School of Business & Public Management

Permanent URI for this collectionhttps://repository.kcau.ac.ke/handle/123456789/43

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Start date: 2024Subject: search.filters.subject.Financial Performance

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    Financial risks and financial performance of deposit-taking savings and credit cooperative societies in Kenya.
    (International Academic Journals, 2024) Ondabu, Ibrahim Tirimba.; Kithuka, Geoffrey Mweu.
    The study aimed to ascertain how the financial performance of Kiambu County`s DT-SACCOs is affected by financial risks. The effect of credit risk, operational risk, market risk and liquidity risk on the Kiambu County DT-SACCOs financial performance are the precise aims that were emphasized in the research to accomplish the study objective. The study was anchored on the financial intermediary theory, liquidity preference theory, steward theory and information asymmetry theory. Thirteen licensed deposit-taking SACCOs with their headquarters located in Kiambu formed the target population and a descriptive research design was used. Secondary data from 2013 to 2022 for the thirteen-deposit taking SACCOs was collected from SACCO's financial statements and SASRA records. The data collected was unbalanced due to different licensing years of the deposit-taking SACCOs by SASRA. To analyse the data, the mean, standard deviation, minimum and maximum values were utilized as descriptive statistics, while panel data regression was employed as inferential statistics. The diagnostic tests conducted before fitting the model were: heteroscedasticity test, Breusch – Pagan Lagrange Multiplier, Hausman and multicollinearity. According to the study's findings, credit risk had a small but beneficial impact on financial performance (=0.00337, t= 0.26, p>0.005). Financial performance was positively and significantly impacted by operational risk (=0.01395, t=4.88, p0.05), financial performance was positively significantly influenced by market risk (=0.7909, t=32.36, p0.05), financial performance was significantly impacted negatively by liquidity risk (=-0.0023, t =-4.28, p0.005). The study recommends that it is important for deposit-taking SACCOs to embrace financial risks even if it means hiring experts in risk management and should ensure that risk management practices incorporate other financial risks components.
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    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.
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    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.