MDF Theses and Dissertations (2022)
Permanent URI for this collection
Browse
Browsing MDF Theses and Dissertations (2022) by Title
Now showing 1 - 12 of 12
Results Per Page
Sort Options
- ItemAttitude as one of the factors affecting the performance of Technical and Vocational Education and Training (TVET) students: a case of NITA College – Nairobi(Strathmore University, 2022) Odhiambo, Emmanuel OduorKenya has set itself a target of being a middle-income country in the near future as envisaged in the country’s Vision 2030. To achieve this, the Kenya Government has in the recent past made many efforts in setting up and equipping new technical institutions across the country to revamp the technical training of young people. But in spite of the many interventions by the Government to improve the technical adequacy of these institutions, many employers still complain about the quality of workmanship of the new recruits from the said institutions. This study delved into this matter and attempted to understand if non-technical factors contribute in any way to this situation. In particular, this study sought to understand the influence of the learners’ attitudes in the preparation for the jobs in the manufacturing sector, with a focus on NITA College, Nairobi. A quantitative survey approach was used. Data was collected using questionnaires and the responses captured in a Likert scale. The collected data was then analyzed using appropriate software tools and hypothesis tests carried out. These findings were discussed, implications drawn, and recommendations made. The research collected research data from 94% of the sampled participants from NITA College - Nairobi. The results showed there was a high disparity in the gender of the students with only 12% female students taking the Welding & Fabrication and Electrical Technology courses at NITA College. Furthermore, more female students were more prone to register for ICT courses as opposed to artisan and craft proficiency courses. The analysis of the student performance showed that most of the students attained a grade of 70% in their last Electrical Technology Test in NITA and a score of between 60%-69% in their last Welding & Fabrication tests. Regression tests implied that 55.4% variability in student performance can be accounted for by the variable’s attitudes based on intention, attitudes based on subjective norm, attitudes based on perceived behavior control. The study concluded that attitudes based on intention, attitudes based on subjective norm and attitudes based on perceived behavior control positively affect student performance. The study recommends that the institutions should form collaborative partnerships that will encourage the participation of female students in NITA programmes. Further, the institutions should encourage industry players to offer students internship and full-time job opportunities which can spur their academic performance. The study also recommends the institution should engage career advisers to tour secondary schools and provide materials to parents and teachers on the various programmes on offer as this will improve the student intention to enroll in the courses on offer.
- ItemDeterminants of illicit financial flows in Kenya(Strathmore University, 2022) Kasimu, Faith NzilaniIllicit financial flows remain a key obstacle to Africa’s attainment of the 2030 Agenda and Agenda 2063. Given the multidimensional and transnational nature of IFFs, IFFs have attracted attention globally and are now at the forefront of the international development agenda. Agenda 2030 of sustainable development identifies reduction of IFFs as a top priority in building peaceful societies all around the world. As reflected in Target 16.4 of the SDGs, combating illicit financial flows is a critical element in the global effort in promoting peace, justice and strong institutions. The target aims to significantly reduce IFFs and arm flows, strengthen the recovery and return of stolen assets and combat all forms of organized crime by 2030. The ability to attain the SDGs remains fragile when undermined by IFFs. In light of this, the study sought to examine the determinants of illicit financial flows in Kenya. The independent variables were corruption, political risks, external debt and exchange rate. Inflation and interest rate were used as control variables. Illicit financial flows was the dependent variable which was the core focus of the study. Secondary data was collected for 19 years (January 2003 to December 2020) on a quarterly basis. A descriptive correlational design was used in the study. A time series model was used in analyzing the variables. VECM findings established that corruption lagged for quarter one, two and four had a positive and significant effect on illicit financial flows in Kenya. Political risks had no effect on illicit financial flows in Kenya. External debt lagged in the second, third and fourth quarter had negative and significant effect on illicit financial flows. Lagged exchange rate for quarter one, two and four had a positive and significant effect on illicit financial flows. The study recommends that government should enforce management practices that would deter corrupt practices and prudent financial management guidelines that would enhance management of external debt to curtail odds of illicit financial flows.
- ItemDeterminants of inflation in Kenya and the moderating effects of governance regimes(Strathmore University, 2022) Maonga, Solomon AturaA high level of inflation is undesirable because it causes a depreciation of the local currency. It also makes long-term financial planning difficult for market participants resulting in an inefficiency in a market economy, and subsequently, a lower rate of economic growth. An ideal economy would have price stability (low and steady inflation) and the wider economic goal of strong and sustainable growth and employment would be achieved. This study examined monetary and non-monetary determinants of inflation in Kenya, a developing country with a monetary policy objective of inflation-targeting. Using an Error Correction Model (ECM) based on the Autoregressive Distributed Lag (ARDL) model to explain the short run and long run impacts of each variable on inflation, this study covered secondary quarterly data spanning 25 years (1996 – 2020). The unique contribution of the study was the investigation of the moderating effects of governance regimes on the determinants of inflation. Governance regimes were examined with respect to the President of the country and the Central Bank Governor. The study concluded that in the Kenyan context, inflation is primarily influenced by prevailing interest rates and the most recent rates of inflation in the short run. The non-monetary factors and other monetary factors examined do not have a long run nor short run impact on the level of inflation, but given the moderating effects of governance regimes, their influence may be felt sporadically. Global oil prices and public debt levels are emerging as major factors influencing the rate of inflation. The study emphasises the importance of good governance to ensure consistency of policy across regimes in order to maintain price stability.
- ItemDeterminants of open banking adoption intention among Kenyan commercial banks(Strathmore University, 2022) Rutto, KevinIn Kenya, digital finance has developed at a rapid pace. Notwithstanding, the banking industry still faces a myriad of problems such as information overload on consumers, growing competition from fin-tech & non-traditional players, inefficient manual reconciliation processes, lack of product offering personalization, regulatory compliance inefficiencies, counterparty risks, lack of proper security protocols, lack of financial services that offer single customer view, clearing and settlement time constraints, and poor customer retention. Using Open Banking and Open APIs, banks can innovate by transforming their core systems and integrating their internal systems with external partners to overcome some of these challenges. As a result, the goal of this research was to find out the determinants that will influence the adoption intention of open banking within licensed commercial banks in Kenya. The specific objectives of the study included establishing how perceived risk, perceived value, perceived relative advantage, cost of technology, and how government support affects open banking adoption by Kenyan commercial banks. The main motivators for the study were; the fast-changing competitive environment, globalization, economic paradigm shifts, European Union PSD2 regulation, increased uptake of digitized financial services due to the COVID-19 pandemic, and the demands of financial liberalization within the industry by financial consumers, third-party providers, digital banks and fintech firms. The research focused on all licensed commercial banks within the Kenyan jurisdiction and this informed the unit of study. Thus, respondents comprised of employees from these banks. At least 5 respondents were selected, from the IT department, legal department, finance department, audit department, and operations department. Since the study selected 43 commercial banks this informed a total number of 215 respondents. The study adopted a descriptive cross-sectional survey. Primary data was collected through the use of an online questionnaire which primarily consisted of closed-ended questions. To pretest and validate the study’s questionnaire, a pilot study was performed. Using empirical data from the completed responses and partial least squares-structural equation modeling (PLS-SEM), the study developed a quantitative approach using Smart-PLS version 3.3.3. The main aim of the study was to establish the significance of cost of technology (COT), perceived relative advantage (PRA), perceived value (PCV), and perceived risk (PRSK) towards adoption intention by the commercial banks (UNT) and as well analyze the moderating effect of government support (GS) towards adoption intention of open banking. Results indicated that from the five determinants; cost of technology, perceived relative advantage and perceived value had a positive and statistically significant influence on the adoption intention of open banking among Kenyan commercial banks. On the other hand, perceived risk was revealed to have a negative effect, however with a statistically significant influence on the adoption intention, while government support significantly moderated the relationship between these exogenous variables and the endogenous variable. The study recommends that commercial banks should ensure that there is integration between banks and fintech firms through partnerships and collaborations on this open banking platform which will enable banks to scale up a broad range of user efficient and cost-effective innovations. Moreover, commercial banks should take advantage of this new technology to strengthen their consumer relationships and consumer retention since it has the capability of helping the commercial banks’ consumers manage their finances better rather than simply facilitating transactions. According to the findings, government regulators should ensure that there is a well-defined regulatory approach that is suitable to the specifics of open banking concerning the financial market. Through a well-defined regulatory approach new policies, regulations and initiatives can be made which will promote the adoption of fintech innovations such as open banking that can spur the growth of the financial sector in the country.
- ItemEffect of digital financing on access to credit among farmers in Kirinyaga County(Strathmore University, 2022) Kiragu, AlexAccess to financing especially in the developing world has been an issue in a long time. Economic development model in the developing works has not been inclusive towards financial inclusion and exclusion but with influx of digital finance the trend has been reversed. Hence, the current study aims at examining the effect of digital finance in access to credit among farmers in Kirinyaga County. Specifically, the study aimed at examining the effect of digital finance infrastructure, digital finance ecosystem and regulatory environment on access to credit. The study was founded on supply leading hypothesis and diffusion of innovation model. The study applied descriptive correlation research design and collect primary data using questionnaires among 338 respondents selected through stratified sampling. Descriptive and inferential statistics analyzed the data that was presented in figures and tables. Results of the study revealed positive and significant effect of digital fintech infrastructure, digital fintech ecosystem and regulatory environment on access to credit among farmers in Kirinyaga County. From the findings it can be concluded that an increase in fintech infrastructure would result in an increase of credit accessibility among farmers in Kirinyaga County. Secondly, an increase in fintech ecosystem would lead to an increase in credit accessibility among farmers in Kirinyaga County. Further, an increase in regulatory framework would lead to an increase in access to credit among farmers in Kirinyaga County. The study recommends management of digital lending financial institutions to innovate lending solutions that can be accessed easily through mobile devices used by most farmers. Stakeholders such a telecommunication companies, commercial banks, technology firms and the government should be involved in establishing a solid financial ecosystem that will help farmers in accessing credit while at the same time protecting their rights. Digital lenders should also provide clear terms for farmers before accessing loans and clearly define the responsibilities of both parties.
- ItemEffect of self-help group practices on poverty levels of women in Machakos County(Strathmore University, 2022) Kioko, MarySelf-help groups are becoming increasingly important as a means of organizing women to take action and transform their situations, and they are believed to be the driving force towards the goal of economic independence. There has, however, been inconclusive evidence on the role they have played in stimulating poverty levels of women, which has been a challenge in both developed and developing economies. Thus, this study evaluated and examined the effect of self-help group practices on poverty levels of women in Machakos County, Kenya. The study sought to establish the effect of entrepreneurial training, self-help group financial accessibility, self-help group marketing collaboration practices that self-help groups facilitate, and the influence of socio-economic factors on poverty levels of women. The study was grounded on the empowerment theory and the theory of group cohesion. The research used a descriptive correlational research design to examine the relationship in the study variables. According to the Machakos County Social Works office, there are 408 women-self-help groups within the county. These self-help groups targeted the population of the study, with the chairpersons in the groups being the unit of observation. Through applying the Yamane formula, the sample size for this study was 201 self-help group leaders. The research applied a structured questionnaire in the data collection with collected research data analyzed using descriptive, correlation, and regression analysis. The findings were presented using bar graphs, tables, and charts. The study was able to obtain a 69% response rate which is accepted as a representative of the population. Correlation tests established that there exists a positive relationship between the study variables comprising entrepreneurial training, financial accessibility, marketing collaboration and poverty levels of women. The study determined that self-help group entrepreneurial training predicted 23.8 percent of changes in poverty levels of women, self-help group financial accessibility predicted 19.1 percent of changes in poverty levels of women and that self-help group market collaboration predicted 11.6 percent of changes in poverty levels of women. Together, these practices accounted for 54 percent of the changes in poverty levels of women. The study thus concludes that there is a positive and significant effect of SHG practices on poverty levels of women in Machakos County. Conclusions were that engaging in training practices, facilitating financial accessibility, and promoting collaboration led to improved economic empowerment of group members. The study recommends strategic periodic training on leadership and income-generating activities as this has been associated with improved managerial decision-making. The study recommends that SHGs increase financial training of their members as this would increase awareness about various credit facilities, financial incentives, and subsidies that would increase members’ independence. The study also recommends that SHG leaders work to establish concrete partnerships with government officials and associate stakeholders as these promote market access and knowledge.
- ItemEffects of prudential regulations on the financial stability of commercial banks in Kenya(Strathmore University, 2022) Osolo, JamesPrudential regulation helps commercial banks to operate within a given framework so that their financial stability is not compromised through exposure to certain risks during operation. The goals of prudential regulation are thus considered as validation for financial system. Therefore, the current study sets to investigate the effects of prudential regulation on banking stability of commercial banks in Kenya. The specific objectives include; to determine how capital adequacy requirements, asset quality requirement ratio, and liquidity requirements ratio affect the stability of commercial banks in Kenya. The study used descriptive research design and the target population was all the 43 commercial banks in Kenya. The study used stratified random sampling technique to sample manageable commercial banks. Secondary data was collected from the websites of all the sampled banks. The secondary data covered a period of 21 (2000-2020). Data was analyzed using descriptive statistics and linear regression analysis. The study also used diagnostic tests to determine the reliability of the regression model. This study contributes to the literature knowledge gap in the same field. Thus, it will be a point of reference for future researches and academics hence they will be able to refer to the findings of this study and bridge the possible literature gaps that could have emanated from this research. The study found that, asset quality, capital adequacy, and liquidity requirements had positive relationship with financial stability of banks in Kenya. The study concluded that an increase in capital adequacy, asset quality and liquidity requirement regulations increased financial stability of the commercial banks. The study recommends that commercial banks’ management should increase their capacity in loan administration and that they should also establish clear lending guidelines. Additionally, the banks should ensure that the loan terms and conditions are conformed to during approval to reduce the chances of nonperforming loans that could subsequently affect conformity to asset quality requirement. The research also recommended that it is important for the commercial banks to be conscious of its liquidity position in different product and service segments.
- ItemAn Evaluation of the effect of prudential regulations on the social and financial performance of Microfinance Banks in Kenya(Strathmore University, 2022) Madialo, Lawrence OderoAppropriate regulation and supervision of microfinance is of critical importance in bringing the poor and vulnerable communities the financial services they need. However, pertinent concerns arise on how best to regulate and supervise this industry given its various specificities and broader social mission. Statistics show that most Microfinance Banks (MFBs) in Kenya have incurred losses since the licensing of the first institution in 2009 by the Central Bank. This study attempts to examine the effect of prudential regulations on social and financial performance of MFBs in Kenya. The study focuses on capital regulations, liquidity regulations, loan loss provisioning requirements and their effect on social and financial performance of MFBs in Kenya. This study is anchored on the microfinance schism and the public interest theory of regulation. To achieve the study’s objectives, a descriptive research design is employed and the population comprises the 13 deposit taking microfinance institutions in Kenya as at 31st December 2020. The study uses unbalanced panel secondary data which was gathered through a data collection sheet for a period of seven years from 2014 to 2020. Data analyses were undertaken through descriptive and inferential statistics using the STATA statistical software. Inferential statistics entailed correlation analysis and the panel data regression analysis. With respect to financial performance, the study findings revealed that loan loss provisioning had a negative and significant effect on ROA, Capital adequacy had positive and significant effect on ROA and liquidity had a negative relationship with ROA. Bank size had a positive and significant effect on ROA while bank age had a positive effect on ROA though not statistically significant. With respect to social performance, the study findings revealed that Capital adequacy had a positive relationship with outreach, Liquidity had a positive and insignificant effect on outreach while LLP had a negative effect on outreach. Bank size had a negative and insignificant effect on outreach as Bank age had a positive and significant effect on outreach. Thus, to improve financial performance of the microfinance institutions considering their socio-economic importance, the management need to limit levels of non-performing loans that subsequently necessitates the loan loss provisions. Capital adequacy should be equally enhanced with regulatory requirements to enhance performance. Since size negatively affects outreach which is a social performance indicator, bigger MFIs should be encouraged to enhance their outreach initiatives as they take advantage of economies of scale. The levels of liquidity of the MFIs should also be improved to enhance outreach and subsequently accessibility.
- ItemA Framework for monitoring operational risks in claims processing: case of Sanlam Insurance Company(Strathmore University, 2022) Maraga, Emma IkongeMonitoring operational risks in the claim processing continue to present a challenge to many insurance firms. This is largely due to poor approaches used to monitor operational risk and many insurance firms have experienced capital losses, brand and reputation erosion. This study sought to propose a framework for monitoring operational risks in the claim processing using the decentralized Blockchain Technology taking a case study of Sanlam Insurance Company. To develop the proposed framework, the study was based on specific objectives that include: investigate the operational risks associated with the claims processing in the company; review the indicators of operational risks in claims processing in the company; review how information communication technology has been utilized to monitor operational risks by the company. The study adopted a qualitative research methodology with the primary data collection instrument being a semi-structured interview. Descriptive and inferential data analyses were conducted. From the study human error was the most prevalent operational risk (100%) followed by system failures (77%), accounting errors (55%) and fraud (44%). It was established that customer dissatisfaction (66.7%), IT failure (55.6%), and errors (44%) were the leading operational risk indicators. Further the study established the existence of a positive relationship between the operational risk indicators and the type of operational risks experienced by the insurance company. There was also a high level of adoption of ICT technology in the company (100%). The immutability characteristics of the Blockchain was considered more important by the respondents at an index score of 1.33 (33%). Based on the findings, the researcher proposes a framework that utilizes Blockchain Technology’s immutability characteristics to monitor the claims processing in the company. The proposed framework would provide clients and insurance agents with the means of managing claims in a transparent, irrefutable and responsive manner.
- ItemThe Impact of external public debt on stock market performance in Kenya(Strathmore University, 2022) Ochieng’, Sandra Achieng’In recent years, the level of external debt in Kenya has been increasing rapidly with the stock market also experiencing a bear run over the same period. The study therefore aimed to investigate the impact of external public debt as disaggregated into its various categories on stock market performance in Kenya for the period 2015 to 2021. The study used the Nairobi Securities Exchange (NSE) All-Share Index as the dependent variable, with multilateral debt, bilateral debt, commercial debt and guaranteed external debt classified as the independent variables. Based on an assessment of past research undertaken on stock market performance, exchange rates, interest rates and domestic public debt were included as control variables. In accordance with the methods used by previous studies and the fact that the variables used in the present study were both stationary and non-stationary at level form, the research used a descriptive correlational research design and the Autoregressive Distributed Lag (ARDL) model to assess this relationship using monthly secondary data. The analysis of the time series data revealed that given multilateral debt, bilateral debt, commercial debt and guaranteed external debt, none of the variables had an impact on the stock market in the short run. In the long run, only bilateral and multilateral debt had an impact on the market with both variables recording a significant positive effect. As a result, the study recommends the continued need for the government to utilize external debt instruments within the approved limits and to employ the funds in long term, productive economic activities that positively influence the stock market. In addition, given that few studies have been conducted on external public debt when divided into its components, further studies could be carried out on other jurisdictions for comparison.
- ItemInfluence of size and outreach factors on agency related costs in the management of Deposit Taking Savings and Credit Co-operatives in Kenya(Strathmore University, 2022) Njuguna, Peter KahunyoA growing strand of empirical studies on mutual financial institutions have found that growth in membership increases ownership dispersion and hence membership apathy, allowing the board and professional managers to wield more power and control over the SACCO at the expense of the best interests of members who own the business. This gives rise to the agent-principal problem, potentially undermining the democratic and economic balance in the SACCO. This study proposed to examine this problem by investigating the influence of the size and outreach factors on agency-related costs (ARC) in the management of deposit-taking SACCOs in Kenya. Specifically, the value of asset, membership and peer group defined the size-related factors while the number of branch offices was used as the outreach factor. ARCs were measured as the ratio of the sum of directors’ expenses, staff emoluments and operating costs to the average assets. Data were obtained from 160 DT SACCOs in Kenya over the period 2014-2021 which represented 90.9 percent of licensed DT SACCOs. Both panel ordinary least squares and the 2-step generalized method of moments were utilized to address the objectives of the study. Descriptive as well as correlational analyses were also performed. The findings depict ARC levels within the global standard at 0.04 to 0.046 of the average assets. According to the results, smaller DT SACCOs seem to exhibit weaker expense efficiency compared to the larger ones. The results show a decline in expenditure by SACCOs post the COVID-19 period. In terms of peer grouping, the results reveal mixed influences in the case of large peer and small peer SACCOs in relation to ARCs, with some experiencing positive scale benefits and others experiencing scale disadvantages. However, the results show a consistent and significant inverse association between medium peer SACCOs and ARC. The results reveal that SACCOs with more members are associated with higher ARCs. In relation to outreach, the findings show that SACCOs with more branch offices have higher ARC. In relation to the control variables, it seems that the core capital ratio, asset quality and CEO gender are positively associated with ARC. The study calls for a cautious growth and expense management strategy by the DT SACCOs to assure solvency and self-sufficiency of the SACCOs in Kenya. Caution should also be exercised with branch expansion to avoid spiraling of SACCO expenses without commensurate returns, which might put the going concern status of the SACCO at risk. The study recommends that SACCOs need to improve their asset and expenditure management strategies as well as improve their member experience management which is important in reducing agency costs. Further, SACCOs should embrace technological and digital solutions to drive their outreach programs as an integral approach to reducing operational expenses. A critical issue for SACCOs is strategic cooperation to collectively invest in technology and other business infrastructure to leverage on economies of scale and scope as opposed to each SACCO invests individually thus driving the ARCs even higher.
- ItemAn Investigation of the effect of select policy interventions on youth unemployment in Kenya(Strathmore University, 2022) Gwambo, Patricia Elizabeth AhawoIn Kenya, the problem of unemployment has since independence occupied the minds of policy planners in both the Government and the private sector. The third National Development Plan of 1974-78, stipulates the efforts made to address unemployment among the youth, warning that the problem would in future continue to need proper redress. A major problem to addressing this issue for the country is the deficit and risk thinking carried by Kenyan policy makers. There are evident research gaps as pertains to attaining a context that arises from previous studies on policy interventions in youth unemployment globally and regionally that can be replicated in Kenya. The objective of the study sought to investigate the effect of select policy interventions on youth unemployment in Kenya. The methodology is hinged on the positivism research philosophy, the research design applied is descriptive survey making use of a questionnaire as the primary data collection tool. The data analysis model employed is Spearman’s Rank Correlation. The contribution of the study is that the research findings enable the researcher to investigate the effectiveness of various policy measures used to address youth unemployment in Kenya. The outcome is a contribution to what can continue to be applied as policy interventions and what has been the effect this far. The research concludes that education and training programmes, industry skills matching, access to finance, access to affordable technology as policy interventions have a significant positive effect on youth unemployment in Kenya. Human capital development currently does not have a significant effect on youth unemployment in Kenya.