International Journal of Business Management and Finance
Authors: Mary Wanjiku Mburu
Abstract: Leasing involves a client company entering into a contract with a leaser to get credit for medium or long-term. The client, also known as the lessee, asks the leasing company to acquire assets, which may be movable or immovable, for business purposes. The leaser gives the assets to the lessee for a given time in return for payment in the form of rent. The general objective of this study was to establish the factors affecting lease financing in the manufacturing industry by focusing on Kariobangi Light Industries. The study also sought to determine the effects of access to information, financial resources and tax shield on lease financing in Kariobangi Light Industries. This research study used a descriptive research design. The target population was 300 managers/owners in the firms in Kariobangi Light Industry. The researcher was used a stratified random sampling to select 30% of the target population. The sample size of this study was 90 respondents. The study used primary data which was collected by use of selfadministered questionnaires. Content analysis was used in processing of the data and results were presented in prose form. The quantitative data in this research was analyzed by use of descriptive and inferential statistics by use of Statistical Package for Social Sciences (SPSS). Descriptive statistics such as mean, frequency, standard deviation and percentages was used to profile sample characteristics and major patterns emerging from the data. Further, multivariate regression analysis was used to establish the relationship between the dependent and the independent variables. The study also found that financial resources influence lease financing in organizations in the manufacturing industry most followed by access to information and tax shield. The study recommends that leasing companies should hold seminars for manufacturers and train them on the benefits of lease financing. The study also recommends that small manufacturers should adopt leasing financing so as to benefit from tax benefits.
Authors: Dikir Eric Simel, Dr. Lagat Charles, Dr. Muthoga Samuel
Abstract: Foreign Direct Investments play important roles in growth and development processes of many economies in the world. Despite their importance in economic development, FDIs in Kenya have been fluctuating over the years. Studies conducted in Kenya have focused on the determinants of foreign direct investment inflows in Kenya. Studies covering human capital development, inflation, economic growth and cost of borrowing in regards to influencing foreign direct investments are lacking in Kenya. The general objective of this study was therefore to determine the socio-economic determinants of foreign direct investment inflows in Kenya. The study also sought to examine the effect of economic growth, human capita development, cost of borrowing and inflation rate on foreign direct investment inflows in Kenya. The study also hypothesized that there is no significant relationship between economic growth, human capital development, cost of borrowing and inflation rate and foreign direct investment inflows in Kenya. This study adopted a retrospective longitudinal study design. The study relied on data on economic growth, human capital development, cost of borrowing, inflation and foreign direct investment inflows in Kenya for the period ranging from 1980 to 2015. Secondary panel data was used in this study. Data on the economic growth (GDP), FDI, human capital index and lending interest rates was obtained from the World Bank and International Monetary Fund. Data on interest rates was obtained from the central bank of Kenya. Data on inflation was obtained from Kenya National bureau of statistics. The secondary data was quantitative in nature and was analyzed using descriptive as well as inferential statistics. Descriptive statistics included frequency distributions, mean, standard deviation and percentages. Inferential statistics include analysis of variance, correlation analysis and multivariate regression analysis. The inferential statistics were used to evaluate the relationship between the dependent and the independent variables. Data was analyzed by use of statistical software known as STATA (version 14). Of the four socioeconomic factors studies, which include economic growth, human capital development, cost of borrowing and inflation rate, its only inflation that influences foreign direct investment inflows. However, economic growth influences inflation. The study recommends that the government of Kenya should control and regulate inflation rate around levels that stimulate investment.
Authors: Muthungu Peter Waiguru, Dr. M'Amanja Daniel
Abstract: Just like many east African countries, Kenya has been active in promoting local industries that play major roles in exportation. However, despite the various legislations in the attempt to have various measures to enhance the implementation of international trade, steady foreign exchange rate unpredictability combined with cost changes have undermined these endeavors. This study therefore sought to investigate on the effect of exchange rate volatility on the performance of horticultural exports in Kenya. Specifically, the study sought to establish the effect of interest rates, inflation rates and public debt on the performance of horticultural exports in Kenya. This research study was quantitative and a descriptive research design was used. The population under study was all the 58 licensed horticultural produce exporters (Licensed by HCDA) in Kenya. Monthly export earnings for all the licensed horticultural produce exporters as provided by HCDA were analysed. This was a census study and hence no need of sampling. This study used secondary data, which was gathered from HCDA, KNBS, and CBK for the period of ten years (11 years) (2004 - 2014). Horticultural export earnings statistics data will be obtained from HCDA. Data on foreign exchange rate fluctuations was obtained from CBK while data on inflation was obtained from KNBS. This study generated quantitative data which was analysed by use of descriptive and inferential statistics. Descriptive statistics included mean and standard deviation. On the other hand, inferential statistics included multiple regression analysis. All statistical analysis was conducted with the help of Statistical Package for Social Sciences (SPSS version 21). The study found that there is a negative association between foreign exchange rate and the performance of horticultural exports in Kenya. In addition, the study established that inflation rates inversely and significantly influence the performance of horticultural exports in Kenya (β=-0.178, p-value=0.021). Further, the study established that interest rate inversely and significantly influences the performance of horticultural exports in Kenya (β=- 0.167, p-value=0.042). In addition, the study established that inflation rates, interest rate and public debt inversely and significantly influence the performance of horticultural exports in Kenya (β=-0.312, p-value=0.000). The study recommends that inflation rate should be contained through sound policy measures as higher inflation rates may hurt the general export performance in Kenya. The study also recommends that the Central Bank of Kenya should set base lending rates that can help the banks profitable while at the same time not punitive to the borrowers.
Authors: Kisang Kiptoo Paul, Kogei Japheth, Ochieng Linus
Abstract: Studies on the factors determining stock market development and economic growth have been increasing in recent years. This study sought to examine the effect of macroeconomic factors on stock market development in Sub-Saharan Africa. The study was guided by the specific objectives focusing on the effects of income levels, banking sector development, stock market liquidity and institutional quality. The study adopted an explanatory research design so as to explore the macroeconomic factors surrounding the development of stock markets in SSA. The study targeted on all the companies listed and active at the selected ten Sub-Saharan African economies covering the period from 2001 to 2015. Using pooled cross sectional data from the selected sub-Saharan African countries, the study employed a panel data analysis technique with Stata (14) which has a rich variety of panel analytic procedures. Furthermore; the study used Time Series Regression model to examine the effect of the macroeconomic factors on stock market development in SSA. For stock market development indicators, market capitalization, listed companies and total value traded was considered. This study found that banking sector development influences the development of stock market development in Sub-Saharan Africa most, followed by stock market capitalization (in dollars), corruption perception index and GDP per capita in US dollars. Stock market liquidity was found to have a positive and statistically significant effect on stock market development. Similarly, income level was found to be positive and statistically significant in explaining the stock market development. As expected, the higher the income, the more likely it is for investors to save and invest because disposable income increase. Banking sector development was found to be positive and statistically significant. This study recommends that countries in Sub-Saharan Africa should improve their institutional capacity by reducing corruption. This should be done though development and strict implementation of policies. This study also recommends that countries in Sub-Saharan Africa should improve their banking sector by developing monetary and fiscal policies that support the growth of the banking sector.
Authors: Kiptoo Tanui Livingstone, Dr Karanja Ngugi
Abstract: Hedging can reduce underinvestment costs since it reduces the probability of financial distress by shielding future stream of cash flows from the changes in the exchange rates. Variability in cash flows will result in variability in the amount of investment. A decrease in planned investment means that the firm is foregoing positive net present value projects and since it has insufficient internal funds the firm is forced to raise costly external finance. Shareholders in Kenyan firms are losing billions of shillings each year due to directors’ failure to shop for appropriate hedging instruments. The widespread use of derivatives for hedging is well documented in the corporate hedging literature. Thus, why firms hedge and whether hedging creates value are important questions. However, none of these studies was conducted in Kenya on the determinants of corporate hedging practices, research gap. This study aimed at investigating on the determinants of corporate hedging practices used by companies listed in Nairobi Security Exchange. The specific objectives of this study were to establish the effects of long-term debt ratio, growth option, liquidity ratio and cash flow volatility on the hedging practices used by companies listed in Nairobi Security Exchange. This study used a descriptive design. The target population of this study was therefore 300. This study used purposive sampling to select on the financial managers. The sample size of this study was therefore 60 respondents which is 20% of the target population. The study collected both primary and secondary data. Primary data was collected using questionnaires. On the other hand secondary data was collected from newspapers, published books, journals and magazines as well as other sources such as the companies’ prospectus. Primary data was collected using questionnaires that were distributed to the respective respondents. Quantitative data collected was analyzed using descriptive statistics by the help of SPSS (V. 17.0) and presented through frequencies, percentages, means and standard deviations. Data was then presented in tables, figures and charts. In addition, multiple regression was used to establish the relationship between the dependent and the independent variables. This study established that there is a positive relationship between hedging practices used by companies listed in Nairobi Security Exchange and liquidity ratio, growth option and cash volatility. The study also found that long-term debt negatively influences hedging practices used by companies listed in Nairobi Security Exchange. This study established that most of the companies in Nairobi Security Exchange had experienced liquidity problems in the last 5 years. In addition, the study found that most of the companies in this study had not used hedging practices in the past. This study therefore recommends that companies listed in NSE should make use of hedging practices whenever they are facing liquidity problems.
Author: Mugo Anthony
Abstract: The objective of this research was to determine the effects of mergers and acquisitions on the financial performance of commercial banks in Kenya. Theoretically it is assumed that mergers improve company performance as a result of synergies acquired, market power, enhanced profitability and risk diversification. The research focused on the financial performance of commercial banks in Kenya which merged between 1999 and 2005. Comparative analysis of the bank’s performance pre and post-merger periods was conducted to establish whether mergers lead to improved financial performance before and after merging. Secondary data from financial statements was collected for 5 years before and after the merger and analyzed with the aid of statistical tools. Descriptive research design was used where banks’ performance shall be analyzed before and after the merger to determine whether there is any effect on the financial performance. The population used in this study was all the 36 Kenyan commercial banks that have undergone mergers. The study comprised of 16 commercial banks that have undergone mergers between 1999 and 2005.The study used secondary data from the NSE, CBK, published facts and figures and reports for the period in study. The data was analyzed on the basis of the mean. The chi square test was computed to test the null hypothesis. The study focused on the financial performance of the merged Kenyan banks before and after the merger. The comparative analysis for the pre- and post-merger periods was carried out to establish whether mergers lead to improved financial performance. The study established that merger was influencing profitability of banks. The study found that there was an increase in the t- value from 20.582 to 23.249, an indication that there was an increase in the return on equity after merger. The study concludes that mergers and acquisitions influence capital adequacy ratio positively. The study found that there was an increase in the t value for capital adequacy ratio pre-merger to post –merger from 19.064 to 21.764. The study also concludes that mergers and acquisitions influence long-term solvency ratio positively. The study found that there was a general increase in solvency of the companies as there was an increase in the t-value from the pre-merger to post –merger from 34.194 to 39.351, there was an increase in the mean difference from 84.25 to 92.25. The study recommends that those firms facing constraints on the market should consolidate their energies by resorting to merger/acquisition so as to expand their profitability as the merger/acquisition is not just for the best interest of the managers but also shareholders as it leads to an increase in shareholders’ wealth as opposed to each financial institution operating separately on its own.
- EFFECT OF CAPITAL STRUCTURE ON PERFORMANCE OF MICROFINANCEINSTITUTIONS: A CASE OF DEPOSIT TAKING MICROFINANCE INSTITUTIONS
Author: Onyinkwa Steve Omare
Abstract: Most DTMFIs in Kenya started off as NGOs and had built significant supply side competencies, as such, funding structure had no relevance. However, with growth and commercialization, MFIs are spinned off to become fully independent, the puzzle of funding structure that will ensure sustainability and profitability becomes relevant. The main objective of this study was to investigate on the effect of capital structure on the performance of microfinance institutions with a case of taking microfinance institutions. The study also sought to determine the effect of debt to equity ratio, debt to asset ratio, total debt ratio and customer deposits on the performance of microfinance institutions in Kenya. This study used a descriptive research design. The target population for this study constituted of 8 Deposit Taking Microfinance institutions in Kenya. Census method was used to select all the 8 DTMs in Kenya. This study used cross-sectional data, where all the MFIs were observed at the same point of time (2010- 2014). The research concentrated on secondary data using annual reports of the relevant Deposit Taking Microfinance institutions. The study made use of both descriptive and inferential statistics. In relation to descriptive statistics the study used frequency distributions, percentages, measures of central tendency (mean) and measures dispersion (Standard deviation) to summarize the data. The study also used correlation and multivariate regression analysis to examine the magnitude of the influence of the independent variable on the respective dependent variables. From the results, the study found that there is a positive relationship between debt to equity ratio and the performance of microfinance institutions in Kenya. The study also established that debt to asset ratio, total debt and customer deposits and the performance of microfinance institutions in Kenya. The study also found portfolio at risk influences the performance of microfinance institutions negatively. The study recommends the development of appropriate policies to enable MFIs to have access to debt to enhance their operations. In addition, the Nairobi Security Exchange should have a look at their listing requirements and work towards designing mechanisms that would enable MFIs to get listed and to offer them the opportunity to access equity capital.
- THE EFFECTS OF SACCOS’ REGULATIONS ON THE PERFORMANCE OF SAVINGS AND CREDIT SOCIETIES (SACCOS) IN KENYA: ACASE OF SACCOS IN NAIROBI
Authors: John Kirika Kamau, Dr. Wario Guyo
Abstract: Cases of mismanagement and corruption have been reported as the main challenges facing cooperative movements in Kenya. This prompted the establishment of Sacco Societies Regulatory Authority. Since the establishment of SASRA, the performance of SACCOs has been improving (MOCD & M 2012), but there is no study that has been done on the effects of regulations on the performance of SACCOs. This study therefore sought to determine the effects of SACCOs’ regulations on the financial performance of savings and credit societies (SACCOs) in Kenya. The study also sought to find out the effects of SACCOs regulation on the share capital, liquidity position and dividends of SACCOs in Kenya. The target population of this study was therefore 170 respondents. The sample size of this study was 34 respondents. The study used primary data which was collected by use of questionnaires. Data was analyzed using descriptive statistics. In addition to measures of central tendencies (mean), measures of dispersion (standard deviation and coefficient of variation) and graphs was used to tabulate the information. Correlation analysis was also used to describe the degree to which one variable is linearly related to another. The study established that there is a positive correlation between Saccos regulation and Share capital with a coefficient of 0.058, with pvalue of 0.020 which significant at α = 5%. The study also found that there is a positive correlation between liquidity position and Saccos regulation where the correlation coefficient is 0.64 and a p-value of 0.027 which significant at α = 5%. The study further concludes that there is a positive association between dividends and Saccos regulation where the correlation coefficient is 0.92, with a p-value of 0.025. The study recommends that SASRA should review its regulations so as to safeguard the dividends of the stakeholders, Membership regulations and controlling liquidity in SACCOs.
Abstract: The purpose of this study is to establish the effects of strategic planning on small and medium enterprises performance in Eastliegh Area. The study also sought to establish the effect of mission statement and goal setting on small and medium enterprises performance in Eastliegh Area. Further, the study sought to assess the effect of the environmental scan on small and medium enterprises performance and to examine whether the communication influences the performance of small and medium enterprises in Eastliegh Area. This research problem can best be studied through the use of a descriptive research design. The target population of this study was therefore 721 member of Eastleigh business Association. The sampling frame of this study included hotels, clothes and textiles, electronics, utensils, general shops, hardwares, bookshops, pharmacies and clinics, transport, supermarkets, motor vehicle spares, Cybercafe, insurance and brokerage services, car dealership and petrol stations. Stratified random sampling was used to select 20% of the target population. The sample size of this study was therefore 142 respondents. Structured questionnaires were used in this study to collect data. The questionnaires were administered by use of a drop off and pick up later method to the sampled respondents. Data analysis was done after data collection. The quantitative data in this research was analyzed by descriptive statistics and inferential statistics using Statistical Package for Social Sciences (SPSS version 20). Descriptive statistics included measures of central tendencies (mean), measures of dispersion (standard deviation), frequencies and percentages. Data was then presented in tables, charts and graphs. Content analysis was used in processing qualitative data and results were presented in prose form. The study also used multivariate regression analysis to establish the relationship between the dependent variable and dependent variables. The study found that companies that are better performing have better, stronger and clearer vision and mission statements and that a mission statement affects financial performance in SMEs positively. The study concludes that there is a positive relationship between mission statement, goal setting, environmental scan and communication performance of small and medium enterprises. The study recommends that Eastleigh Business Association should ensure that each enterprise’s mission statement should be strong and clearer. The study recommends that mission statements of the individual small and medium enterprises be tailored to reflect their competitive nature and strategies.
- ROLE OF TECHNOLOGICAL INNOVATION ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMEs): A SURVEY OF HOTELS IN NAIROBI
Authors: Gikonyo Stephen Murimi, Kithinji Moses, Njeru Eric
Abstract: Innovation refers to the development or creation of new processes or devices as a result of experimentation and studies. Quality and innovation can be seen as two key strategies for increasing customer value. In today’s uncertain and volatile business environment, firms have to recognize and make use of opportunities for them to survive and compete successfully. Technological innovation involves putting of new ideas into practice through the development of new processes and products, which play a major role in trade and economic development. In developing countries, small and medium enterprises are considered to be drivers of equitable development and economic growth. This is because they are labor intensive and hence are capable of creating the more than one billion jobs required in the world today. The utilization of innovation in restaurants leads to the competitiveness of product portfolio and helps the management in achieving a competitive advantage. The purpose of the study was to investigate the role of technological innovation on the performance of small and medium enterprises (SMES). The main objectives of the study was to assess the link between creativity and performance of the Small and Medium Enterprises; to explore the role of National Innovation system and performance of the Small and Medium Enterprises, to examine the effect of knowledge diffusion exchange through networks and the performance of the Small and Medium Enterprises and to assess the influence of technological capability on the Small and Medium Enterprises’ performance. To obtain the sample the researcher used the stratified random sampling. Questionnaire was used as a method of data collection. The data collected was analyzed and presented using various presentation mechanisms including graphs, pie charts and tables. The study found that knowledge diffusion, technological capability, national innovation process and creativity have a significant influence on the hotels’ performance in Nairobi County. This study makes a recommendation that the management of hotels in Kenya should ensure that there are consistent and frequent trainings of their employees. Training plays a major role in improving employees’ knowledge and skills, which in turn improves performance and productivity. This study recommends that hotels’ managements should include orientation of technological innovations during the orientation of new employees. This study further recommends that the government of Kenya should come up with policies geared towards improving the innovation process among SMEs. This study also recommends an all participatory approach during the innovation process.
- CHALLENGES FACING IMPLEMENTATION OF STRATEGIC PLANS IN THE PUBLIC SECTOR: A SURVEY OF MINISTRY OF LAND, HOUSING AND URBAN DEVELOPMENT
Authors: Veronica Wachera Kamau, Jane Munga, Benard Baimwera
Abstract: Every organization wants to survive and grow in a constantly changing and competitive environment. To do so, it must respond and adjust to the social, economic and political environmental changes that occur. The environments of public organizations have become not only increasingly uncertain in recent years but also more tightly interconnected; thus changes anywhere in the system reverberate unpredictably, and often chaotically and dangerously throughout the environment. The study sought to assess the challenges facing implementation of strategic plans in the public sector. More specifically, it aimed at examining leadership style, financial resources, information technology, employee training and organization cultural values affect implementation of strategy plans in the selected ministry of land, housing and urban development . The study shall adopt a descriptive survey design. The target population of the study was all the 361 managers (all three levels) of the selected ministries. The researcher used stratified random sampling method from the Cochran’s formula to select the desired sample population of 190 from the Top Managers, Middle managers and lower level managers (40%). Data collected was cleaned, pretested, validated, coded, summarized and analyzed using statistical package of SPSS V21 for Pearson correlation and regression analysis. Leadership style was found to be significant; hence, it do contribute positively towards implementation of strategic plans. Financial resource constraints was also reported to have a positive and significant effect on implementation of strategic plans. In addition, information technology programs was found to have a positive and significant effect on implementation of strategic plans. Employee training was also reported to have a positive and significant effect on implementation of strategic plans. Finally, organizational cultural values was also found to be significant and therefore an important factor in affecting implementation of strategic plans. The study therefore concludes that leadership style, financial resource constraints, information technology, employee training and organization cultural values significantly affect implementation of strategic plans. The management of the Ministry of land, housing and urban migration need to consider all the variables considered in this study in order to improve strategic plan implementation and consequently this will improve the performance of the Ministry. The researcher recommends that future research should be directed towards validating the results of this study by conducting a similar research in other sectors in Kenya by collecting data from different sources. Further research should also be conducted to investigate the other factors (48%) that affect strategic plan implementation.
Authors: Timothy Kiratu Muhoho, Dr. Peter Kihara, Martin Kinyanjui
Abstract: The purpose of this study was to establish the factors affecting the implementation of Performance contracts among teachers in public schools in Nairobi County. Performance contracting is one of the public reform initiatives for managing public enterprises and it is a measure undertaken by the government aimed at re-orienting service delivery from being process oriented to result based. The general purpose of the study was to investigate the factors challenging the implementation of PCs among public school teachers in Nairobi County. The study sought to investigate the effect of employee sensitization, performance measurement, organizational commitment and organizational culture on implementation of PCs in public schools in Nairobi County. The study adopted quantitative & qualitative research design. It targeted a population of 4,326 respondents in collecting data. Precisely, the target population of the study was 206 head teachers and 4120 teachers making a target population of 4326. This study used the fishers and the finite formulas to calculate the sample size at 95% Confidence Interval hence used a sample size of 353. It used simple random and census sampling as sampling designs and used primary and secondary data of which primary data was collected through the use of questionnaires and secondary data was collected from government and private sector publications. Quantitative data analysis technique was used to analyze the collected data including the use of inferential statistics comprising frequency tables, graphs and charts. Data analysis was done with the help of SPSS version 23. The results indicated that employee sensitization, performance measurement, organizational commitment and organizational culture are the major factors that directly affect the implementation of PCs in public schools in Nairobi County. Apart from Organizational commitment which was found to have a positive relationship with the implementation of PCs; all the other three independent variables were found to have a negative relationship with the implementation of PCs. According to this study, for the implementation of PCs in public schools in Nairobi County and in Kenya at large to be successful and avoid resistance to change, the following must be done effectively and efficiently: Employee sensitization must be done prior to and during the implementation process and all stakeholders continuously involved in the process ; The Performance evaluation mechanism should be improved to ensure that it is able to substantiate the productivity of each organizational employee without delay and this information availed to them promptly.
- FACTORS INFLUENCING IMPLEMENTATION OF PERFORMANCE CONTRACTING IN PUBLIC INSTITUTIONS IN KENYA: A CASE OF THE MINISTRY OF SPORTS, CULTURE AND THE ARTS
Authors: Caroline Arimi K. Stephen Maore, Dorothy Kirimi
Abstract: Performance contracting is a management tool for measuring performance that establishes operational and management autonomy between government and public agencies; it also measures performance and enables recognition and reward of good performance and sanction bad performance. The performance of the public sector has become a common phenomenon the world over especially in developing countries. Delivery of efficient and effective services to its citizens continues to be a major concern to Governments. One of the key priorities of the Kenyan Government is to implement and institutionalize public sector reforms geared towards efficiency and effectiveness in the delivery of service to the public. The study sought to investigate into the factors influencing implementation of performance contracting in the public institutions where the focus was on the Ministry of Sports, culture and the Arts. The general research objective of this study was to investigate into the factors that influence implementation of performance contracting in the public institutions. The research problem was studied through the use of a descriptive research design and adopted census sampling technique. The target population of this study was the two hundred (200) staff working at management levels at the Ministry of Sports Culture and the Arts, Headquarters in Nairobi. Both primary and secondary data was used during data collection. Data collection involved a self-administered questionnaire. Data collected was quantitative and it was analysed by descriptive analysis techniques. The findings were presented using tables, charts, percentages, tabulations, means and other central tendencies. The researcher also conducted a multiple regression analysis so as to determine the effects of the four variables on performance contracting in the public institutions in Kenya. This generated quantitative reports through tabulations, percentages, and measure of central tendency. The study found out that organizational culture greatly affected the implementation of performance contracting through the various aspects such as the composition of the PC committee, employees’ awareness and commitment. Top management commitment especially their adherence to PC procedures highly affected the implementation of Performance contracting. The regression equation shows that employee turnover, top management commitments highly influence the implementation of performance contracting in the ministry. The study concludes that various aspects of organizational culture, top management commitment, political influence and employee turnover highly influenced the implementation of performance contracting in the ministry. The study recommends that for effective and efficient implementation of PC there should be involvement and creation of awareness to all staff; proper communication channels be provided; leadership of the organization is the major drawing force in PC implementation; PC be in line with the Ministry objectives and that adequate budget should be allocated for PC implementation.
- RELATIONSHIP BETWEEN WOMEN ENTERPRISE FUND AND ORGANIZATIONAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN ISIOLO COUNTY, KENYA
Authors: Fredrick Kithinji, Dr. Evangeline M. Gachunga, Ms. Dorothy G. Kirimi
Abstract: This study attempted to investigate the relationship between Women Enterprise Fund (WEF) and the organizational performance of women owned small and medium enterprises in Isiolo County, Kenya. The study’s main objective was to find out the relationship between women enterprise fund and the Organizational Performance of women owned small and medium enterprises in Isiolo County. The study also sought to assess to what extent training offered, networking opportunities, market opportunities and accessibility to credit offered by Women Enterprise Fund influence performance of women owned enterprises in Isiolo County. This study utilized a descriptive survey research design and targets all the 215 active women groups in Isiolo County which have benefited from WEF. Sampling method that was used to select 140 women groups was simple random sampling. A questionnaire with closed-ended items was used. Data was analyzed using descriptive statistics that involved frequent distribution, percentages and average values. The findings were presented in frequency distribution tables, mean and standard deviation values followed by explanation of the study results per table. The study established that women Enterprise funds training equipped respondents with business management skills, informed respondents the importance of record keeping offered respondents a chance to share experiences with other business persons, women enterprise fund has enabled respondents’ members to interact with well-established business women and learn best business practices from other business women and women enterprise fund has enabled our members to timely access information on pricing of their products. The study concludes that Women enterprise Fund training created awareness of the existence of the fund, members to interact with well-established business women and members’ access capital for their business. The study recommends that SMEs in Kenya should put in place training programs so as to create awareness of the existence of the fund and put in place networking opportunities to enable staff to interact with well-established financial institutions.
- THE RELATIONSHIP BETWEEN STRATEGY FORECASTING AND PERFORMANCE OF MANUFACTURING FIRMS IN CENTRAL KENYA REGION
Author: Philip Mbugua
Abstract: Globalization and intensive world-wide competition along with the technological advancements create an entirely new business environment for the manufacturing organizations. Initially, manufacturing companies have accomplished massive productivity gains through the implementation of lean production in response to this intensifying competition (Askarany & Yazdifar, 2012). This study thus sought to establish whether strategy forecasting has a relation with the manufacturing firms’ performance in Kenya through the case of Central Kenya region. The research adopted a descriptive survey research design. The study used questionnaires as the tools for data collection. In the study, all (110) questionnaires were administered to the sampled respondents with 82% response rate. The study concluded that business trends strongly affect the performance of manufacturing firms in central Kenya. This was because items on business trend like management capacity to analyses trends, company reputation, sales trends and technological development trend had much relationship on firm performance. Seasonal trends affect firm performance. The study recommends that there is need to sensitize the staff in the manufacturing firms on the strategic goals in relation to forecasting. The study also recommends that management of the manufacturing firms should also factor seasonal variations which were found lowly relating on firm performance and that management should invest in capacity building.
- FACTORS AFFECTING STRATEGY IMPLEMENTATION AMONG LOCAL NON-GOVERNMENTAL ORGANIZATIONS IN KENYA: A SURVEY OF NGOS IN NAIROBI COUNTY
Authors: Patrick Muriithi, Moses Muriuki, Martin Kinyanjui
Abstract: Globally, many organizations have slowly embraced strategic planning but the implementation process remains a challenge, resulting in well-formulated strategies that fail at the implementation stage. No known study has been done on factors affecting strategy implementation among local Non-Governmental Organizations in Kenya, Nairobi County. This study therefore sought to fill this gap by investigating the factors affecting the implementation of strategic plans in non-governmental organizations. The study also sought to establish the effect of management styles, communication, organizational culture and organizational resources on the implementation of strategic plans in non-governmental organizations. The study used cross sectional survey research design and the target population of the study was the local NGOs in Nairobi in sectors of health, youth, welfare, micro-finance and relief registered in Nairobi County. The study used stratified random sampling technique to select a sample of 163 local NGOs in Nairobi County. Data was collected using semi-structured questionnaire while data analysis was done using frequencies and descriptive statistics. The results indicated that the most common management style used by most NGO was democratic style chosen by majority of the respondents while bureaucratic style was the least used. The findings also show that flow of communication in most NGOs used a top-down approach. However, this is a concern for this study since lack of clear multi-directional flow of communication may be a hindering factor affecting implementing of strategic plans. The study also established that employees in the various NGOs widely use meetings and newsletters as a means of communicating their strategic implementation plans meaning that meetings and newsletters form the main channels of communication. The results further indicate that organizational culture influences the implementation of strategic plans. In addition, all goals in organizational resources had a positive mean showing that they all had an effect in strategy implementation. It can be concluded that all the five independent variables had a positive effects of the dependent variable, data collection instruments has been proved to be valid for this study. The study recommends that various NGOs should use better management styles that incorporate all employees like the democratic style where all employees are associated in achieving set strategic objectives. In addition, NGOs should have a more defined culture that allows training and professionalism and rewarding of more performing employees to motivate them to implement and attain the strategic objectives easily.
- INFLUENCE OF MARKETING STRATEGIES ON PERFORMANCE OF WATER AND SEWERAGE COMPANIES IN KENYA: A CASE OF NAIROBI CITY WATER AND SEWERAGE COMPANY
Authors: Otieno Lucy Amondi, Dr. Thomas Senaji, Ann Thuo
Abstract: Strategic marketing is a phenomenon highly associated with development and has been adopted in Kenya and globally. For businesses seeking successful and long term participation in market, it’s expedient that they choose clear marketing strategies. The study therefore sought to assess the influence of marketing strategies on performance of the water and sewerage companies in Kenya (A case of Nairobi City Water and Sewerage Company). Since provision of water and sewerage services in Nairobi city and it’s environ in Kenya has for a long time been characterized by poor service delivery, inefficient management and lack of sound strategic approach in addressing the demand for the services. Though the concept of marketing strategies is relatively young and yet un-established and also marketing strategies effect on NCWSC’s performance is considerably vague, the effects are unclear since they have not been studied much, especially in different water companies. The researcher attempted to address the gap or primary research problem through investigating the kind of marketing strategies which are most positively and effectively relates to the achievement of set goal of NCWSC’s performance. The objectives of this study were to establish the influence of online marketing strategy, branding marketing strategy, relationship marketing strategy and market dominance strategy on the performance of water and sewerage companies in Kenya. The study adopted a descriptive research design which involved observing and describing the behavior of a subject without manipulation, the target population was 300 and a sample size of 171 respondents was used. The sampling design was random sample and the data collection method was questionnaires. The study was analyzed using a quantitative analysis software Statistical Package for Social Sciences (SPSS) version 23. The conclusions were that; online marketing strategy can significantly improve the performance of Nairobi City Water and Sewerage Company in Kenya, improvement of branding marketing strategy can increase the performance of NCWSC in Kenya, high levels of relationship marketing strategy increases the performance of NCWSC in Kenya, high levels of market dominance strategy improves the performance of NCWSC. The study recommends that the management of NCWSC in Kenya should always use social networks such as face book and twitter when advertising new services, and also they should carry out direct marketing which can help them interact directly with customers, hence achieving organization goal, which is to provide quality and efficient services to Nairobians and environs.
- RELATIONSHIP BETWEEN STRATEGY IMPLEMENTATION AND PERFORMANCE IN KENYA TEA DEVELOPMENT AGENCY (KTDA) LIMITED MANAGED FACTORIES IN KENYA
Authors: Mwangi Wanjiru Peris, Dorothy Kirimi, Evangeline M. Gichunge
Abstract: Strategy implementation is the turning of plans and strategies into actions so as to accomplish set goals and objectives. The implementation of a strategic plan is of more importance than the coming up with strategies. The strategic plan is the roadmap that a business needs to pursue following a laid out strategic direction and the laid out objectives so as to be success and add value to the customer. For implementation of strategic plans to be successful the business must be willing to commit funds and time. Additionally, organizations must make sure that the people charged with implementation of the strategic plan are the right ones. Such people include employees who are competent and skilled to support the strategic plan. Kenya is a key player in global tea industry and especially through Kenya Tea Development Agency (KTDA). Most tea factories put more emphasis on the performance with the believe that the implementation of the strategy they have put in place does impact performance. KTDA managed factories primarily focus is to increase their sales revenue and production volumes. However, KTDA has been facing the challenges of decreasing returns to the farmers resulting in conflict between the management, directors and the farmers. To address the issue of decrease in return to farmers, the study assed the relationship existing between strategy implementation and performance. The specific objectives were to determine the effect of resources utilization, training and development, culture, and leadership on performance in KTDA managed factories. To answer the research questions, descriptive statistics was used where sample of 112 respondents from a target population of 378 managers within KTDA factories in Kenya were given questionnaires. The primary data that had been collected was grouped and analyzed using inferential and descriptive statistics and the results presented in charts, graphs, mean and percentages. Multiple linear regression analysis was used to determine the relationship between the dependent and independent variables with the aid of Statistical Package for Social Science (SPSS Version 22). From the findings, it was evident that culture and leadership, resources utilization and training and development were positively influencing organization performance of KTDA managed factories. From the regression analysis, resources utilization contributes most to the performance in KTDA managed factories most followed by leadership, culture and training and development respectively. The study therefore recommends that there is need to apply the strategy implementation practices in order to achieve better organizational performance and it also recommends that managers should first point out the unique resources that are in their factories and make a choice on the areas these resources should be used, KTDA should provide training associated with strategy implementation, strategies that are implemented must be consistent with organizational culture and leaders should inspire and encourage employees to work effectively and move in the same direction to reach objectives of the companies.
Authors: Karari Charity, W, Dr. Kihara Peter, Ms. Munga Jane
Abstract: The general objective of the study was to establish the relationship between strategy implementation drivers and performance of High-Growth Firms in Kenya. Specifically, the study endeavored to establish whether leadership styles affect performance of high-growth firms in Kenya, establish whether structural adaptations affect performance of high-growth firms in Kenya and to determine whether human resource capabilities affect performance of high-growth firms in Kenya. The study adopted descriptive research design and targeted Bidco Oil Refineries and Nation Media Group in Kenya as the only valid High-Growth firms in Kenya as identified by the World Economic Forum, (2014). Specifically the study was targeting the top management, middle level management and lower level management including the strategy and innovation department in both companies. This study employed stratified random sampling technique and employed Mugenda & Mugenda (2010 formula (n/1+ (n/N)) on the top management, middle level management and lower level management including the strategy and innovation department in both Bidco Oil Refineries at Thika-Nairobi, Kenya and Nation Media Group headquarters at Nation Centre Kimathi Street, Nairobi-Kenya. The data generated by the study after fieldwork was edited, coded then entered into a computer for processing using the Statistical Package for Social Sciences (SPSS v.21.0). Descriptive and inferential statistics was used to analyze information generated from respondents. The data collected was presented by use of percentages, frequency distributions, tables, charts, and the researcher categorized variables. With a strong leadership, a firm can be able to meet its growth targets regardless of any other underlying factors. Human resource contributes a lot to the performance of high growth firm in the sense that it provides training of staff, hiring of the right staff to help implement strategies that would lead to high growth of these firms. Structural adaptation, as confirmed in these findings shows that with them in place and under good leadership a firm has great chances of growth. It’s very important for a firm which wishes to achieve high growth to adopt good human resource practices, good leadership and have emphasis on proper structure. This study contributes to supplement the existing theory on strategy implementation and performance of organizations. The findings of this study underline that strategy implementation is directly and indirectly positively associated with performance of Nation media and BIDCO oil refineries in Kenya. Institutions that want to improve their performance need to implement effective strategy implementation practices.
Authors: Munywoki Mumbua Lilian, Mr Maore Stephen, Mr Murithi Simon
Abstract: Understanding the role of branding on customer preference in the soft drink industry is important in brand management, not only for protecting brand image for genuine products, particularly in the wake of rising counterfeit products in the soft drinks industry, but also for maintaining customer preference hence superior performance in the volatile industry. Yet literature, both international and in the Kenyan context lacks in exploring this relationship, which is the problem motivating the present study. The present study therefore sought to fill the literature gap by investigating the extent to which branding affect customer preference in the Kenyan soft drinks industry. The main objective of the study was to investigate the role of branding on customer preference in the soft drink industry. More specifically, the study seeks to determine the effect of perceived brand awareness on customer preference in the soft drink industry; examine the effect of brand associations on customer preference in the soft drink industry; establish the effect of perceived quality on customer preference in the soft drink industry; and assess the effect of proprietary assets on customer preference in the soft drink industry. This study took the descriptive research design. The target population for the study was the staff of 4 major soft drink companies within Nairobi County. These include Coca-Cola’s Nairobi bottlers limited, Alvaro’s East African Breweries, PepsiCo and Kenafric Industries. The determined sample size is 115 respondents out of a target population of 160. The researcher used stratified random sampling to select the respondents. The researcher administered the questions to the relevant respondents in an effort to achieve the necessary information. Both descriptive and inferential analyses were further conducted. The findings revealed that all the brand management practices that is brand awareness, perceived quality, brand associations and brand proprietor association are strong and significant determinants of Customer preference in the Kenyan soft drinks industry.
- EFFECT OF CONSUMER FACTORS ON STORE BRAND CHOICE IN THE RETAIL INDUSTRY IN KENYA: A SURVEY OF SELECTED SUPERMARKETS IN NAIROBI COUNTY
Authors: Kaborio Catherine Njoki, Kamau Simon, Mbithi Mary
Abstract: This study set out to investigate the effect of consumer factors on store brand choice in the retail industry in Kenya. A cross-sectional explanatory design was used. The target population in this study was 10,535 registered customers in selected supermarkets in the Nairobi County Business District. Convenient sampling was adopted to select the supermarkets and proportionate random sampling was conducted to select the 385 respondents. Data was collected from primary sources using structured questionnaires. The study analyzed data with assistance of the Statistical Package for Social Sciences (SPSS) 20 as a tool to process and analyses data. The study established that store brand choice in the retail industry was moderate. The study found out that in terms of Store Image Perceptions on Store Brand Choice; store arrangement make it easier to do self-selection, staff always available to assist where need be, shopping environment makes shopping enjoyable and store owned by foreigners who care about quality. The study revealed that in terms of Store Brand Price- Image on Store Brand Choice; the store offers competitive prices across product ranges. Customers have never come across differences between price label and till price in this supermarket, shopping experience is good value for money and the store uses price baiting to attract customer. The study further found out that in terms of Store Brand Perceived Value on Store Brand Choice; store has wide range, stores private brands are sourced from reputable manufacturers, store stocks high quality products, the company’s own brands such as milk, bread are my first choice other brands second and store assures customers about quality of brands and in terms of Store Brand Attitude on Store Brand Choice study revealed that store offers wide product categories as well as store offers good quality products. The study also found out that store image perceptions, store brand price-image, store brand perceived value and store brand attitude accounted for 24.3% of the variation in store brand choice in the retail industry in Kenya. The model exhibited a joint significant relationship between all independent variable and dependent variable. Individually Store image perception and Store brand price –image were significantly related to store brand choice in the retail industry in Kenya. The study concludes that the proposed framework of the study was able to demonstrate moderate explanatory power. Notably the study provides evidence for the influence of consumer factors on store brand choice in the retail industry in Kenya as suggested by the literature. Store image perception emerged as the stronger predictor of store brand choice followed by Store brand price –image, Store brand attitude and Store brand perceived value respectively. The study further concluded that the established regression model was moderately significantly good for forecasting and could be used for prediction.
- FACTORS AFFECTING ACCOUNTS RECEIVABLES MANAGEMENT: A CASE STUDY OF SELECTED PHARMACEUTICAL DISTRIBUTORS IN NAIROBI COUNTY
Authors: Sophia Machengo Mbembe, Doreen Mutegi, Elizabeth Were
Abstract: Accounts receivables management is a vital corporate finance component as it directly influences the firm’s liquidity, profitability and growth of an organization. It should be given due considerations by the business managers not only because costs and risks are associated with this investment but because by freeing up cash held in accounts receivables gives the company added liquidity to finance growth. Poor Accounts receivables management has been cited as one of the pharmaceutical challenges and risks in Kenya leading to bad debts and delays in collection. This study therefore sought to establish factors affecting accounts receivable management in selected pharmaceutical distributors in Nairobi County. The study also sought to determine the effect of credit policies, technology, staff competency and company characteristics on accounts receivables management among pharmaceutical distributors in Nairobi County. The study employed a descriptive research design. The target population of this study was all pharmaceutical distributors in Nairobi County and their senior finance staff as the respondents. Stratified random sampling was used to select a sample size of 129 distributors. The study used primary data which was collected by use of semi structured questionnaires and analyzed through SPSS. Descriptive statistics was used such as mean, standard deviation and frequency to establish the extent to which credit policies, technology, staff competency and company characteristics affect accounts receivables management. Further, inferential statistics such as multivariate regression analysis and correlation coefficient were utilized in establishing the effect of the independent variables on the dependent variable. The study found that all the four independent variables have significant influence on accounts receivables management in pharmaceutical distributors in Nairobi County with credit policies having the highest influence followed by company characteristics, staff competence and technology. The study also found that credit policies affect financing policy, sales and growth and ensure good flow of capital and thus growing the company. In addition, the study revealed that technology helps in effective tracking of debts, ensuring invoice accuracy, enhances follow-up, improves credit management and helps in keeping track on polite reminders therefore prompt payments. Also the study established that competent staff enhances customer relations and makes it easier for staff to handle accounts in a professional way. Since credit policies help in ensuring customers discipline in making payments, the study recommends that all pharmaceutical distributors should develop a credit policies that declare their credit terms and consequences of default. The study also recommends that all pharmaceutical distributors should adopt information technology in processing of invoices. In addition, pharmaceutical distributors with many branches should adopt one information system so as to ensure central management of account receivables.
- FACTORS INFLUENCING STRATEGY IMPLEMENTATION AMONG SAVINGS AND CREDIT SOCIETIES IN KENYA: A SURVEY OF DEPOSIT TAKING SACCO’S IN NAIROBI COUNTY, KENYA
Authors: Silas K. Rotich, Dr Thomas Senaji, Elizabeth Were
Abstract: The present business environment is characterized by high levels of competition, dynamism and technological sophistication. This is especially challenging to organizational managers since they have to design and implement strategies that can achieve and sustain higher performance levels. This change has brought companies new realities in the form of new business opportunities for growth and, at the same time has exposed them to new competitors. This has caused companies to invest many resources in devising new effective strategies to take advantage of the new opportunities, whilst protecting their market positions, which are crucial to their continued economic existence. Effective implementation of strategy has become the goal of many organizations. However, in translating their grand plans into action, unacceptably high rates of failure have been reported among many companies. The purpose of this research was to establish the factors influencing strategy implementation of Saccos in Kenya; a survey of deposit taking Saccos in Nairobi County, Kenya. The study was guided by the following objectives: To establish the influence of organization leadership, organization’s structure, organization’s resources and adoption of technology on strategy implementation of deposit taking Sacco’s in Nairobi County. The study was conducted in Nairobi County and the target population comprised of senior managers in the departments of HR, Planning & Finance, debt collection and ICT for all the thirty eight (38) deposit taking Saccos in the County. The researcher adopted the questionnaire as data collection tool. The researcher used statistical package for social studies SPSS version 20 to analyze responses from 84 respondents. The data was analyzed descriptively and a model was obtained for the regression of the variables. It is evident from the results that all the factors combined attribute to 65.2% of the observed variance in strategy implementation. The study concluded that Deposit taking Saccos should therefore strive to ensure proper leadership, have put functioning structures, avail sufficient resources and adopt latest technologies to be able to carry out strategy implementation The research recommended that deposit taking Saccos should adopt practices to optimize the contribution of human resource in the strategy implementation by enhancing coordination and implementation of activities by the management committee, also an assessment on strategy implementation be carried out frequently and key issues be addressed on time and that organizational structure be tailored and aligned with strategies being implemented and adopting the latest technologies in their operations
- RELATIONSHIP BETWEEN STRATEGIC RESOURCE PLANNING AND PERFORMANCE OF COMMERCIAL BANKS IN NAIROBI COUNTY, KENYA.
Authors: Muiyuro Dorcas, Dr. Kihara Peter, Munga Jane
Abstract: The general objective of the study was to investigate the relationship between strategic resource planning and performance of commercial banks in Nairobi County, Kenya. The study adopted descriptive research design and the target population was 43 registered commercial banks operating in Nairobi County. The researcher collected primary data using questionnaire which were administered to the respondents through drop and pick later method. Pilot study was conducted to establish the validity and reliability of the research instruments prior to the commencement of actual data collection exercise. Quantitative data collected in this study were analyzed using descriptive statistics and inferential statistics while qualitative data was analyzed using content analysis technique. Statistical Package for Social Sciences (SPSS) version 23 was used to aid in the data analysis. The findings were presented using tables and figures. As part of ethical consideration, the respondents was accorded due confidentiality and privacy, and their participation was voluntary. Correlation analysis results revealed that financial resource planning, human resource planning, infrastructure planning and experiential planning were positively and significantly correlated with performance of commercial banks based on the Pearson correlation coefficients obtained of 0.767, 0.672, 0.578 and 0.431 respectively. Model summary results established that that strategic resource planning explain 76.8% of the variations in performance of commercial banks according to obtained coefficient of determination (R2) of 0.768. Regression analysis revealed that holding all factors constant, performance of commercial banks would be -0.970. Further, holding other factors constant, financial resource planning, human resource planning, infrastructure planning and experiential planning would affect performance of commercial banks by 0.564, 0.214, 0.279 and 0.282 respectively. It is recommended to the management of the commercial banks to review their reward management systems so as to improve them to satisfaction of the employees. Further, management staff in charge of compensation activities should review the compensation policies at the banks. This will help in keeping hold of highly skilled and competent bankers as well as motivating them. Also, the researcher recommends to the management of commercial banks to put up and implement plans that enhances their banks reach to the rural areas in Kenya. This will translate to larger customer base and increased profitability.
- RELATIONSHIP BETWEEN EMPLOYER BRANDING STRATEGY AND EMPLOYEES ATTRACTION IN MOBILE SERVICE PROVIDERS IN NAIROBI COUNTY
Authors: Muthusi Florence, Ogolla Douglas, Kituku, Gladys K
Abstract: Companies today are forced to function in a world full of change and under various complications, and it is more important than ever to have the correct employees at the correct job with the right qualifications, experience and attitude in order to survive the surrounding competition. The successful and prosperous future of an organization is dependent on its skilled, knowledgeable and well experienced workforce. Several organizations lack employer brand which has been a detriment to attraction of valuable employees. Hence, the main objective of this study was to establish the influence of employer branding strategies and employees’ attraction in mobile service providers in Nairobi County specifically in Safaricom Limited, Airtel Kenya Limited and Telcom/Orange Kenya. The study was guided by these specific objectives: To determine the influence of corporate culture, corporate image, employee value proposition and corporate communication on employee attraction in . Mobile service providers in Nairobi The study reviewed the theoretical foundation focusing on the Resource based view theory, Instrumental-Symbolic framework and Psychological contract theory as well as the empirical review of the relevant literature which provides better understanding of the concepts and their relationships. Descriptive design was used in the study because it ensures complete description of the situation, making sure that there is minimum bias in the collection of data. The study targeted a population 369 middle level and lower level managers of Safaricom Limited, Airtel Kenya Limited and Telcom/Orange Kenya. A sample size of one hundred and eighty eight respondents was obtained using Cochran’s formula. Questionnaires was used for collecting data containing mainly closed ended questions to the sample respondents thus ensuring that each respondent received the same set of questions in exactly the same way. The data collected was then checked for errors, coded and then analyzed using SPSS V22. The study concluded that, the management of the mobile service providers in Nairobi County need to consider all the variables considered in this study in order to improve on employee retention and consequently this will improve their performance and growth. The researcher recommends that future research should be directed towards validating the results of this study by conducting a similar research in other sectors in Kenya by collecting data from different sources. Further research should also be conducted to investigate the other factors that affect Employee Attraction like reputation among others.
- AN ANALYSIS OF FACTORS INFLUENCING ADOPTION OF E-FINANCING IN FINANCIAL INSTITUTIONS IN THIKA SUB-COUNTY, KIAMBU COUNTY, KENYA
Authors: Njuraita Pauline Wanjiku, Mr. Shavulimo Paul, Mr. Kiama Michael
Abstract: This study sought to analyze factors influencing adoption of e-financing in financial institutions in Thika sub-county, Kiambu County, Kenya. The study adopted a descriptive cross-sectional survey. The study was carried out in the financial institutions and thus the study targeted 60 Top-Level Managers, 120 Technical Staff and 1320 Accounts’ Clerks all totaling to 1320. Using the Central Limit Theorem, a sample of 12 financial institutions, that is, 20% of the targeted 60 financial institutions, were selected. Based on the same theorem, 300 respondents, that is, 20% of 1500, were selected. Questionnaires were used to collect data from Technical Staff and Accounts’ Clerks whereas interviews were used to collect data from Top-Level Managers. Piloting study was conducted to pretest and validate the questionnaire. Quantitative data collected was analyzed using descriptive statistics specifically, percentages and frequencies. Data was then presented in tables. Hypotheses were tested using ANOVA at 95% confidence interval with the help of SPSS (Version 23). The study established that the levels of adoption of e-financing by financial institutions is below average. It is also evident that there numerous factors which influence adoption of e-financing in financial institutions. These include cost of technology, perceived risks, operational efficiency and competition. The study thus recommends that financial institutions should do proper planning of their financial resources and allocate adequate resources for adoption of e-financing. Financial institutions should devise strategies for risk management and lay ground for effective mitigation measures upon adoption of e-financing technology. Financial institutions should adopt e-financing as a way of improving their productivity and attendant profitability. Financial institutions are pressurized by their competitors to improve on profitability. Thus, the study recommends that financial institutions should adopt e-financing as a way of edging their competitors in the market.
- AN INVESTIGATION INTO FACTORS INFLUENCING IMPLEMENTATION OF STRATEGIC PLANS IN NON-GOVERNMENTAL ORGANISATIONS IN SOUTH SUDAN -JUBA
Authors: Ninrew James Keah, Dr. Senaji Thomas A, Kinyanjui Martin
Abstract: Many organizations have embraced strategic planning, but the implementation process remains a challenge many a times resulting in well-formulated strategies that fail to be accomplished at the implementation stage. Strategy implementation skills are not easily mastered, unfortunately. This study therefore sought to investigate the factors influencing strategic plan implementation in non-governmental organisations (NGOs) in South Sudan. Specifically, the influence of communication, organizational culture, leadership and strategic control on strategic plan implementation was examined. A cross sectional study survey targeting 1230 NGOs in South Sudan was conducted using a questionnaire to collect both primary and while secondary data was collected from 113 respondents and from published documents. The data was analysed using descriptive statistics, correlation and regression analysis. The findings of the study are control and communication is the most important factors influencing Strategic Plan Implementation in NGOs in South Sudan. Further, communication, leadership, culture and control were found to influence the implementation of strategic plans among NGOs in South Sudan. This study has clarified the relative influence of factors that affect strategy implementation in NGOs in South Sudan which would act as a guide to the improvement in strategy implementation. The study found out that the effectiveness of the communication level in the NGOs determines to a great extent the effectiveness of strategic plan implementation. The findings revealed that lack of sessions in the organizations that informed the employees in the NGOs of their new responsibilities under the 2014-2017 Strategic Plan affected the communication process and therefore impacting the strategic plan implementation. The study also concluded that there exists a positive relationship between organizational culture and strategic plan implementation. There findings also revealed that leaders demonstrated their willingness to give energy and loyalty to the implementation process of strategic plan and the NGOs had policy control systems used by leaders to provide mechanisms for keeping their current actions in congruence/in line with future goals. The study found that in most NGOs in South Sudan, there were support policies that ensured that the strategic plans are implemented well. Moreover, most of the NGOs had a budget against which strategic plans are implemented and the NGOs determined the targets against which performance was measured. The study recommends that the NGOs should ensure there are more sessions to sensitize their employees of their respective responsibilities under new strategic plans. The objective of these sessions is to provide proper communication plan including clear explanation of what new responsibilities, tasks and duties need to be performed by the affected implementers.
- INFLUENCE OF INTERNAL CONTROLS ON CONSTITUENCY DEVELOPMENT FUND PERFORMANCE: A CASE STUDY OF GATUNDU SOUTH CONSTITUECY
Authors: Waweru Faith Waithira, Kithinji Moses, Kaburu Makena
Abstract: The CDF enacted by law in the year 2003 aimed at promoting equity and fairness through social economic empowerment of people in different constituencies in Kenya. CDFs in Kenya are an important tool for devolution and also for meeting the Millennium Development goals. Whereas a number of related studies have been conducted in the country, no published study focuses on internal control factors influencing CDF performance. The study sought to investigate the influence of internal controls on CDF performance with reference to Gatundu South Constituency. More specifically, the study sought to establish the effect of Segregation of Duties on CDF performance; examine the effect of Authorization and approval on CDF performance; assess the effect of Internal Audit on CDF performance; and to determine the effect of routine and automatic checks on CDF performance. This study took descriptive research design. The target population was the division in charge of Constituency Development Fund management that is the CDF implementation committee members across the four wards in Gatundu South Constituency. Both primary and secondary data were employed in the present study; whereby for the primary data, structured questionnaires were used while for the secondary data, the researcher obtained relevant Gatundu South Constituency reports and publications as well as records with a view to extract various indicators aimed at addressing the various research objectives. Data collected was analyzed by the use of both descriptive and inferential statistics. Findings reveal a positive correlation between each internal control element and CDF performance. The strongest correlation was obtained between Routine and automatic checks and CDF performance (r = 0.798) and the weaker relationship found between Authorization and Approval and CDF performance (r = 0.436). Internal audit and Segregation of Duties are also strongly and positively correlated with CDF performance at correlation coefficient of 0.716 and 0.708 respectively. All the independent variables were found to have a statistically significant association with the dependent variable at 0.01 level of confidence.
- FACTORS INFLUENCING COMPETITIVE ADVANTAGE OF SAVINGS AND CREDIT COOPERATIVES ORGANIZATIONS (SACCOS) IN KENYA: CASE STUDY OF DEPOSIT TAKING SACCOS IN NAIROBI COUNTY
Authors: Kaningu Catherine, Prof. Warue Beatrice, Munga Jane
Abstract: The researcher carried out research on the factors influencing competitive advantage of Savings and Credit Co-operatives (SACCOs) in Kenya: A Case study of Deposit taking SACCOs in Nairobi County. The SACCOs sector has grown tremendously in Kenya resulting to fierce competition and changing their strategies to stay ahead of the game. The factors analyzed were access to funds, operational risk management, saving mobilization and innovation. This study adopted a descriptive research design. The target population of the study comprised of 420 employees from the Deposit Taking SACCOs within Nairobi County. The researcher used stratified random sampling method to select the desired sample size of 120 respondents from the director SACCO officials and SACCO employees. Structured questionnaires were used to collect data. Descriptive and inferential statistics were used in the analysis of quantitative data collected by use of structured questions. The study found that most of the SACCOs confirmed that access to funds, operational risk management, saving mobilization and innovation affect competitive advantage. The study concludes that access to funds promote competitive advantage by ensuring the funds are available and accessible by its members. The study found that the SACCOs embracing operational risk management, there will be some effect on its competitive advantage as risk management has become key component of competitive advantage. The study also revealed that if the SACCOs adopt saving mobilization, there will be some effect on its competitive advantage that is in cases of defaulters, recovery isn’t easy hence performance of the SACCO is retarded. If the SACCOs embrace innovation, it will not enhance its competitive advantage. The study concludes that access to funds affect competitive advantage of the SACCOs if they make the financial services affordable and easily accessible. Operational risk management can enhance competitive advantage, if sstandardized reports can tract risks in an enterprise and hence improve the executives and directors focus in the provision of data to enable better decisions on risk mitigation. Savings mobilization can only enhance competitive advantage if there is proper administration of the funds besides severe punitive measures for debt defaulters and embezzlers. For the SACCOs to be successful and competitive through innovations, a cooperative needs at least to maintain a large volume of member transactions. In light of the findings, the study recommends that the SACCOs should focus more on mobile banking to have efficient funds accessibility to its members. The study recommends that SACCOs should have in place risk and internal audit team for enhancing financial control and management of risk. The study recommends that SACCOs should involve training activities where members can be informed of the benefit accrued to saving in Saccos the study recommends that new technology should also be well incorporated for the innovation to be sustainable. The study also suggests that further research be done on the factors affecting sustainable competitive advantage of SACCOs in Kenya.
Authors: Kabai James Kamau, Baimwera Benard, Waithaka Matu
Abstract: Corporate governance is generally described as simply the system by which companies or public bodies are: directed, and controlled. For any public entity not to collapse, they ought to comply with Corporate Governance principles including but not limited to: Appointments, Team composition, Control procedures and processes and Performance management and assessment. In Kenya these ideals are never implemented optimally. The main objective of the study was to analyze the effects of corporate governance on financial performance of state funded entities in Kenya. Specifically the study focused on the following elements of corporate governance: autonomy status, board effectiveness, government supervision and regulations overlap on performance of the state owned entities in Kenya. The study adopted descriptive cross-sectional design. The study targeted the board of directors, directors, senior managers, finance and accounts staff of Kenya Broadcasting Corporation, Kenya Electricity Generating Company, Kenya Pipeline Company, Kenya Railways Corporation, National Oil Corporation of Kenya and Kenya Broadcasting Corporation. The data generated by the study after fieldwork was edited, coded then entered into a computer for processing using the Statistical Package for Social Sciences (SPSS v.21.0). Descriptive and inferential statistics was used to analyze information generated from respondents. The data collected was presented by use of percentages, frequency distributions, tables, and the researcher categorized variables. The study concluded that, holding all the other factors constant, the financial performance in the state owned entities in Kenya was tested against key corporate governance elements measured by their significance and established that in deed the corporate governance elements (Autonomy Status (AS), Government Supervision (GS), Regulations Overlap (RO), and Board Effectiveness (BE)) contributed to 80.8% of the variation of financial performance in the state owned entities in Kenya as explained by adjusted R2 of 0.808.The study finally, recommended that, there is a need to streamline the overlapping regulations in order to give parastatals some autonomy, which would enable them to meet targets set under the performance contracts they have entered into with the government.
Author: Jasai Joseph Silale
Abstract: While past efforts to industrialize Africa were often unsuccessful, the current industrial revolution and today’s global environment offer new opportunities, along with challenges. More developed regions have managed to shift their labor force from agriculture to manufacturing, thus increasing their overall productivity. Industrialization is necessary for Africa to transform its economies by reallocating resources from low-productivity sectors to higher ones. Industrialization is necessary for Africa to transform its economies by reallocating resources from low-productivity sectors to higher one. Africa’s regional integration record is not impressive. The fact that the large number of RIAs has done little to promote intra-regional trade raises questions about the appropriateness of this linear model for addressing the real challenges that inhibit regional trade (Economic Commission for Africa, 2010). The specific factors that have resulted in Africa’s industrialization, and sub-Saharan Africa’s industrialization, relatively disappointing economic performance over the past few decades have been the focus of much enquiry. Past African governments that worked to industrialize their countries often had little success. Following their independence, many young African governments sought industrialization to avoid economic dependence on their former colonists. Entrepreneurship policies have a multifaceted nature and linkages with other areas, such as education and skills development, technology and innovation, finance and capacity-building. Subsistence entrepreneurship may not be a first step towards transformational entrepreneurship for the vast majority engaged in subsistence enterprises. The implications of this could be pivotal for policy. Industrial policies have a role to play in promoting the structural transformation of Africa. Structural transformations, have the advantage of revealing comparative advantages by putting in place policies of accompaniment that create conditions conducive to the experimentation of new products and exports. Multiple new types of financial instruments can contribute to diversifying the financial solutions available to African entrepreneurs.
- FINANCIAL INCLUSION IN RURAL KENYA: AN INVESTIGATION OF THE ROLE OF FINANCIAL TECHNOLOGY AS AN INSTRUMENT
Author: Vincent O. Nyagilo
Abstract: Despite Kenya being the pioneer of financial technology including mobile banking and agency banking, financial exclusion among adults is still high among people living in the rural Kenya. The purpose of this study was to investigate the role of financial technology as an instrument in financial inclusion in the rural Kenya. In addition, the study sought to examine the influence of mobile banking, agency banking and automated teller machines on financial inclusion in the rural Kenya. This study used explanatory research design. The study focused on the rural Kenya and covered a period between January 2011 to December 2016. Secondary data on all the independent variables was obtained from CBK payment system statistics. The secondary data was quantitative in nature. The collected quantitative data was analyzed using descriptive as well as inferential statistics. In descriptive statistics included frequency distributions and percentages. In relation to inferential statistics, the study made use of analysis of variance, correlation analysis, univariate regression analysis and multivariate regression analysis. The study found that mobile banking has a positive and significant influence on financial inclusion in the rural Kenya. The adoption and utilization of mobile banking in Kenya has been increasing for the last six years, with commercial banks adopting the technology and the number of Fintech companies in Kenya increasing. This study also found that agency banking has a positive and significant influence on financial inclusion in the rural Kenya. However, unlike mobile banking, which takes advantage of the high mobile phones penetration in the rural areas, agency banking requires customers to visit agents, normally located in shopping centers. The introduction of mobile banking and agency banking led to a significant decrease in the utilization of automated teller machines. The study recommends that policy makers consider mobile banking in their formulation of policies because of the technological developments and the expected switch from physical branch networks to technologically supported banking services. In addition, all commercial banks in Kenya should adopt agency banking as a way of reducing cost of service provision and improving their financial performance and hence enhance financial inclusion. Also, commercial banks should design and develop protective measures to secure their customers money.
Authors: Vincent O. Nyagilo, Prof. Maurice M. Sakwa, Prof. Gregory S. Namusonge
Abstract: Financial inclusion has an impact on economic growth by enabling localized development. While every bank is looking at innovation as a way of enhancing reach to its customers, enhancement of financial inclusion is still elusive. Similarly, mobile phone companies grow their customer base through the ease of access of mobile phones as well as the ability for customers to store their money on their phones. However, despite these facts, millions of adult Kenyans remains unbanked. Several empirical studies have been done locally that are related to financial services and financial inclusion. However, despite the massive inquiry in to the field of financial inclusion and financial services, none of the studies known to the study seeks to establish the effects of efficiency of mobile led financial services on financial inclusion in Kenya. Against this backdrop, the aim of this study was to establish the efficiency of mobile led financial services and its effects on financial inclusion in Kenya. This research problem was studied through the use of a descriptive research design. The target population of this study was the Kenya commercial banks and the mobile financial services providers while the study population was the management staff who deal directly with the day to day operations of the organizations. The study used a sample of 384 managers drawn from the business development, finance and research departments of the 42 sampled banks and the 6 mobile service providers. The study employed a questionnaire to collect primary data. The study generated both qualitative and quantitative data. Quantitative data was coded and entered into Statistical Packages for Social Scientists (SPSS Version 24.0) and analyzed using descriptive statistics. Quantitative data was presented in tables and graphs and explanation were presented in prose. Inferential statistics, including Pearson correlation and regression analyses were also performed to test the hypotheses of the study. The study found that efficiency in mobile led financial services had a significant effect on financial inclusion in Kenya (β=0.535, p-value=0.000). With the inevitable cross boundaries between banks and mobile operator, further enhanced and supported policies that encourage financial sector deepening should be implemented. These should be complemented with measures to promote the growth and image of banks and mobile operators in a bid to promote the synergy existing between them. Pertaining losses due to fraudulent access of customers’ accounts from hacking, there is a need to employ disciplined, qualified and well remunerated ICT staff in the bank and at the level of mobile operator.
- EFFECT OF SALES PROMOTION ON PERFORMANCE OF RENTAL OFFICE PROPERTIES IN NAIROBI CENTRAL BUSINESS DISTRICT
Authors: Tomiik M. Konyimbih, Lydia Kwamboka Mbura
Abstract: Kenya’s Real Estate sector has seen a steady growth over the past several years. Studies have revealed that the influx of young people from the rural to the urban areas has been a major contributing factor to this development. The objective of this study was to determine the effect of Sales promotion on the Performance of office rental properties in Nairobi’s Central Business District (NCBD). The study adopted a descriptive and causual compartive research design. The population for this study was all the rental properties with 5 floors and above, which add up to 119 buildings. The sampling method chosen was purposive sampling, a form of non-probability sampling to select the 119 commercial office buildings with 5 floors and above a planning requirement in the NCBD. The study used the questionnaire as the main data collection instrument. Primary data was collected by the use of questionnaires administered to managers, tenants and caretakers of commercial office rental properties in Nairobi`s Central Business District. Qualitative data was examined using content analysis, a method which enables a more objective evaluation than comparing content based on impressions of the respondents. Quantitative data was largely analysed using descriptive statistics. The analysis sought to answer research questions, objectives and explain the associations and dependencies between the identified variables of the study. The findings of the research are that there is a linear relationship between the dependent and the independent variables and that the performance of the office tenancies could largely (56.8%) be explained by sales promotion Future research could investigate the Information Technology (IT) promotional tools on Real Estate marketing programs in Kenya urban areas.
Authors: Kamau John Muchiri, Gachunga Hazel
Abstract: Over the years, the banking industry has been under constant pressure to develop their structures as a way of improving performance. However, despite the frequent changes of leaders in the banking sector in the last five years, it is not clear how different leadership styles influence organizational performance. This study therefore sought to determine the effects of leadership style on organisational performance of commercial banks listed at the Nairobi Security Exchange. The study also sought to determine the effect of transformational leadership style, transactional leadership style, situational leadership style and participatory leadership style on the organizational performance of the listed commercial banks in the Nairobi Security Exchange. The study adopted a descriptive research design. The target population of this study was the 176 heads of finance/treasury, credit, operations, human resource/administration, customer service, marketing/corporate communication, information and communications technology and internal audit departments and their assistants in the 11 commercial banks listed in Nairobi Security Exchange. The study used stratified random sampling to select 88 heads of departments and their assistants form the target population. This study made use of primary data, which was collected by use of semi-structured questionnaires. Before data collection, a pilot test was conducted to ascertain the validity and reliability of the research instruments. Data collected was both qualitative and quantitative. Qualitative data was analysed using content analysis through coding the responses to be grouped into various categories. Quantitative data was analysed by use of descriptive and inferential statistics through the help of Statistical Package for Social Sciences (SPSS) version 22. Descriptive statistics were given using percentages, mean and standard deviation while inferential statistics were carried out using correlation analysis and multiple regression analysis. Research findings were presented using tables, chart and figures. The study found that there was a positive significant between transformational leadership, transactional leadership, situational leadership, participatory leadership and organizational performance of commercial banks listed at the Nairobi Security Exchange. The study recommends that the leaders in commercial banks listed in Nairobi Security Exchange should improve on creativity and innovation and staff involvement in decision making, motivate and build their confidence in people and more so the employees, to interfere in a problem before it gets worse, engage their followers in the decision making process and consider the employee views and this will be essential in the formulation of goals in the organization.
- THE ROLE OF COMMUNICATION AUTHORITY OF KENYA (CAK) IN TELECOMMUNICATION INDUSTRY: THE CASE OF DOMINANCE OF PLAYERS IN THE INDUSTRY IN KENYA
Author: Vincent O. Nyagilo
Abstract: A well-balanced market is characterized by competition between businesses. It is encouraged that a market and the economy should be fair, competitive and effective. This enhances growth and development of the economy and hence its market implications cannot be under-estimated. As a result competition law in Kenya has, over the years, been growing. The current policy governing competition in Kenya is the Competition Act, No. 12 of 2010, which was amended to form the Competition Amendment Act, 2016. However, despite the development of these policies market dominance and abuse of market dominance are common in Kenya, with the telecommunication sector being in the limelight for the last ten years. In Kenya, Safaricom dominates the Kenyan mobile market, sweeping up more than 90 percent of revenues in areas such as voice calls and text messaging. In addition, Safaricom also enjoys dominance of the network infrastructure, owning the bulk of cellphone towers in marginal and low populated areas. In the recent past, the competitors in the sector (Bharti Airtel, equitel and Telkom) have complained that Safaricom’s dominance stifles competition. The unfair competition in the industry has led to exit of Yu (India’s Essar Telecoms) from the Kenyan market. The objective of this paper was therefore to assess the role of Communication Authority of Kenya (CAK) in regulating dominance of players in the telecommunication industry in Kenya. The results indicated that over the years, competition policy in Kenya has been facing many challenges during the implementation process with some of the challenges including lack of resources and political support. This study recommends that the government of Kenya should provide the necessary resources including financial resources and adequate and skilled human resource. The Authority should build a human resource capacity through recruitment of staff with the requisite skills and also ensuring their retention by motivating them through various initiatives including welfare and learning growth programmes. In addition, The Competition Authority has some overlapping roles with some of the sector regulators. Although the Act provides that the Authority has primary jurisdiction in all competition and consumer welfare matters, lack of cooperation from some sector regulators led to increased transactions costs for the regulated and also increasing the risk of contradictory decisions emanating from two government agencies. Mid 2016 year, there was confusion on who between the Competition Authority and Communication Authority should deal with anti-competitive behaviors of a dominant operator in the telecommunications sector. This paper recommends that the current policies should be revised to clearly stipulate the roles and the mandate of each of the two institutions.
Authors: Frederick Wara, Benard Baimwera, Doreen Mutegi
Abstract: The purpose of the study was to determine the effect of credit management structure on growth of Micro-finance institutions in Kenya. This study adopted a descriptive research design targeting all DTM extending credit facilities to their clients. The population of study consisted of 13 deposit taking MFIs in Kenya that are members of AMFI while sample size was 100 staff members of the deposit taking MFIs. Primary data was collected using questionnaires where all the issues on the questionnaire were addressed. The sampling technique for selecting the employees was stratified sampling technique. The study confirmed that the relationship between credit structure management and growth of MFIs was statiscically significant. The study concluded that credit management structure was effective in controlling credit risks; however there were inadequate strategies to enhance credit management structure in the organizations. This study recommended that MFIs should improve and include new credit management strategies to enhance growth.
Authors: Frederick Wara, Benard Baimwera, Doreen Mutegi
Abstract: The purpose of the study was to determine the effect of credit policy on growth of Micro-finance institutions in Kenya. This study adopted a descriptive research design targeting all DTM extending credit facilities to their clients. The population of study consisted of 13 deposit taking MFIs in Kenya that are members of AMFI while sample size was 100 staff members of the deposit taking MFIs. Primary data was collected using questionnaires where all the issues on the questionnaire were addressed. The sampling technique for selecting the employees was stratified sampling technique. The study confirmed that the relationship between credit policy and growth of MFIs was statiscically significant. This study recommended that deposit taking MFIs should have clear credit policies to avoid default of repayment of microfinance loans; this is because if microfinance does not have stringent credit policy then they stand to lose their money hence creating liquidity issues and should also improve and include new credit management strategies to enhance growth.
Authors: Richard Achiambo, Dr. Thomas A. Senaji
Abstract: The promulgation of the new constitution (2010) in Kenya came with numerous challenges, some of which include change in the healthcare sector governance, change in structures, change in funding and financing of service delivery, adoption of information systems among others. Throughout the country the implementations of these changes have been facing various challenges some of which include striking of nurses and doctors. This study therefore sought to investigate the factors affecting change management in public hospitals in Kenya. The specific objectives of the study were to analyze the effects of organization culture, organization structure, strategic leadership and resource allocation on change management in in Busia County Referral Hospital. This study made use of a descriptive research design. The target population of this study was all the 156 staff working in Busia County Referral Hospital Slovin's Formula was used in the determination of the sample size. The study used stratified random sampling to select the sample size from the target population. The sample size was therefore 112 staff working in Busia County Referral Hospital. This study made use of primary data, which was collected by use of semi-structured questionnaires. Data collected was both qualitative and quantitative. Qualitative data was analysed using content analysis through coding the responses to be grouped into various categories. Quantitative data was analysed by use of descriptive and inferential statistics through the help of Statistical Package for Social Sciences (SPSS) version 22. Descriptive statistics was given using percentages, mean and standard deviation while inferential statistics was carried out using correlation analysis and multiple regression analysis. Research findings were presented using tables, chart and figures. The study found that organizational culture had an inverse and significant effect on change management in Busia County Referral Hospital (β1=-0.310, p-value=0.006). The study also found that organizational structure had a positive and significant effect on change management in Busia County Referral Hospital (β2=0.296, p-value=0.004). In addition, the study found that strategic leadership had a positive and significant effect on change management in Busia County Referral Hospital (β1=0.271, p-value=0.012). Further, the study found that resource allocation had a positive and significant effect on change management in Busia County Referral Hospital (β1=0.374, p-value=0.000). The study concludes that resource allocation has the most significant effect on change management, followed by organizational culture, organizational structure and strategic leadership. The study recommends that the management of the health facility should adopt change management strategies such as employee involvement, effective communication and training to reduce resistance to change. In addition, the management of the hospital should make changes in the span of control and chain of command so as to reduce bureaucracies.
- INFLUENCE OF LOGISTICS MANAGEMENT ON DISTRIBUTION PERFORMANCE OF FAST MOVING CONSUMER GOODS IN NAIROBI CITY COUNTY, KENYA
Authors: Wanjiku John Muiga, Dr. Mwangangi Patrick
Abstract: Logistics Management emerged as an important function in early 21st century. It evolved from traditional store keeping to purchasing, distribution, warehousing to material management; logistics to integration of important functions with encompassing to emerge in the form of Logistics Management. The Fast Moving Consumer Goods (FMCG) industry is a quick and agile industry with a wide range of products. Such a huge industry is easily recognized by its customers, and its Logistics Management is seen as a role model for other industries. The general objective of the study was to analyze the influence of logistics management on distribution performance of First Moving Consumer Goods in Kenya. The specific objectives were to assess the influence of inventory management, order processing, and information flow and transport management on distribution performance of the First Moving Consumer Goods. The study used descriptive research design. The target population was 155 staff working as managers in in the FMCG companies in Nairobi City County. The sample size was determined using Slovin's Formula. This study used a stratified random sampling to select 155 managers from the target population. The study used primary data which was collected by use of self-administered questionnaire. Data analysis was both quantitative as well as qualitative. Quantitative data was edited and coded into Statistical Package for Social Sciences (SPSS version 21) for analysis. Both descriptive and inferential statistics was used to analyze quantitative data. In descriptive statistics, the study used frequency, mean, standard deviation and percentages. The analyzed data was presented in tables and figures. Inferential statistics comprised of correlation analysis and regression analysis. From the results, the study found that inventory management had a significant influence on distribution performance of the FMCG in Nairobi City County. In addition, order processing management had a significant influence on distribution performance of the FMCG in Nairobi City County. Further, information flow had a significant influence on distribution performance of the FMCG in Nairobi City County. Also, transport management had a significant influence on distribution performance of the FMCG in Nairobi City County. Therefore, the study recommends that FMCGs should adopt inventory management practices such as vendor managed inventory, bar-coding and electronic point of sale. In addition, FMCGs should adopt bar coding and electronic point of sale so as to increase efficiency and reduce errors in the distribution process.