School of Business & Public Management
Permanent URI for this collectionhttps://repository.kcau.ac.ke/handle/123456789/43
Browse
43 results
Search Results
Item Forensic auditing and financial performance of Kenyan counties.(Stratford Peer Reviewed Journals & Books, 2025) Omucheyi, Rispah Khamonyi .; Abdul, Farida.; Kosgei,Margaret.County governments collect a small percentage of their own source revenue potential and the absorption rate of their budgets are low, this has slowed performance and service delivery. The study sought to find the effect of forensic auditing on the financial performance of the counties in Kenya. Data was collected from financial statements of 45 counties in Kenya in the custody of the controller of budgets for nine years from financial year 2014/2015 to 2022/2023. The study used a dynamic panel model to examine the relationship between forensic auditing and financial performance of all counties in Kenya and analyzed using R statistical tool. The findings showed that forensic auditing has a significant effect on financial performance of counties at first lag. The study concluded that forensic auditing is important and that each county should ensure that they invest in the forensic auditing function. The study recommends that county leadership, including governors, senators, members of the county assembly, and employees, should invest in forensic auditing. The leadership should ensure that accountants are well-trained in forensic auditing processes and consistently apply these skills. All accounting personnel should possess and practice forensic auditing skills. Additionally, county officials should provide supporting evidence for all activities conducted within or outside their counties to facilitate the forensic auditing process. County leadership should focus on spending strictly on budgeted projects, avoiding both overspending and underspending by monitoring ongoing and upcoming projects. Counties should also exhaust all revenue collection avenues and ensure that collected revenue is utilized for its intended purposes to meet collection targets. The study also recommends that the Institute of Certified Public Accountants of Kenya (ICPAK) should ensure its members are equipped with knowledge of forensic auditing by organizing regular training sessions and seminars to support the function. ICPAK should provide recommendations on accounting policies in counties to enhance the quality of financial statements. Furthermore, through ICPAK’s guidance, counties should establish fully functional audit departments and ensure the independence of audit committee members.Item Co-creating human-centred climate solutions through challenge-based learning: Insights from Kenya–UK learning and design lab(British Educational Research Journal, 2026) Mwangi, Renson M; Muthuri, Judy N.; Kutuk, Gulsah; Muriithi, Betsy; Kamere, Grace; Faßbender, KarinaThe global climate crisis calls for innovative educational approaches that empower individuals to critically engage with its complexities and inequalities. Climate change education (CCE) is a key strategy to foster the knowledge, agency, and action needed for such engagement, particularly within higher education. Yet, traditional content-driven approaches often fail to address the dynamic and context-specific nature of climate change impacts. This article explores the potential of human-centred challenge-based learning (HCCBL) to promote equitable and inclusive CCE through transdisciplinary co-creation and Global North–South dialogue. We draw on findings from the UK-Kenya University Partnerships: Learning and Design Lab, a British Council project that involved undergraduate and postgraduate students from universities in Kenya and England in the United Kingdom. Sixty (60) university students collaborated in intercultural teams across three labs to co-create solutions for real-world climate resilience challenges identified by three (3) industry partners in Kenya. The findings highlight HCCBL's value in bridging theoretical knowledge and real-world application as well as enhancing students' problem-solving and intercultural competencies. However, challenges such as cultural dynamics, time constraints, and asymmetric travel opportunities underscore the need for adaptive and equitable facilitation. This study positions HCCBL as a transformative pedagogy in CCE that supports co-creation, knowledge exchange, and sustainability leadership among university students in high-vulnerability contexts. It also discusses implications for educators, policymakers, and industry stakeholders who are committed to inclusive, justice-oriented climate action through education.Item Transformational leadership and its impact on student Outcomes, mediated by teacher motivation in secondary schools In Nairobi county(Edward Elgar Publishing, 2026) Mwangi, Renson M; Muthuri, Judy N.; Ntara, CarolineSustainable entrepreneurship education holds great potential to drive sustainable development in Africa through imparting entrepreneurial knowledge and skills, nurturing social innovations that tackle community challenges and create employment, and promoting ethical and sustainable business practices. Unfortunately, this value is not realised because many business schools in Africa that offer entrepreneurship education at most have prioritised the use of traditional teaching models and curriculum content largely disconnected from the reality of entrepreneurship and sustainability. This chapter focuses on a comprehensive framework for developing an entrepreneurship education curriculum using a case study of KCA University in Kenya and leveraging the power of North–South cooperation and collaboration between academia and industry in an entrepreneurship ecosystem in Kenya. The case study used collaborative curriculum design methodology, using appreciative inquiry as a mediating tool for collaboration, to revamp the entrepreneurship curriculum by integrating sustainability and ethical business practices, embracing experiential learning, and fusing case study methodology.Item Analysing Volatility Persistence in the Nairobi Securities Exchange: The Role of Exchange and Interest Rates(Statistics, Optimization & Information Computing Journal, 2025) Mulinge, Anthony; Moyo,Edwin; Jere, Stanley; Kasumo, Christian; Nwokolo, Peter C.; Mwaanga, Clement; Mushala, WamulumeIn this paper, the main objective was to analyse the influence of exchange and interest rates on volatility persistence using asymmetric GARCH models (EGARCH and TGARCH) on NSE data. The analysis of the relationship between stock return volatility, exchange, and interest rates on volatility persistence was performed using the models ARMA (1, 2) -EGARCH (1,1) and ARMA (1, 2) -TGARCH (1,1) under the student t distribution and the generalised error distribution assumption using the NSE daily 20-share price index, interest rates, and exchange rates from 02/01/2015 to 31/12/2024 accounting for 3106 observations. The degree of persistence in the conditional variance equations slightly increased for the ARMA(1,2)-TGARCH(1,1) model and there was a slight reduction for the ARMA(1,2)-EGARCH(1,1) with the inclusion of interest rate and exchange rate which was consistent regardless of the error term distribution assumption. Generally, information shocks increase volatility persistence, and negative shocks have a greater impact than positive shocks. The coefficient of the exchange rate ($\delta_2$) is positive and statistically significant for ARMA (1,2)-TGARCH (1,1). Hence, we deduce that the volatility in the NSE can be explained by the exchange rate, and there exists a positive relationship. Therefore, it is evident that stock returns are positively related to changes in exchange rates. The government should implement policy measures to control the exchange rate, such as real-time disclosure of financial information, trading volumes, and corporate actions, as these affect stock returns.Item Inflation Rate and Financial Performance of Investment Firms Listed at the Nairobi Securities Exchange, Kenya(Scholarnest Publishers, 2026) Miriti, Brenda K.Abstract Financial performance is a critical indicator of organizations’ overall profitability and health. Return on equity (ROE) is a crucial metric that reflects a firm’s operational efficiency and attractiveness to investors and is commonly used to assess performance across industries. Recent trends in Nairobi Securities Exchange (NSE)-listed investment firms show a concerning decline in ROE, dropping from 10.3% in 2019 to 4.2% in 2022, before a slight recovery to 7.2% in 2023. If unaddressed, the declining ROE may discourage investment, reduce market liquidity, increase borrowing costs, and slow economic development. The study aimed to assess the effect of inflation rate on the financial performance of NSE-listed investment firms. The Quantity Theory of Money guided the research. A descriptive research design was employed to analyze secondary data collected from reliable sources, including the Central Bank of Kenya (CBK), NSE reports, company websites, and Capital Markets Authority (CMA) handbooks. The target population consisted of five NSE-listed investment firms: Olympia Capital Holdings Ltd, Centum Investments Co Ltd, Trans-Century Ltd, Kurwitu Ventures, and Home Afrika Ltd. Given the small number of firms, the study adopted a census approach, analyzing all five companies. Data was processed using Microsoft Excel to compute descriptive statistics, including frequencies, percentages, and measures of central tendency, providing insights into financial trends and macroeconomic influences. The findings indicated that inflation rate had a statistically significant relationship with financial performance, with the model explaining approximately 74.8% of the variation in ROE. The study concluded that inflation rate played a key role in influencing firm performance. The study recommended that investment firms should incorporate macroeconomic indicators into decision making, while policymakers were encouraged to maintain economic stability. The findings benefit investment firms by improving risk management strategies and operational efficiency. Policymakers and regulatory bodies gain insights into external economic factors affecting investment firms, enabling them to formulate policies that foster financial stability. Additionally, academics find value in this study as it expands the body of knowledge on macroeconomic influences on financial performance in emerging markets such as Kenya.Item Auditors’ Professional Experience and Financial Sustainability of County Governments(International Journal of Finance, 2026) Kiarie, Anthony N.Purpose: This study investigated the effect of an auditor’s professional experience on the financial sustainability of county governments in Kenya. Methodology: A descriptive research design was employed, targeting all 47 counties in Kenya. A sample of 123 respondents was selected, and data were obtained through structured questionnaires utilizing a five-point Likert scale. Instrument reliability was verified through a pilot test, yielding a Cronbach’s alpha of 0.7. Data analysis was conducted using SPSS, applying both descriptive and inferential statistics, including multivariate regression and structural equation modeling. Findings: The findings established that auditors’ professional experience exerts a positive and statistically significant effect on financial sustainability. It concludes that sustained investment in auditor capacity-building is vital for improving governance and ensuring long-term financial sustainability within devolved government units. Unique Contribution to Theory, Policy, and Practice: The study extends on the existing public sector auditing and financial sustainability literature by empirically demonstrating, within the Kenyan county government context, the significant linkage between auditors’ professional experience and financial sustainability, while reinforcing legitimacy, stewardship, and inspired confidence theories in public financial management discourse. The study further provides empirical evidence to county governments and policymakers that auditors’ professional experience is a critical governance resource for enhancing financial sustainability, thus justifying greater investment in auditor capacity development, retention, and professional training within devolved units.Item Influence of Governance Practices on Sustainable Development of the Sub-Saharan African Countries(International Journal of Scientific and Research Publications, 2026) Mbugua, James C.N.; Tirimba, Ibrahim; Sporta, Fred O.The study sought to assess the influence of governance practices on sustainable development of the Sub-Saharan African countries. The research was guided by legitimacy theory. The study used a longitudinal panel design and incorporated both the descriptive and explanatory elements that looked at sustainability dynamics in the Sub-Saharan African region. The study adopted a positivist research philosophy. It sourced data from 49 Sub-Saharan African countries over 24 years, from 2000 to 2023. The study relied on secondary data from the World Bank Data Bank (2025), UNDP (2025), Fund for Peace (2025) and Sustainable Development Report (2024). Descriptive analysis and regression models were used for analysis. The study found that governance improvements in areas of control of corruption, voice and accountability and government effectiveness did not directly contribute to sustainable development in Sub-Saharan Africa. Practical interventions should focus on enhancing governance effectiveness through capacity building and institutional reforms.Item Do board structure and director compensation influence financial reporting quality? Evidence from nonfinancial listed firms in Anglophone Sub-Saharan Africa(Emerald publishing, 2026) Kariuki, Peter W.; Nyakarimi, Samuel N.; Chepkorir, BenalinePurpose This study explores the influence of board structure and director compensation on the financial reporting quality of nonfinancial firms listed in Sub-Saharan Africa. Design/methodology/approach Data from 110 firms listed on 10 securities exchanges from 2017 to 2023 were utilized. The Beneish M-Score serves as a proxy for earnings manipulation, employing a limited-dependent-variable estimation methodology with a multi-country panel dataset. Following the model specification tests, a random effect model was fitted. A pooled OLS model was employed for a robustness check. Findings The study finds that larger boards and higher directors' compensation are associated with a lower likelihood of earnings manipulation, indicating improved monitoring efficacy. Additionally, larger firms are less likely to engage in earnings manipulation, underscoring the need to enhance monitoring of smaller firms. Originality/value This study bridges the gap in the literature by providing cross-country evidence of financial reporting quality in Sub-Saharan Africa, an underexplored emerging market context. It contributes to the corporate governance literature by providing empirical evidence on the influence of board structure and directors' compensation on financial reporting quality across countries.Item Effect of sustainable development financing on economic growth in Kenya.(IOSR Journals., 2024) Wanyoike, Charles Githira.; David, Jeremiah Makanga.For any economy to grow, financing is a very vital aspect. This study looks at how Kenya's economy is affected by financial resources for sustainable development. It specifically looks at the impact on Kenya's economic growth of foreign direct investment, remittances, external debt, and domestic credit to the private sector. The study was founded on the four theoretical foundations: Electric Paradigm Theory, Dependency Theory, Financial Intermediation Theory, and Institutional Theory. The study adopted correlational research design. Yearly data was collected from 1990 to 2023 on FDI inflows, remittance, external debt, domestic credit and GDP. The study used time series data since the data was collected on yearly basis. Once the data was collected, it was analyzed using STATA software. Descriptive statistics and inferential statistics were carried out as well as pre and post diagnostics tests. The findings showed that foreign direct investment (FDI) had a favorable effect on economic growth. It was also demonstrated that remittances, which encourage investment and the development of human capital, are essential to Kenya's economy. The findings also showed that, despite the possibility that they would negatively impact economic growth, legislative measures should be implemented to maximize their developmental effects. Based on the results, it can be said that Kenya's external debt is a barrier to its economic development. It was suggested that in order to draw foreign capital into important industries like manufacturing, technology, and infrastructure, governments should concentrate on diversifying investment opportunities. Enhancing financial inclusion initiatives is vital; further research is needed to expand on the discoveries about remittances' impact on development. There is also a need to conduct longitudinal studies to monitor the long-lasting effects of sustainable financial development on sustainability and financial stability.Item Institutional governance and financial sustainability of water resources authority basin areas in Kenya .(Wohllebe & Ross., 2026) Wanyoike, Charles Githira.; Nyaoro, Rogers.Literature consistently underscored institutional governance as one of the most critical strategies for driving financial sustainability. Notwithstanding, most of these studies highlight contextual gaps, conceptual gaps and methodological gaps. Therefore, this study assessed effect of institutional governance on the financial sustainability of Kenyan Water Resources Authority basin areas. In the research, a descriptive research design was adopted, targeting the six Water Resources Authority basin areas in Kenya. The study used a census approach with a sample size of 160 respondents, from whom primary data was gathered through a carefully crafted questionnaire. Partial Least Squares Structural Equation Modelling was used to construct and validate a conceptual model focused on financial sustainability of Water Resources Authority in Kenya. The study concluded that each of; accountability (β=0.1989; p<0.01), transparency (β=0.7725; p= 0.004) and stakeholder participation (β=0.1774; p=0.001) has significant and positive effect on financial sustainability of WRA basin areas in Kenya. The study recommends that Water Resources Authority basin areas in Kenya should strengthen accountability and improve transparency mechanisms so as to build greater stakeholder trust and clarity. These actions provide actionable suggestions for improving financial management, resource allocation, and service delivery in water resource authority.