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- ItemPerspectives on the transformation of microfinance institutions in Kenya into regulated status under the Microfinance Act.(Strathmore University, 2009) Gikang'a, Peter Njogu Munyambu; Dr. Ruth KirakaThe government's move to regulate Microfinance Institutions (MFIs) was primarily to create an enabling environment for MFIs to maximize outreach on a population without access to financial services in Kenya. The Microfinance Act, 2006 will allow qualifying microfinance institutions to transform into deposit-taking institutions. The Act lays the legal and regulatory framework of licensing and supervision of microfinance institutions. The primary objective of this thesis was to assess the prevailing institutional capacity and preparedness of the existing microfinance institutions to transform into deposit taking MFIs. Secondly, was to establish the perception of microfinance practitioners on the appropriateness of the legislation and regulations for the microfinance industry in Kenya. The study employed surveyed methodology to explore issues such as institutional capacity and preparedness of microfinance institutions. A researcher constructed questionnaire was administered to elicit responses from the microfinance institutions that are members of the Association of Microfinance Institutions (AMFI). Face-to-face interviews with executives of microfinance institutions were conducted to supplement the questionnaire and also for an in-depth understanding and analysis of certain key aspects of the research. findings of the study suggest that there are considerable challenges to the transition from informal to formal institutions. the institutions expressed concern with respect to certain regulatory requirements in microfinance legislation and regulations that make the costs of implementation quite high. the requirements that were considered to be most difficult and by extension considered inappropriate for the microfinance industry were the requirements for business premises, loan loss provisioning and disclosure and reporting requirements. the branch infrastructure and overall cost of transformation, in particular modernization of Management Information Systems (MIS) are considered quite significant, especially for smaller or rural MFIs which will have to incur additional costs of upgrading their MIS.
- ItemThe effect of strategic human resource management practices on performance of manufacturing multinational companies in Kenya: moderating role of employee cultural orientations and mediating role of employee motivation(2009) Dimba, Beatrice A; K’Obonyo, PeterThis study linked strategic human resource (SHRM) practices, cultural orientations, employee motivation and firm performance in foreign manufacturing multinational companies (MNCs) in Kenya. The objectives were: to establish the relationship between SHRM practices and firm performance; to determine the extent to which the relationship between SHRM practices and employees’ motivation depends on employees’ cultural orientations; to establish if the relationship between SHRM practices and firm performance is mediated by employees’ motivation; to gauge the relationship between motivation and firm performance. The respondents were HR managers, marketing managers and production managers, and nonmanagement employees working in 50 foreign MNCs. Data was collected using questionnaires developed by Hofstede and Huselid and modified by the researcher. Hofstede’s instrument contains measures of employees’ cultural orientations, whereas Huselid’s instrument contains measures for SHRM practices, motivation and performance. The findings of the study indicate that: all the variables of SHRM practices, except recruitment and selection were positively and significantly correlated with performance; relationship between SHRM practices and firm motivation did not depend on employee cultural orientations in the case where cultural beliefs were considered, but depended on employee cultural orientations when cultural values were considered; motivation mediated relationship between SHRM practices and firm performance; and motivation affected firm performance.
- ItemInformation systems investment appraisal in commercial banks in Kenya : theory and practice(Strathmore University, 2009) Onsongo, Elsie Khakasa; Dr. Ismael AteyaA review of literature on the practise of Information Systems investment appraisal in firms suggests a gap between theory and practice. In an attempt to explore the extent of this gap, this research reviews the theory of fixed asset investment when applied to the current state of practice of IS investment evaluation among Kenyan banking institutions. Results of the survey show that the level of usage of discounted cashflow (DCF) techniques and sophisticated analytical and integrated techniques is low compared to the usage of simple financial and strategic techniques. To illustrate, simple ratio-based techniques were found to be very popular, with Cost Benefit analysis being used by 92% of responding banks, Payback Period (60%) and Return on Investment (60%). Appraisal techniques that consider strategic arguments were also found to be very popular, i.e. technical considerations (92%), competitive advantage (64%) and Critical Success Factors and SWOT analysis (56% each). On the other hand, DCF techniques were unpopular i.e. Net Present Value (8%) and Internal Rate of Return (0%). Further, analytical and integrated appraisal techniques were also found to be relatively unpopular: value analysis (28%), scoring models (16%), computer based techniques (4%), the Balanced Scorecard (56%) and Information Economics (40%). In addition, a partial relationship was found between the adoption of a type of investment appraisal technique and the size of a firm. As the size of the firm, determined by the book value of total assets increases, the usage of strategic and analytical techniques increases, while at the same time, the use of ratio-based techniques reduces. Based on these findings, this study highlights the shortcomings of normative fixed asset investment theory when applied to IS investment appraisal.
- ItemAn evaluation of internal controls : the case of Nairobi small businesses(Strathmore University, 2009) Kakucha, Wilfred; Dr. James Boyd McFieThis study evaluated the level of effectiveness of internal controls operating in Nairobi. Secondly, this study examined the relationship between the age of an enterprise and effectiveness of its system of internal control. Thirdly, this study explored the relationship between the amount of resources held by an enterprise and its effectiveness of its system of internal control. Fourthly, this study investigated the nature of the relationship between internal control and financial performance. The study was quantitative and was carried on from September 2007 to June 2009. Using a sample of 30 small business as listed in the National Social Security Fund (NSSF) Register of Kenya, 2008, the study sought to meet the above mentioned objectives. Data was collected from the managers of small business using interviews and examination of documents pertaining to internal control. the response rate was 80%. Data was then analyzed using descriptive statistics and regression analysis. The study found that there are deficiencies in the systems of internal controls, with the degree of deficiencies varying from enterprise to another. the components of internal control that were missing in most businesses surveyed were: firstly, risk analysis, and secondly lack of proper flow of information. In addition, the study established that the sample population lacked awareness of what constituted an effective system of internal control. The study also found that there is significant statistical evidence to support the negative relationship between the age of an enterprise and the the effectiveness of its system of internal control. In addition, the study established that there is a negative correlation between the resources held by an enterprise and its internal control weaknesses. finally, the study found that there is a weak negative relationship between the internal control weaknesses and financial performance. there is need to enlighten operators of small business of what constitutes an efficient and effective system of internal control through seminars and forums. To cut down on the cost of maintaining full fledged internal audit and human resources departments, the small business should outsource this to specialist professional firms who will aid them on a timely basis. The researcher suggests that there is need to replicate the study in medium and large enterprises. Finally, there is need to establish the nature of frauds occurring in small businesses.
- ItemAn empirical analysis of the evolution of statistical properties and the volatility structure of the Nairobi Stocks Exchange 20-share index returns.(Strathmore University, 2009) Kimundi, Terry Mwende; Dr. Silas N. onyangoTime series of financial and economic data have been found to exhibit unique statistical properties not found in other time series. The statistical properties of the NSE 20-share index returns are examined over a period of 16 years, from January 2 1992 to December 24, 2007. In addition, I use the General Autoregressive Conditional Heteroskedasticity (GARSCH) model of Boollerslev (1986) to estimate the volatility present in the NSE-20 index returns. This period is marked by significant growth in market capitalization and structural change, with increased usage of information technology and increased regulation of the financial and money markets. I find that 1. the index returns display evidence of predictability, but the degree of predictability has reduced over time. 2. The index returns are non-normal, with significant skewness and leptokurtosis; 3) there is evidence of volatility clustering in the returns, where the periods of high volatility are followed with periods of low volatility and periods of low volatility are followed by periods of high volatility. 4. The frequency of fluctuations or volatility has increased over time. the statistical and volatility properties of returns from the market have evolved as the Nairobi Stocks Exchange has developed over time.
- ItemThe Determinants of the choice of different accounting methods by companies quoted on the Dar es Salaam stock exchange: Positive accounting theory approach.(Strathmore University, 2010) Ntui, Ponsian Prot; Dr. Nelson WaweruThis study examines the factors that determine the choice of multiple accounting methods (policies) in Tanzania. The study investigates managers’ decisions to choose accounting methods in a positive accounting theory perspective using panel data on 15 companies listed on the Dar es Salaarn Stock Exchange (DSE) from 2005 to 2008. Data (accounting numbers and accounting policies) were extracted from the companies’ annual reports. Possible determinants of the choice of accounting methods are identified based on the positive accounting theory, including firm size, leverage, effective tax rate, bonus plan, internal financing, corporate governance, bank loans, ownership dilution and labour force. Using regression analysis, the empirical results show that the significant factors are company size, internal financing, corporate governance and labour force. Contrary to the outcome of prior studies, the study finds that company size and internal financing are positively related with income strategy. The study proves statistically that there is a strong association between choice of accounting methods and income strategy. This study makes several contributions to the body of knowledge. First, in the 1’anzanian context, it delennines the factors which affect choice of accounting methods. Second, 16 potential factors are identified from dilTerent studies and 9 tested in one country (Tanzania). Third. the study identifies corporate governance as a new factor impinging on the choice of accounting policies. Fourth, this study shows for the first time that the use of RATIO of income increasing accounting policies to total number of accounting policies can be used as dependent variable. Finally, the study proves statistically the existence of an association between choice of accounting methods and income strategy in Tanzania. The research concludes that there are behavioural differences between managers of developed countries and their counterparts in Tanzania as a developing nation. Economic, social and political differences affect managers’ behaviour in making decisions. Although there are differences between developed and developing countries such as Tanzania, the research finds specific areas of diversion in the choice of accounting methods as company size, bonus plan and internal financing. Future researchers should use cross-sectional data, test foreign political costs, managers’ discretion, audit committee and industry. They should use natural logarithm of total sales as a measure instead of natural logarithm of total assets. Further, they need to investigate relevance of options in choosing accounting policies.
- ItemThe Relationship between working capital management and profitability for companies listed on the Nairobi Stock Exchange.(Strathmore University, 2010) Mathuva, David Mutua; Dr. Ellinami J. MinjaThis study examined the effect of working capital management (WCM) practices on company profitability. Using agency, transactions cost and trade-off theories, the study also sought to establish whether the hypothesized relationships between working capital practices and profitability can be defended from both financial and managerial perspectives. Data for this study were collected from the annual financial reports and questionnaires from 30 companies listed on the Nairobi Stock Exchange. The financial data covered a 16- year period (1993 to 2008). The variables of interest included various measures of working capital management, profitability and company characteristics. The financial data were analyzed using pooled ordinary least squares, fixed effects and two-stage least squares estimations. Five regression models were run incorporating each of the key independent variables in each model. Data collected from questionnaires were analyzed using frequency tables. Chi-square tests were also performed on the questionnaire data. Consistent with prior research, this study established that there existed an overall negative relationship between working capital management and profitability. Key findings from the study from both financial and questionnaire data analyses were: (1) a highly significant negative relationship exists between the time it takes companies to collect cash from their customers (accounts collection period) and profitability (p
- ItemStrategic human resource management practices: effect on performance(Emerald Group Publishing Limited, 2010) Dimba, Beatrice APurpose – Strategic human resource management (SHRM) practices are used by large foreign multinational companies to improve their performance. The purpose of this paper is to establish the direct or indirect relationship between SHRM practices and firm performance. Design/methodology/approach – SHRM practices are conceptualized as independent variables measured through a bundle of distinct practices. Organizational performance as a dependent variable is measured using constructs of image, interpersonal relations, and product quality. The model is tested with data from 50 large foreign multinational companies operating in Kenya. Findings – Results of this paper show that the SHRM practices that best predict firm performance are training and development and compensation systems. The relationship between the use of SHRM practices and firm performance does not hold across the five bundles of what are considered as “high performance work practices”. This paper also assumes that the relationship between SHRM practices and firm performance is indirect through motivation. Research limitations/implications – Cross‐sectional data from 50 large manufacturing companies in Kenya are used, and it would be interesting to test this model for more industries and countries. Practical implications – Results of this paper have shown that the SHRM practices that best predict firm performance are training and development and compensation systems. Originality/value – To the best of the author's knowledge, this is the first large‐scale empirical paper of the influence of SHRM practices on firm performance, using data from large foreign manufacturing companies operating in Kenya.
- ItemAn Empirical investigation into the determinants of capital structure of SMEs in Nairobi, Kenya(Strathmore University, 2010) Macharia, Ishmail Maina; Dr. James Boyd McFieThis study examined whether capital structure theories from the developed world were applicable to Kenyan SMEs given the differences in economic development. The research design was quantitative. Financial data covering a three year period from 2004 to 2006 for forty three SMEs in the trade, hotel, retail and manufacturing sectors, were collected from the 2008 baseline survey by the Kenya Institute for Public Policy, Research and Analysis, KIPPRA. A panel data regression model was used to this data. In addition, a survey was done on the same population in order to triangulate the data from the secondary data analysis to enhance the reliability of the data. The dependent variable was the ratio total liabilities to total assets. Independent variables were size, asset structure and profitability and age with industry, ownership and growth as control variables. Profitability, asset structure and size were found to be key determinants of the capital structure of SMEs. The debt ratio was negatively related to age when turnover measured size but was positively related to age when total assets were used to measure size. The relationship was between the debt ratio and age was not statistically significant at 5% in both cases. The debt ratio was negatively related to size and to profitability but it was positively related to asset structure. This relationship between the debt ratio and size, profitability and asset structure was significant at 5%. Turnover was found to be a more robust measure of size than total assets for the sample in this study while the negative relationship between the debt ratio and profitability concurred with pecking order theory. The significance of asset structure underlined the importance of collateral in SME finance. The questionnaire Survey confirmed that profitability, assets and size were important determinants of capital structure. Profitability was found to be important to the SMEs as it is not an objective measure. The survey also found that while SMEs operated bank accounts, banks were their least preferred source of debt and there was no relationship between capital structure and Asian/African ownership, industry sector and growth.
- ItemDeterminants of dividend policy in listed commercial banks in Kenya(Strathmore University, 2010-06) Mutiso, Fredrick MulwaThis study examines the determinants of corporate dividend policy within the listed Commercial Banks in Kenya using a paired approach of statistical analysis and questionnaire survey tool. The study spans the period to 2007 from 1998 using information collected from the financial corporate managers and secondary sources of the listed Commercial Banks. The variables and the predicted associations used in the statistical analysis are derived from the prior literature. Both the regression model output and the respondents supported profitability and liquidity as key determinants of the dividend policy. Debt and investment, even though explicitly supported by the respondents, do not appear as significant from the regression output. Size was ranked as explicitly insignificant or weak by both the respondents and the regression analysis. Dividend policy decisions seem to be supported by clientele effects, signaling, and agency / costs theories. Agency cost theory seems to offer remote support to the pecking order and the bird-in-the-hand theories. However, given that taxation on dividend income is a paltry 5 percent and a final tax, the tax clientele does not seem to contradict investors' desire for regular cash dividends. The study finds no potential justification for the dividend irrelevant theories as the interrelationships between investment, financing and dividend policies find overwhelming support. The study contributes that the empirical findings that profitability and liquidity are significant determinants of dividends, applies to the commercial Banks listed on the NSE as well. Owing to the findings that dividend policy decisions have information content, can affect firm value and in turn or directly affect the wealth of shareholders the dividend policy is worthy every attention by senior management Board.
- ItemDeterminants of exchange rates and foreign exchange volatility(2010-07) Karanja, WaiguruExplaining the movements in the exchange rate is still a puzzle to economists particularly since the break down of the Bretton Wood system in the early 1970's, when many countries introduced a floating system. This paper tries to deepen our understanding of this puzzle by using a model that makes use of data from Singapore, the UK and Kenya. The period covered is January 1993 and December 2008. The variables in the model money supply, current account balance, capital account balance, official reserves balance,interest rate and inflation differential. The dependent variable is exchange rate. The model has purchasing power parity and uncovered interest parity as underlying theoretical assumptions, two main building blocks of open macro economics. A linear regression model was used to analyze the data. In addition Cointergration and Granger-Simms causality tests were used to gain further insights into the research problem. The results show that most of the variables have an inverse relationship with the exchange rate. In emerging and developing countries (Singapore and Kenya) it is the exchange rate which influence the movement of economic fundamentals in question and not the other way round, although interest rate differential constitutes a significant explanatory variable for exchange rate movements in all the three countries included in the model. Both Singapore and the UK have also, in accordance with the RID model, the expected negative sign on the coefficient. The results regarding the other variables are mixed among the countries.
- ItemDirectors’ remuneration and firm performance in a study of Nairobi Stock Exchange listed companies(Strathmore University, 2010-12) Injeni, Geoffrey IkavuluUnder the agency theory, directors who act as agents of shareholders may benefit from the company by awarding themselves high remuneration. To resolve this problem, some authors have recommended corporate governance principles which include a requirement to pay directors based on firm performance. Examples of pay based on firm performance include bonuses and stock options. In Kenya, companies listed on the Nairobi Stock Exchange (NSE) are required to comply with the corporate governance principles issued by the Capital Markets Authority (CMA), which require directors’ remuneration to be based on firm performance. The purpose of the study was to find out first, whether there is a relationship between directors’ remuneration and firm performance for Nairobi Stock Exchange companies, and secondly, the components of executive pay together with the key factors that determine executive pay. A regression analysis involving 37 NSE listed companies covering the period between 2003 and 2008 showed the majority of the companies reported a weak positive relationship between executive remuneration and firm performance (when measured by Revenue Growth, Net Profit Margin, Return on Investment, Return on Equity and Earnings per Share), and a weak negative relationship between executive remuneration and stock market returns (measured by Share Price Growth). In addition, an analysis of 23 respondents from the 37 companies also found salaries, fees and other benefits to be the key components of executive pay. Majority (60%) of the respondents mainly consider experience and qualifications to be the key factors that determine executive pay. The study has confirmed the inconsistency of pay based performance in Kenya. The study has also highlighted the key determinants of directors’ remuneration for companies listed on the NSE. Further studies can be done to establish the challenges of implementing performance based pay in NSE companies. In addition, further research can be done on performance based pay for small and medium sized firms and in the public and private sectors.
- ItemWorking Capital Management Efficiency: an empirical Survey on Tanzanian Universities(Strathmore University, 2011) Lemeri, Mary F.Efficient working capital management is one of the pre-conditions for the continued existence of organizations. This study examined the efficiency of working capital management (WCM) in Tanzanian universities. A sample of 8 out of 31 universities in Tanzania for a period from year 2005 to 2009 was studied. To measure the efficiency of WCM, three index values namely performance, utilization, and efficiency indices were computed. Different variables affecting WCM efficiency including return on assets (ROA), earnings before interest and tax (EBIT), number of computers and computer software were studied. Further, university sizes, growth in number of students, and type of university (Government or Private) were used as control variables. The data were analyzed using descriptive statistics, Pearson's correlation and regression. The findings of the study indicate that Tanzanian universities have managed their working capital satisfactorily. The result shows that there is a positive relationship between WCM efficiency and university's earnings. This means that the higher the earnings, the greater the measure of efficiency in working capital management. The study also found a positive relationship between number of computers and working capital management efficiency. It implies that an increase in number of computers with proportion to the number of finance staff lead to the efficiency in WCM.
- ItemBehavioural Factors Influencing Investment Decisions in the Kenyan property market(Strathmore University, 2011) Mwangi, Geoffrey GitauThis study applies Behavioral Finance theory to explain the performance of the property market in Kenya. The study investigates behavioral factors influencing investment decisions in the Kenyan property arena. This is aimed to better reflect the way property investors think and behave by using Behavioral Finance theory. The study uses survey questionnaire to collect data targeting all the real estate agents within Nairobi region who are listed in the yellow pages. The target population was 155 listed Estate Agents operating in Nairobi as per Kenya Pastel Directory 2010 Nairobi edition. This study found out that out of the two broad classifications of human cognitive illusions that are heuristics and prospect theory, heuristics influenced investors more. The key heuristic theory, that influence investors are anchoring, representativeness and availability bias.
- ItemReal estate prices and economic fundamentals: an empirical investigation of the residential housing market in Nairobi City(Strathmore University, 2011) Ochuodho, Peter OumaThe purpose of this research is to establish if the residential property prices in Nairobi, the capital city of the Republic of Kenya, are consistent with the economic fundamentals of the national economy. The study uses stepwise regression modelling to establish the relationship between house prices and the identified economic fundamentals. The findings of the study indicate that there is a positive relationship between house prices and economic fundamentals including population growth, rate of inflation and the level of money supply. A negative relationship is found to exist between the costs of construction and the residential house prices. Other variables, which are the gross domestic product and rate of interest, are removed from the regression during analysis, an indication that they do not have any influence on the residential house prices. Further, the study finds that with exception of population growth, house prices are less responsive to the variations in the rate of inflation and the level of money supply in the economy. A key finding in this study is that the house prices in Nairobi city are not supported by the gross domestic product, interest rate and the costs of construction. Moreover, the results also suggest the possible existence of a bubble and that money laundering does have a role to play in the Nairobi city residential housing sector.
- ItemCorporate governance practices of Kenyan insurance broking firms(Strathmore University, 2011-06) Kimang'a, Lazaro AkungaGovernance applies to all sectors of the corporate and institutional world. This study looks specifically at some governance practices of Kenyan insurance braking firms and their relation to performance. In particular, the study examines the impact of board characteristics of Kenyan insurance broking firms on company financial performance. Kenyan insurance braking firms are small cap companies. Many studies have examined governance practices of large companies, particularly those quoted on the stock exchange as well as those in the banking sector. There is evidence that well governed firms perform better. This study had three main objectives. First to assess the degree to which insurance braking firms in Kenya have adopted and implemented international governance guidelines both in theory and practice. Secondly, to determine whether Kenyan insurance broking firms with some corporate shareholders have performed better than broking firms owned by individuals. Thirdly, to assess the impact of adopting and implementing global board governance guidelines, in particular those related to the board of directors. in the insurance broking sector in Kenya. on firm performance. In this latter regard, the study sought to determine the impact/importance of several key board characteristics in respect of board size, board composition, the Chairman-CEO duality role and the existence of an audit committee on performance in the Kenyan insurance broking sector. Findings revealed that the general level of implementation of international governance guidelines in the Kenyan insurance braking sector was not strong. Furthermore. there was no significant statistical evidence that Kenyan insurance broking firms with corporate shareholders have performed better financially than broking firms without such linkages. As for the third objective, data did not provide adequate statistical evidence to reach conclusions about the relationship between corporate governance practices and firm performance. These findings support findings of earlier studies elsewhere. The study revealed an overall weakness in many Kenyan insurance braking firms in embracing governance guidelines and therefore further studies needed to be undertaken to reveal more about governance issues in the Kenyan insurance broking sector.
- ItemCompetitive forces and growth in the telecommunication industry in Kenya(Strathmore University, 2012) Kabuga, Linus W.This study examined how increasing competition is pressuring the operations within the Kenya's telecommunication industry causing intense competitive rivalry within the industry. The study was designed to understand the competitive forces in this industry and determine the factors that influencing the industry attractiveness reinforcing its likelihood to succeed or fail. The study focused on the four key players in the Kenya's telecommunication industry, that is, Safaricom, Airtel Kenya, Orange Kenya and 'YU' giving statistical evidence of each organization market position. The study findings reveal potential growth of the industry prior to the government deregulation and liberalization of the telecommunication industry bringing out the constraints and challenges within the industry. We are in the 3rd Revolution of the world that is World of technology. The use of mobile phone been on the last for the last few years and the trend is expected to grow in future and exemption. The study reveal that there a great use of the technology in the business hence economy improvement. Social media networks has been in the use and the trend is after day.
- ItemTotal quality management in the Public sector : a case study of the Communication commision of Kenya(Strathmore University, 2012) Mmasi, JohnThe purpose of this study was to examme quality management in public service. Its objectives were to determine the quality management practices and techniques in public institutions, to determine the factors affecting the quality management and to identify the possible solutions to these factors. The study was conducted in the Communications cornmission of Kenya. It was a descriptive study to explain the state as it existed and data was collected using questionnaires. Data was analyzed using excel sheet where pie charts where formed to establish percentages from which qualitative conclusions were drawn. The study established from the findings that the Communications cornmission of Kenya employed some quality management tools and techniques and identified the factors that many negatively affect quality management and the possible solutions to these factors
- ItemThe Effects of e-governance on delivery of services in Kenya(Strathmore University, 2012) Kithinji, Joy MakenaService delivery takes a long time in government and inefficiencies in government organizations have been on the rise since 2008 (Chege, 2010). The study targets KRA as a government department that discharges public services. The study investigated ICT performance in Customs Service, Domestic taxes, road transport, Research and corporate planning. This study is guided by IT management theory. Which states that for integrated technological systems to be accepted and viewed as successful, technical administrators must feel that there are great benefits provided to them. Data is presented in the form of frequency distribution tables, graphs and pie charts that facilitates description and explaination of the study findings. The study findings provides the policy makers with insights into critical factors that need to be considered when formulating policies meant to enhance implementation of tax collection services. The study found out that, with the implementation of e-governance system, there has been a tremendous improvement of the working condition in KRA offices. It can be concluded that e-governance is about the use of information technology to raise the quality of the services government deliver to citizens and businesses and has had a positive impact in governing the services offered in KRA. Further the study recommended that, Kenya government should allocate funds to the automation of the government services as this encourages transparency and accountability.
- ItemSME's perception towards loan services offered by commercial banks in Kenya : a case of study of SMEs in Nairobi central business district(Strathmore University, 2012) Mwikya, Tabitha MwikaliThis study was done to find the perception that SMEs have towards the loans service offered by commercial banks in Kenya. The research design was quantitative. Information was gathered from SMEs in the Nairobi Central Business District. A sample size of 277 firms was picked. The response rate 15% (40 firms). The data was collected using a questionnaire. The questionnaires were hand delivered to some firms and send via email to other firms. Since the research was qualitative the likert scale was used to quantify the data collected. The mode calculated was related to the factors that hinder SMEs from accessing formal financing. These factors were; the interest rate, collateral asked for by the banks, amount given by the banks, requirements other than collateral asked for by the banks and the customer care service offered by the bank. The major findings in this research are that the SMEs have a positive attitude towards the payback period allowed for by the banks. The SMEs are also indifferent towards interest rate offered by the commercial banks, the collateral asked for as security for the loans and any other requirements asked for by the bank. The SMEs have a negative attitude towards the amount given by the banks after the loans is processed and the customer care service offered by the banks. From the findings the researcher concluded that although the SMEs are taking advantage of the loans services offered they still do not have a positive attitude these services. The banks need to improve their services to cater fully to the SMEs needs.