BBSF Research Projects (2016)

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Browsing BBSF Research Projects (2016) by Subject "Kenya"

Now showing 1 - 4 of 4
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    Institutions and economic growth: Kenya, 1963 - 2014
    (Strathmore University, 2016) Murugi, Mbelu K
    This paper examines the existence of a relationship between political institutions and economic growth in Kenya. Through empirical analysis, carried out for the period between 1963-2014, the study aims to use the findings to improve and develop the policy in this area. The variables under scrutiny in this paper are GDP, political rights and civil liberties. Univariate and multivariate time series analysis are used to examine the relationship. The univariate time series helps to evaluate stationarity of the variables. The study finds that all three variables are non-stationary in the level unit root test. The multivariate time series examines the long run and short run relationships. The Engle-Granger test showed no cointegration between the variables. After subjecting the variables to a Johansen test, cointegration was found to exist indicating two cointegrating equations. This proves that indeed a long run relationship exists among the variables. Granger Causality tests reveal that political rights Granger Cause GDP at the 5% significance level. However, at the 10% level there was some significant causality from civil liberties to GDP and civil liberties to political rights.
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    The interest rate pass-through from the Central Bank Rate to Microfinance Banks' lending rates in Kenya
    (Strathmore University, 2015-11) Mumbi, Njoroge Dorcas
    This paper investigates the significance of the interest rate pass-through from monetary policy rates to microfinance lending rates in Kenya. This methodology makes use of the Vector Auto regression Model, using annual data from a sample of 6 micro finance institutions from the year 2000 to 2015. This study finds that the degree of interest rate pass-through is insignificant and that it takes a considerable period of time before the policy rates can be fully reflected in the long term microfinance lending rates. The Impulse response and Variance Decomposition models also indicate that the relationship between the Central Bank Rate and the Microfinance Bank lending rates was insignificant. This study is novel as it is one of the first attempts to consider the effectiveness of monetary policy in the Kenyan microfinance sector, hence providing policy makers with additional insights to the effectiveness of monetary policy in the microfinance sector.
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    The relationship between executive remuneration and credit risk of banks listed in Kenya
    (Strathmore University, 2016) Kinyanjui, Brenda W.
    The collapse of the financial system in 2008 brought into light the strong impact that executive remuneration had in the management of credit risk in banks is the United States. The relationship of agency looks at executive pay as a mode of linking the interests of shareholders to that of management. This study attempts to reveal the relationship between the measures of credit risk and executive remuneration and give an overall assessment of the impact of executive remuneration on credit risk in Kenyan banks. It will enable shareholders be able to know to what 'extent they can use executive remuneration to control credit risk inbanks. It can also be used by the government to ensure proper credit risk management in banks for the sound health of the financial system. A panel data from eleven listed commercial banks in Kenya covering a seven year period (2008-2014) was analyzed within the random effects framework. The results from this study find a positive but insignificant relationship between credit risk and executive remuneration. The study can be extended to include the structure of executive remuneration especially with the introduction of a derivatives market in Kenya and the possibility of the inclusion of share options in the pay structure of management.
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    The relationship between executive renumeration and credit risk of banks listed in Kenya
    (Strathmore University, 2015-11) Kinyanjui, Brenda Wangechi
    The collapse of the financial system in 2008 brought into light the strong impact that executive remuneration had in the management of credit risk in banks is the United States. The relationship of agency looks at executive pay as a mode of linking the interests of shareholders to that of management. This study attempts to reveal the relationship between the measures of credit risk and executive remuneration and give an overall assessment of the impact of executive remuneration on credit risk in Kenyan banks. It will enable shareholders be able to know to what extent they can use executive remuneration to control credit risk in banks. It can also be used by the government to ensure proper credit risk management in banks for the sound health of the financial system. A panel data from eleven listed commercial banks in Kenya covering a seven year period (2008-2014) was analyzed within the random effects framework. The results from this study find a positive but insignificant relationship between credit risk and executive remuneration. The study can be extended to include the structure of executive remuneration especially with the introduction of a derivatives market in Kenya and the possibility of the inclusion of share options in the pay structure of management.