School of Business
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Item Chief executive officer characteristics and financial performance of commercial banks in Kenya(KCA University, 2025) Nyantika, Bevaline N.The performance of commercial banks is critical to the stability and growth of Kenya’s financial sector and the broader economy. This study investigates the influence of Chief Executive Officer (CEO) characteristics on the financial performance of commercial banks in Kenya. Specifically, it examines the effects of demographic attributes age, gender, education, and tenure on key financial indicators, including profitability, return on assets (ROA), and net interest margins. Anchored in the Upper Echelons Theory, the study adopts a quantitative research design and utilizes secondary data sourced from the annual reports and regulatory filings of 39 licensed commercial banks over the period 2003 to 2023. Regression analysis was employed to determine the relationship between CEO attributes and bank performance. The results indicate that certain CEO characteristics significantly influence financial outcomes. CEO tenure and gender diversity were positively associated with improved performance, suggesting that longer-serving CEOs and greater female representation at the executive level enhance strategic outcomes. CEO age also demonstrated a positive relationship with performance, reflecting the value of experience and maturity in executive decision-making. In contrast, the impact of educational background was inconclusive, showing no consistent effect across all performance metrics. These findings highlight the strategic role of executive leadership in shaping financial performance in the banking sector. The study offers key insights for policymakers, bank boards, and stakeholders, emphasizing the importance of integrating CEO demographic considerations into leadership selection processes. Recommendations include the adoption of performance-based remuneration systems, fostering leadership continuity, and promoting gender diversity in top executive roles. Overall, the study enhances understanding of leadership dynamics in corporate governance and lays the groundwork for future research on executive influence in financial institutions.Item Selected macroeconomic indicators and stock market performance: an ARDL approach(KCA University, 2025) Abukutsa, Noel O.The market for securities significantly stimulates economic growth through financial intermediation, cost efficiency improvements, the market valuation process, and risk allocation. Stocks are among the most economically volatile assets, and any sudden change in stock prices can have a significant impact on an economy. The worldwide economic downturn has seen equity indices plunge, volatile currencies, and falling prices of essential commodities. Many African stock markets are facing challenges, primarily due to low external demand rather than weak internal fundamentals. The primary objective was to determine the short and long run relationships between selected macroeconomic indicators and stock market performance in Kenya using monthly time series data from January 2008 to December 2024. The ARDL model was employed, with inflation, lending interest rates, exchange rates, and foreign portfolio investment as independent variables. The money supply served as a control variable to account for its potential association with the NSE 20 Share Index, ensuring that underlying monetary conditions did not confound the observed relationships between the independent variables. The study found that lending interest and exchange rates have a significant short and long run relationship with the NSE 20 Share Index. Long-run ARDL results indicated a positive relationship with loan rates, with a coefficient of 317.18, suggesting that moderate adjustments in loan rates can enhance market performance. The short-run relations were negative with a coefficient of -53.99, indicating higher borrowing costs and decreased liquidity. Exchange rate depreciation had a consistently negative relationship with a long-run coefficient of -29.94 and a short-run coefficient of -17.19, degrading stock performance. The study recommends that CBK should carefully manage interest rates for stability and market growth, the government of Kenya should stabilize exchange rates, policymakers should uphold inflation targeting for price control, and CMA should create investor-friendly policies that attract and retain international investors.Item Effect Of Public Debt On Economic Growth In Kenya(Kca University, 2016) Achwoga, Gideon N.A developing country like Kenya compliments its revenue through public borrowing. The successive governments have always acquired huge sums of public debt to finance national development plans in Kenya. High levels of public debts have mixed effects on economic growth. This examines the effects of public debts on economic growth. Data spanning from 1963 to 2015 was used. The study sought to establish the effect of domestic and foreign public debt on economic growth in Kenya. A descriptive research design was applied. Secondary data obtained from World Bank Sources, Central Bank of Kenya, International financial statistics like the International monetary fund and Kenya National Bureau of Statistics was used for analysis. Data was analyzed using EVIEWS version 7.2. The findings indicated that economic growth is negatively and significantly related to external debt. The results indicated significant and negative associations between GDP and domestic debt. Multiple regression analysis indicated that economic growth is positively and significantly related to domestic debt. The association between debt service and GDP was positive but not significant. Other results also indicated that the association between debt service and GDP was positive and significant. Exchange rate had a negative and insignificant association with GDP. In light of the results and conclusions discussed in the foregoing paragraphs, the government and policymakers in Kenya should consider the following recommendations to improve public debt management. First, the governments should establish and adopt an optimal balance between external and domestic debt to maintain steady economic growth. Although domestic debt had no significant effect on GDP in the short run and a positive effect on GDP in the long run, it cannot be relied on entirely since a rapid increase in borrowing locally has the potential of crowding-out private investments. Second, the negative effect of exchange rate on economic growth is a signal to the central bank and Policy makers that they need to stabilize the local currencies for instance by improving exports. Since debt service causes exchange rate, proper management of debt service is hence a key priority for the government. The study also recommends that prudential fiscal management measures are required to avoid an unnecessary increase in overall public debt. A reduction in borrowing will enable the country to use a greater proportion of their tax revenues for investments rather than repaying loans, thereby increasing economic growth. Furthermore, real exchange depreciation raises the debt burden and negatively relates to GDP. There is thus the need to ensure that exchange is not over-devalued in order to balance two effects.Item Determinants Of Demand For Mortgage Finance In Kenya: A Case Of Nairobi County(KCA University, 2015) Irungu, Alfred K.There is a low demand for mortgage finance in Kenya this was demonstrated by the few number of mortgage accounts in Kenya. The Central Bank of Kenya report shows that there were only 22,013 mortgage accounts in Kenya in 2014. This number is very low when compared to the demand for housing and population in the country. Based on these statistics, this study aimed to determine the determinants for the demand of mortgage finance in Kenya. The study was focused on the effect of, price of mortgage substitutes, cost of mortgage, income levels and promotion on the demand for mortgage in Kenya. The target population of this study was applicants for mortgage finance both successful applicants and those who were not successful. Random sampling technique was used to obtain a sample size of 384 respondents. Data was collected using structured questionnaires. The collected primary data was analyzed using Statistical Package for Social Science (SPSS) version 20. A binary logistic regression analysis was conducted on the data set to ascertain the effects of independent variables on dependent variable. The Pearson Product was used to analyze the data in which correlation coefficient (R) and the coefficient of determination (R2 ) of the variables was established. The findings from the analysis were organized and summarized in form of percentages, means ratios and frequencies and presented using tables and pie charts. The results in the multivariate logistic regression indicated that the likelihood of cheap mortgage substitutes resulting to low demand for mortgage finance in Kenya was 4.911 times higher than more costly mortgage substitutes. The findings further indicated that the likelihood of high legal cost and high stamp duty cost causing low mortgage demand are 2.550 and 2.274 times higher than when the costs are low. The findings also indicate that the likelihood of low-income levels causing low demand for mortgage substitutes was 6.369 high than high income levels. Finally, the findings indicate that the likelihood of lack of promotion causing low mortgage demand was 5.808 higher than having promotion. The study recommended that mortgage financing institutions should consider the cost of mortgage substitutes, cost of mortgage, income level and promotion in order to increase the demand for mortgage finance in Kenya.Item Factors Influencing The Adoption Of Green Procurement In Manufacturing Industries In Nairobi, Kenya(Kca University, 2021) Musila, Ann N.In the wake of international outcry against runaway global warming, companies are increasingly being called upon to adopt green procurement practices. This emanates from the fact that adoption of these practices is seen as a panacea to adverse effects of environmental degradation. The study set out to investigate the factors influencing the adoption of green procurement in manufacturing industries in Nairobi, Kenya. The objectives of the study were to examine the influence of top management support on the adoption of green procurement in manufacturing industries in Nairobi, Kenya, assess the influence of ICT infrastructure on the adoption of green procurement in manufacturing industries in Nairobi, Kenya, determine the influence of supplier management practices on the adoption of green procurement in manufacturing industries in Nairobi, Kenya and, explore the influence of staff training on the adoption of green procurement in manufacturing industries in Nairobi, Kenya. The study was based on four theoretical foundations namely: organization theory, supply chain management theory, technology adoption model and learning organizational theory. The study used the descriptive survey research design to gather data on the utilization of green procurement in the 2300 manufacturing industries in Nairobi. The population included in this study was 2198 procurement officers drawn from the manufacturing industries that had such officers. Simple random sampling was used to obtain a sample of 96 persons. Data was collected using questionnaires. Statistical Packages for Social Sciences (SPSS) software was used to analyze quantitative data received from closed ended questions. Various statistical tests were undertaken on the data. These include means, percentages, frequencies, correlation analysis, and multivariate regression analysis. Data from open-ended questions was subjected to content analysis. The findings show that there were significant relationships between the Adoption of Green Procurement and independent variables as follows: top managements, r=0.796 p<0.05; ICT infrastructure level, r=0.854, p<0.05; supply chain management practices, r=0.826, p<0.05; and staff training, r=0.854, p<0.05). Analysis of Variance (ANOVA) shows that top managements, ICT infrastructure level, supply chain management practices and staff training could statistically and significantly predict the adoption of Green Procurement (F= 120.582, p<0.05). In this light thus, the study concludes that top managements, ICT infrastructure level, supply chain management practices, and staff training influenced the adoption of Green Procurement. Based on the findings of the study, the study recommends that top management must be proactive in addressing internal barriers to green procurement. It is also important for manufacturing firms to roll out and sustain modern ICT technologies. Strategies must be put in place by firms to ensure those suppliers relationships with the firm are positively kept. In addition, Supply chain management practices can pose a threat to the effectiveness of green procurement. As a result, it necessitates close collaboration between company departments and businesses, resulting in a harmonious integration of GP practices into the supply chain. Manufacturing firms in Nairobi should put in place strategies for continuous training of procurement staff and mentoring of new employees.