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Item Role of fintech in fostering innovation and economic resilience within Islamic banking: a bibliometric and systematic literature review(International Journal of Accounting and Finance Analytics, 2026) Njogo, Michael N.; Dallu, Abdallah M.; Korir,Fiona J.In light of growing economic uncertainty, Islamic banking institutions are increasingly adopting financial technologies (Fintech) to enhance economic resilience and sustainability. This study explores the role of Fintech in fostering innovation and economic resilience within Islamic banking through a combined bibliometric and systematic literature review. Guided by the PRISMA framework, 98 peer-reviewed articles from 2019–2025 were analyzed, with bibliometric mapping conducted using VOSviewer. The findings reveal a growing interdisciplinary nexus between Islamic finance, digital innovation, and governance, with key themes including Shariah-compliant innovation, financial inclusion, and crisis resilience. Technologies such as blockchain, AI, and mobile banking have enhanced operational efficiency, customer engagement, and ethical compliance. However, regulatory fragmentation, cybersecurity risks, and Shariah harmonization remain persistent challenges. The study offers strategic recommendations for policymakers, financial institutions, and researchers, emphasizing adaptive regulation, user-centric innovation, and inclusive digital infrastructure. By integrating Islamic ethical principles with digital transformation, this review provides original insights into how Islamic fintech can support sustainable, inclusive, and resilient financial ecosystems globally.Item Liquidity management constraints and operational efficiency in Islamic banking systems in Sub-Sahara Africa(Fakultas Ekonomi dan Bisnis Islam, 2026) Njogo, Michael Njoroge.; Korir, Fiona Jepkosgei.; Dallu, Abdallah Mambo.This study examines whether liquidity management enhances or constrains the operational efficiency of Islamic banks operating in SSA, where Sharīʿah-compliant financial infrastructure remains underdeveloped. Using panel data from 35 fully fledged Islamic banks over the period 2010–2024, the study employs a bias-corrected two-stage Data Envelopment Analysis (DEA) framework with Simar–Wilson bootstrap procedures, followed by fixed-effects regression to ensure consistent inference. The findings reveal that, despite maintaining relatively high liquidity buffers, Islamic banks in SSA operate significantly below the efficiency frontier, with average bias-corrected efficiency levels of 31.8%. Contrary to conventional banking theory, liquidity exhibits only a weak and marginal relationship with efficiency. This result reflects structural features of SSA Islamic financial systems, including shallow sukuk markets, limited Islamic interbank activity, and the absence of effective Sharīʿah-compliant lender-of-last-resort facilities, which collectively constrain the productive deployment of liquidity. By conceptualising liquidity as a binding monetary constraint rather than a discretionary management tool, this study offers a novel contribution to Islamic banking and monetary economics, particularly in the context of institutionally incomplete markets. The results further show that asset quality and institutional maturity play a more decisive role in shaping efficiency outcomes once liquidity constraints bind. The findings highlight that improving efficiency in SSA Islamic banking systems requires system-level reforms, underscoring the need for Islamic monetary authorities to prioritise the development of Sharīʿah-compliant liquidity infrastructure, including active sukuk markets, Islamic interbank facilities, and credible lender-of-last-resort mechanisms.Item Income stability, earnings volatility, and efficiency in Islamic banks: evidence from Sub-Saharan Africa(EJIF, 2026) Njogo, Michael Njoroge.; Dallu, Abdallah Mambo.; Korir, Fiona Jepkosgei.This study examines the relationship between earnings volatility and operational efficiency in Islamic banks in SSA, addressing a key methodological limitation in the Islamic banking efficiency literature. Conventional Data Envelopment Analysis (DEA), widely used in prior studies, produces upward-biased efficiency scores and invalid second-stage inference when efficiency is linked to stochastic variables such as earnings volatility. This limitation is particularly consequential in Islamic banking, where income streams are structurally volatile due to profit-and-loss sharing and asset-backed financing arrangements. Methodologically, this study demonstrates the necessity of bias correction and applies the Simar–Wilson two-stage DEA framework to obtain statistically valid efficiency–volatility estimates. Using a balanced panel of fully-fledged Islamic banks in SSA from 2010 to 2024, operational efficiency is measured as income-generation efficiency based on non-interest revenue streams. First, operational efficiency is estimated under alternative returns-to-scale assumptions using non-interest operating expenses as inputs and Shariah-compliant non-interest income components as outputs. In the second stage, bias-corrected efficiency scores are regressed on earnings volatility—measured as the rolling standard deviation of return on assets (ROA), which captures earnings volatility relative to asset utilization and aligns with operational efficiency—using truncated regression with bootstrapping. The results reveal a statistically significant negative relationship between earnings volatility and operational efficiency, indicating that earnings volatility weakens Islamic banks’ capacity to efficiently transform operating costs into Shariah-compliant income. Robustness checks confirm the stability of the findings across efficiency specifications. Beyond its empirical contribution, the study shows that efficiency levels reported in prior Islamic banking studies relying on conventional DEA may be systematically overstated in volatile-income environments, with important implications for supervision and policy in emerging Islamic finance markets.Item Prudential calibration and regulatory infrastructure in emerging Islamic banking systems: evidence and policy implications from Sub-Saharan Africa(AREBUS Journal, 2026) Njogo, Michael Njoroge.; Dallu, Abdallah Mambo.; Korir, Fiona Jepkosgei.This study addresses the prudential calibration challenge in emerging Islamic banking systems by examining whether prevailing capital, liquidity, and governance thresholds are proportionately aligned with operational productivity. Focusing on Sub-Saharan Africa (SSA), it reframes financial soundness indicators as regulatory design variables rather than isolated performance determinants. The study employs a bias-corrected two-stage Data Envelopment Analysis (DEA) on a balanced panel of 35 fully fledged Islamic banks in SSA over the period 2010–2024. Efficiency scores are estimated under variable returns to scale and subsequently analysed using truncated regression against CAMELS-based prudential indicators. The findings are interpreted through a regulatory calibration framework grounded in efficiency–stability trade-off theory. Results reveal persistent inefficiencies primarily driven by scale constraints rather than managerial deficiencies. Capital adequacy does not exhibit proportional efficiency gains, liquidity strength shows only modest productivity alignment, and asset quality demonstrates a more consistent association with operational performance. The evidence suggests that mechanical prudential reinforcement in structurally shallow markets may yield diminishing productivity returns. The study proposes a proportional prudential calibration approach integrating capital design, liquidity infrastructure development, and governance strengthening to align stability objectives with productive intermediation better. This paper advances Islamic banking research by positioning operational efficiency as a regulatory diagnostic tool and introducing an empirically grounded prudential calibration framework for emerging financial systems.Item Asset quality, non-performing financing, and early-warning indicators of operational stress in Islamic banking systems: evidence from SSA(Journal of Islamic Economic Studies, 2026) Njogo, Michael Njoroge.; Dallu, Abdallah Mambo.; Korir, Fiona Jepkosgei.This study examines whether Non-Performing Finance (NPF) functions as an early-warning indicator of operational stress in Islamic banks operating in SSA. Departing from conventional efficiency-determinant approaches, the study conceptualises operational efficiency as a diagnostic manifestation of internal stress transmission rather than a measure of managerial performance. The analysis employs a Simar–Wilson two-stage Data Envelopment Analysis framework to generate bias-corrected efficiency scores for a balanced panel of fully fledged Islamic banks over the period 2010–2024, followed by two-way fixed-effects panel regression to assess the early-warning role of lagged NPF. The results show that increases in NPF systematically precede subsequent declines in operational efficiency, indicating that asset quality deterioration is transmitted internally through higher monitoring, restructuring, and Sharīʿah governance costs. The findings further reveal that such asset-quality-induced operational stress is persistent and more pronounced in structurally constrained banking environments. By reframing NPF as a forward-looking supervisory trigger and efficiency as a stress indicator, the study provides novel evidence for regulators and monetary authorities seeking to enhance early-warning frameworks in Islamic banking systems globally today.Item Financial soundness and operational efficiency of Islamic banks in Sub-Saharan Africa: evidence from a bias-corrected DEA and panel regression framework(Emerald Publishing., 2026) Njogo, Michael Njoroge.; Dallu, Abdallah Mambo.; Korir, Fiona Jepkosgei.Purpose This study examined the effect of financial soundness on the operational efficiency of Islamic banks operating in Sub-Saharan Africa (SSA), a region characterized by emerging Islamic banking systems and constraints. It focused on how capital adequacy, asset quality, earnings quality and liquidity management influence efficiency outcomes. Design/methodology/approach The study applies a Simar–Wilson two-stage data envelopment analysis framework to a balanced panel of 35 fully-fledged Islamic banks in SSA from 2010 to 2024. Bias-corrected efficiency scores are estimated under variable returns to scale and subsequently analyzed using a panel regression framework with two-way fixed effects and robust standard errors to control for unobserved heterogeneity across banks and time. Findings The findings revealed a heterogeneous relationship between financial soundness and operational efficiency: asset quality was positively and significantly associated with efficiency, whereas earnings quality exhibited a negative relationship, indicating a profitability–efficiency trade-off. Capital adequacy showed no direct effect, while liquidity management demonstrated a weak and context-dependent influence. Practical implications The analysis is limited to fully-fledged Islamic banks with complete data. The findings suggest that regulators and managers should prioritize asset quality improvement and efficiency-oriented strategies over balance-sheet expansion. Originality/value The study provides one of the first ever comprehensive, bias-corrected DEA empirical assessments of operational efficiency in Sub-Saharan Africa in Islamic banking. By distinguishing operational efficiency from traditional profitability measures, it challenges the assumption that improved financial soundness inherently enhances efficiency in emerging Islamic banking markets.Item Bank size as a mediating mechanism between financial soundness and operational efficiency: evidence from Islamic banks in sub-Saharan Africa(Emerald Publishing., 2026) Njogo, Michael Njoroge.; Dallu, Abdallah Mambo.; Korir, Fiona Jepkosgei.Purpose This study examines whether bank size mediates the relationship between financial soundness and operational efficiency of Islamic banks in sub-Saharan Africa (SSA), where the sector remains small despite growing policy relevance. Design/methodology/approach Panel data from 35 Islamic banks (2010–2024) were analysed using bias-corrected Variable Returns to Scale scores from the Simar–Wilson two-stage Data Envelopment Analysis. A panel-based mediation model with two-way fixed effects was employed, with bank size (log of deposits) as the mediator. Findings Financial soundness significantly improves operational efficiency, with asset quality exerting a negative effect and earnings stability a positive effect. However, financial soundness does not significantly influence bank size, and bank size does not significantly affect efficiency once soundness is controlled for. Consequently, the mediation hypothesis is not supported, indicating that scale does not function as a transmission mechanism in SSA Islamic banking. Research limitations/implications The findings caution against consolidation-led efficiency strategies and support policy emphasis on governance, regulatory infrastructure and operational capacity building to enhance inclusive and sustainable Islamic banking development. Originality/value This study provides one of the first empirical assessments from SSA that explicitly tests the mediating role of bank size in the soundness–efficiency relationship. The findings show that scale expansion does not operate as a transmission mechanism, suggesting that scale-driven efficiency strategies may have limited applicability.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 Financial development and economic development in Africa: a systematic review on the mediating role of fintech(MDPI, 2026) Githira, Charles.; Simiyu, Christine.; Simiyu, Denis.This systematic review examines the mediating role of financial technology (FinTech) in the relationship between financial development and economic development across African economies. It draws on 34 empirical studies published between 2019 and 2026, identified through a structured search of six electronic databases, namely Scopus, ScienceDirect, JSTOR, DOAJ, SciELO, and ERIC. The search was supplemented by manual reference screening. The review synthesises evidence on how digital financial innovations, including mobile money, digital banking, and electronic payment systems, expand financial inclusion and influence economic outcomes. Grounded in Financial Intermediation Theory, Financial Development Theory, Financial Inclusion Theory, and the Technology Acceptance Model, the review provides a coherent framework for understanding FinTech as a structural mediator rather than an independent growth driver. Studies were assessed using the Mixed Methods Appraisal Tool (MMAT, 2018). The findings indicate that FinTech significantly amplifies the positive effects of financial development on economic growth, poverty reduction, and financial inclusion, though these effects are often nonlinear and context-dependent. Institutional quality, regulatory frameworks, and technological infrastructure emerge as critical moderating conditions. This review contributes to the literature by providing the first systematic synthesis that explicitly classifies included studies by their capacity to formally test mediation versus those that imply indirect mechanisms, offering a more precise account of the FinTech–financial development–economic development nexus in Africa. The findings yield targeted policy recommendations for central banks, financial regulators, commercial banks, telecommunications providers, and government policymakers.