Micro financing institutions in Kenya showed a high growth rate since they were established in 1997 and legislation passed in 2006 with the micro finance Act which became active in 2008. The research sought to determine exactly how budget controls influence financial performance of micro finance organizations (MFIs) in Kenya. The objectives of the study were to establish the effect of budget planning on the performance of MFIs; to figure out the impact of budget control on the performance of MFIs in Kenya; to establish the impact of budget plan analysis on the economic efficiency of MFIs and to assess the impact of budget coverage on the financial performance of MFIs in Kenya. The research study was anchored on the Priority Based Budgeting Theory, Goal-setting theory as well as the Accountancy theory. The study adopted the descriptive research design. The target population was 713 employees of the 14 MFIs in Kenya. Purposive sampling was adopted to select a sample size of 70 top and mid-level managers. Data was obtained via structured questionnaires as well as an interview schedule. Descriptive and inferential statistics were used to analyze the data with the help of SPSS. The study used a multiple regression model to show the relationship between the study variables. The findings revealed an R squared of 0.872 which means that the independent variables contribute up to 87.2% of the changes in the dependent variable and adjusted R squared of 0.864 at 95% significance level, implying that the budgetary controls adopted in this study (Reporting, Planning, Evaluation, Coordination) jointly explained 87.2 percent of the variation in performance of the MFIs in Kenya. The study also found that budget planning as an aspect of budgetary control had a positive and significant effect on the performance of MFIs in Kenya (β =105, p=.016<.05), budget coordination as an aspect of budgetary control had a positive and significant effect on the performance of MFIs in Kenya (β =.162, p=.005<.05), budget evaluation as an aspect of budgetary control had a positive and significant effect on the performance of MFIs in Kenya (β =.240, p=.005<.05), and finally that budget reporting had a positive and significant effect on the performance of MFIs in Kenya (β =.398, p=.000<.05). The study concluded that budgetary control practices adopted had positive and significant effect on the performance of MFIs in Kenya. The study thus recommended that recommends that the microfinance institutions should consider enhancing the budgetary control measures such as budget planning, budget coordination, budget evaluation and budget reporting as ways of enhancing their performance. Keywords: Budgetary Controls, Financial Performance, Microfinance Institutions
Pension funds performance in Kenya have been facing myriad of challenges ranging from poor administration and investments of pension funds, lack of transparency and accountability, non-remittance of monthly contributions by employers, misappropriation of scheme assets by the trustees, loss of scheme funds through negligence of trustees and poor investment of the scheme assets. The objective of this study was to examine the relationships between corporate governance, and performance of registered pension fund managers in Kenya. This study adopted positivism philosophy. The study employed a cross sectional survey design whereby access to the widest possible amount of data from the targeted Fund Managers in Kenya was sought. The population of interest of the study was 31 Fund Managers in Kenya licensed by RBA and CMA. The study used purely primary data sources. Primary data was obtained from the selected respondents. Primary data was collected through questionnaire. Regression analysis was used to establish the relative significance of each of the variables on the influence of corporate governance on the performance of pension fund managers in Kenya. The study findings indicated that there was significant relationship between corporate governance and performance of pension fund managers in Kenya. The study concluded that there is significant relationship between corporate governance and performance of pension fund managers in Kenya. The study determined that the corporate governance practices being implemented had been incorporated in the Pension Fund’s investment management decisions with its assets being more diversified and having enhanced reporting on investments. The study recommends on pension reforms, by creating a new class of potential activist shareholders in the form of pension funds, could in principle improve corporate governance and increased shareholder discipline. The governments as well as Pension Fund Managers supervisors should consider a more active role in the selection process of the board members, while reducing their choices to professional beneficiaries of the pension funds Keywords: Corporate Governance, Transparency, Ownership Structure, Accountability, Participation Performance, Pension Fund Managers & Kenya
This study sought to establish Business Process Reengineering (BPR) strategies used by telecommunication companies in Kenya to enhance their service delivery to gain competitive advantage, and to explore the influence of BPR strategies in the telecommunication companies in Kenya. The study was anchored on the following theories, Resource-Based, the Open Systems and Stakeholder. The study used a descriptive cross sectional research design targeting thirty five telecommunication firms in Kenya. Data was collected through structured questionnaires. Data analysis was done by use of descriptive and inferential statistics. The study established that most of Telecommunication companies have used various BPR strategies such as Teleconferencing technologies, computerized performance measurement and reporting system, shared Information Technology infrastructure and computerized procurement system. Findings show that after BPR implementation the telecommunications firms were able to increase efficiency of customer service, quality of products and workforce, elimination of non-value adding process, reduction in inspection time, moving time and waiting/queuing time. The study recommends that Telecommunication companies should fully automate their operations besides replacing obsolete technology equipment with modern ones. BPR efforts should be implemented in the most effective manner through sound management and leadership; this is because top management commitment, support, championship, sponsorship, and effective management of risks are the most noticeable managerial practices that seem to directly influence the success of BPR execution. The study recommends that most companies should be cautious when re-engineering in order to avoid downsizing without figuring out how to reduce the workload. Key words: Business Process Reengineering, Telecommunication companies, management support, employee commitment, ITinfrastructure.
The study's primary objective was to determine the effect of macroeconomic variables on bank performance. Numerous studies on the effects of macroeconomic factors on the banking business in Kenya and globally have been undertaken, all with differing findings and conclusions. The purpose of this study was to add to existing information by determining the extent to which macroeconomic variables affect bank performance. The study was guided by the following objectives: To what extent has gross domestic product affected the Co. Bank of Kenya Limited’s performance, extend to which interest rate changes affect the Co. Bank of Kenya Limited’s performance. Liquidity preference theory, efficient market theory, and current portfolio theory were adopted in the study. The study used a descriptive research approach to examine the relationship between the independent variables of gross domestic product and interest rates and the dependent variable of bank performance. The study surveyed a total of 120 respondents from the Cooperative Bank of Kenya limited, including branch managers, credit managers, finance officials, accountants, staff, and consumers. The study drew conclusions about the research issue using both primary and secondary data. The study collected main data via questionnaires and secondary data via data collecting forms. Secondary data was derived from the Co-operative Bank of Kenya's annual financial reports from 2016 through the first quarter of 2022, CBK, Kenya Bureau of statistics, World Bank reports etc. The study first looks at the general information of the respondents in the fourth chapter. This information is presented using pie charts, graphs and tables. The chapter further explores the dependent variable and presents response from respondents on the extent to which independent variables affect dependent variables in for, of graphs, tables. The study also explores each independent variable. It starts with GDP and Interest rates respectively. For every independent variable the researcher used five statements to ascertain the effect of each variable on bank performance. The research also utilizes secondary data to compute trend analysis for each independent variable and to formulate multiple regression equation and regression coefficients. The study wraps up with the limitation of the study. The last part of the study entails a summary of the research findings. The summary provides an illustration of each independent variable and its effect on the dependent variable in line with the findings of the study. The study further looks at overall research conclusions, provides recommendation on what needs to be done to minimize the effects of the independent variables on the dependent variable.
The business environment that an organization operates in is not only dynamic and tumultuous but also continually changing, sometimes at a mind-boggling pace. Turmoil connected with changing customer behaviour, globalization, investor demands, deregulation of markets, and increased competition are some of the market characteristics, and the study aim was to determine the relationship between competitive strategies and organization performance in the manufacturing sector in Kenya. The main anchor theory was the resource-based view, and it's reinforced by configuration theory and goal-setting theory. The study adopted a descriptive research design with a target population of 135 respondents. The study adopted the census method as the sampling technique. This research study used questionnaires as the main data collection tool. Analysis of data was done using descriptive statistics. Specifically, mean, averages, and percentages. The data analysis tools were simple tabulations and presentations of the report using spreadsheets and the use of SPSS version 24.0. This study used inferential statistics to show the relationship that exists between the study variables. Data were analysed using quantitative methods, and presentation of data was in the form of tables and figures. The inferential results on the effect of cost leadership strategy on organization performance show R = 0.632 indicating a strong positive correlation and R2 = 0.399 and there was a significant effect between Cost leadership strategy and organization performance (t = 8.668, p<0.05). The inferential results on the effect of Differentiation strategy on organization performance show R = 0.575 indicating a strong positive correlation and R2 = 0.331 and there was a significant effect between Differentiation strategy and organization performance (t = 7.480, p<0.05). The study further established that among the competitive strategies included in the study, cost leadership strategy had the most influence on performance and differentiation strategy also had a significant effect on performance. The research recommends the management of Megvel Cartons Limited ; should choose to adopt a cost leadership strategy and should put more emphasis on gaining competitive advantage by having the lowest cost in the sector.
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