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Supply shocks and fuel price fluctuations in Kenya.
(JEFMS, 2024) Ondabu, Ibrahim Tirimba.; Ouma, Julius Gordon.
Governments are on the edge to make the economy more conducive to both investors and its citizens in oil and petroleum businesses. Some challenges are however still hindering the provision of fuel at stable prices. The study's independent variables were: inflation rate shocks, world oil price shocks, pipeline cost shocks, and currency exchange rate shocks. The population of the study was identified to be Kenya’s economy while the unit of analysis was the Energy and Petroleum Regulatory Authority (EPRA). The study adopted a time series data design for 8 years from 2015 to 2022 in monthly intervals to make 96 observations. Stata version 13 was used to assist in data analysis and presentation after the data went through a diagnostic test. VECM model was employed to analyse the relationship between the variables after which conclusions and recommendations were made. The study established that the rate of inflation rate shocks, world oil price shocks, and pipeline cost shocks have a significant effect on fuel price fluctuation while currency exchange rate shocks have a significant negative effect on fuel price fluctuation. The study recommends that the government should establish tax subsidies to control the impact of tax proportions on fuel prices and also that the government of Kenya needs to enter into a contractual agreement with the Organization of Petroleum Exporting Countries (OPEC) nations on oil deals for a steady supply of crude oil at a favourable price.
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Impact investing in sustainable agricultural technologies and sustainable livelihoods for dairy farmers.
(European Economic Letters (EEL), 2024) Ondabu, Ibrahim Tirimba.
The goal of the study was to determine how dairy producers' sustainable lives are impacted by sustainable agricultural technologies. The study used a descriptive research design. 22,644 farmers who were spread over the 5 Wards of Githunguri Sub County in Kiambu County, Kenya, made up the target population. A stratified random sampling technique was used to randomly choose the sample in each of the five wards, and the Yamane Sampling formula was applied to generate a sample of 398 respondents. The study used quantitative data, which was gathered using a standardized questionnaire. A combination of inferential and descriptive statistics was used to analyze the collected data. The analysis's findings demonstrated that sustainable agriculture methods have a major and favorable impact on sustainability.
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Role of fintech in fostering innovation and economic resilience within Islamic banking: a bibliometric and systematic literature review
(International Journal of Accounting and Finance Analytics, 2026) Njogo, Michael N.; Dallu, Abdallah M.; Korir,Fiona J.
In light of growing economic uncertainty, Islamic banking institutions are increasingly adopting financial technologies (Fintech) to enhance economic resilience and sustainability. This study explores the role of Fintech in fostering innovation and economic resilience within Islamic banking through a combined bibliometric and systematic literature review. Guided by the PRISMA framework, 98 peer-reviewed articles from 2019–2025 were analyzed, with bibliometric mapping conducted using VOSviewer. The findings reveal a growing interdisciplinary nexus between Islamic finance, digital innovation, and governance, with key themes including Shariah-compliant innovation, financial inclusion, and crisis resilience. Technologies such as blockchain, AI, and mobile banking have enhanced operational efficiency, customer engagement, and ethical compliance. However, regulatory fragmentation, cybersecurity risks, and Shariah harmonization remain persistent challenges. The study offers strategic recommendations for policymakers, financial institutions, and researchers, emphasizing adaptive regulation, user-centric innovation, and inclusive digital infrastructure. By integrating Islamic ethical principles with digital transformation, this review provides original insights into how Islamic fintech can support sustainable, inclusive, and resilient financial ecosystems globally.
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Liquidity management constraints and operational efficiency in Islamic banking systems in Sub-Sahara Africa
(Fakultas Ekonomi dan Bisnis Islam, 2026) Njogo, Michael Njoroge.; Korir, Fiona Jepkosgei.; Dallu, Abdallah Mambo.
This study examines whether liquidity management enhances or constrains the operational efficiency of Islamic banks operating in SSA, where Sharīʿah-compliant financial infrastructure remains underdeveloped. Using panel data from 35 fully fledged Islamic banks over the period 2010–2024, the study employs a bias-corrected two-stage Data Envelopment Analysis (DEA) framework with Simar–Wilson bootstrap procedures, followed by fixed-effects regression to ensure consistent inference. The findings reveal that, despite maintaining relatively high liquidity buffers, Islamic banks in SSA operate significantly below the efficiency frontier, with average bias-corrected efficiency levels of 31.8%. Contrary to conventional banking theory, liquidity exhibits only a weak and marginal relationship with efficiency. This result reflects structural features of SSA Islamic financial systems, including shallow sukuk markets, limited Islamic interbank activity, and the absence of effective Sharīʿah-compliant lender-of-last-resort facilities, which collectively constrain the productive deployment of liquidity. By conceptualising liquidity as a binding monetary constraint rather than a discretionary management tool, this study offers a novel contribution to Islamic banking and monetary economics, particularly in the context of institutionally incomplete markets. The results further show that asset quality and institutional maturity play a more decisive role in shaping efficiency outcomes once liquidity constraints bind. The findings highlight that improving efficiency in SSA Islamic banking systems requires system-level reforms, underscoring the need for Islamic monetary authorities to prioritise the development of Sharīʿah-compliant liquidity infrastructure, including active sukuk markets, Islamic interbank facilities, and credible lender-of-last-resort mechanisms.
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Income stability, earnings volatility, and efficiency in Islamic banks: evidence from Sub-Saharan Africa
(EJIF, 2026) Njogo, Michael Njoroge.; Dallu, Abdallah Mambo.; Korir, Fiona Jepkosgei.
This study examines the relationship between earnings volatility and operational efficiency in Islamic banks in SSA, addressing a key methodological limitation in the Islamic banking efficiency literature. Conventional Data Envelopment Analysis (DEA), widely used in prior studies, produces upward-biased efficiency scores and invalid second-stage inference when efficiency is linked to stochastic variables such as earnings volatility. This limitation is particularly consequential in Islamic banking, where income streams are structurally volatile due to profit-and-loss sharing and asset-backed financing arrangements. Methodologically, this study demonstrates the necessity of bias correction and applies the Simar–Wilson two-stage DEA framework to obtain statistically valid efficiency–volatility estimates. Using a balanced panel of fully-fledged Islamic banks in SSA from 2010 to 2024, operational efficiency is measured as income-generation efficiency based on non-interest revenue streams. First, operational efficiency is estimated under alternative returns-to-scale assumptions using non-interest operating expenses as inputs and Shariah-compliant non-interest income components as outputs. In the second stage, bias-corrected efficiency scores are regressed on earnings volatility—measured as the rolling standard deviation of return on assets (ROA), which captures earnings volatility relative to asset utilization and aligns with operational efficiency—using truncated regression with bootstrapping. The results reveal a statistically significant negative relationship between earnings volatility and operational efficiency, indicating that earnings volatility weakens Islamic banks’ capacity to efficiently transform operating costs into Shariah-compliant income. Robustness checks confirm the stability of the findings across efficiency specifications. Beyond its empirical contribution, the study shows that efficiency levels reported in prior Islamic banking studies relying on conventional DEA may be systematically overstated in volatile-income environments, with important implications for supervision and policy in emerging Islamic finance markets.