Theses and Dissertations
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Item Effect of Islamic Financial Services on the Financial Performance of Selected Banks in Kenya(KCA University, 2018) Eshiwani, Wilfred A.The financial system is the main driver of economic growth and development of a nation. It facilitates the flow and allocation of funds in an economy. For the longest time, the conventional financial system has dominated the market. However, the introduction of Islamic financing is tipping the scales. Islamic finance refers to financial institutions which operate under Islamic Shari’ah law. Over time, there has been a continued expansion and uptake of Islamic financial services. This necessitated a study in this field. Islamic financing offer the same services as conventional financing, but, operate on the principles of Shari’ah law (Islamic law) which prohibits secured returns, fees, uncertainty caused by speculations and fluctuations in interest rates during the financing repayment period on an investment. Islamic finance offers services to all of its customers regardless of their faiths. Some of the challenges facing Islamic banks are social justice, lack of cooperation, divided social interest and liquidity constraints which have contributed to unfavourable financial performance. These challenges have affected the quality and quantity of financial services provided by Islamic banks hence affecting their performance. The purpose of this study was to find out the effect of Islamic financial services on the financial performance of selected banks in Kenya. The study was anchored on three theories; the shareholder theory, the theory of interest and Islam, and the agency theory. The study adopted a descriptive methodology in which eight banks offering Islamic financial services in Kenya were targeted, namely ABC Bank Kenya, Barclays Bank of Kenya, Diamond Trust Bank, First Community Bank, Gulf African Bank, Kenya Commercial Bank, National Bank of Kenya, and Standard Chartered Bank. Secondary data was obtained from published financial statements from respective bank websites and self-administered data collection forms. Data was analysed using descriptive statistics. Regression analysis was used to measure the relationship between dependent variable and independent variables. The study established that equity sharing and financial training had a positive effect on financial performance of selected banks in Kenya. The study however established that cost-plus financing had a negative effect on financial performance of selected banks in Kenya. The study recommended that increased awareness of Islamic products should be undertaken through development of effective marketing policies, Islamic banks should also invest in operational cost cutting measures like staff training to equip them with knowledge and competence and save on time and material wastages, and also the government should develop policies that encourage Islamic banking and growth in Kenya. The study recommended a further study on challenges facing uptake of Islamic financial services in Kenya with a view of recommending solutions to those challenges and also on the same topic using GARCH model as a way of validating this study.Item Socio-economic Factors Influencing Financial Literacy Among University Students In Kenya: An Empirical Approach(Kca University, 2017) Ng'ang'a, Irene W.Most students exercise financial independence after they enrol in a university.That is when their parents or guardians allow them to make their own financial decisions. As many of the University scholars reside away from home; they are left with financial decisions to make which depends on the individual’s financial literacy (knowledge). Financial literacy can be defined as an individual’s capability to make informed choices concerning financial planning, arrears, pensions and ways of accumulating wealth.The chief purpose of this study is to look at the socio economic factors influencing financial literacy in the midst of scholars in Kenya with special focus to University of Nairobisinceit has a high population of students with a wide diversity concerning background (both self and government sponsored) and the variety of courses taken.The specific objectives include; evaluating the effect of students’ financial experience on financial literacy amidst Kenyan university students; to investigate the consequence of students’ financial training on financial literacy among the students in Kenya; to explore the effect of students’ economic condition on financial literacy among them; as well as to investigate the influence of student’s family characteristics on financial literacy among university students in Kenya. Learning Theories, Keynesian Theory of Income and Behavioural Financial Theory have been employed to study university students’ financial literacy. This study will employ descriptive survey design; the design is the most appropriate for the empirical approach employed in this study. This research study will use stratified sampling to identify a model of 383 from the university’s student population.Data will be collected through self-administered questionnaire and later examined using descriptive statistics and regression analysis. The obtained results will be presented in the form of graphs and tables.Finally, conclusions and recommendations will be offered based on the outcome of the study.