Factors influencing financial performance of animal feeds manufacturing companies in selected counties in Kenya.

Abstract

The financial performance of some animal feeds manufacturing companies have been questioned because of the way they are closing their operations and some companies have been declared under receivership for various reasons. The main objective of the study was to determine the factors influencing the financial performance of animal feeds manufacturing companies’ in Kiambu and Nairobi Counties. The specific objectives were to determine how the Manufacturing expenses, loan management, working capital, and demand influence the financial performance of the animal feeds manufacturing companies Kiambu and Nairobi Counties. The aim of this Study was to help to determine those factors which were influencing the financial performance of animal feeds manufacturing companies and leading some companies to close the operations.The target population consisted of Sixty one companies and census method was used to collect the data for five years from secondary sources. The Association for the animal feeds manufacturers in Kenya (AKEFEMA) and Kenya National bureau of statistics (KNBS) assisted in providing the secondary data which assisted in providing the final results. The data was analyzed through panel data analysis and STATA software was used to get the results and the interpretations are provided. The data is presented through the use of tables, graphs and figures. The study evaluated the dependent variable and the independent variables in order to find if there is any relationship which exist or not using the STATA software results.The findings from this study indicated that there is a significant relationship between the demand for animal feeds and the financial performance. The findings from this study also indicated that there is no significant relationship between the manufacturing expenses, loan management, working capital for animal feeds manufacturing companies and the financial performance.