MPPM Thesis and Dissertations (2023)
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- ItemUptake and retention of NHIF by the informal sector: the case of Tharaka Nithi and Laikipia Counties(Strathmore University, 2023) Macharia, M. N.Health insurance schemes are often hailed as key to enhancing universal health coverage which is part of the Sustainable Development Goals. The current health insurance uptake in Kenya still lags behind most other developing countries as the data indicates that health insurance uptake has mainly been limited to the middle-class and upper-class citizens within the country. The main objective of the study was therefore to determine the factors influencing uptake and retention of NHIF by the informal sector in Tharaka Nithi and Laikipia Counties. The specific objectives of the study were to examine the effect of mass education campaigns, demographic factors, socio economic status and the effect of quality of service on the uptake and retention of NHIF by the informal sector in Tharaka Nithi and Laikipia Counties. The study used Rational Choice theory and Nudge theory and adopted a descriptive research design. The target population comprised of 11,894 informal workers from Tharaka Nithi County and 13,246 informal workers from Laikipia County registered with NHIF. The stratified random technique was used to obtain 394 respondents. The study used structured close-ended questions to collect primary data. Analysis was done quantitatively by employing inferential and descriptive statistics. Presentation of data was done through frequencies, mean, standard deviation and percentages and presented in form of tables. The study found a positive association between mass education campaigns and uptake and retention of NHIF. There existed a moderate positive relationship between demographic factors and uptake and retention of NHIF by the informal sector in Tharaka Nithi and Laikipia Counties. There was a positive association between socio economic status and uptake and retention of NHIF. There was also a moderate positive relationship between the quality of service and uptake and retention of NHIF. Based on these findings, the study recommends that NHIF should further the mass education campaigns so reach to an even a larger audience to increase the uptake and retention of NHIF by the informal sector. The NHIF should also consider targeted tariffs for various groups of people so as not to limit the uptake to some. The NHIF scheme could also be organized in a way that accommodates those in different occupations, with different educational backgrounds and income levels. Finally, NHIF should encourage and maintain the sufficiency in healthcare service delivery in the counties to promote the uptake and retention of NHIF by the informal sector. Key Words: NHIF, mass education campaigns, demographic factors, socio economic status, quality of service.
- ItemEffects of monetary policy on the performance of agricultural firms listed on Nairobi Securities Exchange(Strathmore University, 2023) Dushime, B. P.The general objective of this study was to investigate the effects of monetary policy on the performance of agricultural firms listed in Nairobi Securities Exchange. The study was guided by specific research objectives including examining how the performance of agricultural firms listed at the NSE was affected by the Central Bank rate, change of reserve requirement and open market operations. The study was founded on the monetarist theory and the financial repression theory. An empirical literature review was done and research gaps were identified. This study adopted explanatory research design that was used to state the relationship that exists between monetary policy and performance of agricultural firms listed on NSE, hence investigating the causal effect among the variables in the study. The dependent variable was performance of agricultural firms listed on NSE, while the Central Bank rate, the change in reserve requirement and open market operations were the independent variables. Exchange rate and climate change were used as control variables. The study used all the agricultural firms listed on the NSE. The study used secondary data from annual reports of the agricultural firms and published reports by the Central Bank. The data collected were analyzed using both descriptive and inferential statistics by the assistance of the Statistical Package for Social Sciences (SPSS). The model indicated that increase in Central Bank rate negatively affected the performance of the agricultural firms, an increase in cash reserve requirement had a negative effect and an increase in the Treasury bills rate had a positive effect. Additionally, an increase in exchange rate had a positive impact on performance of agricultural firms while increased precipitation levels negatively influenced the performance of listed agricultural firms. The study recommended Central Bank to maintain an optimal CBK rate, ensure enough cash flow in the economy and stability in the currency. It also recommended more use of technology in crop production to reduce dependence on rain in agricultural production. The study recommended further research including fiscal policies on both listed and unlisted agricultural firms.
- ItemFactors affecting commercial banks participation in road infrastructure financing in Kenya(Strathmore University, 2023) Oginga, R. O. W.Road infrastructure investment is paramount in the achievement of desired economic objectives. Though the contribution of roads infrastructure to the economic development is acknowledged, its quality and quantity of accessibility is below par in developing economies. The trend seems to change due to increased government expenditure and private participation through public-private partnerships (PPP) and private financing through commercial banks. Since the year 2000, private players’ participation in infrastructural projects has increased from around 6.5% to almost total financing. With this growth in the financing from commercial banks, this research is motivated to analyze how specific bank characteristics, project characteristics and macroeconomic indicators have influenced the investments in infrastructural projects. Thus, the main research will be to establish how bank characteristics and macroeconomic factors on the road infrastructure financing by commercial banks in Kenya. The specific objectives of the study were to establish the effect of bank characteristics on road infrastructure project financing by commercial banks in Kenya and to investigate the effects of macroeconomic factors on road infrastructure project financing by commercial banks in Kenya. The study was guided by the modernization theory and agency theory. This study used explanatory research design. Time series data was collected from July 2005 to December 2022. Data was analysed using descriptive and inferential statistics through use of Views and Stata. Study findings were presented using figures and tables. The study found that bank characteristics had mixed effects with liquidity has inverse though not statistically significant effect on commercial banks road infrastructure financing. There was a positive effect of nonperforming loans on commercial banks road infrastructure financing. Further, there was positive and not statistically significant effect of total assets and commercial bank road infrastructure financing. There was an inverse and not statistically significant effect of capital adequacy on commercial banks road infrastructure financing. Secondly, regarding the effect of project characteristics on commercial banks road infrastructure financing. Thirdly, an examination on the effect of macro-economic characteristics on commercial banks road infrastructure financing in Kenya depicts that there was an inverse effect of inflation rate on commercial bank road infrastructure financing. There was a positive effect of increase GDP growth rate and road infrastructure financing. There was an inverse effect of exchange rate on commercial bank’s road infrastructure financing. There was positive effect of interest rate on commercial banks road infrastructure financing. This indicates that there was a positive effect of interest rate on commercial banks road infrastructure financing. There is need for policy development that will liberalize commercial banks operations to enhance its participation public private partnership. There is need for commercial banks to develop strategies on liquidity, profitability, nonperforming loans and capital adequacy so as to optimize their credit creation capacity. There are higher odds of increased information asymmetry regarding project costs hence the need for commercial banks to have robust department that would aid in evaluation of value benefits associated with respective projects level of involvement. Key words: Project Financing, Public-Private Partnership (PPP), Commercial Banks
- ItemLeveraging Machine Learning in housing price prediction in Nairobi county(Strathmore University, 2023) Nduati, J. W.Housing prices have in the recent years dominated social and economic discussions in both developed and developing countries such as Kenya. Literature shows that modelling housing pricing in Kenya is predominantly based on conventional statistical theory and methodologies that are increasingly becoming sub-optimal in the wake of big data and technological advancements. To fill this gap, this research leveraged Machine Learning (ML) in housing price modelling and prediction in Nairobi County. The project further sought to achieve four objectives, namely: 1) to determine the features that significantly influence housing prices in Nairobi County; 2) to compare different ML models and techniques used to predict housing prices in Nairobi County; 3) to predict housing prices in Nairobi County using trained ML models based on unseen data in production; and, 4) to make policy recommendations on determination of housing prices. Primary data was collected from homeowners and potential homeowners from Shauri Moyo and Kibra. Further, Key Informant Interviews (KII) were undertaken with respondents from the State Department for Housing. The survey achieved a response rate of 85.3% and established that participants strongly agreed that; presence of tarmacked road within 5 Kilometres (Km), electricity connection/generator, a hospital within 5Km, a school within 5 Km, internet connectivity, age of the house et cetera significantly determined housing prices. Secondary data on the other hand was retrieved from Property24.co.ke. Fourteen ML/ Deep Learning models were trained, optimized and tested based on the evaluation metrics; Root Mean Squared Error (RMSE) and R-Squared. Insights from the secondary data showed that; number of bedrooms, bathrooms, parking lots, location and type of the house accounted for at least 88% of variations in the predicted house sale price in half of the ML models. The best ML candidate was the Light-Gradient Boosted Machine (Light GBM) with a RMSE of 11.21635 and an R-Squared score of 88.65%. The least performing was the Elastic Net model with a RMSE of 15.405066 and an R-Squared score of 78.59%. Four models with the best predictive accuracy were used to predict housing prices in Nairobi County based on real world data points from 9 random locations, resulting to predictions that had minimal disparities. The study recommended to property developers and policy makers as stakeholders in the housing sector to: allocate resources towards consistent and efficient collection, storage and sharing of quality data on housing features that significantly influenced housing prices in Nairobi County. Additionally, the study advocated for data-oriented Government policies in the housing sector and the implementation of new-age technologies such as AI/ML for efficient modelling and prediction of housing prices. Keywords: Machine learning; price prediction; supervised learning; housing features.
- ItemA Qualitative examination of factors affecting the retention of doctors at the Kenyatta National Referral Hospital in Kenya(Strathmore University, 2023) Robai, C.Globally, governments struggle with providing quality, affordable healthcare to achieve Universal Healthcare Coverage (UHC). The World Health Organization (WHO) asserts that motivation and retention of healthcare personnel, including doctors, is essential for achieving UHC. Kenyatta National Hospital (KNH) the largest referral hospital in Kenya offers specialised services but experiences shortages of various specialists and attributes this to high turnover due to the hospital's unattractive service model and poor working conditions in light of the lengthy training periods to acquire the necessary skills to provide such specialized healthcare. Therefore, there is a need to establish how to make the most of this rare resource, including how to work on the retention of doctors. This study is anchored on Herzberg's Two Factor Theory which argues that individuals are interested at two different areas of motivation. The study was based on Adam’s equity theory and Hezberg’s two-factor theory. An explorative qualitative study was conducted. In-depth interview was conducted among 24 doctors. Qualitative data was thematically analysed. The results showed that financial incentives affected their performance hence motivated them to stay. Financial incentives played a role on the decision to quit employment and recommended on the need to employ the contract doctors on permanent and pensionable terms. Career advancement opportunities were available for doctors employed on permanent and pensionable terms but not for medical officers on contractual terms of employment. This was a demotivating factor for the medical officers, increasing their turnover rates. Further, findings revealed that a good working condition at KNH a good working conditions at KNH was considered as one with good leadership, well structured shifts, availability of consumables, good equipment, positive culture and a good system. The working conditions had a huge effect on the motivation of doctors, retention and service delivery. All these conditions would enhance their retention in the hospital.
- ItemCorporate governance principles and their effects on water policy implementation in selected water institutions in Nairobi County(Strathmore University, 2023) Obonyo, S. A.Water sector in Kenya has undergone major reforms with a vision of having a sustained and efficient delivery of services to consumers. The enactment of the Water Act in 2002 was the start of the great revolution, with a new structure and framework to govern operations around water and sanitation. The establishment of the Water Services Regulatory Board which has the mandate to make rules and enforce them so as to make the sector offer better services to consumers in an effective and sustainable way and protect their interests as well. This study assessed the corporate governance principles and their effects on water policy implementation in the selected three water institutions in Nairobi County, Kenya. The objectives included assessing how accountability contributes to the success of water policy implementation, establish the extent to which transparency contributes to the success of water policy implementation, determine how the principles of responsibility contributes to the success of water policy implementation and establish whether fairness contributes to the success of water policy implementation. Theories used included Agency, Stewardship and Stakeholders. This study used explanatory research design targeting the study participants. A sample size of 250 respondents was targeted. The sampling procedure used was the stratified random sampling method. Questionnaires comprising both open and closed-ended questions were the research instrument used to collect data and statistical package for social sciences (SPSS) version 27 was used for data analysis. Data was summarized under common themes and presented in form of percentages, pie charts, frequency tables and graphs. Results of the study indicates that accountability, responsibility, transparency and fairness have statistically positive effect on water policy implementation. The study concludes that, the governance principles which include accountability, transparency, responsibility, and fairness do have a significant role to play on the implementation of water policy and the various institutions. A positive effect is seen when the institutions have an accountability policy and the leadership is held accountable to the performance of the institution. On the other hand, lack of audit committees was found to have a negative impact on the implementation of water policy due to lack of a check system. The study recommends that relevant implementation policies should be put in place as well as the committees to increase the transparency, accountability and just treatment of everyone during implementations.
- ItemInfluence of hybrid working arrangements on employee productivity in the Communications Authority of Kenya(Strathmore University, 2023) Muriithi, L. M.Hybrid working arrangements, which combine physical and remote work, have become more prevalent in the global economy and during the Covid-19 pandemic. However, the effects of these arrangements on employee productivity could be clearer. This study examined how hybrid working arrangements influenced employees’ productivity in the Communications Authority of Kenya (CA), a public entity regulating the communications sector. The study focused on four factors: human resource planning, ICT adoption, worklife balance, and work design. The study adopted a positivist research philosophy and utilized the descriptive and correlative research design. It used stratified sampling technique to select 153 respondents from a population of 248 CA employees across 20 departments. The data were collected through online and offline questionnaires and analysed using correlation and multiple regression analysis at a 0.05 significance level. The results strongly suggested that all four factors had positive and significant relationships with employee productivity. The study concluded that hybrid working arrangements could enhance employee productivity if supported by effective human resource planning, ICT adoption, work-life balance, and work design. The study recommended that CA develops and documents clear guidelines and standard operating procedures for hybrid working arrangements, adopts ICT in managing employees and workflow, observes appropriate deployment and working shifts, and adopts flexible work designs. The study was limited by its focus on one entity with advanced systems and its use of quantitative analysis only. Further research can be done on larger public corporations using qualitative methods to explore the underlying reasons for the findings.
- ItemExamining the relationship between corporate governance and financial accountability in state-owned enterprises in Kenya(Strathmore University, 2023) Muyonga, T.State corporations have been instrumental to the development of society, serving as the main avenue for governments to deliver public services. They have been instrumental in the delivery of health, education, transport and other critical services and they continue to account for a significant portion of economic activity. However, locally their performance has been below par resulting from lack of financial accountability and transparency which limits their ability to deliver public services and maintain a good standing. The focus of this research was to examine whether corporate governance factors do have an influence on the financial accountability of state-owned enterprises. The study specifically looked at board diversity, board independence, ethical practices and risk governance practices influence on financial accountability of state-owned enterprises. Further, the impact of political environmental was considered as moderator variable in the stated main objective. The survey was premised on the stakeholder and agency theory. A descriptive research design was applied in the survey with a total of 138 state-owned enterprises considered for the research. A sample of 102-ranking officer in the finance/governance and compliance departments were considered in the research. Semi-structured questionnaires were designed to collect research data with drop and pick method used in the collection of study data. The collected survey data was analyzed using a mix of quantitative and qualitative research approach. The survey obtained eighty responses which presented a 78% response rate which was dependable for utilization in quantitative analysis of the interaction between the predictor variables and financial accountability of the state-owned corporations. The study used the Spearman rank correlation in analysis with the results affirming that there is a significant correlation between corporate governance factors, political environment, and the operational performance of state corporations in Kenya. Regression tests affirmed there was significant predictive power of corporate governance factors on the financial accountability of state-owned firms in Kenya. The findings of the study led to the conclusion that corporate governance factors (board diversity, board independence, ethical practices, risk governance practices) have positive and significant effects on the financial accountability of State-Owned Enterprises in Kenya. This shows that the state firms can increase their financial accountability through the application of proper corporate governance practices. The study found out that board diversity and board independence did not have a significant influence on the financial accountability of State-Owned Enterprises in Kenya. Individually, the coefficients supported the conclusion that ethical practices and risk governance practices have a positive impact on financial accountability of State-Owned Enterprises in Kenya. Overall, the findings found out that political factors do have a positive moderating effect on the relationship between corporate governance factors and financial accountability of State-Owned Enterprises in Kenya. The study suggestions are that for state firms to increase the degree of financial accountability, the study recommends that they embrace the best governance practices and ensure that these practices specifically address how to properly manage shareholders’ assets, provide adequate risk management and that the codes of conduct and standards of operation are enforced in day-to-day operations and not just put in writing. The study further calls on the government to develop sector specific governance frameworks that would complement the guidelines from the Mwongozo code of governance. Finally, the study calls on the government to enact legislations that makes the provisions of the Mwongozo code mandatory and not just mere suggestions.
- ItemEffect of destination management on tourism destination competitiveness in devolved governance after COVID-19: a case of Kakamega County(Strathmore University, 2023) Musee, S. M.Kakamega County is one of Kenya’s devolved units. It is an emerging destination in one of the lowly ranked tourism competitive regions of the Western Tourism Circuit. Similar to other destinations, Kakamega was adversely affected by the Covid-19 pandemic. The study’s main objective was to determine the effect of destination management on the tourism destination competitiveness of Kakamega County in Kenya’s devolved governance in the aftermath of Covid-19. Specific objectives were to determine the effect of tourism policy in enhancing the tourism destination competitiveness of Kakamega County after COVID-19; establish the influence of destination marketing in promoting tourism destination competitiveness of Kakamega County after COVID-19; and, evaluate the effect of environmental sustainability management in fostering tourism destination competitiveness in Kakamega County after COVID-19. Porter’s theory of competitive advantage of nations and sequential theory of decentralisation provided a theoretical foundation for the study. On the other hand, Dwyer and Kim’s model of competitiveness enhanced the conceptualisation of the link between destination management and competitiveness. An interpretivism philosophy informed the adoption of a descriptive survey research design. Stratified purposive sampling targeted a sample size of 50 tourism and hospitality practitioners in the public and private sectors in Kakamega County. Data was collected using a close-ended questionnaire. Multi linear regression analysis was used to establish that the construct of destination management, that is, tourism policy, destination marketing and environmental sustainability all had a moderate and positive effect on tourism destination competitiveness. Overall, destination management had a moderate and positive effect on the competitiveness of Kakamega County as a tourism destination. The study recommends community inclusion in tourism ventures in Kakamega county; adequate resource allocation to tourism and travel sector development; regular market intelligence to understand current tourism trends in competitor destinations to integrate destination marketing in all tourism product development phases; and, entrenched sustainable tourism through better environmental management and conservation of unique natural and cultural heritage tourism attractions. The study proposed a need for further research on tourism destination competitiveness in devolved units based on other indicators and determinants like decentralised governance policy. Keywords: Tourism Destination Competitiveness; Destination Management; Devolved Governance
- ItemCritical success factors affecting adoption of technological innovations and its influence on staff performance and revenue collection at Kenya Revenue Authority(Strathmore University, 2023) Mak’Osewe, F. A.Leveraging technological innovations in tax administration has become an integral part of increasing compliance rates, improving service delivery, increasing the tax base and subsequently revenue mobilization. In the wake of Kenya Revenue Authority’s (KRA) growing thrust to invest in technological innovations for delivering public service value, there is no visibility of adoption rates or evidence of evaluation, documentation or tracking of awareness rates, adoption rates or factors influencing uptake of these technologies internally. There is also no evidence of evaluating the effect of this adoption on work performance or revenue collection. The study sought to investigate factors affecting the adoption of new technological solutions in tax administration with a specific focus on KRA. The specific objectives included to: determine awareness and adoption rates, determine critical success factors for adoption of technological innovations and evaluate the influence of adoption of these technologies on staff performance and revenue collection. This was a cross-sectional study, quantitative in nature, that attempted to test and validate the conceptual framework which combined Adoption of Innovation (DOI) theory and Technology Acceptance Model (TAM) to guide the study. The study population comprised of all 7,955 KRA staff and targeted a sample of 370 respondents determined using stratified random sampling. A structured anonymous online survey was used to collect primary data while secondary data constituted KRA reports and corporate plans. The study involved a theoretical and empirical review of literature relevant to the research objectives and research questions. Descriptive statistics, content analysis, correlation and regression analysis were conducted to help predict the dependent variable given the independent variables. Findings were organised, summarised and presented using tables and graphs to ultimately answer the research questions, provide conclusions, recommendations and areas for further research. Study findings shows that there is high awareness rate and high adoption rate of technological innovations by KRA staff. The critical internal predictors of innovation adoption of systems at KRA were found to be complexity, compatibility with job needs, triability, observability of benefits, good corporate governance around innovation, adopter characteristics of staff and effective communication channels whereas the critical external predictors of innovation adoption by staff were benchmarking and corruption. The study also concluded that adoption of technological innovations has a positive and statistically significant influence on both staff performance and revenue collection and recommends close monitoring of complexity, observabiltity, good governance and corruption as they can lead to adverse effects on adoption by staff. Key words: Tax Administration, Tax Revenue, Innovation, Technological innovation, Diffusion of Innovation and Innovation Adoption
- ItemStudy on sound management of Standard Gauge Railway in Kenya through demand elasticity analyzing(Strathmore University, 2023) Yang, Y.Railway is intuitively more of competitive advantage in long haulage and mass carrying by decreasing the cost of factors of production, and optimizing goods distribution channel. For the purpose of sound management within railway industry, the demand elasticities of SGR in Kenya are taken into assessment. Time series data in monthly interval was procured from 2017 to 2021. The sensitivities of SGR demand to critical elements are determined by econometric approaches. Within the scenario of passenger, the demand is expressed by fare, GDP per capita and fuel price. None stationary data was analyzed by Autoregressive Lag Distribution, in the long run, elasticity to fair is elastic at -2.6, elasticity to GDP per capita is 4.2, and elasticity to other road mode is -4.2. Results show that passenger demand has positive relation with GDP, while modal competition advantage to other road mode is not significant. Within the scenario of freight, volume moved is expressed by freight charge, international trade, GDP in transport sector, and fuel price. Stationary data was evaluated by Johansen co-integration approach. In the long run, elasticity to charge is 0.4, to GDP and international trade are 1.0 and 1.63 respectively, to other road modes is 2.6. Findings imply that price increase can raise the revenue, freight volume is positively affected by GDP and international trade, and mode shift to other road mode is also not significant. In the short run, any disequilibrium will be adjusted with a speed at 0.47. Therefore, the price framing policy can be employed to increase the revenue in freight sector solely, while subtler works should have been done, which may lead to competitive advantage for both passenger and freight sectors.
- ItemEnhancing public financial management in county governments: the case of Laikipia County(Strathmore University, 2023) Mpaima, N. L.County governments in Kenya have made significant efforts towards the establishment of the foundations for comprehensive public financial management practices. Despite the implementation of the public financial management systems being in its developmental stages, the counties have made considerable achievement in several fronts. The aim of this investigation was to assess the public financial management enhancing practices in county governments: the case of Laikipia county. The specific aims of the investigation was to assess the budget reliability and policy-based fiscal strategies as practices of enhancing public financial management in Laikipia County government. The investigation was anchored on two key theories: theory of fiscal decentralization and theory of financial controls. This study used interpretivism philosophy and adopted a descriptive research design. The research was a case study of Laikipia county government. Secondary data related to the study objectives was gathered for analysis. Secondary data was gathered from existing county records. Content and descriptive analysis were utilized to analyze the collected data. The findings established that budget reliability performance in terms of aggregate expenditure outturn and revenue outturn was below the minimum required level in Laikipia County. However, budget performance in terms of expenditure composition outturn was within the minimum required level. Further, policy-based fiscal strategies performance in terms of macroeconomic and fiscal forecasting was below the minimum required level in Laikipia County. However, the performance in terms of fiscal strategy, budget preparation process and legislative scrutiny of budgets was above the minimum required level. The study concluded that budget reliability and policy-based fiscal strategies are key towards service delivery. The researcher recommended that the County government of Laikipia should strengthen budget reliability indicators such as aggregate expenditure outturn, expenditure composition outturn and revenue Outturn. The county government should also strengthen policy-based fiscal strategies indicators including macroeconomic and fiscal forecasting, fiscal strategy, medium term perspective in expenditure budgeting, budget preparation process and legislative scrutiny of budgets. This will be vital in achieving improved implementation of budget as planned, resulting to provision of better services to the citizens.