BCOM Research Projects

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Climate change mitigation through public finance at the Nairobi coffee exchange
(Strathmore University, 2022) Twayigize, Felix Junior
The famous “coffee belt” or coffee-growing area exists only between the Tropic of Cancer and the Tropic of Capricorn. Due to the rising effects of climate change, its production suitability is projected to decline by half in 2050. In Kenya, coffee-growing zones such as Kiambu and Murang'a are no longer appropriate for the crop. As a result, coffee traders at the Nairobi Coffee Exchange (N.C.E) are experiencing a rise in prices and low quantity supply for trading. This research study aims to propose effective public finance policies to support N.C.E traders in mitigating the effects of climate change. The research methodology is qualitative and the population are N.C.E traders. The sample is composed of coffee marketers (the five coffee brokers approved by the Capital Market Authority of Kenya) and coffee buyers (the top eight coffee exporters in Kenya according to the Kenya Trade Network Agency). Data collection shows that 72% of respondents prefer subsidies as the most suitable public finance policies to help them face the effects of climate change. The study is only focused on the Nairobi Coffee Exchange, which limits the research in giving an overall conclusion that accommodates all coffee players in Kenya. Hence, further studies to be undertaken at a national level are encouraged. The study helps readers understand the effect that global warming will have on their morning coffee cups and aids the Government of Kenya to restructure the coffee industry as part of the country's poverty-reduction strategy. The rising consequences of climate change on the agriculture sector have led to the publication of many studies which provide solutions based on farmers' capabilities such as climate farming techniques, little work has been done to study how the government can use public finance as a tool to tackle the problem. As a result, this research study is unique and needed.
A Comparative study of the challenges using fair value and historical cost in the valuation of the biological assets
(Strathmore University, 2022) Bagenda, Olame Patient
This research project presents a comparative study of the challenges that arise from the use of two valuation methods for biological assets, fair value and historical cost method of valuation, in the agricultural sector in Kenya. By conducting an experiment with some accountants operating in the agricultural sector, the researcher uncovers which one between the two valuation model, fair value and historical cost, presents more difficulties in implementing. The experiment consisted of two accounting exercises on Fair value and Historical cost valuation model. The exercises involved completing a few simple accounting figures and calculations. It contained data related to the accounting facts of a cow farm expenses such as sales, physical data on growth and procreation, etc. It contained elementary accounting records and incomplete financial statements. Participants were asked to indicate the values of biological assets and calculate farm income. Hereafter, self-complete questionnaires were delivered to the sample group to supplement the data received from the two accounting questions. Considering the complexities of cost calculation when it comes to the valuation of the biological assets and the predominance of small family business, the study concludes that the valuation and reporting of the biological assets can be more easily understood and done under the Fair value model than Historical Cost model. The historical cost model conveys more difficulties in cost calculation and a less accurate grasp in the real situation of the farm. However, more research is needed with a wider sample range and also with other types of biological assets.
Determinants of capital structure for real estate firms in Nairobi county
(Strathmore University, 2022) Yussuf, Mohamud Odon
Real estate is one of the oldest industries in the world having existed from ancient times. Land and building ownership have been source of prestige to the owners (Roosevelt 2019). The sector both provide basic needs and returns at the same time. According to Riddiough (2004) real estate is highly capital intensive and requires considerable investments. The real estate in Kenya has recently been booming with Nairobi contributing the largest share because of being the regional hub, more housing units were upcoming due to the high demand for housing. This saw many real estate firms venturing into the business with vibrant private sector and increased appetite from foreign companies playing the biggest role. Cyton Investment (one of the real estate firms in Nairobi) shows that the real estate market has grown significantly over the past the past two decade. Tomlison (2007) indicate that African cities are experiencing some of fastest urbanization in the world. Mungai (2017) further suggest that demand for different types of real estate is increasing in Kenya with young, employed population who are willing to own homes driving the demand.
The Determinants of financial performance of commercial banks
(Strathmore University, 2022) Mainya, Stephanie
The main goal of every banking institution is to operate profitably to maintain stability and sustainable growth. External and internal economic environments are viewed as critical drivers for bank performance. The main purpose of this study was analyzing the determinants of financial performance of commercial banks in Kenya for a period of 5 years, starting from the year 2016 to 2020. The dependent variable under investigation was return on assets (ROA). The independent variables were Capital Adequacy, Asset Quality, Management Efficiency, Earnings Ability and Liquidity. The specific objectives of this research were to assess the relationship between capital adequacy and the financial performance of commercial banks in Kenya, to evaluate the relationship between asset quality and financial performance of commercial banks in Kenya, to establish the relationship between management efficiency and financial performance of commercial banks in Kenya, to examine the relationship between earnings ability and financial performance of commercial banks in Kenya and to evaluate the relationship between liquidity and financial performance of commercial banks in Kenya. The choice of this five-year period was based on the explosive growth of the banking sector in the country and the availability of complete data for that period. The study concentrated on the bank specific factors that affect the banks’ financial performance. In this research, the scope was all the eleven banks listed in the Nairobi securities exchange. This study adopted a descriptive research design to meet its research objectives by using panel data to fulfill the objectives. The researcher collected data on published financial statements of the eleven commercial banks listed in the Nairobi securities exchange for five years from 2016 to 2020. Data was analyzed using multiple linear regression models to show the effect of bank specific factors on financial performance of commercial banks over that period under study. The findings were presented in tables and narratives. The results showed that there was positive/negative and significant association between ROA and all the independent factors. There was a finding that earnings ability affects profitability and the financial performance of banks. The study concludes that earnings ability of the bank has the highest influence on ROA of banks. The study recommends that bank capitalization should be encouraged in all commercial banks and other financial institutions so that performance can be enhanced.
Determinants of growth of small and medium manufacturing enterprises within industrial area, Nairobi county
(Strathmore University, 2022) Achola, Cynthia Atieno
The purpose of this study was to investigate the determinants of growth of Small and Medium-Sized Enterprises within Industrial Area, Nairobi County. The study was based on a population of 77 respondents with the response rate being 92%. The study made use of structured questionnaires to collect primary data from the owners/managers of the SMEs being studied. Primary data was used since it is more accurate. The study established that access to finance, entrepreneurial competencies and age of the firm has a strong relation to the growth of SMEs. The findings revealed that all these factors are necessary to the growth of SMEs. The study concluded that easier access to finance enabled the owners/managers to conduct the operations of their businesses smoothly and efficiently. In addition to that, the study also concluded that entrepreneurial competencies such as adequate leadership skills, marketing skills, networking skills and creative and innovative skills had an impact on the growth of SMEs and such skills can be used as a source of competitive advantage. Moreover, the study also concluded that the age of the business is vital for its growth since as a business grows older, there is advancement in technology uses, accumulated knowledge on customer relationships and increased supplier channels which leads to increased profit margins hence there is growth in the business. The study recommended that financial institutions should develop better policies which make it easier for SME owners to access finances which lead to the growth of SMEs. One of the limitations of this study is that it only focused on three variables that affect the growth of SMEs while there are many more variables to be studied.
The Effect of business incubators on start-ups in Nairobi
(Strathmore University, 2021) Munywoki, Mwendwa Andrew
Start-ups are the root of all organisational success and failure. This is to mean that at one point in time every single organisation was in its start-up phase, as their respective founders identified a gap in a specific market and took the opportunity to fill that gap by incorporating their ideas. It has been argued that it is in this stage that the business is either set for success of imminent failure. Successful, well-thought out start-ups act as a primary source of rejuvenation for industries as the sector goes through its life cycle. This is through the new ideas that they bring onboard, giving rise to radical or gradual innovation for the industry; both ways increase the competition as businesses battle to win over their consumers and gain advantage over all others. Those who keep up and employ adaptive measures to keep ahead, stay afloat. However, those unable or too rigid to adapt with the change brought about by these start-ups decline in relevance and eventually die out under changing consumer needs.
The Effect of employee stock ownership plans on employee engagement: a case study of Equity Bank in Nairobi County
(Strathmore University, 2022) Kavivya, Patience Mutheu
The purpose of this research study is to examine the effects of employee stock ownership plans on employee engagement within the banking sector, specifically add equity bank. The objective of this study is to find out what impact financial incentives, training and educating employees on ESOP and management commitment on implementation of employee stock ownership plans has on employee engagement. A descriptive research design has been employed in conducting this study and to address the research questions. A quantitative approach was used to collect the data and the study comprised of employees in senior, mid management and operational levels at equity bank. The study utilized Microsoft Excel for the data analysis. The dependent variable is employee engagement and the independent variable is Employee Stock Ownership Plans. An ESOP is used to improve corporate culture, increase employee engagement, and provide additional retirement benefits to hardworking employees. They can also be an effective strategy for attracting and keeping top talent (Galvin, 2021).
Effect of internal controls on the financial performance of commercial banks listed in the NSE and licensed by the CBK
(Strathmore University, 2022) Odhiambo, Camila Adhiambo
The effectiveness of internal controls should be of major importance to every firm due to the fact that the duty of internal controls involves prevention, detection of fraud and lastly, in a firm internal control can help in improving operational efficiency by improving the accuracy and timeliness of financial reporting. For the purpose of this study, the researcher looked to establish the effect of internal controls on the financial performance of commercial banks listed in the NSE and licensed by the CBK. Internal control was considered from the perspective of risk management, control environment, control activities, information and communication and monitoring. This study used primary data. The primary data was collected through administration of a five-point Likert questionnaire by the researcher. Descriptive statistics was used for data analysis in terms of mean and standard deviation Data was then presented by use of tables for easier understanding and interpretation. In addition, data was analyzed by the use of SPSS. From the findings of this study, it was concluded that risk management, control environment, control activities, information and communication and monitoring have a positive relationship with financial performance. This outcome aided the researcher to attain his objectives which were; to examine the effect of risk management on the financial performance of commercial banks listed in the NSE and licensed by the CBK, to establish the effect of control activities on the financial performance of commercial banks listed in the NSE and licensed by the CBK, to assess the effect of monitoring on the financial performance of commercial banks listed in the NSE and licensed by the CBK, to determine the effect of information and communication on the financial performance of commercial banks listed in the NSE and licensed by the CBK and lastly, to establish the effect of control environment on the financial performance of commercial banks listed in the NSE and licensed by the CBK.
Effect of mergers and acquisitions on the financial performance of companies listed in the NSE.
(Strathmore University, 2022) Muhindi, Peris Mwihaki
Merger and acquisition activity is one of the main strategic financial tools that a firm can adopt so as to improve the overall performance of the company. Financial performance of a firm is crucial in that it seeks to bring out how well a company utilizes its financial assets, the method of financing, how it maintains and earns more returns as well as how the firm’s objectives can be sustainable in the future. The purpose of this study was to be used as a source of information as well as a focal point for further research to be carried out as to why certain sectors in the NSE experience more merger and acquisition activity specifically the banking and petroleum industry. This information can be used by investors, general management as well as the Government. The variables of the study that were involved are liquidity, market share and financial management practices. The study in turn adopted a descriptive research design so as to describe and predict the relationship between the effect of liquidity, market share and financial management practices. Consequently, the population of focus was all the firms listed in the NSE where purposive sampling was used to select firms that have exclusively experienced merger and acquisition activity as from 2008 to 2021. Data analysis was carried out on the data collected from the financial statements as a source of secondary data. Inferential statistics, ratio analysis, regression analysis and the event study approach were used was used to assess the impact of the event on the variables as well as on the financial performance of the firm. The findings indicated that the merger activity influenced it as there was a significant change pre- and post-acquisition. There was also a positive relationship between liquidity and market share and a negative relationship with financial management practices in association to financial performance of firms. The use of the regression model suggested that 51.2% of the variance in financial performance would be explained by liquidity, market share and financial management practices. The value of this study was that it clearly reflected on how the sectors in the NSE are differently affected by the merger and acquisition activity by use of a case-by-case example of Total Kenya and NCBA Bank Kenya.
Effect of public debt on economic growth in Kenya
(Strathmore University, 2022) Omuse, Racheal Nekesa
Borrowing from the public sector is vital because it helps to bridge the resource gap between government receipts and expenditures. It is one method of funding government operations, but it is not the only one; the government can also create money to monetize its debts, eliminating the need for interest payments. As a result, public debt is one of the most important macroeconomic factors in determining a country's reputation in international markets. When people take resources and reorganize them in more productive ways, economic growth occurs. Kenya's revenue is supplemented by the export of primary commodities, as it is a developing country. In order to supplement domestic resources, successive governments have taken on massive amounts of public debt to fund National Development Plans. The objective of this study was to establish the relationship between public debt and economic growth in Kenya for the period 2010 to 2020. Data gathered in the study was estimated using descriptive statistics. Discoveries from the study suggests that external debt exerts a positive effect while domestic debt exerts a negative effect on economic growth. Based on these findings, the study suggested that policymakers should develop a sound financial plan to ensure that public debt accumulated does not overweight future generation and the government use public debt it as a last resort to finance its economy.
The Effect of selected macroeconomic variables on earnings management: a case study of Co-operarive Bank of Kenya.
(Strathmore University, 2021) Mungai, Naomi Wacuka
There has been a rise in the cases of big companies losing their upward trajectory and eventually falling off the market space. Industry reports have shown that most of the big companies that were flourishing have now lost their pace and are unable to make profits let alone paying their debt as and when they fall due. This study is aimed at investigating whether the selected macroeconomic variables; interest rates, inflation and money supply have an effect on the choice by managers to manage the earnings of Co-operative Bank of Kenya. A recent study already concluded that banking institutions engage in earnings management therefore the main aim of this study is to investigate the possible effects that these selected macroeconomic variables have on earnings management in the bank. This study focused on a descriptive research design. The company the study is Co-operative Bank of Kenya that is one of the banks listed on the Nairobi Securities Exchange (NSE). This study used secondary data from the financial statements and financial reports and notes of Co-operative Bank to gather the required data. Regression modelling was used by using a regression equation to evaluate the strength of the independent variables through the multi-collinearity diagnostic test. The regression analysis of the total current accruals (constant) and the other independent variables indicated a weak relationship between the independent variables and earnings management. This concluded that there could be other factors that affect the decision of managers to manage the earnings in Co-operative Bank Limited other than the factors considered herein.
Effects of accounting information systems on decision making in banks in Nairobi Kenya
(Strathmore University, 2022) Lekorere, Milly Napunyu
It is worth pointing out that the investigation targets to consider the correlation between AIS and better decisions in in the banking sector in Nairobi and its relation to performance. Public financial statements do not adequately reflect the company's assets and liabilities owing to inefficiencies. Hence, the study analyzes how management collects, saves, and secures important accounting documents based on the integration of an automated system. The study investigated four objectives. The first was to determine the relevance of AIS and how it can be adopted in the banking sector Nairobi. Also, it was critical to determine fundamental elements and variables that are considered while making decisions. Thirdly, the investigation was designed to evaluate possible relationship between how banks make their decisions and the accounting information system. Consequently, it was vital to determine how AIS may be applied to improve the decision-making process and overall performance of Nairobi-based financial institutions (banks). The scope of the study was Nairobi County. The study employed an explanatory research technique. Numerous in-depth interviews with banking key informants assisted in contextualizing the study's results. As a result, the researcher felt obligated to meet face to face with respondents and ask crucial study-related questions. The study identified, classified, and presented the results in light of the project's distinct objectives and research questions, with data analysis commencing with concise and broad summaries of observations and conclusions made throughout the data collection phase. The study was done utilizing basic statistical percentages and frequencies, and the findings were shown in tables and charts. The study found out that adoption of AIS in financial sector would be fundamental to the well-being of these organization and it affects how they perform. The Accounting Information System (AIS) is a critical component of every banking firm. Each financial institution is self-contained inside its own accounting system(AIS). They depend on the aid of the Department of Information Technology to carry out their responsibilities (IT). When a firm does not often change workers, time and money are saved on recruiting and training new employees. Recognize that if they are understaffed, downtime may have a substantial effect on their business's profitability; having a low turnover rate is crucial. All of these responsibilities, which include posting job adverts, holding interviews, and training new staff, need money and time. Managers, the research asserts, act under preset boundaries and criteria, and predictable occurrences result in preprogrammed judgements. The challenges themselves, as well as their resolutions, are well- structured. Established policy directives, regulations, and procedures are used to resolve problems and carry out decisions. The report recommends conducting similar investigations in other firms to compare their conclusions to those of this research.
The Effects of corporate governance on the financial performance of partially owned government companies listed in the Nairobi Securities Exchange.
(Strathmore University, 2022) Rodney, Njogu Munene
The purpose of this research was to analyze the effects of corporate governance on financial performance of partially owned government firm. These specifically examined how financial performance was influenced by size of the board, independence of the board and frequency of board meetings. Research data for this study was gathered from annual reports in the websites. The research data was analyzed using Statistical Package for Social Sciences (SPSS) and the results of the analyses was presented in tabular and chart forms. The performance of firms was measured using the Return on Assets (ROA). The study adopted a descriptive research design. The population included all partially owned government firms listed in NSE. The study used secondary data from audited and published company annual reports. The study found that, board independence did not play an important role in enhancing financial performance, also it showed that frequently held board meetings have an impact on the financial performance. The study confirms that setting up good corporate governance structures is an important factor in financial performance. From the research findings, the relevance of corporate governance structures is practical because it influences financial performance. A better understanding of corporate governance is attained when the governance structures are studied and analyzed separately as compared to when the study is done broadly and generalized.
Effects of digital credit on the financial health of youth in Nairobi
(Strathmore University, 2022) Wang’ombe, Jesse Ruga
Digital credit has within the last seven years become the main channel through which the majority of Kenyans acquire loans. Its rapid adoption has brought with it several positive and negative unintended outcomes such as increased default rates and negative listings on the Credit Reference Bureau. Furthermore, the largest user segment of digital credit is the youth. This study seeks to assess whether digital credit impacts the financial health of the youth in Nairobi. The study has four primary objectives. These are to evaluate the effect of digital credit on the rate and amount of savings of youth in Nairobi, to assess the effect of digital credit on the rate of borrowing among the youth in Nairobi, to examine the effect of digital credit on the rate of defaults among youth in Nairobi and to assess the utilisation of digital credit by the youth in Nairobi. The study utilised a questionnaire to get primary data to assess the effect of digital credit on the financial health of the youth in Kenya. The questionnaire was disbursed electronically. The study found that there was no significant effect of digital credit on the financial health of youth in Nairobi as measured by the savings and borrowings metrics.
The Effects of financial risk management on the performance of agricultural companies listed at Nairobi Securities Exchange (NSE)
(Strathmore University, 2021) Mwangi, Lucy Wanjiku
The effects of financial risks has been one of the major challenges that companies are facing today. This is due to the changing business environment, globalization and increase in competitors among many others. The study examines the effects of financial risk management on the performance of agricultural firms listed in the Nairobi Securities Exchange. Descriptive research design was used to examine the effects of financial risk management on the performance of agricultural firms listed at the NSE. Data was collected from 10 consecutive years (2010-2019). Secondary data was collected and analyzed using descriptive statistics. Out of the six agricultural companies data from only five was obtained thus a response rate of 80%. Data was collected from annual reports and financial statements of the companies from the year 2010-2019. From the results of the descriptive statistics, liquidity risk management depicted a positive effect on the performance. The companies maintained high level of liquidity through sustainable level of current liabilities, current ratios above zero and higher levels of operating cash. This improves the level of production levels hence a higher level of net income. Credit risk management also has a positive impact on performance. From the results of descriptive statistics, the companies maintained low levels of bad debts which will reduce their provisions for bad debts. This in turn results to higher profits and a higher net income. In addition, operational risk management depicts a positive impact on performance. Higher sales to working capital ratios increases the ability of the company to generate higher level of sales from utilizing their working capital ratios. This results to higher level of income and hence higher return on equity ratios. The study concluded that companies should adopt risk managements practices that are effective in order to manage liquidity, credit and operational risk as their occurrence can negatively affect performance. In addition, the study concluded that further studies be done which will be inclusive of market risks, interest rates risk and commodity price risks.
The Effects of pricing and convenience on audio streaming consumption amongst private university students in Nairobi, Kenya
(Strathmore University, 2022) Narotso, Precious Veronicah
The objective of this study was to determine the pricing and convenience of audio streaming consumption amongst private university students in Nairobi, Kenya. The Theory of Planned Behaviour (TPB) and Unified Theory of Acceptance and Use of Technology (UTAUT) guided the study. Descriptive research design was adopted as thissurvey’s design. Population of this research included private university students in Nairobi. This study covered primary data from 52 respondents using an online questionnaire. The data was analysed using descriptive statistics. The study found that price and convenience are important factors when choosing the type of medium to listen to music. Students value a no-ad experience, a robust algorithm and premium features, thus paying for a streaming platform’s premium subscription. The respondents, however,did not prefer free methods of music sharing that involved extra equipment like file sharing. Due to the convenient nature of music streaming, many students opt out of pirating because the music is conveniently available on music streaming platforms with little storage space. The study also showed students are not satisfied with the price of physical mediums of music like CDs, cassette tapes and vinyls. Although students prefer listening to music on more portable devices like smartphones, they prefer listening to music at home. This study concluded that convenience and price have a positive effect on music streaming of private university students in Nairobi. The study recommends for music streaming platforms to partner up with event organisers, to make it more convenient for students to buy tickets from the platform’s app. To enhance engagement on music streaming platforms, companies should focus more on the social media aspect of listening to music, encouraging listeners to engage in friend’s music listening activity.
The Effects of remote working on employee productivity in Stanbic Bank head office in Kenya during the pandemic
(Strathmore University, 2022) Nyabera, Nicole Kerubo
An Evaluation of the effect of macroeconomic factors on the returns of the real estate market in Nairobi
(Strathmore University, 2022) Gichuru, Alex Mwangi
Kenya's real estate sector has undergone a boom that began in the mid to late 2000s as the property market adapted to growing demand. Nairobi was named the fastest-growing real estate market in the world by real estate management firm Knight Frank in its 2012 Wealth Report, outperforming cities like Miami. Since 2000, property values have climbed 4.44 times. The real estate sector is pivotal to the development of any home nation. Property prices, in specific, are affected by changes in macroeconomic variables for example GDP, interest rates, inflation, money supply and unemployment. Kenya's real estate market is growing swiftly in comparison to other African emerging countries, despite high inflation, high unemployment, high interest rate volatility, and other economic obstacles. The study sought to evaluate the effect of macroeconomic factors on the returns of the real estate market in Nairobi, Kenya. Specifically, the study sought to examine the effect of inflation on the returns in the real estate market in Nairobi; to evaluate the effect of GDP on the returns in the real estate market in Nairobi; to assess the effect of interest rates on the returns in the real estate market in Nairobi and to establish the effect of money supply on the returns in the real estate market in Nairobi. The study included household income as a moderator variable. The study was anchored on the modern portfolio theory as well as the arbitrage pricing theory. A descriptive research design was used in the study. Secondary data from the Central Bank of Kenya, KNBS and Hass Consult Index was used. The study found that interest rate and property rates were positively and significantly related (β=0.692, P=0.007) and that money supply has a positive and significant effect on property prices (β=0.321, P=0.000). Also, economic growth (GDP) was positively and significantly related to property prices (β=0.326, P=0.015). In addition, inflation was found to have a positive and significant effect on property prices in Nairobi (β=0.298, P=0.004). Finally, household income was positively and significantly associated with property prices in Nairobi (β=0.285, P=0.008). The research study concluded that inflation, GDP, interest rates, money supply and household income all have a positive and significant effect on the returns of the real estate market in Nairobi.
Factors affecting credit risk in commercial banks in Kenya
(Strathmore University, 2022) Marwa, Wendy Grace
Credit risk is one of the main problems that affect most of the commercial banks in Kenya. Failure to minimizing the risk leads to many banks becoming bankrupt and collapsing in the end. Therefore, it is vital to ascertain the factors that affect credit risk in commercial banks in Kenya and thus come up with ways to solve the problem. The main research objective was to determine the factors affecting credit risk in commercial banks in Kenya. The specific objectives were to determine the effect of capital adequacy, management efficiency, interest rate and GDP on credit risk in commercial banks in Kenya. The study used descriptive research design. The target population was the 11 commercial banks listed on the Nairobi Security or stock exchange. The study period was from 2016- 2020. The study used secondary data and the linear multiple regression model was used to analyze the data. The study concluded that only management efficiency had a significant effect on credit risk while the other variables had insignificant relationship on credit risk. On the other hand, capital adequacy had a negative relationship on credit risk while interest rate, management efficiency, interest rate and GDP had a positive effect on credit risk. Research findings were proposed to government to ensure that management body in banks is comprised of individuals with ethical standards to ensure that loan is granted to creditworthy individuals only who have less chances of default.
Factors affecting the growth of life insurance in Nairobi county
(Strathmore University, 2022) Goga, Stacy Atieno
The study aim was factors affecting the growth of life Insurance in Nairobi County. The study was guided by the following objective, to evaluate the effect of national culture on the growth of life insurance policies in Kenya, to evaluate the effect of disposable income on the growth of life insurance policies in Kenya, to investigate the effect of public awareness on the growth of life insurance policies and to analyze the effect of client attitude on the growth of the life insurance business in Kenya. The study used a descriptive research approach. Target population was 375 respondents with a sample size of 150. Questionnaire was used as the data collection instruments. Data was collected using questionnaires which were filled by the respondents. Quantitative and quantitative methods were employed in analyzing data which was presented in form of tables after the analysis. The study finding revealed that majority of the participants disagreed that insurance products are not difficult to understand that shows that insurance products difficult to understand. Furthermore, from the study findings it was noted that majority of the respondents agreed that the general public is aware of numerous companies that provide insurance and the various types of insurance they offer. Also, it was noted from the study that majority of the respondents agreed that differentiation of insurance products is done correctly. Finally, majority of the respondents agreed that better insurance is aided by public awareness .The study findings also indicated that majority of the respondents agreed that Kenyans are a people who value bravery, achievements, boldness and material rewards for success. On top of that, majority of the respondents agreed that cooperation, modesty, and concern for the weak are all virtues that should be cultivated. Further majority also agreed that insurance services are available country-wide and finally on contrary majority disagreed that insurance is very important to have. The study concluded life insurance is important After you die, the death benefit is paid to the designated recipient. It might assist in providing money to your loved ones when they require it. Understanding life insurance can assist you in making long-term financial plans for your family. The study recommends that all people in Kenya should adopt life insurance