = 0.000). The results established that professionalism practice has a significant positive relationship with performance of procurement practitioners in Kitui County government, Kenya with coefficient of correlation (r = 0.377, p = 0.000). Finally the findings indicated that there was a slightly significant positive relationship between competition practice and employees’ perfomance in Kitui County government, Kenya with coefficient of correlation (r = 0.017, p = 0.000). It was therefore concluded that; the procurement process needs to embrace transparency, competition, accountability and professionalism. The study recommended that procurement rules and regulations should be put into place and strictly adhered in every step of the tendering process to ensure transparency. Procurement officers should be given enough room to make their own independent decisions without any undue influence from their seniors to ensure accountability. Employees should be trained regularly in their areas of specialization and later given room to exercise that what they have trained in. regular reviews of their performance should also be undertaken to enhance performance. To increase on competition, there should be no collusion between procurement officers and the contractors and also senior officers should not influence the outcome of the tendering process.
Open Access
Effect of strategic positioning on competitive advantage of animal feeds manufacturing firms in upper Eastern and Central Kenya
(Mount Kenya University, 2024-06) Kairira, Peter Mwika
Over time, enhancing a company's performance had mainly involved securing a competitive position compared to industry peers. There was a growing focus on understanding how to establish and maintain a competitive advantage in the face of increasing competition. A competitive advantage results in improved performance by cultivating greater customer loyalty, heightened satisfaction, improved financial outcomes, and a larger market share. As a result, organizations were increasingly working to strategically position themselves within their industries to surpass competitors. Despite implementing various strategic changes to maintain a competitive edge, companies in the animal feed manufacturing sector, including those in the central and upper east regions of Kenya, confront intense competition from both established and new players. This study aimed to evaluate the impact of strategic positioning on the competitive advantage of animal feed manufacturing firms in Upper Eastern and Central Kenya. The specific research objectives will involve investigating the influence of continuous improvement, strategic leadership, strategic assets, and product differentiation on the competitive advantage of animal feed manufacturing firms in Upper Eastern and Central Kenya. The competitive advantage theory, the capability- based view theory, the market-based view theory, and the resource-based view theory will all provide insights into the research. Employing an explanatory research design, the study will focus on 96 animal feed manufacturing firms in Central and Upper Eastern Kenya. The selection process purposefully chose branch managers and operations managers or their equivalents from each firm, forming a sample size of 192 respondents. The census methodology was applied, covering the entire population and chosen based on the desired level of precision. Primary data was collected through research questionnaires, and descriptive and inferential statistics was utilized for data analysis. The research will adhere to ethical standards and principles, presenting the findings through charts and tables. Charts and tables were utilized to present the findings of the study. The conclusions drawn from the results suggest that implementing continual enhancement yields a beneficial and noteworthy impact on competitive advantage within the Animal feeds manufacturing firms in Central and Upper Eastern Kenya. Similarly, the adoption of strategic leadership exhibits a constructive and considerable influence on competitive advantage within Animal feeds manufacturing firms in Central and Upper Eastern Kenya, as does the utilization of strategic assets and product differentiation. The study advises animal feeds manufacturing firms to prioritize bolstering strategic leadership across managerial echelons, from mid-level managers to top executives, to ensure they grasp their responsibilities in fostering and preserving competitive advantage over the long haul.
Open Access
Analysis of accounting information systems on financial Performance of commercial banks in Kenya: a case of first Community bank and Dubai Islamic bank
(Mount Kenya University, 2024-07) Soirmi, Abdoulkarim Ahmed
Accounting information system serves as common weapon in managers' hands today as they battle to keep a competitive edge despite the rapid advancement of technology, growing public knowledge, and demanding requirements from clients and business owners. This study examined how accounting information systems affect First Community Bank and Dubai Islamic Bank's financial performance. The study sought to find the connection between AIS and the state of commercial banks' finances. The specific objectives were: to analyze the impact of internal control systems on the financial performance of commercial banks, the contribution of ICT systems to that performance, and the impact of ERP systems on that performance. Descriptive research design was used. As a result, 167 employees were chosen as a sample size out of the 289 listed employees from First Community Bank and Dubai Islamic Bank using the proportionate stratified random sampling technique. Using Yamane's procedure, a 95% confidence level and 5% confident interval were used to get the sample size. The contingency theory, the agency theory, and the resource-based view theory guided the study. Inferential and descriptive analysis were done. Information gathered was presented in tables, graphs and figures. Internal control system was statistically significant in explaining financial performance (β =0.493, p < 0.05), internal control system was significant to financial performance of the identified commercial banks (r=0.836, p=0.000). Results indicated a positive relationship between ICT and financial performance of commercial banks (β =0.226, p < 0.05). Similarly, there was a positive and significant association between ICT(ICT) upon the development of commercial banks' financial performance (r=0.765, p=.0.000). ERP system was statistically significant in explaining financial performance (β =0.257, p < 0.05). ERP systems had a positive and significant correlation with commercial banks' financial performance (r=0.715, p=0.000). This study concludes that internal control systems serve an important role in supporting performance of commercial banks. Internal control systems allow commercial banks to provide accurate and timely financial data. Financial institutions performance is greatly influenced by ICT. ERP is a key factor in the high performance of financial institutions. This study recommended that commercial banks take proactive steps in establishing robust internal control systems that have the capacity to greatly enhance accountability within their operational frameworks. Commercial banks should not only acknowledge the importance of ICT but to actively prioritize substantial investments in cutting-edge ICT systems. This study recommends that commercial banks integrate robust ERP systems into their operational framework in order to achieve and maintain optimal performance levels.
Open Access
Effect of contract management phases on supply chain performance among manufacturing firms in Nairobi county, Kenya
(Mount Kenya University, 2024-05) Kamau, Peter Mugumu
Contract management entails process which ensures parties to the contract undertake the contracts as per the objectives and obligations in the contract. Contract management also involves execution of roles and responsibilities through creation of conducive working relationship to all parties in the agreement. The objective of the study was to establish effect of contract management phases on supply chain performance among manufacturing firms in Nairobi County. The population of the study was manufacturing companies which are based in Nairobi, Kenya. Nairobi has 640 manufacturing firms. The sample size of this study consisted of 246 supply chain managers in manufacturing firms in the Nairobi, obtained through stratified sampling and randomly selected. Self- administered questionnaire were used to collect data from the respondents. The quantitative data was coded and grouped into to various categories, percentages, frequencies, means were derived and presentation done through tables for compiling the study. The study found that pre-contract phase, solicitation, contract execution phase, post award phase influenced supply chain performance as per correlation analysis. The findings indicted buyer specifications are emphasized at pre-contract stage, the contract is signed at execution stage and deliverable during post ward phase and all the stages are crucial for supply chain performance at manufacturing firms. The study concludes that manufacturing firms depend highly on the clear contract singing and fulfillment of the contractual obligations by all parties across the phases. The study also concludes that the success of the firm will depend on efficiency in supply chain therefore; the management should ensure that there are no lapses in the procurement process. The study recommends that there is need for manufacturing firms in Kenya to invest in constant training of their employees on effective contract management across all the phases to enhance their performance. The study also recommends that manufacturing firms in Kenya should put in place appropriate measures that ensure that potential risks regarding contract management phases, detected in advance, and mitigated to enhance operational performance.
Open Access
Influence of business process outsourcing on competitive advantage of listed manufacturing and allied companies in the Nairobi Securities Exchange
(Mount Kenya University, 2024-04) Omae, Ben Maoga
In order to gain a competitive advantage from the market's potential, future-centric businesses need to use their resources more strategically. Supplier development is an emerging trend that can help businesses boost and maintain organizational performance. This strategy involves building, increasing, growing, and sustaining the core competences and skills of the supplying firm(s) to primarily fulfill the buying firm's short- and/or long-term supply needs. It is a planned long-term business strategy that requires a cooperative effort. The study sought to determine the influence of business process outsourcing on competitive advantage of listed manufacturing and allied companies in Nairobi Securities Exchange. Three specific objectives; to determine the influence of local outsourcing activities on competitive advantage of listed manufacturing and allied companies in Nairobi Securities Exchange, to ascertain the influence of offshore outsourcing activities on competitive advantage of listed manufacturing and allied companies in Nairobi Securities Exchange, and to assess the influence of nearshore outsourcing on competitive advantage of listed manufacturing and allied companies in Nairobi Securities Exchange. The study was guided by three theories that include Resource-Based View Theory, Resource Dependency Theory, and Market Based View Theory. This study adopted a descriptive research design. The target population consisted of management staff of 9 manufacturing firms listed in the NSE. There were 1,440 management staff in the listed manufacturing companies. The researcher used stratified random sampling technique to come up with the required sample. The strata were based on top and middle level management staff in selected organizations. The sample size of the study was established at 313 respondents which constituted the sample population for the study. The study employed primary data foundations in getting-together data for analysis. The primary data source was collected from a questionnaire consisting of both open and close-ended questions. Quantitative data from the questionnaire was coded and entered into the computer for computation of descriptive statistics. The researcher used SPSS Version 24.0 to run descriptive statistics (frequency and percentages). Multiple regression analysis was also used to test the influence of independent variables on dependent variables. The quantitative data was presented in tables and graphs based on the study research questions. The study sought to determine the influence of local outsourcing to creating competitive advantage in listed manufacturing and allied companies in Kenya. The findings showed that local outsourcing was crucial in the day to day operations of the organizations. The study also found that companies that outsource information technology are often able to compete effectively and focus more on their core activities. The findings revealed that offshore outsourcing was in existence and hence contributed to some extent to the competitive nature of the organizations. The study also found that outsourcing of virtual assistance efforts enables employees and organization adjust to current conditions and the firm can compete effectively and focus more on their core activities. The study found that local outsourcing, offshore outsourcing, and nearshore outsourcing were all significant on the competitive advantage of listed manufacturing and related companies in Nairobi Stock Exchange at 5% level of significance and 95% level of confidence. The study came to the conclusion that nearshore outsourcing would guarantee the company had the highest quality information, allowing the company to present its products on its website and enable users to easily connect with the website. The report advises managers to consider factors other than the obvious signs of subpar process performance when planning and executing outsourcing strategies for their business processes. Understanding the root issues is crucial before considering outsourcing as the only method to improve subpar internal performance.
Open Access
Analysis of total quality management strategy on organizational performance of processing firms in Kenya. a case of new KCC limited
(Mount Kenya University, 2024-06) Ndwiga, Nicera Wangiri
The practice of total quality management is associated with operational performance of organizations; however, it is observed that companies in developing countries, and in particular Kenya, experience a decline in performance. In 2020, the new KCC limited recorded a loss of 150 million. In addition, more customers are complaining about the quality of the milk. The purpose of this study was an analysis of total quality management strategy on organizational performance of processing firms in Kenya. A case of New KCC limited. The specific objectives were to determine the influence of supplier management, customer focus, employee engagement, and continuous process on organizational performance. The study also examined the moderating influence of operating environment on the relationship between total quality management strategy and organizational performance. The theories of social capital, open systems, two factors, and overall quality management served as the foundation for this study. An explanatory research design was used in the study. Target population comprised of 110 members of the new KCC management team. Given the small target population, the study employed the census approach. Primary data was gathered using a questionnaire. Delivering the questionnaire, the researcher had two study partners help. The drop-and-pick method was then used. To increase the number of responses, surveys were also disseminated by email. Both descriptive and inferential statistics were used to analyze the data. The research findings were calculated and analyzed using SPSS Version 22 (Statistical Package for the Social Sciences). Diagrams and tables were used to display the results. The results of the study were anticipated to make a contribution to strategic management theory, practice, and policy. From the results, it was observed that there is a positive and also significant correlation between continuous process improvement, supplier management, customer focus, employee involvement and organizational performance. Regression analysis results also revealed a positive and significant relationship between continuous process improvement, supplier management, customer focus, employee involvement and organizational performance. Accordingly, the study came to the conclusion that employee involvement, supplier management, customer focus, and continuous process improvement all promote organizational performance. The study also concluded that operating environment will affect the effect of TQM strategies on organizational performance when they are adopted as a whole but will negatively affect the effect of each strategy when adopted alone. The study made suggestions that firms in Kenya should adopt these TQM strategies. The study also made recommendations that policy makers in government are recommended to formulate policies that will address the negative effect of the firms operating environment on the effect of TQM strategies on organizational performance.
Open Access
Environmental accounting costs and financial performance of cement manufacturing firms in Coast region, Kenya
(Mount Kenya University, 2024-03) Mwarabu, Salim Hassan
Within the industrial landscape, the environmental impact of manufacturing operations has raised concerns about the associated costs for environmental remediation. This study delves into the interaction between these environmental accounting expenses and the financial performance of Cement manufacturing firms in Coast region, Kenya, moderating effect of corporate governance over the 2018-2022 periods. The research objectives were as follows: To analyze the influence of environmental remediation costs on financial performance, to evaluate the correlation between social activity costs and financial performance, to assess the effect of restoration cost on financial performance, to investigate the effect of upstream/downstream costs on the financial performance of Cement manufacturing firms in Coast region, Kenya moderated by corporate governance. The study was drawn from four foundational theories: Stakeholders Theory, Legitimacy Theory, Positive Accounting Theory, and Luhmann's Theory of Ecological Communication. These theories provided lenses to examine the intricate relationship between environmental costs and financial outcomes. Methodologically, a descriptive research design was employed, combining quantitative and qualitative approaches. The participant pool comprised 56 respondents, including Managers, Accountants, and Auditors. Data collection involved structured questionnaires for primary data and annual reports/accounts for secondary data from Cement Manufacturing Company Ltd in Coast Region. Data analysis encompassed descriptive statistics such as mean and standard deviation as well as inferential statistics including regression and correlation analysis using the Statistical Package for the Social Sciences (SPSS). Findings of the study indicated that environmental remediation cost (r=0.235, p=0.000), social activities cost (r=0.248, p=0.092) and environmental remedial cost (β = 0.538, p-value=0.000) all have positive and substantial link between environmental costs and the financial performance of coastal cement producing enterprises. It confirmed that corporate governance acts as a moderator P-value of 0.003 in the relationship between the predictor variables and outcome variables. Therefore, the inclusion of the indicated environmental cost clearly benefits the company by enhancing its image and boosting its financial performance in the eyes of its stakeholders. The study also concluded that there was a significant requirement to bear the expenses of environmental accounting for environmental remediation and restoration. The study suggests that organizations should incorporate the aforementioned environmental accounting costs into their annual reports as part of their corporate governance standards, especially considering the global adoption of green initiatives.
Open Access
Influence of tax management strategies on performance of Boda Boda industry in Bungoma county-Kenya
(Mount Kenya University, 2024-07) Mutoro, Moses Wanyama
A practical means of transportation and a lifeline for many families, the boda boda sector has had a profound effect on Kenya's economy since its inception. The industry has shown great promise in producing large income, despite its relative youth. The purpose of this study was to examine how tax management tactics in Bungoma County, Kenya's boda boda business affected economic performance. In particular, the research looked at how boda boda sector performance was affected by company structure, cash management, tax payments, and tax credit leveraging. The study used a descriptive research approach and surveyed 2,327 boda boda drivers in five of Bungoma County's sub-counties. According to the chart by Krejcie and Morgan (1970), 331 individuals were chosen at random using stratified sampling. Preliminary research confirmed the validity and reliability of the tools used for data collection, which included structured questionnaires and interview guides. With a Cronbach alpha of 0.73, the dependability was found to be excellent. Data was analyzed using descriptive and inferential statistical techniques. Tables were used to show the results, while qualitative data was analyzed using theme analysis. According to the research, the boda boda sector's performance is greatly affected by different tax management tactics. Operators' entrepreneurial abilities and academic achievement are improved by using appropriate company structures, such as sole proprietorships and partnerships, according to key studies. Many boda boda riders have trouble getting loans since they don't have collateral, thus being able to manage their daily financial flow is vital. Important elements in enhancing the sector's performance include the use of electronic payment systems and efficient tax payment methods. The boda boda industry's success was shown to be statistically associated with tax management measures, according to chi-square tests. Research shows that this industry performs better when businesses are structured correctly, when partners are formed, when cash is managed efficiently, when taxes are paid in full and on time, and when tax credits are used via electronic payment systems. Based on the findings, these tactics are critical for Bungoma County's boda boda sector to continue growing and thriving. Policymakers and the community should use different tax management measures to boost the sector's performance, according to the study's recommendations. To improve cash management and tax compliance, it is important to encourage boda boda operators to become more entrepreneurial, increase their access to loans, and use electronic payment methods. In order to improve their financial management and company operations, boda boda operators also need ongoing training and capacity development. This research sheds light on the boda boda industry's economic potential and limitations, which is important for community members, policymakers, and academics. The boda boda industry can keep making a difference in Bungoma County and beyond by fixing the problems we've found and applying the solutions we've proposed. This will lead to more jobs and better living conditions for people. Investigating other variables that could affect the boda boda industry's success, as well as the long-term effects of these techniques, should be the focus of future studies. Findings from the research also stress the need for policy measures and government backing to foster an atmosphere conducive to boda boda expansion. Working together, we can help the boda boda business flourish sustainably, which would be good for Kenya's economy as a whole.