Theses and Dissertations
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Item Digital finance, financial management, and performance of small and medium-sized enterprises in Nairobi county, Kenya(KCA University, 2025) Onchangwa, Angeline M.Small and Medium-Sized Enterprises (SMEs) contribute approximately 40 percent of Kenya’s Gross Domestic Product (GDP) and employ over 80 percent of the workforce. Despite their crucial role, many SMEs continue to face limited access to finance, weak financial management, and inconsistent tax compliance. This study examined the effect of digital finance on the financial performance of SMEs in Nairobi County, Kenya, with financial management practices assessed as a mediating variable. The study focused on four dimensions of digital finance: digital payment systems, digital lending services, digital financial record-keeping, and digital taxation and compliance, and their impact on profitability, liquidity, growth, and operational efficiency. A descriptive cross-sectional design was adopted, targeting 400 SMEs across various sectors, from which 371 valid responses were analysed using SPSS Version 29. Descriptive and inferential analyses, including correlation and multiple regression, were employed to determine both direct and mediated effects. The findings indicated that digital payment systems had a strong positive correlation with financial performance (r = 0.712, p < 0.001), while digital lending (r = 0.648, p < 0.01), digital record-keeping (r = 0.681, p < 0.01), and digital taxation (r = 0.623, p < 0.01) also showed significant relationships. Regression results revealed that digital finance collectively explained 63.4% of the variance in financial performance (R² = 0.634, F (4,366) = 74.82, p < 0.001). SMEs adopting integrated digital systems recorded a 22% reduction in transaction costs, a 17% increase in sales turnover, and a 20% improvement in decision-making efficiency. Financial management practices significantly mediated this relationship (β = 0.287, p < 0.01), amplifying the benefits of digital adoption. The study concludes that the integration of digital financial technologies with effective financial management practices enhances SME profitability, liquidity, and sustainability. It recommends strengthening digital literacy, promoting affordable fintech access, and reinforcing supportive policy frameworks to accelerate Kenya’s transition to a technology-driven SME economy.Item Digital Financial Transformation and Financial Inclusion by Mobile Service Providers in West Pokot County, Kenya(KCA University, 2023) Selevani, Laban K.The primary objective of this study was to investigate the influence of digital financial transformation on financial inclusion within West Pokot County, Kenya. In particular, the research focused on evaluating how digital payment systems, digital credit facilities, digital insurance products, and digital investment products impact financial inclusion within the county. The study was supported by the technology acceptance model, the systems theory of financial inclusion and the diffusion of innovation theory. A descriptive research design was adopted to elucidate the attributes associated with the digital financial transformation contributing to financial inclusion among West Pokot County residents. The target population encompasses 56,000 mobile users within West Pokot County. To create a representative sample, a stratified sampling approach was employed, followed by the application of a simple random sampling technique, resulting in the selection of 384 residents. Structured questionnaires served as the primary data collection instrument, utilizing the drop-and-pick method and email for distribution. Subsequently, the collected data underwent analysis employing both descriptive and inferential statistics, facilitated by SPSS Version 25.0. The study findings show that there is a positive and statistically significant correlation between financial inclusion and various digital financial services, namely digital payment systems, digital credit facilities, digital insurance products, and digital investment products. Further, regression analysis results show that digital payment systems, digital credit facilities, digital insurance products, and digital investment products demonstrate statistically significant positive relationships with financial inclusion. These findings emphasize the importance of digital financial services in promoting greater financial inclusion in West Pokot County. The study recommends that efforts should continue to promote and expand the use of digital financial transformation products, given the overwhelmingly positive attitudes and the perceived benefits of convenience and improved financial access. Mobile service providers and relevant stakeholders should prioritize the development and accessibility of user-friendly digital payment, digital credit, digital investment, and digital insurance solutions. Additionally, policymakers should consider regulatory frameworks that promote responsible and inclusive lending through digital channels.