IJMLS Volume IV Issue 3

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    INTEREST LENDING RATES AND CREDIT POLICY AND HOW THEY DETERMINELOAN REPAYMENT IN KENYA: A CASE STUDY OF DEPOIT TAKING SACCOS IN KENYA
    (management university of africa, 2023-11) Kenneth Ngunjiri Mwangi
    The researcher studied deposit-taking Saccos in Nairobi County to find out the determinants of loan repayment in Kenya. The Kenya Financial Sector comprises banks, microfinances and SACCOs, however due to their competitive lending charges and affordable options the latter have, contributed a great deal in economic prosperity through advancement of capital, savings mobilization and wealth creation to young and existing entrepreneurs as well as big corporate entities. However, while the above hold true the financial industry has been suffered the blow of poor loan repayment by the borrowers. In view of the above, two specific objectives acted as the independent variables influencing loan repayment in the DTSs this comprised to; determine the influence of interest lending rates, explore the influence of credit policy on loan repayment in DTSs. in Kenya. The Agency Theory was used as the main theoretical framework and anchored on the Fisher Interest Rates Theory. Descriptive Research Design was adopted, using a target population of 92 employees, which delivered the appropriate sample of 46 respondents to facilitate data collection using closed and open-ended questionnaire delivered to the respondents, which were accurately and precisely designed and easy to fill. Finally, multiple linear regression model, charts and bar graphs were used for data analysis and presentation. Study results indicated interest lending rates in deposit taking Saccos to have a big impact on loan repayment, in that, it favorably and adversely affected loan repayment accordingly, the credit policy seemed to quite significantly impact on the loan repayment. In conclusion, lending rates significant impacted on loan repayment, credit policy ought to be fully and well implemented. The study recommended proper internal control system to monitor and control those specific variables from being over ridded by the loan officers. Same area of study should be advanced to MFIs and explore other variables like open loan guarantors, member education, collateral adequacy and leadership style.
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    CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN MACHAKOS COUNTY, KENYA
    (management university of africa, 2023-11) Shadrack Mbithi Ndeto; Dr. John Cheluget, PhD
    Purpose: the purpose of the research was to examine how the services provided by commercial banks in the country affect the customers' satisfaction, regulatory framework compliance, employee motivation and retention, and overall transparency and accountability. Methodology: Data was gathered using surveys utilizing a descriptive research methodology. Commercial banks in Machakos County were the focus of this research. Because of its central location within the metro area and its excellent infrastructure, Machakos County was chosen due to the region's tremendous economic potential. Machakos county has a total of 26 commercial banks spread across its 9 sub counties and were all involved in the study. The data collection tool was piloted in Makueni County. Both the correlation and regression results were used to establish whether any form of influence between transparency and accountability, employee motivation and retention, regulatory framework compliance, customer satisfaction and performance of commercial banks in Kenya. Findings: The study found out that there exists a positive relationship between the specific aspects of corporate governance under study and the financial performance of commercial banks. these findings have also been related to the findings of another previous research. Recommendations: The research recommends that to ensure there is sufficient Compliance to Regulatory Framework the management of the commercial banks, the legislature and the central bank which is the supervising authority needs to put in place policies to ensure the bank is compliant to the provisions.
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    SUPPLY CHAIN DIGITIZATION AND ORGANIZATIONAL PERFORMANCE IN KENYA: A CASE STUDY OF PHILAFE ENGINEERING LIMITED
    (management university of africa, 2023-11) Jonah Wafula Imbegah; Dr. Paul Machoka
    This research aimed to identify determinants of supply chain digitization in the engineering, procurement, and construction industry in Kenya. The study examined the effect of finances, human resources, information technology, and management on organizational performance in the context of supply chain digitization. Institutional Theory and the Transaction Cost Theory guided the research. The study utilized a descriptive research design and collected primary data through structured online questionnaires administered to all 70 employees of Philae Engineering Limited. Descriptive statistics and a multivariate regression model were used to analyze the data. The study found that adequate financial resources, skilled personnel, investment in IT infrastructure, suitable technologies, and strong management leadership are crucial for the success of supply chain digitization. The study recommends allocating sufficient financial resources, investing in the recruitment and training of skilled personnel, assessing the organization's IT infrastructure and having strong leadership that supports supply chain digitization initiatives. The findings confirm the potential of supply chain digitization to revolutionize the industry by introducing new business models and increasing efficiency.
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    PERSONAL CREDIT SCORE AND ACCESS TO AFFORDABLE CREDIT; A CASE STUDY OF THE NCBA GROUP PLC, KENYA
    (management university of africa, 2023-11) Jared Okoth Awuor; Isabella Sile
    To determine the level of risk default that a client or household presents and assign a risk score to each client, to ascertain the validity of the credit score and household borrowing, to examine trends in credit portfolio diversification, to guarantee adequate controls over credit score, the study aims to examine and establish personal credit scores and access to affordable credit in accessing affordable credit, a case study of the NCBA Bank Group PLC Kenya. Targeting 170 personnel, namely the corporate risk manager, project manager, branch manager, credit risk manager, and operations manager of the NCBA Bank, Kenya, a descriptive study approach was used. 30% of the workers in a survey of 35 branches out of 64 branches were used in the study (51 employees). Both primary and secondary data were employed in the investigation. The primary data will be administered with the questionnaire, and data presented in form of tables and pie charts. It is recommended that in order to assess specific banks’ capacity for portfolio risk management and the creation of expert-based scorecards, focused consultations with those banks are necessary. In addition, there is need for launching a large-scale effort to standardize the gathering of financial statement data, ratio computations, collateral quality measurements (type, loan to-value ratio, lien position), and performance data for loans and deposits. This would eventually allow for the creation of a pooled credit scorecard that includes not only credit bureau data but also the other essential components of a strong NCBA Bank, Kenya scoring model. The days of implementing broad-based policies are being replaced by in-depth evaluations of the market circumstances and a better effort to comprehend the increasingly complex wants of consumers. Additionally, it must be made known that the Credit Information Sharing Mechanism opens up new avenues for obtaining official credit.
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    INFLUENCE OF STRATEGIC LEADERSHIP PRACTICES ON FINANCIAL PERFORMANCE OF STATE CORPORATIONS A CASE OF KENYA ELECTRICITY TRANSMISSION COMPANY LIMITED.
    (management university of africa, 2023-11) Jackson Gachara; Prof. Washington Okeyo
    The study aims to establish the influence of strategic leadership practices on the financial performance at KETRACO with specific objectives being to examine how strategic planning and organization resources affect financial performance. The findings will be used as a reference point to other researchers in the same field. The study findings will be beneficial to the foundation of future studies and provided a critical examination and the knowledge generated by this study will enable scholars to improve and develop a better understanding of the subject. The study was anchored on adaptive leadership theory and reinforced by trait leadership theory. The study adopted a descriptive research design with a target population of 385 respondents. Stratified proportion sampling was used to select 121 respondents. Questionnaires were used for data collection, and a pilot study was conducted on the questionnaires. Data were analyzed using descriptive statistics and inferential statistics. The study established a strong positive relationship between the variables (r= 0.548, p=0.000), and that strategic planning significantly influences financial performance. The regression analysis revealed a relationship R = 0.302 which showed a moderate correlation and revealed that organization resources and financial performance are significantly connected, the study established a strong positive relationship between the variables (r= 0.302, p=0.004). The study concludes that strategic planning statistically and significantly affects financial performance and that there is a positive relation between organization resources and the variations in financial performance can be explained by other study variables. It is recommended that management should develop and formulate guidelines, governing structure, and strategic plans for effective implementation of organizational goals and objectives. A further study on strategic leadership practices and financial performance in state corporations in Kenya whereby the study should seek to provide more insights.
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    ROLE OF ENTREPRENEURSHIP DIVERSITY IN ACHIEVEMENT OF ECONOMICPILLAR OF THE KENYA VISION 2030
    (management university of africa, 2023-11) Prof. Peter Paul Kithae
    The purpose of the research was to examine and establish the importance of entrepreneurship in development of Kenyan economy in line with vision 2030. Basically, the research analyzed previous studies in the field of entrepreneurship and economics in Abid to establish a comprehensive knowledge about the dynamics of self-employment. The study offered a broad understanding of entrepreneurship as explained by different schools of thoughts from the field of economics. Entrepreneurship can be described as an initiative to creatively establish and put into practice new ideas with an aim of creating wealth for the betterment of the society. Furthermore, the research explored theoretical background of entrepreneurship and traditional perception of entrepreneurial activities. Based on the studies carried out in the past, the research established a positive correlation between entrepreneurial activities and economic growth. The findings further indicated that government plays an important role in enhancing entrepreneurship in any given country. Various conclusions were drawn regarding the effects of entrepreneurship on the economy and issues that are associated with success of the process. Lastly, the researcher made recommendations to the government of Kenya, academic institutions and financial organizations, to consider creating a more suitable environment for entrepreneurship.
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    BUSINESS PROCESS RE-ENGINEERING AND OPERATIONAL EFFICIENCY OF COMMERCIAL STATE CORPORATIONS WITHIN NAIROBI COUNTY, KENYA.
    (management university of africa, 2023-11) Rawlings Omondi Ochollah; Dr. John Cheluget
    As Governments throughout the world consider the justification for owning and managing profit-driven enterprises, the conversation surrounding the internal efficiency of public sector entities has evolved into a topic of public concern. In light of the situation, the purpose of this study was to find out how business process re-engineering (BPR) impacts the efficiency of operational processes within commercial state corporations located in Nairobi County, Kenya. The study was guided by specific objectives: to assess the influence of senior management support on operational efficiency, analyze the impact of organizational culture on operational efficiency (OE), explore the effect of selecting a BPR methodology on operational efficiency, and probe into the influence of BPR strategic alignment on the OE of state-owned corporations in Kenya. The research was conducted on 36 commercial state corporations within Nairobi City County, Kenya. The research scope was restricted to four key variables: upper management support, BPR strategic alignment, choice of BPR methodology, and organizational culture. The investigation centered on commercial state corporations that operated during the period from 2019 to 2022. The resource-based perspective theory, systems theory, and organizational contingency theory were all incorporated into the study's theoretical framework in order to comprehend the theoretical underpinnings of the study variables. The census technique was applied using a cross-sectional survey study design because there are only 46 Commercial State Corporations in Kenya (n=46). Structured questionnaires were administered to gather quantitative data. Data analysis involved the use of SPSS version 24 for calculating descriptive statistics and Multiple Linear Regression analysis. The results show that the support of senior management, organizational culture, the choice of business process reengineering method and the alignment of business process reengineering strategies all have a positive impact significantly to the operational efficiency of state-owned commercial corporations (P < 0.05). The study's conclusions emphasize four critical recommendations for enhancing the OE of commercial state corporations. Firstly, securing unwavering top management support is paramount, as it significantly influences OE improvements. 168Secondly, fostering an organizational culture aligned with BPR methodologies is crucial for success. Thirdly, careful selection of the appropriate BPR methodology and diligent adherence to its steps are imperative. Lastly, aligning BPR initiatives with the overall organizational strategy is pivotal in eliminating superfluous processes and tasks. By heeding these recommendations, commercial state corporations can achieve substantial gains in operational efficiency, ultimately boosting their performance and competitiveness.
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    TRANSACTIONAL LEADERSHIP STYLE AND EMPLOYEE SATISFACTION IN WATER SERVICE INDUSTRY IN KENYA: CASE OF MALINDI WATER AND SEWERAGE COMPANY
    (management university of africa, 2023-11) Anderson Kasiwah Furaha; Prof. Washington Okeyo
    Employee satisfaction among organizations requires an optimal mix of leadership styles. Managers of firms grapple with the various leadership styles that can suit them organizational employees, so as to satisfy them. Data from water services companies in Kenya indicates a grim picture on the state on employee satisfaction levels. The purpose of this study was to examine transactional leadership and employee satisfaction in the water service industry: a case of Malindi water and Sewerage Company limited. The study objectives were to determine the effect of contingent reward on employee satisfaction in the water service industry; to evaluate the effect of active management by exception on employee satisfaction in the water service industry; to assess the effect of passive management by exception on employee satisfaction in the water service industry. This study was guided by three theories namely the transactional theory of leadership, the fulfilment theory and the discrepancy theory. This study adopted a descriptive research design. The target population was 206 employees of Malindi water and Sewerage Company limited. The sample size of this study was 62 respondents. A questionnaire was used and data was analyzed through SPSS. Findings revealed that; there is a negative and significant relationship between contingent reward and employee satisfaction in Malindi Water and Sewerage Company limited; there is a negative and insignificant influence of management by exception on employee satisfaction in Malindi Water and Sewerage Company limited. There is a positive and insignificant influence of passive management by exception on employee satisfaction in Malindi Water and Sewerage Company limited. Overall, contingent reward, active management by exception and passive management by exception positively and insignificantly affect employee satisfaction in Malindi Water and Sewerage Company limited. This study recommends that the company should be fair in its appraisal and reward scheme. It is a recommendation of this study that managers should concentrate on successes at the workplace. The management of the company should encourage the employees to be proactive in the course of performing their duties. It is a recommendation of this study that accomplishments be recognized, and rewards be instituted.
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    FINANCIAL TECHNOLOGY ACCESS AND HOUSEHOLD WELFARE IN KENYA: A CASE OF GREEN PARK ESTATE, NAIROBI COUNTY, KENYA
    (management university of africa, 2023-11) Keith Njenga Ng’ang’a; Isabella Sile
    The development of digital financial services has transformed transactions and financial access, particularly in developing countries. However, access to these services remains uneven, impeding economic engagement and welfare development. This study focuses on the impact of financial technology access on household welfare within Green Park Estate, Nairobi County, Kenya, addressing the disparities and exploring avenues for inclusive progress. The specific objective was to determine the effect of access to electronic payment systems on household welfare in Green Park Estate, Nairobi County. The study used the Social Capital Theory. It employed a descriptive research design and targeted 500 households in Green Park Estate. Cochran formula, which was used to reduce the sample to 157 respondents. Simple random sampling technique was used to select the sample respondents. Data analysis was conducted using SPSS version 25, and the findings were presented using chats and tables. The study findings revealed that access to electronic payment systems had a positive impact on household welfare. Electronic payment systems enabled households to better manage their payments, and financial savings innovations positively correlated with household welfare. Based on the study findings, the researcher recommended that financial institutions should work to mobilize more households to fully adopt technology in their financial systems. Financial organizations should collaborate with households in Upper Savanna to develop better financial savings innovations, and the government should provide cheap loans to households to protect them from exploitation. Further studies should also be conducted to determine how these variables affect household welfare.
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    PERSONAL CREDIT SCORE AND ACCESS TO AFFORDABLE CREDIT; A CASE STUDY OF THE NCBA GROUP PLC, KENYA
    (management university of africa, 2023-11) Jared Okoth Awuor; Dr. Paul Machoka
    To determine the level of risk default that a client or household presents and assign a risk score to each client, to ascertain the validity of the credit score and household borrowing, to examine trends in credit portfolio diversification, to guarantee adequate controls over credit score, the study aims to examine and establish personal credit scores and access to affordable credit in accessing affordable credit, a case study of the NCBA Bank Group PLC Kenya. Targeting 170 personnel, namely the corporate risk manager, project manager, branch manager, credit risk manager, and operations manager of the NCBA Bank, Kenya, a descriptive study approach was used. 30% of the workers in a survey of 35 branches out of 64 branches were used in the study (51 employees). Both primary and secondary data were employed in the investigation. The primary data will be administered with the questionnaire, and data presented in form of tables and pie charts. It is recommended that in order to assess specific banks’ capacity for portfolio risk management and the creation of expert-based scorecards, focused consultations with those banks are necessary. In addition, there is need for launching a large-scale effort to standardize the gathering of financial statement data, ratio computations, collateral quality measurements (type, loan to-value ratio, lien position), and performance data for loans and deposits. This would eventually allow for the creation of a pooled credit scorecard that includes not only credit bureau data but also the other essential components of a strong NCBA Bank, Kenya scoring model. The days of implementing broad-based policies are being replaced by in-depth evaluations of the market circumstances and a better effort to comprehend the increasingly complex wants of consumers. Additionally, it must be made known that the Credit Information Sharing Mechanism opens up new avenues for obtaining official credit.