MBA Theses and Dissertations (2019)

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An Assessment of consumer buying behavior of African aesthetic fashion brands in South Africa
(Strathmore University, 2019) Moret –Qubu, Natasha Eaglet Makgotso
African aesthetic brands have faced increased competition from global fashion brands within the local South African markets. Despite the normal market being perceptive to the brands, there has been limited growth within the sector. There is a demand for African fashion, and African fashion designers and South African businesses could benefit from a better understanding of consumer buying behaviour as improved insights on the targeted consumers could result in an increase in sales and profitability, and this could, in tum, improve the growth of fashion businesses in South Africa. The current study sought to determine how perceived quality, consumer perceived value, media influence and gender identity influence consumer purchasing behaviour. The research was premised on the social cognitive theory. The target population of the research was drawn from consumers within South Africa, and an appropriate sample was then scientifically determined. The collected research data was collected from primary sources using a structured questionnaire through Google Forms. The collected research data were analysed using descriptive and inferential statistics. The analysed data was presented using charts and tables. The findings of the research indicated that variations in the consumer purchasing behaviour of African aesthetic brands were determined by perceived quality, consumer perceived value, media influence and gender identity. The study concludes that an improvement in the above factors would enhance consumer purchasing behaviour. The study recommends that managers of African fashion brands firm should foster the cultural acceptability of their products, enhance their pricing mechanisms, increase their product durability and quality as well as increase their media visibility.
An Assessment of employees' perception of factors influencing the performance of existing mergers and acquisitions in the aviation industry in Kenya
(Strathmore University, 2019) Yakub, Ismail Anwarali
The purpose of this study was to determine the employees' perception of the factors influencing the performance of existing Mergers and Acquisitions (M&A) in the aviation industry in Kenya. The specific objectives that acted as a guide for this study included: investigating the influence of firm size on the performance of existing M&A in the aviation industry in Kenya, determining the influence of corporate culture on the performance of existing M&A in the aviation industry in Kenya, to establish the effects of legal and regulatory compliance on the performance of existing M&A in the aviation industry in Kenya, to find out the influence of management structure on performance of existing M&A in the aviation industry in Kenya. The descriptive survey research had a targeted population of 403 staff working in all 6 aviation firms. Thirty percent (30%) of the entire staff population of staff in the six firms was chosen using a stratified random sampling method. The sample size was therefore 121 possible respondents. The research instrument was a questionnaire which helped collect primary data. Data collected in this study analysed via quantitative and assembled to form the final findings and interpretations. Data gathered quantitatively from various close-ended questions will be classified into various groups and an analysis done. The SPSS program helped calculate the expected parameters. Descriptive statistics revolve around charts, graphs as well as the frequenq1 percentages utilized in measuring the central tendencies and reporting the data assembled from the findings extracted from the close-ended items. Above the inferential statistics like regression analysis, other forms of analysis such as ANOVA and correlation were used. The study concluded that; there was a rise in the number of various firm outlets in the recent past, the staff is aware that there are a series of product diversity potential consumers enjoy since the merger and/or acquisition, and the staff was aware of a series of associated benefits accruing from firm size, especially in the spread of risks and other related expenses. The shared norms as well as the beliefs in studied firms have helped them to stand at a good position in the aviation industry their organization has shared values and assumptions which are well a1ticulated in the strategic plan being implemented, and the management in their aviation firm is responsible to the harmonization of different types of cultures. It was noted that; the legal policies governing the operations of their firm are simple and understandable; the government's requirements on the level of adoption of legal policies are a serious hindrance towards the overall performance of this firm. Finally, the study noted that; there is an adequate management structure in place in the firms that articulates the operations of employees the management structure categorization is effective in defining each role of the staff in the M&A, the staff has experienced challenges associated with the division of roles/duties by top management in this organization.
Analysis of critical factors affecting enterprise development in Kenya: a case of 2017 top 100 mid-sized companies in Kenya
(Strathmore University, 2019) Patel, Jaymit S.
Enterprise development is one of the most important ingredients of economic growth. In particular, SMEs contribute 45% to the GDP in Kenya. Despite the economic contributions of enterprises among the SMEs in Kenya, little information is available on the impact of some of the critical factors affecting enterprise development in Kenya. This study sought to determine the effect of the critical factors on enterprise development based on SMEs in the country. To do this, primary data was collected using structured questionnaires from the 2017 Top 100 mid-sized companies in Kenya listed by KPMG. Both descriptive and inferential statistics was used to analyze the data. The results of the study show that infrastructure, access to affordable capital and credit, fiscal policy alignment, interest rates, balance of payments, government debt, workforce development and export trade had a significant impact on enterprise development. The findings also outlined that there were strong correlations amongst the factors under study and a change in any one factor would lead to a snowballing effect resulting in a significant impact on enterprise development. Customizing policies with a strategic focus on some of the key factors identified in the study will significantly impact enterprise development. The study will also guide policy makers to understand implications on SMEs before making policy related decisions.
Analysis of factors affecting adoption of ICT solutions in dairy farming cooperative societies in Meru County
(Strathmore University, 2019) Ngongo, Castro Odhiambo
Information and Communication Technology (ICT) is viewed as a driver for both developed and developing countries. The benefits of ICT adoption by organizations range from opportunity and market access to operational efficiencies and making enterprises more competitive and successful. In assessing the usefulness of ICT in agriculture, significant strides in efficiency can be achieved through the use of modern technology in upstream and downstream processes within cooperative societies. However, in reality there is low uptake of technological products in the agricultural sector and particularly by the cooperative societies in Kenya. This low uptake is attributed to the fact that not all cooperative societies and in particular the dairy cooperatives are convinced of the usefulness of ICT in enhancing their productivity. The study specifically sought: to identify and assess the factors that influence uptake of ICT in dairy cooperative societies in Meru County, Kenya; and to examine the contribution of ICT on productivity in dairy cooperative societies in Meru County, Kenya. Meru County was been selected as study area due to the number of dairy cooperatives and less research has been done on them unlike other zones in the country. A census survey was used to collect data from general managers and IT managers of dairy cooperatives in Meru County. Data was collected using a structured questionnaire from 40 respondents drawn from the 20 dairy cooperatives in Meru County. Data was analyzed using SPSS version 24.0 for descriptive and inferential statistics. The findings were expected to benefit the management of the dairy cooperatives in Kenya and the regulators and the policy makers such as the Kenya Dairy Boards (KDB) as they are able to use the findings as the base upon which to review challenges in ICT adoption in the dairy cooperatives. The study findings reveal that majority of the respondents agreed that their dairy cooperative society have adequately adopted ICT solutions and to a very great extent ICT contributes to the productivity of dairy cooperative societies in Meru County, Kenya. The study findings reveal that majority of the respondents agreed that cost of ICT adoption, perceived usefulness, staff competency/skill, and top management support to a very great extent influences adoption of ICT solutions in dairy cooperative societies. The study findings revealed that ICT contribution, cost of adoption of ICT, perceived usefulness, staff competency, and top management support have a statistically significant influence on the adoption of ICT solutions in dairy farming cooperative societies. Perceived Usefulness was found to be the most significant among the four variables followed by top management support, cost of adoption, staff competency. The study therefore concludes that cost of ICT adoption, perceived usefulness, staff competency, and top management are factors that influence on the adoption of ICT solutions in dairy farming cooperative societies. The study recommends the need for adequate financing, need for the management of dairy cooperatives to communicate the usefulness of ICT adoption and ease of use to its staff and members, need to recruit and train employees in a bid to motivate them to embrace and use modern ICT technologies, and need for top management support in regard to ICT opportunity development.
Analysis of factors affecting institutional capital adequacy of Deposit-Taking Savings and Credit Cooperative Societies in Nairobi
(Strathmore University, 2019) Omingo, Vincent Ochieng’
SACCOs Regulatory Authority (SASRA) capital adequacy requirements are key to Deposit-taking SACCOs' financial stability. The purpose of this study was to determine and analyze the factors affecting the attainment of institutional capital as prescribed by SASRA. More specifically, the study sought to investigate, the effect of the quality of the board of directors, management-staff competence, and dividend payout on the attainment of institutional capital adequacy, measured by institutional capital to total assets ratio. The population for the study was 40 Deposit-taking SACCOs that were registered, by SASRA, to operate in Nairobi County for the year 2017. A correlational study design was used to carry out a census. A structured questionnaire was used to collect data from the respondents who were the 40 Chief Executive Officers of DT-SACCOs. Both descriptive and inferential statistical methods were used to analyze data. Study findings indicated that Dividend payout, based on members' holding of non-withdrawable share capital, had the highest influence on the attainment of institutional capital adequacy of deposit-taking SACCOs Management-staff competence and quality of the board are second and third respectively, in the order of influencing the attainment of institutional. The study recommends that to counter the challenge of institutional capital inadequacy, under the influence of various factors, SASRA should consider developing a policy on institutional capital that includes members' Share Capital. This will reduce the burden of simultaneously attaining core capital and institutional capital adequacy.
Analysis of factors that influence adoption of design thinking innovation approach: a case of technology hubs in Nairobi
(Strathmore University, 2019) Chuaga, Catherine Wanjiru
Design thinking Innovation is very important for technological hubs to be sustainable in this 21st century. Some of the challenges associated with the traditional innovation approaches include; product centered issues because users’ needs are poorly understood and a lot of assumptions are made to develop a product. As a result, products were not well tested and verified against the expected users’ needs. Industries are adopting design thinking innovation since it has the user at the centre of product and service innovation. The purpose of the proposed study was to analyze the factors that influence the adoption of design thinking innovation approach in technology hubs in Nairobi. The research design adopted by the study was descriptive. The sample size for the study was 144 respondents who were selected using simple random sampling. Questionnaire and interview guide were used in collecting primary data. Administration of the questionnaires to the respondents was done by the researcher. The researcher also interviewed the respondents where more information was required. End user representative’s data was also collected using interview guides. Open-ended questions were analyzed using conceptual content analysis. Descriptive statistics were used in analyzing quantitative data including means, standard deviations, frequencies and percentages. The data was presented in form of tables, pie charts and 2-D and 3-D charts. The study found that design team significantly and positively relate with adoption of design thinking innovation approach. The study also found that design thinking process and adoption of design thinking innovation approach are significantly and positively related. The study also found that creative design environment and adoption of design thinking innovation approach are significantly and positively related. The study recommends that teams should apply collaborative form of work relations when integrating design thinking and should also ensure that their teams comprise of team members from various disciplines; this will ensure that the teams can effectively brainstorm, share and test ideas. Organizations should adopt the five steps of design thinking process which are; Empathize, Define, Ideate, Prototype and Test as an innovation approach. This design thinking process improves the quality of products and solutions developed, reduce the time taken to develop products and most importantly increases customer loyalty and satisfaction. Organizations should also ensure that the design environment is creative because it acts as motivation to the employees and encourages collaborative and creative work, and it also encourages social interaction with the rest of the team members. This will encourage creation of innovation.
Assessing the factors influencing the use of Mpesa: a case of paratransit service providers in Nairobi
(Strathmore University, 2019) Gitonga, Irene
While the use of Mpesa is well established across different service industries 111 Kenya, the preferred mode if payment in the paratransit sector is cash. Smart and integrated ticketing through payments systems such as Mpesa would improve efficiency in the sector. The purpose of this research was to assess the factors influencing the use of Mpesa in the paratransit service industry. The objectives were to assess the technological factors affecting the use of Mpesa by the paratransit service providers; evaluate the effectiveness of the interventions put in place by Safaricom to encourage use of Mpesa; and to determine the impact the paratransit operational environment had on the use of Mpesa. The research focused on paratransit service providers and in particular sought the view of the conductors and office administrators who collect fare from passengers. The study administered questionnaires to respondents and through the use of descriptive statistics, the quantitative data was analysed and presented using mean; standard error and correlation matrix. The key findings were that the Mpesa system is deemed to be useful and easy to use, and that system-up-time levels and support processes for errors and reversals are acceptable. The inference was that an improvement in these technological aspects, would have little to no bearing on the use of Mpesa. On the other hand, interventions by Safaricom had a statistically significance impact on use of Mpesa. These interventions included; 1) Advertising 2) Zero-Rating the cost of Mpesa transactions 3) Introduction of gadgets such as Mpesa Tap to help quicken the speed of collection of fare 4) Lowering commission charges for use of Mpesa 5) Consumer and trade promotions 6) Introduction of the functionality: Mpesa Till which allowed direct payments to the business and 7) Introduction of loan functionality. Finally, environmental factors; including internal and external conditions had a minimal impact on the use of Mpesa by paratransit service providers. The study recommends that mobile money operators such as banks and telecommunication companies seeking to provide or enhance the use of their mobile money payment services in the paratransit sector should deploy a payment system similar to Mpesa and spend more time on interventions that will influence the use of the mobile payment system.
Assessing the impact of employee satisfaction on clinical team effectiveness
(Strathmore University, 2019) Thuo, David Mwithiga
The main objective of the study was to assess the impact of employee satisfaction on clinical team effectiveness. The population of interest for this study comprised 63 clinical department supervisors from the Presbyterian Church of East Africa (P.C.E.A) Kikuyu Hospital, owing to them being among the oldest and most successful healthcare institutions in Kenya with an aim of discovering the factors that have the greatest impact and are adaptable by the public healthcare system. This study adopted a correlational qualitative technique using a self-administered questionnaire which contained open and closed questions to collect data. A pilot test was conducted to test the validity and reliability of the questionnaire as a sampling tool. The collected data was analyzed to establish a relationship between the independent and dependent variables. The analyzed data was presented using tables and figures. A total number of 63 questionnaires were distributed to supervisors from the Hospital. From these questionnaires, 49 of them were filled up and returned. This was equivalent to a response rate of 77.8% the study findings were that positive correlations were observed between clinical team effectiveness and all four employee satisfaction factors, namely organizational factors, employee work environment, job factors and employee personal factors. Amongst the four factors, employee work environment especially working in teams resulting in synergy had the greatest impact on clinical team performance, followed by organization factors especially well defined human resource policies where employee retention was seen to result in gaining better work experience. The study recommended that: The management of hospitals must develop clear and well defined human resource policies through investment in policy development, implementation and regular review with employee involvement, invest in training for their supervisors so that they can better understand their subordinates and guide them, through the human resource department the management must recruit and place employees in roles that are commensurate to their skill and endeavor to ensure that they retain their staff through identifying the employee’s individual needs and employing creative monetary and non-monetary solutions.
Assessment of change management processes on the implementation of the trade information portal by Kenya Trade Network Agency (KenTrade)
(Strathmore University, 2019) Mbithi, John
In today’s globalized and digitized trading environment, governments have been keen to ensure that trade barriers are significantly reduced through Information Technology solutions. Though these solutions adopted have reduced barriers to doing business, increased transparency and improved and access to information for citizens, these governments have had to spend resources such as time and money on change management. The purpose of the study was to assess the change management process on the implementation of the trade information portal by KenTrade. To achieve this, the study adopted Kotter’s model and focused on three specific objectives: to determine the effect of preparing for change, establishing the effect of managing change and assessing the effect reinforcing change on staff of on the implementation trade information portal by KenTrade. The study adopted a descriptive research design. In this study the target population was eight government agencies based in Nairobi County. The study assessed staff perspective on change management process on the implementation of the trade information portal using a questionnaire. Results indicated that as much as preparing for change, managing change and reinforcing change were necessary on implementation of the trade information portal, they needed to be carried out sufficiently and without partiality for success of effective implementation of the trade information portal. These results are expected to enhance policy, practice and academia and contribute positively to implementation of projects within government.
An Assessment of the cost of diabetes disease among patients attending a level four facility in Nyeri Town Sub- County
(Strathmore University, 2019) Githua, Lucy Wamuyu
Diabetes is a life- long illness that requires close monitoring. The increasing cost of care could hinder access to quality care consequently leading to high morbidity, mortality and productive losses. The main objective of this study was to estimate the cost of illness of diabetes for patients receiving medical care at Mt. Kenya Sub County Hospital, Kenya. The specific objectives were to determine the direct healthcare and non- healthcare cost of diabetes and their impact on health and economic well- being on diabetic patients in a level four facility in Nyeri County. The study employed a descriptive design. The total direct healthcare costs were estimated to be Kshs. 13,261 per month while total direct non- healthcare costs were estimated to be Kshs. 3,088 per month, against an average monthly income of Kshs. 6,498. Due to the high cost of care in relation to income, patients developed coping mechanisms such as non- compliance to the recommended lifestyle and consequently were at risk of adverse health outcomes. The results of the study will be useful for the hospital administration to ensure comprehensive health promotive and preventive education on diabetes to patients. For patients and their families, the results of the study may be used to lobby for better home based care, fidelity to treatment and a health- promotive regimen and reconsideration of options for payment of health services. Finally, for policy makers the results of the study offer an opportunity to revisit and strengthen policies on diabetes prevention, and financing for non - communicable diseases in general and diabetes in particular.
Customer perceptions on the adoption of electronic banking in Kenya
(Strathmore University, 2019) Waititu, Allan M.
Approximately half of the customers that have tried electronic banking services in Kenya will not become active users. Given the almost comprehensive adoption of electronic banking in the developed economies, the reasons behind the slow adoption of e-banking channels in Kenya are important research questions. In the banking world, the growth of information technology has a massive effect on the development of more flexible payment methods and more-user friendly banking services. The purpose of this study was to investigate the factors influencing the adoption of electronic banking among users in Kenya. The study was guided by the following research questions: How do privacy perceptions affect the adoption of ebanking in Kenya? How do convenience perceptions affect the adoption of e-banking in Kenya? How do security perceptions affect the adoption of e-banking in Kenya? This research adopted a descriptive research design. A random sample of 120 banking customers from a stratified sample covering all genders and ages from 19 years and above was considered. The researcher administered a questionnaire as the primary data collection instrument using Survey Monkey, email, and pick and drop approaches. The researcher coded and organized the data into different categories. The administered questionnaire had a response rate of 81% which was considered representative. Data was analyzed using the Statistical Package for Social Sciences (SPSS). The findings relating to the security of electronic banking show that customers are uncertain whether to embrace the good qualities of internet banking or resist the dangers presented by security loopholes. The findings on convenience show that users perceive electronic banking as a cheaper and more efficient banking channel, as opposed to the traditional brick and mortar setting. Finally, the findings on privacy show that a majority of electronic banking users believe that banks ensure confidentiality. In the same measure, a majority of the respondents did not believe that electronic banking contributes to privacy violations.
Determinants of access to finance by Small and Medium Enterprises in Kajiado County
(Strathmore University, 2019) Dau, Joseph Kuer
In Kenya, private sector development remains critical for economic growth and development, particularly in creating jobs among unemployed Kenyan youths. The SME sector has grown in stature though it's riddled with myriad challenges among them financing despite the fact that this sector has so far employed 7.5 million youth which is 80% of the total persons employed in Kenya. The objective of the study was to find out the determinants of access to finance by small and medium enterprises in Kajiado County, Kenya. The specific objectives of the study included; determining the influence of borrowing firm's characteristics on access to finance among SMEs in Kajiado County, establishing the influence of product features on access to finance among SMEs in Kajiado County; finding out the influence of lender characteristics on access to finance among SMEs in Kajiado County. The study employed descriptive and inferential research design targeting 368 respondents comprising SME owners. The questionnaires administered to collect the research data have a response rate of 61.4% which is 226 of the target population. From the inferential statistics results, the study found that product features explain up to 70.6% of the variations in access to credit among the SMEs, firm characteristics explain up to 52.7% of the variations in access to credit while lender characteristics explain up to 19.2% of credit access by SMEs in Kajiado County. This study, therefore, recommends that given the role played by the SME sector in employment creation, there is a need for a concerted effort to focus on streamlining the access to credit policy among SMEs. And that management of financial institutions needs to establish frameworks that address key concerns on credit access. Commercial banks management enhancing management competencies in SME lending to customize product features rather than a size fit all SMEs. Such research will enable financial institutions to deliver products suiting women with such characteristics as grace periods, competitive interest rates, flexible loan periods, unnecessary hidden charges, social guarantees rather than tangible collaterals as well as the ability to graduate SME loans based on good credit history.
Determinants of financial distress: case of Deposit Taking Savings and Co-Operative Societies in Kenya
(Strathmore University, 2019) Odipo, Joseph Onyango
The purpose of this study was to investigate the determinants of financial distress in Deposit Taking Sacco Societies in Kenya. SACCOs are an important pa1t of the financial sector in Kenya, providing savings, credit and insurance services to a large part of the population. The SACCO stakeholders are faced with challenges to increase financial returns and such challenges comes with increase in risks. Insolvency situation is a major risk to SACCOs in Kenya hence a source of financial instability. Both primary and secondary data was collected in this study. Data was obtained from a sample of 61 Deposit taking SAC COs out of a population of 174 licensed Deposit Taking Saccos in Kenya as of31 December 2017. The secondary financial data was obtained from SASRA, the SACCO regulator for the 5 years under study and a comprehensive listing provided for licensed Deposit Taking SACCOs. The Z-Score model developed by Altman was used in the analysis of secondary data, to assess the annual financial statement to determine the level of financial performance and stability of the DT-SACCO sector. Questionnaires were used to collect primary data from Sacco Executives. This data was analyzed using descriptive and inferential statistics such as correlation and logistic multiple regression. The multiple logistic regression analysis was done using R-Programming statistical software. Varied statistical tests such as t-test, F-test, Spearman Correlation, deviances and McFadden R2 were employed to make statistically significant decisions. The study established the determinants of financial distress in DT-SACCOs and identified the strategies employed by these SACCOs to overcome these challenges. The financial analysis done showed a fairly distressed financial sector and need to improve performance for DT-SACCOs in distressed and grey zones moving them to a stable zone. Weaker internal controls was the major contributor to negative financial distress among the DT –SACCOs in Kenya while the study identified no clear strategy used to counter financial distress levels. The study concluded that the DT-SACCO sector is fairly distressed and therefore there is need by the stakeholders to address the key determinants by employing appropriate strategies to improve the financial distress levels of the DT-SACCO sector. The study contributes to knowledge in the sector and to the various stakeholders in managing the DT -SAC COs in Kenya.
Determinants of strategy implementation and financial performance of Commercial Banks in Kenya
(Strathmore University, 2019) Mbogo, Alex Murage
Kenyan commercial banks have been performing poorly in the recent past as indicated by the placement of two mid-tier financial institutions under receivership. Further the industry has seen its revenue streams dim in the light of the recent execution of interest rate capping. Despite increased interest in examination of the financial performance of banks, the information concerning the effect of determinants of strategy implementation on bank performance is still limited and unreliable. This study aims to identify the effect of organization structure, resource capability and the management competency on the returns from financial institutions in the country. It was guided by three theories; the contingency theory, the management theory and the dynamic capabilities theory. The research relied on a descriptive research. The unit of analysis was the registered Kenyan commercial banks and 82 Chief Operating Officers and Chief Financial Officers drawn from the Kenyan banks. The study relied on both primary (Questionnaire) and secondary data (financial statements), data which was then compiled and coded into SPSS. The research utilized descriptive analysis (frequencies, means and standard deviation) and inferential analysis (correlation analysis, regression model and ANOVA model). The analysed data was presented using bar graphs, charts and tables. The research obtained an 84% response rate. Study results showed that there was positive significant correlation between organization structure; resource capability; management competency with regard to both the ROE and ROA of the financial performance of Kenyan commercial banks. The study concludes that the determinants of strategy implementation had a positive and significant effect on the financial performance of Kenyan banks. The study recommends that commercial banks should increase funds allocated for strategy implementation, and align their structure to the institutions goals while improving on the managerial decision making.
Determinants of uptake of insurance underwriting on Public Service Vehicles plying for hire in Kenya
(Strathmore University, 2019) Mungai, Joseph Njogu
Insurance sector contributes to the growth of the economy in addition to providing risk distribution avenue to asset owners. Whereas it is mandatory in Kenya, for all public service vehicles to have an insurance policy, at least third-party cover, many insurance firms in Kenya have shied away from providing insurance cover to public service vehicles plying for hire (commonly referred to as matatus). This has left only three insurance firms representing (6%) of all insurance firms registered in underwriting insurance for this growing class of motor vehicles. This study sought to identify the determinants of the uptake of insurance underwriting of public service vehicles plying for hire in Kenya. The specific research objectives were, to establish the extent to which the government regulations and reforms affect the uptake of insurance underwriting on public service vehicles plying for hire, to determine the influence of insurance industry practice on uptake of insurance underwriting on public service vehicles plying for hire and lastly, to establish the influence of shareholders’ interests on uptake of insurance underwriting on public service vehicles plying for hire in Kenya. The study adopted a cross sectional research design with a target population of thirty-eight insurance firms underwriting general insurance in Kenya. Primary data was collected by use of questionnaire having structured and open-ended questions addressed to business development managers or their equivalents in each of the insurance firms. Data was analysed using both descriptive and inferential statistics by use of R software and results presented in form of bar charts and frequency tables. The study findings reveal that the main insurance industry factors that affect uptake of matatu underwriting are usage of the vehicle, vehicle sitting capacity, type of cover and level of fraud in the industry. With regard to government regulations and reforms, stringent traffic rules and mandatory third party are the most frivolous factors that are considered when offering insurance to matatus. Relating to shareholders’ interests, the mandatory third-party cover and the risk-taking nature of the shareholders are the most critical considerations when insuring matatus. Lastly, in order to increase the number of insurers that underwrite matatus, the study recommends implementation of a centralized motor insurance data system, tighter anti-fraud systems, and strong internal controls in the insurance firms by the insurance regulator with the aid of the government. Areas of further study include comparative studies in other countries which have similar transport system as in Kenya.
Effect of adopting PRINCE2 methodology on product delivery in the banking sector: a case study of Commercial Bank of Africa
(Strathmore University, 2019) Mugeni, Alphonce Nyakiamo
Banks continue to operate in a very competitive environment. The 43 banks in Kenya are competing to attract and retain a share of the 74.7% of the populace who have bank accounts. One way of doing this is to roll out relevant products through management of projects. Management of projects is the channel for the development and supply of new products. It is now a core business process as well as being an efficient tool for dealing with unique or complex activities for the benefit of the end user. Products are the outcome of projects and are created using distinct methods of project management including Agile, Projects In Controlled Environment 2 (PRINCE2), Project Management Body of Knowledge (PMBOK) and Control Objectives for Information and Related Technologies (COBIT). The study sought to assess what effect adopting the PRINCE2 project management methodology has on product delivery within the banking sector in Kenya as evidenced at CBA. Variables that indicate successful delivery of a product include quality as prescribed under scope, delivery within an agreed-upon schedule & cost and achieved business objectives as judged by what the end user wanted. Data was collected using 78 questionnaires collected from the 87 that had been distributed to members of staff who implement projects – this translated to a response rate of 89.7% . The study found that the field is dominated by men and IT plays the biggest role in implementation. Further, the more experience one has with the methodology, the higher the likelihood of setting up the recommended PRINCE2 management structure in addition to tailoring the methodology for efficiency. Finally, the study also determined that project management governance and product-based planning spoke to the parameters used in gauging the successful delivery of a product, i.e. quality, on schedule, within budget and achieved business objectives. The study will help the industry regulator and policy formulators determine considerations to be made with reference to adoption of a common project management methodology for maximum probability of success. Bank executives and their management teams will also benefit by being better placed to understand and appreciate their roles with reference to PRINCE2 in order to harness maximum benefit from these initiatives and make their institutions more competitive in the market.
Effect of behavioural biases on investment decision for structured products by retail investors at Nairobi Securities Exchange
(Strathmore University, 2019) Weru, Grace Wambui
The introduction of structured products to the Nairobi Securities Exchange, whose access previously was only limited to corporate investors, has been followed by mixed uptake of the investment option by retail investors in the local market. While the Fahari i-REIT Initial Public Offering at the Nairobi Securities Exchange wasn’t as successfully subscripted and only managed to raise one-third of the targeted KES 12.5 Billion subscription, the issuance of KES 4.2bn 5-year Equity Linked Notes by Centum Investment Company was on the other hand successful. The novelty of the investment option in Kenya and focus by the Capital Markets Authority to spur uptake of corporate bonds among investors therefore merits attention of analysis of effects of behavioural biases influence on investment decision by investors. The study investigated the effects of behavioural biases on investment decision for structured products by retail investors at Nairobi Securities Exchange. The specific objectives for the study were to determine the effect of herding bias, overconfidence bias, anchoring bias and representativeness bias on investment decision for structured products by retail investors at Nairobi Securities Exchange. The researcher used a structured questionnaire and collected primary data from 109 individual investors currently or previously investing in structured products. The research design that was adopted was descriptive cross sectional design as it aimed to investigate the relationship between the independent variable, behavioural biases, and the dependent variable, investment decisions. The two inferential analysis tools that were used included spearman’s correlation and linear regression. From this study, the findings indicated that anchoring bias presented a significant relationship with investment decision, while herding, overconfidence and representativeness variables presented insignificant correlation coefficient. There was a marginal effect of behavioural biases on investment decision making for structured products by retail investors at the NSE and therefore, the study recommends a review of the effects of the behavioural biases on each of the investment decision constructs to contribute to the current theoretical knowledge on the effects of behavioural biases on investment decisions. To policy makers, this study provides clarity on the need to educate potential investors on structured products and also on policy requirements for structured products to mitigate against the effects of behavioural biases by retail investors and encouragement investment in the sector. For practitioners in financial markets, the study provided clarity on how they can approach potential investors with the aim of convincing them to invest.
Effect of change management on organizational performance of media companies in Kenya
(Strathmore University, 2019) Kurgat, Fredrick Kirui
This study investigated the effect of change management on the organizational performance, of Kenyan media firms. Data was gathered from 100 employees of the top five media companies in Kenya; selected according to share of market, profitability, and audience size (Royal Media Group, Standard Group Limited, Nation Media Group, Mediamax Network Limited, and Radio Africa Group Limited. The research design adopted was quantitative design. The collection of primary data for the research was based on a survey questionnaire which was mainly administered via face-to-face interviews and a few via telephone interviewing. Analysis of data was done using SPSS in which regression analysis and descriptive analysis were computed. The study findings found that all four variables have a substantial influence on the performance of Kenyan media firms. However, organizational culture was found to have the least impact compared to the other variables. Furthermore, the study established that the hierarchy structure of the authority is stipulated in a manner that supports good supervisory and working relationships. The study further found that the leadership of media organizations is competent in their respective fields thereby endeavoring to promote creativity and innovation. It was also found that the media organizations have established strong values that guide employee performance and that team orientation towards the achievement of firm goals is encouraged. Some of the positive impacts that the study revealed was that the level of customer satisfaction has improved which was attributed to the gradual changes in technology and IT systems of media companies hence meeting the demand and test of customers. From organization structure analysis, the study concludes that media companies have a layout to which employees are subjected while delivering the needed human capital. The research was important in that it was used as a resource tool on the issue of change management and its effect on the performance of an organization by different stakeholders. There is no study specifically designed to study the impact of change management on media companies ' organizational performance in Kenya. The study recommends that media companies adopt change management dimensions in order to improve the performance of their organizations. The insights gained from this study will help develop and support available research on organizational performance and change management in the future.
The Effect of civil aviation regulations on the growth of the domestic airline industry in Kenya
(Strathmore University, 2019) Jumi, Edward P.
The domestic airlines in Kenya have experienced considerable growth in the last few years despite increased competition from other regional and international carriers. With the current change in the regulatory framework the study sought to examine the effect of civil aviation regulations on the growth of the domestic airline industry. The study specifically examined the effect of operation of aircraft regulations, personnel licencing regulations, air operator and administration regulations as well as the RPAS regulations. The unit of analysis was the 67 domestic airline firms in Kenya. The unit of observation was the Chief Finance Officer or Operations Manager within each domestic airline firm. The research also employed the use of both primary and secondary data. The primary data was collected from a semi-structured questionnaire while secondary data was collected from aviation industry reports and journals. The collected research data was analyzed using descriptive, inferential and content analysis. The study employed means, standard deviation, correlation analysis and regression analysis. The results of the analysis were presented using bar graphs, charts, figures and tables. The findings of the regression analysis indicated that civil aviation regulations had a positive association with the growth of the domestic airline industry. The study concludes that meeting operation of aircraft regulations, personnel licensing regulations, air operator and administration requirements are key to fostering the growth of the domestic airline industry in Kenya. The research recommends that the aviation firms should invest in modern aircraft to reduce maintenance cost; enhance employee training and recruitment as well as expand their safety and aviation security measures. The findings of the study are expected to foster policy and practice within the domestic airline industry. The study suggests that further research should be conducted to examine the potential drivers for economic exploitation of drones in the country.
Effect of customer data analytics on delivery of customer experience in commercial banks in Kenya
(Strathmore University, 2019) Ouko, Joseph Onyango
Classical economic theory has for quite some time now assumed that the customer is a very logical thinker who makes purchasing decisions while being influenced by rationality. This is to mean that core product perspective, are seen to be the main tenets that inform consumer decision making bearing in mind the fact that tangible product qualities influence the purchasing decisions of a consumer. Use of data and analytics helps the organizations understand the customers more for example by knowing what customers want, what their motives are, as well as what influences certain behaviors in customers The main objective of this study was to investigate the effect of customer data analytics on delivery of Customer experience (CX) among commercial banks in Kenya. The study was guided by the following research objectives: To examine the effect of customer sentiments analytics on delivery of customer experience in commercial banks in Kenya, to determine the effect of customer satisfaction analytics on delivery of customer experience in commercial banks in Kenya and to analyze the effects of sales channels analytics on delivery of customer experience in commercial banks in Kenya. The research methodology in this study entailed the adoption of a descriptive research design. The population of the study was business executives from all 43 commercial banks in Kenya. The research approach was survey based. Survey based research enables the researcher to target a given population through sampling of the population. A questionnaire was used to collect primary data. Key findings of the study revealed that delivery of customer experience is influenced by, customer sentiment analytics, customer satisfaction analytics and sales data analytics. The study further revealed that of the three types of analytics, customer sentiment analytics has the highest influence. Finally, the study revealed that success in customer experience was determined by the ability of the commercial bank to adopt data analytics. The study recommended that a possible area for further research is to employ a longitudinal research design in carrying out the study. This will give more clarity to the findings as it will consider the influence of the customer data analytics on delivery of customer experience over time. Further research may also consider expanding the scope to include other financial institutions such as insurance and Sacco’s that operate in Kenya.