Unprecedented growth in financial innovations, changing customers' expectations, competition from nonbanking entities and regulatory pressure have distorted interest income stream. Thus, banks are now searching for new ways of income generation to cushion themselves against dwindling interest income and as a survival strategy. Proponents of portfolio theory conjecture that income diversification reduces income volatility and increase the profitability. It's from this background the study sought to investigate the effect of income diversification on performance of Kenyan commercial banks. Using 310 observations drawn from a sample of 31 commercial banks and panel data for the period 2008-2017, the study found that income diversification has a positive and significant effect on bank performance. Therefore, commercial banks are advised to consider investing in non-lending activities to better their financial performance. In view of this, the study has implications for bank regulators, scholars and practitioners

Purpose - This paper aimed to examine the moderating role of capital structure in the relationship between institutional and foreign ownerships on corporate diversification of listed firms at the Nairobi Securities Exchange, Kenya. Design/Methodology - The target population comprised of all the 65 listed firms at Nairobi Securities Exchange in Kenya. However, the inclusion criteria were based on all firms listed at the NSE from 2003 to 2017. Findings - Capital structure significantly moderated the relationship between institutional ownership and corporate diversification. However, there was a statistically insignificant moderating effect of capital structure in the relationship between foreign ownership and corporate diversification. Practical Implications - As to increase diversification, listed firms are suggested to have low levels of capital structure and institutional ownership. Furthermore, low levels of foreign ownership and high capital structure is vital in attaining high diversification levels. Originality - The study contribution is the moderating effect of capital structure in institutional ownership - corporate diversification linkage.

The purpose of this study is to examine the effect of income diversification on the financial performance of commercial banks in Kenya. Design/methodology/approach: The study used a sample of 31 commercial banks and panel data for the period 2008-2017. Data was extracted from the individual bank's financial reports and the Central Bank of Kenya's bank supervision annual reports. The data was analyzed through descriptive and inferential statistics, while the hypothesis was tested using fixed effect regression based on the results of the Hausman test. Financial performance was measured as return on assets (ROA), while Herfindahl-Hirschman Index (HHI) was used to measure income diversification. The study controlled for firm size, firm age and lending strategy. Findings: The findings indicated that income diversification had a positive and significant effect on banks' financial performance in Kenya. The control variables had varied effects; firm size had a positive effect, while firm age and lending strategy had a negative effect. Practical implications: The article offers insights to bank managers and the regulator. First managers should consider an optimal level of diversification to compensate for the deteriorating interest revenue. Second, the regulator should relax laws that limit the extent banks can diversify their revenue streams. Originality/value: Unlike previous studies which focused on developed and emerging economies, this study centered on a developing economy, and the findings are consistent with the propositions of the modern portfolio theory.

This study examined the determinants of domestic savings mobilization among the rural poor in Uasin-Gishu county, Kenya. The general notion is that the subsistence farmers are too poor to save. This seems to be unfounded given the fact that they are general excluded from formal financial services and studies on poverty in the country show that the average propensity of the rural households to save is higher than the national average. What are the factors which motivate small scale farmers to save? The study was conducted on 446 table banking groups under the aegis of JOYWO, a table banking grouping in Kenya. Data was collected using structured questionnaires from members of groups under the umbrella of JOYWO. The findings of the study indicates that household income had a positive and significant effect on savings mobilization while dependency ratio had a negative and significant effect on savings mobilization. Household size was not significant. The results point to the need to expose the rural poor to informal savings and financing models expected to enhance income generating capabilities of the rural poor and lower the level dependency through government welfare funding for senior citizens and essential services for the young.

Globalization, changing customer expectation and shrinking product life-cycle depict process capital as a key source of competitive advantage. Consequently, organizations are gradually becoming more process oriented to survive a dynamic environment. Scanty literature exists on the process capital-performance causality hence glaring misconception on measurement of process capital. Previous studies overlooked the process aspect of process capital; which apparently is the most important to performance. Therefore, this study argues that the "process" of process capital is what matters to performance. This hypothesis is tested using panel data for the years 2008-2017extracted from a sample of 31 commercial banks in Kenya. The findings show that process capital has a positive and significant effect on performance (β = 0.275, ρ-value 0.000<0.05). Consistent with the resource based view the study concludes that knowledge resources have an influence on organizational outcomes.