School of Business & Public Management
Permanent URI for this collectionhttps://repository.kcau.ac.ke/handle/123456789/43
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Item Debt recovery practices and loan performance of deposit-taking microfinance banks in Kenya(IJSSME, 2024) Ondabu, Ibrahim Tirimba.; Kamanda, Cynicah Nyaboke.; Teimet, Paul.; Matanda, Joshua.This study explored the relationship between debt recovery practices and loan performance for deposit-taking microfinance banks in Kenya. The study is guided by agency theory and risk shifting theory. The objectives of this study include determine the effect of third-party credit and analyze the effect of collection agencies on loan performance. This research adopted a descriptive approach, the research meticulously captured numerical data for rigorous statistical analysis, aligning with the study’s objective. This study used census survey, all 14 microfinance banks licensed and operational by the Central Bank of Kenya were included. This study used self-administered questionnaires. In this study diagnostic tests were performed to validated the robustness of statistical analysis using SPSS. Validity and reliability were ensured through content validity guidelines and expert assessments where reliability has shown an average Cronbach alpha of 0.7 for all the variables. The study conducted a detailed analysis of the relationships between various elements related to loan performance surveyed microfinance banks. In this study the correlation matrix revealed strong positive correlations between third-party credit guarantees, and collection agencies. Regression analysis showed a significant impact of these factors on loan performance, with an R Square of 0.416. The study’s hypotheses regarding the influence of third-party credit guarantees, and collection agencies on loan performance were tested and supported. This study concluded that effective debt recovery practices significantly enhance loan performance in MFBs. Recommendations included reassessing debt policies, focusing on equity policies, and streamlining policy implementation concerning loan defaulters. The study also identified areas for further research to deepen understanding of loan performance dynamics in the microfinance sector. The study highlighted the importance of proactive debt recovery strategies and risk mitigation measures in enhancing the financial sustainability of MFBs in Kenya.Item Key drivers of public sector audit effectiveness in Kenya and lessons for developing economies.(IISTE, 2024) Ondabu, Ibrahim Tirimba.; Kanini, Joyce Mueni.; Njuguna, Peter.; Kithuka, Geoffrey.This study explores the key factors influencing the effectiveness of public sector audits (PSA) within Kenya's national government and affiliated entities. Focusing on the role of institutional corporate governance, professional and technical competence, resource availability, and internal control processes, this research analyzes data from the Office of the Auditor General's 2021/2022 audit reports. Using a descriptive design and content analysis, 43 financial statements were examined to assess how these determinants impact audit outcomes. Findings indicate that professional and technical competence has the most significant positive impact on PSA effectiveness, followed by strong corporate governance and robust internal controls. Interestingly, resource availability showed a negative correlation, suggesting that merely increasing resources without strategic allocation may not enhance audit performance. These insights highlight the need for targeted training and improved governance structures to strengthen Kenya's audit capabilities and enhance public accountability.Item Government funding, institutional size, and student enrolment in public TVET institutions: evidence from Nairobi Metropolitan, Kenya(African Development Finance Journal, 2025) Ondabu, Ibrahim Tirimba.; Macharia, Alice N.This article examines the influence of government funding, specifically Higher Education Loans Board (HELB) loans and capitation, on student enrolment in public Technical and Vocational Education and Training (TVET) institutions in Nairobi Metropolitan, Kenya. Using longitudinal panel data from 2019–2023 across 12 institutions, the study analyzes how institutional size moderates the relationship between funding and enrolment. Results show that HELB, capitation, and institutional size jointly explain 66.9% of the variance in enrolment rates, with all predictors exerting significant positive effects. Larger institutions benefit disproportionately due to economies of scale and stronger absorptive capacity. The findings highlight the centrality of coordinated demand- and supply-side financing models in promoting equitable access to technical education. Policy recommendations include strengthening funding frameworks, expanding capacity in smaller TVETs, and improving administrative efficiency to maximize the impact of public financing.Item Fiscal framework and economic growth of East African member countries(African Development Finance Journal, 2025) Ondabu, Ibrahim Tirimba.; Kuir, Mayen Kuir.This study examined the relationship between public debt and economic growth in EAC member states. Using a longitudinal research design and secondary data from Kenya, Uganda, Tanzania, Burundi, and Rwanda. The research uses data collected from 2014 to 2023 for countries that were members of the EAC block by the year 2023. The analysis applied the Arellano-Bover System Generalized Method of Moments (GMM) to address endogeneity and dynamic panel concerns. To ensure reliability, diagnostic tests such as the Breusch-Pagan test for heteroscedasticity, the Hausman test, and the Arellano-Bond test for serial correlation were conducted, with results evaluated at the 5% significance level. The findings show that government expenditure has a positive but statistically insignificant effect on economic growth, reflecting the limited impact of recurrent-heavy spending on productivity, tax revenue has a negative and significant effect, suggesting that high tax rates coupled with a narrow tax base reduce private investment and household consumption and also that public debt has mixed outcomes: domestic debt had a positive though insignificant effect on growth, while external debt negatively and significantly influenced growth due to high servicing costs and currency risks.Item Agri-insurance financing and the resilience of smallholder farmers in Nakuru County, Kenya(African Development Finance Journal, 2025) Ondabu, Ibrahim Tirimba.; Abdi, Hassan Abdullahi.Agricultural insurance has increasingly become a critical tool for stabilizing smallholder farmers’ livelihoods, particularly in regions affected by climate variability and market shocks. This paper examines the influence of Agri-insurance financing on the productivity and resilience of smallholder farmers in Nakuru County. Using a descriptive quantitative design and data from 272 respondents, findings show that insurance significantly enhances productivity (β = .258, p < .001) by reducing farmers’ risk exposure, strengthening investment confidence, and promoting adoption of new technologies. Despite high awareness levels, insurance uptake remains low due to unaffordable premiums, low trust in insurers, and limited experience with claim processing. The study recommends subsidized index-based insurance, bundling insurance with credit and inputs, digital claim-processing mechanisms, and cooperative-based outreach.Item Digital finance as a catalyst for economic growth, innovation, and regulatory evolution(IDEAS, 2025) Ondabu, Ibrahim Tirimba.; Choi, Alfonce Nyambane.; Ngila, Samuel.; Rikilem, Paul L.Purpose: This study examines the impact of digital financial services on economic expansion, technological advancements, and financial regulations. It explores how digital finance drives financial inclusion, enhances access to credit, and fosters economic growth while also addressing the associated challenges. Methodology: A systematic review approach was employed to analyze existing literature on digital finance, focusing on its influence on financial innovation, transaction efficiency, and regulatory adaptation. The study synthesizes findings from academic research, industry reports, and policy papers. Findings: The study reveals that digital finance significantly enhances financial inclusion by reducing transaction costs and expanding credit access. Technologies such as artificial intelligence, blockchain, and big data analytics have revolutionized financial services, improving efficiency, security, and accessibility. However, challenges such as cybersecurity risks, fraud, and regulatory inconsistencies persist. Regulatory bodies are adopting adaptive measures, including regulatory sandboxes and central bank digital currencies, to balance innovation with consumer protection. Unique Contribution to Theory, Policy, and Practice: This study contributes to the theoretical understanding of digital finance’s role in economic transformation. It provides policy insights for governments and regulatory bodies to design frameworks that promote financial innovation while ensuring security and stability. Additionally, it offers practical guidance for financial institutions on leveraging digital technologies to enhance service delivery and economic development.Item Agricultural value chain financing and smallholder farmers’ productivity in Nakuru County, Kenya(African Development Finance Journal, 2025) Ondabu, Ibrahim Tirimba.; Abdi, Hassan Abdullahi.Agricultural Value Chain Financing (AVCF) has emerged as a critical pathway for improving the productivity and resilience of smallholder farmers across developing economies. This study examines the influence of AVCF on the productivity of smallholder farmers in Nakuru County, Kenya. Using a descriptive quantitative design and data from 272 farmers, the study demonstrates that AVCF significantly contributes to improved input accessibility, strengthened market linkages, and enhanced farmer profitability. Regression analysis confirms a positive and statistically significant relationship between AVCF and productivity (β = .166, p = .005). Despite the benefits, participation remains limited due to capacity gaps, information asymmetry, and weak extension systems. The study recommends strengthening contract farming, digitizing value chain platforms, enhancing extension services, and promoting farmer aggregation to unlock the full benefits of AVCF.Item Green financing and financial performance of commercial banks in Kenya(SSRN, 2025) Ondabu, Ibrahim Tirimba.; Oboyo, Nixon.This study examined the impact of green financing mechanisms on the financial performance of commercial banks in Kenya. A descriptive research design was applied, focusing on Tier 1 banks as key players in green finance, with secondary data obtained from Central Bank of Kenya (CBK)-assessed financial statements covering 2019–2023. Panel data regression models were employed to analyze the relationship between green financing and financial performance, while the regulatory environment was considered as a moderating variable. Robustness of the models was ensured through diagnostic tests, including the Hausman, Breusch-Pagan, multicollinearity, autocorrelation, and linearity tests. The findings revealed that green bonds, green mortgages, and carbon assets collectively influence bank performance, and that green financing significantly improves the financial performance of commercial banks. Furthermore, the regulatory environment was found to play a moderating role in strengthening this relationship, highlighting the importance of effective oversight and supportive policy frameworks. The study concludes that stronger regulatory support and targeted policy interventions are vital in enhancing banks’ participation in sustainable projects while safeguarding profitability. It recommends that regulatory bodies refine existing policies to align green financing with financial stability and that the government consider introducing stimulus packages to encourage greater investment by commercial banks in green finance. These insights add to the discourse on sustainable finance and provide practical implications for policymakers, regulators, and financial institutions seeking to balance profitability with sustainability.Item Funding climate action: a systematic review of climate finance efficiency and impact(JEFMS, 2025) Ondabu, Ibrahim Tirimba.; Wafula ,Anthony Emmanuel Wabwile.This study presents a systematic review of the efficiency and impact of climate finance, with a focus on the key funding sources, allocation patterns, and the effectiveness of current climate finance mechanisms in advancing climate mitigation goals. Climate finance has emerged as a critical component of global efforts to combat climate change, yet its efficiency and impact remain under scrutiny. The study synthesizes existing empirical literature on climate finance, examining the role of public, private, and blended finance in funding climate action. It highlights the major sources of climate finance, including bilateral and multilateral funds, as well as private sector investments, and evaluates how these funds are allocated across various regions and sectors. Additionally, the study explores the operational mechanisms of climate finance, assessing their effectiveness in mobilizing resources for climate change mitigation and adaptation. The findings reveal that while significant progress has been made in mobilizing climate finance, there are persistent challenges related to funding gaps, fragmentation, and inefficiencies in the allocation of resources. The impact of climate finance on achieving climate mitigation goals has been varied, with successes in some areas, particularly in renewable energy and forest conservation, but limited progress in others due to governance issues, lack of coordination, and weak institutional frameworks. The study calls for a more streamlined and transparent approach to climate finance, emphasizing the importance of effective governance and accountability mechanisms to enhance the efficiency of funding and maximize its impact on climate mitigation. Recommendations are provided to improve the alignment of climate finance with sustainable development objectives, address regional disparities, and overcome the barriers to large-scale private investment in climate action.Item Agricultural credit cooperatives and warehouse receipt financing as drivers of smallholder productivity in Nakuru county(Open Journal Publishing, 2025) Ondabu, Ibrahim Tirimba.; Abdi, Hassan Abdullahi .This study examines the influence of Agricultural Credit Cooperatives (ACCs) and Warehouse Receipt Financing (WRF) on smallholder farmers’ productivity in Nakuru County. Drawing on data from 272 farmers, findings show that both ACCs (β = .211, p < .001) and WRF (β = .265, p < .001) significantly enhance productivity by increasing access to affordable credit, enabling timely input acquisition, reducing distress selling, and stabilizing market participation. Descriptive results reveal strong reliance on cooperatives but limited access to certified warehouses. The study recommends strengthening cooperative governance, expanding rural warehouse infrastructure, digitizing warehouse receipts, and integrating WRF into national food reserve systems.