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Recent Submissions
Investment diversification and financial performance of Deposit taking saccos in Kenya
(KCA University, 2026) Mugwe, Pauline W.
The study sought to investigate the relationship between investment diversification and the
financial performance of deposit-taking SACCOs in Kenya. The specific objectives of the study
were to examine the effect of investments in bond market, real estate, and FOSA products on
financial performance of deposit-taking SACCOs in Kenya. The study was guided by Keynesian
Theory of Investment, Prospect Theory, Modern Portfolio Theory, and Theory of investments.
The target population was 178 SASRA licensed deposit taking SACCOs in Kenya and sample size
was 36. Secondary was collected from the 36 SACCOs over a period of five years. The study
employed a mixed-methods research design, integrating both quantitative and qualitative
approaches. This data was analyzed using descriptive and regression analysis to investigate the
relationship between investment strategies and financial performance. Different indicators, were
deployed with Return on Assets (ROA), serving as the dependent variable. Diagnostic tests of
multicollinearity, Hausman test, normality test, heteroskedasticity, test unit root test, confirmed
the reliability and validity of the collected data. The descriptive statistics revealed the suitability of
the sampled data. The inferential analysis demonstrated that investment in bonds, real estate and
FOSA products have varying positive and significant relationships with financial performance of
SACCOs with all the three variables having p-values less than 0.05. The coefficient of
determination, R2 was 0.818 which indicates that the estimated regression equation can predict
only 81.8% of the variation. The adjusted R2 was 0.815 which tells us there was 81.5% variation
in the financial performance of SACCOs due to changes in investment in bonds, real estate and
FOSA products. The research therefore recommends that SACCOs should strive to give top
priority to integrating and utilizing investment portfolio, such as bonds, real estate and FOSA
products in order to improve the financial performance and profitability of SACCOs in Kenya.
The study suggests that research on other determinants of investments should be revisited to
evaluate their effects on corporate performance and profitability in SACCOs.
Financial management practices and financial performance of technical and vocational education and training institutions in Kenya
(KCA University, 2025) Joseph, Patrick M.
This study examined the relationship between financial management practices and the financial performance of technical and vocational education and training institutions in Kenya. The TVET sector plays a key role in equipping learners with the technical, vocational, and entrepreneurial skills necessary to support Kenya’s socio-economic transformation and the realization of Vision 2030. Despite increased government funding, many public TVET institutions continue to face significant financial and sustainability challenges due to weak fiscal oversight and resource mismanagement. This study aimed at examining the influence of financial planning, budgeting, internal controls, financial reporting and evaluated the moderating role of governance on the financial performance of these institutions. A descriptive, mixed-method research design was used to collect data from principals and finance officers across the 42 sampled public TVET institutions. Descriptive and regression analyses showed that financial reporting had the strongest positive effect on financial performance, followed by internal controls, financial planning, and budgeting. The results also indicated that effective governance significantly enhanced the relationship between these financial practices and overall institutional performance. The study concluded that effective financial management practices while reinforced by good governance practices are essential for accountability, transparency, and sustainability in TVET institutions. The study recommends continuous capacity building for principals and finance officers, participatory budgeting and automation of financial systems to strengthen institutional performance. These measures are critical to strengthening institutional performance and ensuring that public resources are utilized efficiently to meet the nation's human capital development goals.
Competitive intelligence strategies and the performance of insurance companies in Kenya
(KCA University, 2025) Musyoka, Patience N.
The performance of insurance companies increasingly depends on their capacity to leverage competitive intelligence in today’s dynamic and uncertain business environment. This study examined the effect of competitive intelligence strategies and the performance of insurance companies in Kenya, focusing on four key dimensions: market intelligence, technology intelligence, customer intelligence, and competitor intelligence. Existing literature has largely concentrated on other industries and regions, leaving the Kenyan insurance sector underexplored. To address this gap, the study adopted a mixed-methods approach aimed at generating empirical evidence on how these facets of competitive intelligence influence organizational performance. A descriptive research design was applied, targeting 56 licensed insurance companies in Kenya with a workforce of approximately 12,000 employees. From this population, 150 respondents were selected through proportionate stratified sampling. Data was collected using structured questionnaires, semi-structured interviews, and document analysis. Quantitative findings were analyzed using descriptive and inferential statistics, including correlation and regression analysis, while qualitative insights were derived from interviews and document reviews to enhance triangulation and validity. The study established a significant positive relationship between all four intelligence dimensions and organizational performance. Specifically, market intelligence (β = 0.275, p < 0.001), technology intelligence (β = 0.283, p < 0.001), customer intelligence (β = 0.325, p < 0.001), and competitor intelligence (β = 0.417, p < 0.001) were found to influence firm performance positively. These results underscore the critical role of well-structured intelligence systems in driving strategic decision-making and competitive positioning. The study recommends that Kenyan insurance firms invest in robust market research systems, establish dedicated customer intelligence units, and implement structured competitor intelligence frameworks. In addition, IT departments should continuously scan emerging technologies such as artificial intelligence and automation. Finally, promoting interdepartmental collaboration and continuous staff training in intelligence analysis can enhance organizational adaptability, long-term profitability, and growth.
Diversification, firm size and the financial performance of Commercial banks in Kenya
(KCA University, 2025) Otieno, Francis M.
This study explored the effects of diversification strategies on the financial performance of
commercial banks in Kenya, focusing on how these strategies help banks manage risk, seize
new opportunities and enhance profitability. The study objectives included the study of the
effect of income diversification, geographical diversification, product diversification, and the
moderating effect of firm size on the financial performance of commercial banks in Kenya.
The theoretical foundation of this study was based on Modern Portfolio Theory (MPT) and
the Resource-Based View (RBV). The study employed a mixed-methods research design,
integrating both quantitative and qualitative approaches. Quantitative data were collected
from the annual financial reports of selected Kenyan commercial banks over five years. This
data was analyzed using descriptive and regression analysis to investigate the relationship
between diversification strategies and financial performance. indicators. Diagnostic tests of
multicollinearity, normality, and heteroskedasticity confirmed the reliability and validity of
the collected data. The descriptive statistics revealed the suitability of the sampled
respondents. The inferential analysis demonstrated that income diversification, geographical
diversification, and product diversification have varying positive and significant relationships
with the financial performance of banks, with all four variables having p-values less than
0.05. Additionally, the moderating variable of firm size also demonstrated a significant
relationship with the variables. The coefficient of determination, R2, was 0.986, which
indicates that the estimated regression equation can predict 98.6% of the variation. The
adjusted R2 was 0.986, which tells us there was a 98.6% variation in the financial
performance of the commercial banks due to changes in income diversification, geographical
diversification, and product diversification. This suggests that factors other than those under
investigation account for 1.4% of the variation in the commercial banks' company sizes. The
research recommends that commercial banks should strive to give top priority to integrating
and utilizing diversification products, such as income diversification, geographical
diversification, and product diversification, to improve the financial performance and
profitability of commercial banks in Kenya. The study suggests that research on other
determinants of diversification should be revisited to evaluate their effects on corporate
performance and profitability in banks.
Digital services tax practices and financial performance of Multinational technology firms in Kenya
(KCA University, 2025) Taabu, Moses O.
This study examines the effect of Digital Services Tax (DST) practices on the financial
performance of multinational technology firms operating in Kenya. The introduction of digital tax
[N5.1]regimes aims to capture revenue from cross-border digital activities; however, mounting tax
burdens from DST, SEP, withholding taxes, and VAT have raised concerns about profitability and
competitiveness among these firms. Despite policy advancements, there is limited empirical
evidence quantifying how these tax practices affect firm-level financial performance, creating a
knowledge gap for policymakers and industry stakeholders. With Kenya’s digital economy rapidly
expanding and contributing significantly to the nation’s GDP, the government introduced DST in
2021 to capture tax revenue from non-resident digital service providers. The study investigates
how DST, alongside the transition to the Significant Economic Presence (SEP) tax regime, impacts
firms’ profitability, revenue growth, and overall financial outcomes. Using a mixed-methods
approach combining financial data analysis and qualitative insights, the research evaluates key tax
practices. The findings aim to provide evidence on the financial challenges and opportunities
presented by these digital tax frameworks, thereby informing policymakers, tax authorities, and
industry stakeholders on optimizing tax policy to support sustainable growth and competitiveness
in Kenya’s technology sector. The findings reveal that DST practices significantly affect financial
performance, with the regression model showing a strong relationship (p < 0.01). The SEP tax
further increases firms’ tax liabilities, influencing net profitability and competitive positioning (p
< 0.05). The scope and classification of digital assets also significantly correlate with tax liabilities
and financial outcomes (p < 0.05), illustrating compliance complexities tied to asset recognition.
Additionally, DST withholding practices impose liquidity pressures while promoting improved tax
discipline (p < 0.05). These results provide critical evidence on the financial challenges and
opportunities presented by Kenya’s evolving digital tax frameworks, thereby informing
policymakers, tax authorities, and industry stakeholders on optimizing tax policy to support
sustainable growth and competitiveness in Kenya’s technology sector.