Journal Articles
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Item Board Structure and Financial Distress: Insights from NSE-listed Non- Financial Firms(International Academic Journal of Economics and Finance, 2025) Oyaro, John; Ondabu, Ibrahim T.; Oluoch, Oluoch; Memba, FlorenceFinancial distress has been a major concern for managers, practitioners and scholars globally. For a long time, companies have faced financial distress worldwide. In the recent past companies such as Wirecard in Germany, Silicon Valley Bank and Signature Bank in United States as well as Signa Holding in Austria have collapsed. The phenomenon is the same in Kenya with companies such as Eveready East Africa, Karuturi Ltd, Mumias Sugar Company, Nakumatt Holdings and Uchumi Supermarkets having collapsed. Others such as Kenya airways have experienced financial distress. This situation creates Panic among the existing investors and may finally erode investor’s confidence and may result in loss of huge sums invested in the capital markets. As a result, there is need to tame the situation before investors lose confidence in the market. The focus of this study was to determine the effect of board structure on financial distress of non financial firms listed on the NSE. This study applied the Z-score for emerging economies to test financial distress. The study was anchored on institutional theory. The study applied positivistic philosophical foundation. The research design applied was cross-sectional research design. The population comprised of 46 non-financial listed firms as at December 2023. A census of all the firms was conducted. The study utilised secondary data that was extracted from published financial statements and other annual reports of the respective individual firms for a period of ten years from 2014 to 2023. Both descriptive and inferential statistics were used to analyse the data. Univariate logistic regression analysis and Pearson's correlation analysis were used. Tables and graphs were used to present the findings. Results showed that a significant negative correlation exist between financial distress and board structure (r = -0.771; p=0.000). Regression analysis results showed that there is a strong negative relationship between board structure and financial distress. The descriptive statistical analysis revealed that, on average, 90.97% of board members are non-executive directors. However, the unilabiate analysis revealed that board structure accounts for 31.2% to 41.2% of the variance in financial distress among listed firms. Consequently, this study revealed that for every one-unit improvement in board structure, the odds of financial distress decreases by approximately 36.4%, as shown by the odds ratio (Exp(B)= 0.636). The study thus recommends that non-financial listed firms must endeavour to have well-structured and diverse boards in terms of independence, gender and board size.Item Does Executive Compensation Structure Contribute to Financial Distress? Lessons from NSE-listed Non-Financial Firms(International Academic Journal of Economics and Finance, 2025) Oyaro, John; Memba, Florence; Oluoch, Oluoch; Ondabu, Ibrahim T.The aim of the study was to determine the effect of executive compensation structure on the financial distress of Nairobi Securities Exchange-listed non-financial firms. The study was anchored on the agency theory. A census of all 45 non financial listed firms at the NSE was carried out using the cross-sectional research design. Secondary data extracted from published financial statements and other annual reports of the respective individual firms for a period of ten years from 2014 to 2023 was employed. In the study the Z score for emerging economies was used to determine financial distress. Executive compensation structure was measured using the proportion of earnings before interest and tax that was distributed to board of directors. Both descriptive and inferential statistics were used in data analysis. Descriptive statistics included mean score and standard deviation. Inferential analysis was conducted via univariate logistic regression analysis and Pearson's correlation analysis. The study determined that a significant negative correlation exist between executive compensation structure and financial INTRODUCTION distress (r = -0.811: p=0.000). The study also determined that there exists a strong negative relationship between executive compensation structure and financial distress (β= -0.729: p=0.000). 34.1% to 45.5% variations in financial distress of non-financial listed firms explained by executive compensation structure. Consequently, this study established that for every one-unit improvement in executive compensation, the odds of financial distress decreases by 51.7%. The study therefore concluded that executive compensation structure as a significant negative effect on financial distress implying that an increase in executive compensation may lead the firm into financial distress. The study thus recommends that organisations should design an optimum executive compensation structure which aligns the interests of the management with those of the owners of firms thereby minimizing not only agency conflicts but also agency costs which firms may incur.Item Digital Banking Services and Investment Decisions of Female-Owned Small and Medium Enterprises in Nairobi City County(International Journal of Business Management and Economic Research, 2026) Nyangenya, Mercy N.; Ondabu, Ibrahim T.This study investigates how digital credit, digital savings, insurance technology (insurtech), and robo-advisory services affect the investment decisions of women-owned small and medium enterprises (SMES) in Nairobi City County. An explanatory research design was employed, using primary data collected through structured questionnaires. The study targeted a population of 39,440, from whom a sample of 396 respondents was drawn using the Yamane formula and using simple random sampling technique. Data was analyzed using SPSS version 29, with multiple regression analysis applied to test the hypotheses. The results revealed that insurtech services exert the greatest influence on investment decisions among female SME owners by offering accessible and affordable risk management options that boost business confidence and encourage growth-oriented investments. Additionally, robo-advisory services significantly improve investment decision quality by providing personalized, data-driven, and cost-efficient financial guidance. The study concludes that the adoption and effective use of digital banking services significantly enhance investment behavior and business performance among female owned SMEs. Consequently, improving access, affordability, and awareness of these services is vital for promoting sustainable investment growth and empowering women entrepreneurs in Nairobi City County.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.