School of Business

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Subject: search.filters.subject.Sustainable Finance

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    Effect of sustainability reporting on financial performance of firms listed at the Nairobi securities exchange in Kenya: the moderating role of ownership structures
    (KCA University, 2025) Githii, Evans N.
    Over the past decade, several listed firms in Kenya have experienced poor financial performance leading to delisting or suspension from the Nairobi Securities Exchange (NSE). This study examined the effect of ESG disclosures on the financial performance of NSE-listed companies and assessed whether ownership structure moderated this relationship. Anchored on the Agency, Stakeholder, Signaling and Legitimacy theories, this study adopted a mixed methods design using secondary ESG and financial data from a census of 62 NSE-listed firms between 2019-2024, extracted using a Global Reporting Initiative (GRI)-aligned data extraction sheet. Panel regression models tested the effect of disaggregated environmental, social, and governance disclosures on return on assets (ROA), while interaction terms captured ownership-structure moderation. Complementary thematic analysis of narrative disclosures provided qualitative context. The Findings show that environmental and governance disclosures had a positive and statistically significant association with ROA (p< 0.05), whereas social disclosures were positive but not significant after controls. Ownership structure particularly institutional and foreign shareholding strengthened the ESG-performance link, confirming a moderating effect. Diagnostic tests (normality, multicollinearity, heteroskedasticity) supported model robustness. Thematic analysis highlighted that firms with high institutional ownership emphasized climate-risk reporting and board transparency, reinforcing quantitative results. These results suggest that credible ESG reporting, coupled with active institutional or foreign ownership, enhances profitability and market confidence among Kenyan listed firms. The study provides actionable evidence for regulators considering mandatory ESG disclosure, and for investors and managers seeking to align sustainability practices with financial performance.
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    Effect On Climate Finance Practices for Sustainable Investment Among Commercial Bank in Kenya
    (KCA University, 2023) Wabwile, Anthony W
    Climate change is considered as more than just an environmental danger since it affects so many economic sectors; it is also anticipated to worsen. The goal of this study was to look at the present condition and developments in green and climate financing techniques used by Kenyan commercial banks. The need to address social, economic, and environmental issues while generating new ideas and best practices is central to the concept of sustainability. Economic growth is made more sustainable by taking into consideration social and environmental problems. Climate funding may lead to the improvement of financial institutions' risk management capabilities, the capacity building of various actors in the climate finance sectors, and the tightening of relationships between financial institutions.Convenient financial instruments include grants, subsidized loans, and credit guarantee funds.If effective strategies are to be implemented to draw climate money in support of extensive mitigation action, a varied, demand-responsive approach to financial innovation is required. Population, conceptual, and contextual gaps are found in the literature review of the study, which supports the need for greater research on the topic. The study's conclusions can help regulatory organizations like NEMA and the CBK improve the way they create and enforce policies and ensure that banks engage in sustainable projects while generating anticipated fair profits. The study ought to, ideally, also offer more details about the significance of green financing and its prior impacts on the financial performance of Kenya's listed commercial banks in terms of sustainable investment. The research also contributes to the existing body of knowledge as efforts are made to slow down climate change, not just in the Kenyan context but also on a regional and global scale.This firm must be sustained due to the crucial role the financial industry plays in ensuring national prosperity. Financial institutions are contributing in the funding of projects in Kenya's extractive, industrial, housing, infrastructural, and agricultural sectors. As a result, bank financing to and investment in green assets is seen as being significantly dependent on efforts to combat climate change by moving toward a net-zero carbon economy. The paper proposes developing a model to promote sustainable banking in Kenya, with a focus on climate funding, as a solution to the main practical obstacle of the lack of finance.