MBA Theses and Dissertations (2015)
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- ItemAnalysis of factors influencing the growth of micro, small and medium enterprises in Wajir County, Kenya(Strathmore University, 2015) Abdullahi, Mohammed A.Interest in the role of micro, small and medium-sized enterprises (MSMEs) in the countries development process continues to be in the forefront of policy debates in developing countries. Wajir County is one of the poorest regions of Kenya with a poverty rate of 84 percent. The region suffers from low household wealth, high unemployment, insecurity and perennial droughts. Wajir County hosts MSMEs that could help uplift the region and improve the condition of the inhabitants. Despite this, MSMEs in Wajir face a number of factors that hinder their growth and survival. This study sought to establish the factors hindering the growth of MSME’s in Wajir County. The specific research objectives were; to determine the characteristics of entrepreneur, the environmental factors and organizational factors that influence growth of MSMEs in Wajir County. The study employed a descriptive survey design and factor analysis in studying one hundred and ten MSMEs that were sampled using stratified random sampling technique. The instrument used in data collection was a questionnaire. The descriptive analysis shows that the entrepreneurial demographic profile and number of employees and gender of employees that a firm has affect the growth of the business. Factor analysis, grouped the factors into three; namely individual factors, environmental factors, and organizational factors. The study found that for positive drivers of growth the organizational factor was the most important, while the individual factor was the most important for negative drivers of growth. The study makes managerial and policy recommendations to the businesses, the Wajir County Government and the Government of Kenya on alternative courses of action.
- ItemAssessing the viability of pharmaceutical technology transfer : a case of Kenya(Strathmore University, 2015) Mwangi, John MuriithiAccess to essential medicines in developing countries including Kenya has remained a concern. Past studies have pointed out technology transfer between innovator and local generic manufacturing companies as the possible solution to this problem of access. The current study assessed the viability of technology transfer as a solution to medicines access in Kenya. The study assessed the current situation with regard to medicines access and use of pharmaceutical technology transfer as a tool to bridge the gap in essential medicines access; identified the underlying barriers to pharmaceutical technology transfer and proposed a the lifecycle approach framework for technology transfer in the context of Kenya pharmaceutical industry. The study was supported by literature collected from various online sources to support the identified research problem. The research took a descripto-explanatory design using a combination of qualitative and quantitative methods. The study population was the 56 respondents selected in a non-probability purposive manner from the 46 pharmaceutical companies in Kenya operating under the umbrella trade associations of Kenya Association of Pharmaceutical Industry (KAPI) and Federation of Kenya Pharmaceutical Manufacturers (FKPM). The researcher used a self-administered questionnaire to collect information from industry participants and an interview guide to collect data from the Pharmacy and Poisons Board of Kenya. The study results indicated a 79% (n=44) response rate with respondents drawn from local manufacturers (38.6%), importers (25%) and innovator companies (29.5%). The study identified gaps in the medicines access in Kenya as perceived by 47.8% or the respondents mostly driven by the lack of government funding (84.1%), insurance reimbursement (49.1%), high cost of medicines (75.3%) and lack of manufacturing capacity (55.6%) & technology (61.4%). Additionally the study identified the cost of R & D (77.3%) and Manufacturing cost (72.7%) as the main hindrances for new product introduction in Kenya. It further identified technology transfer as one measure that can be used to bridge the gap of medicines access through improved manufacturing capacity and technology in Kenya (79.6% of respondents). The study identified qualified personnel ( r=.709, p=.013), manufacturing capacity ( r=.709, p=.013), intellectual property rules (r=-.729, p=.023), competition from imported products ( r=-.759, p=.002) and access to innovator companies (r=-.824, p=.014) as the main factors; while regulatory framework (r=.717, p=.910) and past failures (r=.258, p=.015) were shown to have minimal impact on pharmaceutical technology transfer in Kenya. Finally the study indicated that only 48.6% (n=17) of the respondent companies had plans for technology transfer, out of which only 47% (n=8) had a technology transfer framework in place which in itself was not effectively working (p=.106). The study proposed and verified a six step lifecycle based approach framework for pharmaceutical technology transfer for a new tablet formulation product. The study concluded that there was a gap in medicines access and identified the role that can be played by technology transfer premised on a feasible framework. The study recommends establishment of more awareness channels for technology transfer, fostering of collaborations between stakeholders and further studies on the lifecycle approach to technology transfer in real life setting.
- ItemAssessment of client satisfaction with service delivery models at the Kenyatta National Hospital voluntary counseling and testing center(Strathmore University, 2015) Wamuti, Beatrice MuthoniIntroduction: High quality service is critical to client satisfaction by affecting retention and loyalty. The main service delivery models within the healthcare industry are vertical and the integrated. Kenyatta National Hospital (KNH) Voluntary Counseling and Testing (VCT) has used the vertical model since inception. However, with over 50% of HIV infected clients in Kenya unaware of their HIV status, the integrated model was adopted to improve VCT service delivery. We assessed the relationship between client satisfaction and service delivery models at KNH VCT, and evaluated staff views. Methodology: Cross-sectional analysis was carried out on 196 clients (stratified random sampling) and 24 VCT staff (convenience sampling). Participants were consented and structured questionnaires administered. Data analysis was conducted using SPSS (Statistical Package for Social Sciences) Version 16. Descriptive statistics were used to report the socio-demographic characteristics. Multivariate analysis using Pearson’s Chi-square test and Multivariate Analysis of Variance (MANOVA) was used to establish and test the strength of relationship between satisfaction and type of service delivery model. Results: Clients had a high level of satisfaction with KNH VCT services. People were rated highest (4.74) while physical infrastructure was rated lowest (4.13). There was no significant differences in satisfaction between vertical and integrated models except in overall booking process (p=0), waiting time before booking (p=0), waiting time before counseling (p=0), and adequacy of pre-test counseling session (p=0.003). The staff scored people highest (4.40) and physical infrastructure (3.97) with no significant differences between the two models. Waiting times was rated lowest overall. There was a significant difference in strength of relationship with clients consistently rating services higher than staff in all parameters. Conclusion: Clients rated KNH VCT services highly with staff receiving the highest ratings and physical infrastructure the lowest; similar to staff perspectives. Improvements in physical infrastructure and waiting times will likely improve overall satisfaction.
- ItemAn assessment of the role of the health sector stakeholders in creating awareness of the existence and dangers of counterfeit drugs in Kenya(Strathmore University, 2015) Muriithi, Eunice WamaithaCounterfeiting has become one of the largest world’s largest and most rapidly growing enterprises, a situation that cannot be ignored neither its impact underestimated. While studies in the past have focused on how to control and secure the supply chains, the problem seems to escalate. Lack of knowledge on how to identify counterfeited drugs among consumers is one of the factors that are driving the illegal trade in Kenya. This research sought to assess the role of health sector stakeholders in combating counterfeits drugs in Kenya, by determining the level of awareness of the existence of counterfeit medicine and risks thereof, the approaches used by different stakeholders to combat counterfeits and finally the opportunities that can be explored to further reduce the problem. The study population comprised the pharmaceutical companies registered under the Pharmacy and Poisons Board (PPB), professionals working in such organizations as well as consumers buying medicines from the registered pharmacies. The study was carried out as a two-stage research design using a multi-method approach of data collection. The focus in the first stage through questionnaires was on a sample size of 294 registered pharmaceutical distributors and retailers as well as a sample of 400 consumers purchasing the drugs from the pharmacies. A second stage consisting of interviews was done targeting 7 manufacturers and 2 regulators of the pharmaceutical industry in Kenya to get a deeper understanding of the findings in the first stage. The results revealed that there were counterfeit drugs awareness campaigns in place by government, non-governmental organizations, manufacturers and medical professionals, although their effectiveness does not seem to be felt among the consumers who in most cases indicated not being aware of their dangers. The opportunities for creating consumer awareness on counterfeit drugs included increased funding for training and research, educating consumers on how to identify counterfeit drugs and the dangers associated with their use, more collaboration among the stakeholders and full operationalization of Anti-Counterfeit Act of 2008.The recommendations from this study include the need for lobbying to amend the law that defines the counterfeit drugs and providing for stiffer penalties on counterfeits to ensure that reported cases are brought to justice. Areas of further research include conducting similar study in the rural settings of Kenya and determining the costs to stakeholders associated with fighting counterfeit drugs.
- ItemCompetitive advantage of M-Pesa, is it sustainable?(Strathmore University, 2015) King’ori, Gladys WahitoMobile Money Transfer (MMT) is an innovation to transfer money using the Information and Communications Technology (ICT) infrastructure of the Mobile Network Operators (MNO). Kenya’s largest MNO, Safaricom, launched an MMT, M-PESA, an innovative payment service for the unbanked in March 2007. Within the first month, Safaricom had registered over 20,000 M-PESA customers, well ahead of the targeted business plan. The growth of M-PESA is faster that the growth of formal bank accounts. Despite competition with telcos and banks, Safaricom’s MPESA has accounted for 78.5% of the total number of active mobile money users in the country. There is therefore some form of competitive advantage that M-PESA is leveraging to gain market share. The purpose of this study was to use the Porters Five Forces model to determine the sustainability of M-PESAs competitive advantage. A descriptive survey design was employed to achieve the study’s objectives. Data was collected from 185 of the targeted 240 respondents using questionnaires. It was found that the main sources of competitive advantage for M-PESA as a MMT service are: most of the people that use money transfer services in Kenya are on the M-PESA service, the integration of M-PESA and banks, the minimum adoption barriers and the simple and transparent pricing. Analysis the sources of competitive advantage by using the Porters Five Forces model and regression analysis indicates that M-PESA has a sustainable competitive advantage as a MMT in Kenya. The study recommends that M-PESA looks out for new threats like Mobile Virtual Network Operators (MVNOs) and that future studies to be done with a higher sample size from the various towns in Kenya for a comprehensive generalization of the results.
- ItemConverting municipal solid waste to electricity for sustainable waste management : determinant factors for successful set up of a waste to electricity facility(Strathmore University, 2015) Koech, Carol ChepkemoiMunicipal Solid waste is a major challenge in most cities and especially in developing countries where budgetary constraints exist. This is exacerbated by the ever increasing urbanization which puts even more pressure in the existing infrastructure. With Africa having the highest rate of urbanization at 3.5% annually and the least developed waste management infrastructure, an urgent solution is required in order to save the environment and the health of people living near the open dumps which is the most common final waste disposal system. The study sought to find the entrepreneurial opportunity in the final waste disposal in the city of Nairobi. The study sought to estimate the potential of electricity in the current waste generated in Nairobi city by using the different waste to energy technologies i.e. Landfill gas to electricity and incineration. Literature was reviewed on landfill gas to electricity, incineration, factors affecting successful set up of a waste to electricity facility and the benefits of converting waste to electricity. The study also sought to understand the factors that have the most impact for setting up a successful waste to energy facility and a survey was administered to players in the municipal waste segment. Factor analysis was done to identify the factors that have the most impact in successful set up of a waste to electricity facility. Data collected from the survey was analyzed and the factors with the greatest impact successful set up of a waste to electricity facility were identified. The factors identified were: Stakeholder involvement for political support, regulatory framework and municipal waste chain management. The other factor was location in order to understand the available waste quantities and the environmental impact. The last factor was economical with incentives to attract investors being a key component to this. The benefits of setting up a waste to electricity facility were articulated as employment creation, carbon credits and carbon tax, financing and tax incentives, revenue from sale of electricity and heat and environmental benefits.
- ItemDeterminants of performance in an insurance sales team : a case study of the UAP insurance direct sales force(Strathmore University, 2015) Kiruti, John Michael ItimuThe tied agents’ distribution channel for selling general insurance products was pioneered in Kenya by UAP Insurance Company through the Direct Sales Force channel in 2001. In this study the relationship between sales performance as the dependent variable and five identified independent variables was investigated within the context of Direct Sales Force working in teams at UAP. The identified determinants of sales performance were; Team leadership, Team work design, Team member organisational commitment, Team member capacity and team member work-life balance. The research used both quantitative and qualitative approaches as the independent variables under study related to perceptions and views of the participants, a qualitative aspect while actual sales performance was quantitative. Actual sales performance was measured in terms of average premium generated per team as well Top Achievers or Tier 1 DSF premium as a percentage of team total premiums. According to UAP, Top Achievers DSF had a premium volume in excess of Kes.2.8 Million annually. Survey research design was used to collect data by way of questionnaire to the Direct Sales Force Agents selected in the sample while an interview was used on the Head of DSF. A sample of 140 agents out of 563 DSF agents was selected using stratified sampling probability method. The study revealed that mean rating on work design was high at 0.40637 equivalent to 81.3%in respect of job autonomy, social support and interaction with the customer. On commitment, the mean was highest on Affective commitment at 3.7934 or 75.9% signifying high emotional connection with the organization. On leadership style, above average results was recorded on transformational leadership at 76.7%. However work life balance recorded a below average score of 2.65% or 53% indicating little or no conflict between work and family in these teams. Competence also had average score with experience at 3.1639 or 63.3% and education at 2.9698 or 59.4%. However in linking these variables to the dependent variable findings using both the Spearman’s rank correlation and Pearson correlation show that none of the predictors were statistically significant at p = 0.05 level. The study concludes that none of the independent variables was related to sales teams’ performance as measured in terms of average premium sales per team and percentage of the top achievers premium to total premium. Team performance may be explained through aggregated individual efforts by DSF agents and not through coordinated team effort to achieve results.The research encountered limitations in terms of the number of responses due to the nature of work of the respondents as field staff. Another limitation revolved around the geographical spread of the teams across nine towns in Kenya requiring great challenges to coordinate distribution and collection of the questionnaires. It is suggested that future research be carried out on the determinants of performance for DSF as individuals and not in teams. More specifically on what drives high achievers to great performance and what had kept the low achievers on dismal performance.
- ItemEffect of inland petroleum transport risk management strategies on financial performance of oil marketing companies in Kenya(Strathmore University, 2015) Gaicuhie, Charles ThuoRisk management is an integral part of day-to-day business activities in the energy industry. Oil and gas companies face a myriad of risks in today's global marketplace. Uncertainty in the inland oil transport is expensive, and its impact affects the way its customers are served. Despite increase in use of risk management strategies in oil marketing companies’ management, there have been scanty empirical studies that have focused on determining the effect of inland petroleum transport risk management strategies on financial performance of oil marketing companies in Kenya. The objective of this study was to establish effect of inland petroleum transport risk management strategies on financial performance of oil marketing companies in Kenya. The study adopted descriptive survey research design to describe the general characteristic of the study population and show the relationship between the dependent and independent variables. The descriptive research design was deemed fit to establish the effects of inland transport risk management strategies on financial performance of oil marketers in Kenya. The target population was 50 oil marketing companies in Nairobi with activities on transporting and marketing petroleum products in Kenya. The study had a sample size of 75 respondents who were managers, risk management officers, depot managers, financial officers and operation officers selected using stratified sampling technique. The study collected primary data using questionnaires. The data was then analyzed using descriptive and inferential statistics. Descriptive statistics included frequency, percentages, means and standard deviations. For qualitative data, which was mainly gathered from open ended questions a qualitative data checklist was developed. Inferential statistics involved multiple regression model which was applied to determine effects of inland transport risk management strategies on the financial performance of oil marketing companies in Kenya. The study established that there existed a significant positive relationship between risk based internal audit and financial performance of Oil marketers companies. The study found that risk identification had a significant positive impact on financial performance of Oil marketers. Assessment of risks and internal audit annual plans are significant risk based audit items in inland oil transport to the achievement of financial goals. The study revealed that there existed a significant positive relationship between risk planning and financial performance of Oil marketers and a significant positive relationship between portfolio quality and financial performance of Oil marketers.
- ItemEffect of outsourcing on performance of logistics industry in Kenya(Strathmore University, 2015) Kogoh, Zachary Brian KipchirchirThe research was undertaken to explore the extent of outsourcing of the logistics function within the logistics industry. The research included a study of the effect of order processing, warehousing, packaging and transport logistics outsourcing on the performance of the logistics in Kenya. The population of the study were logistics companies in Kenya. Taking logistics companies based in Nairobi to be representative of the rest of the country, the study employed random sampling to arrive at a sample of 96 companies. Data was collected by means of in-depth questionnaires with senior management staff representing the players in logistics industry. The response rate was 73%. The findings of the research demonstrated that the industry players outsourced order processing, warehousing, packaging and transport logistics albeit partially. Order processing, warehousing and transport logistics outsourcing were found to have a statistically positive effect on the performance of the logistics industry in Kenya.
- ItemEffects of competitive strategies on market share for commercial banks in Kenya(Strathmore University, 2015) Kasurah, Sarah SiimoiA major development in today’s world is the increased interest in management of customers so as to maintain and improve market share. Current problem is that banks have many competitive strategies but there is need to understand if strategies deployed, are the most effective, sustainable, and competitive. This understanding, will ensure full optimization of resources hence avoid unnecessary losses. Poorly deployed competitive strategies in a market have led to companies losing or reducing market share since strategies deployed, do not address key customer needs. This research therefore, sought to bridge the existing knowledge gap by carrying out a study on effects of competitive strategies on market share for commercial banks in Kenya. Key focus was on agency banking, bancassurance and mobile banking. The research design used in this research was descriptive survey. The population that was targeted in this study constituted of 44 commercial banks that have been licensed in Kenya, hence 44 respondents. The Primary and Secondary data was deployed where survey questionnaires, were handed to all operation managers of the Kenyan commercial banks. The quantitative data that was collected in this study was evaluated by means of SPSS (Statistical Package for Social Sciences) software. These results were presented via standard deviations, means, frequencies, and percentages. The results were also displayed via pie and bar charts, prose-form and graphs. This involved tallying of responses received, calculating variation percentages on responses received and decoding data as per required study objectives through SPSS. Testing of qualitative or open ended data was done through use of content analysis. To achieve the relative implication of the three variables (agency banking, bancassurance and mobile banking) regarding market share, the multivariate regression model was used. This research study established a positive relationship between agency banking as shown by a coefficient of (0.474), positive relationship between bancassurance and market share for commercial banks in Kenya as shown by a coefficient of (0.281) and positive relationship between mobile banking and market share for commercial banks in Kenya as shown by a coefficient of (0.376). The study recommended that banking institutions ought to invest more on agency banking compared to other competitive strategies researched in this study. It was found to be more positively related to the acquisition of new market for commercial banks. The study recommended that banking institutions ought to consider intensifying on mobile banking. This is because it would increase accessibility of services to the customers and thus improving institutions’ financial performance and market share. Due to the increased competition, Kenyan commercial banks ought to embrace bancassurance as a competitive strategy. This is because the banks would also benefit from bancassurance by increasing sales, market share and improving its operations but to a minimal extent if compared to agency banking and mobile banking. The study also highlighted and recommended the need to analyze effects of other competitive strategies not mentioned in this study for continuous knowledge that would guarantee business sustainability for banks.
- ItemThe effects of working capital management on profitability of public listed energy companies in Kenya(Strathmore University, 2015) Musau, Januaris WangomaThe Kenyan energy sector is highly regulated by the government such that, among other things, the government sets all prices of energy products. This challenges attaining profits by only focusing on the external factors, thus, the need for internal measures like working capital management. The purpose of this study was to assess the effect of working capital management on the profitability of listed energy firms in Kenya. To achieve this purpose the study investigated the role of inventory management on the profitability; how cash conversion cycle affects profitability; the effect of account receivable days on profitability; and effect of account payable days on profitability of public listed energy companies in Kenya. An explorative design was used to conduct the study. Both secondary data and primary data were collected. In primary data, the researcher targeted senior managers concerned with working capital management, and employees from the accounts/finance department who interact with the variables of working capital. Stratified random sampling method was used to arrive to a sample size of 36 who were interviewed using a questionnaire. Secondary data was collected from financial statements of the four target companies for 7years (2006-2013). The study used descriptive analysis and random effects regression to analyze data using STATA 12. Tables and graphs were used in presentation. The findings show that listed energy companies take 48.63 days to sell their inventory and they sell it 9.353 times a year. The companies have a cash conversion cycle of 1.1333 and take long to pay their creditors than they take to collect payment from their debtors. Inventory turnover ratio is not used by these companies to determine profits (P=0.464). The companies implement shorter cash conversion cycles to enhance their profits (P=0.027). Accounts receivable days has no effect on the profits of listed energy firms (P=0.126) while the companies take long to pay their creditors to enhance their profits (P=0.031). The study concludes that listed energy companies do not use inventory turnover ratio and accounts receivable days as determinants of net profit-related decisions and that managers of these companies reduce the number of days for converting assets into cash as well as take long to pay their creditors to enhance profits. The study recommends that managers of listed energy companies aspire to eliminate the time it takes to convert non-cash assets into cash by, for instance, introducing services that allow customers to pay in advance-for instance using pre-paid cards and enhancing efficiency in billing. The companies should develop better relationships with their suppliers which will enable them make favourable agreements concerning the accounts payable and accounts receivable days.
- ItemEmployees perceptions towards saving for retirement and their effect on employee commitment(Strathmore University, 2014) Maruti, Rose NekesaThe purpose of this research project is to find out the perceptions employees hold towards saving for retirement among different age generations, whether they consider it important and necessary to save for retirement or not, and their effects on employees commitment to organizations. The researcher selected to carry out her study specifically on the banking industry in Kenya because it is a major contributor to the economy and it has a large workforce (since it absorbs a lot of talent from the universities and colleges from within and out of the country). It provides a good population mix of individuals in different age groups (Baby Boomers, Generation X and Generation Y) who are suitable for this study. This industry has also been selected because it has several banks of different sizes which carry out different initiatives with regards to retirement saving, thus providing a good basis for my study. The specific objectives of this research were (a) to establish whether employees among the different age generations in the banking industry perceive it necessary to save for retirement, (b) to establish whether saving for retirement when offered as a benefit by the employers, has any effect on employees’ commitment to an organization and (c) to identify what are the preferred methods of saving for retirement by employees of the different age generations in the banking industry. The respondents of this research were selected from thirteen (13) banks in the Kenyan business market that have undergone mergers over the period of the last three years. Out of a population of 31,636 employees in the banking industry, using stratified random sampling and simple random sampling in each stratum, a sample of 150 respondents was selected to participate in the research. 135 respondents completed and returned their questionnaires. Findings and conclusions of the study indicate saving for retirement is necessary and important for employees in the different age groups, though the level of saving varies per age group. Retirement saving is determined by various factors including the level of income and the current financial needs to be met; Saving for retirement has an effect on employees’ commitment to organizations. Employees’ commitment to organizations increases as they grow older and are keener on their retirement savings, therefore they want to remain committed to an employer who provides retirement saving benefits; There are preferred methods of saving for retirement among the different age groups. The younger people prefer to save in short-term quick returns investments while the older individuals prefer to save in longer-term investment plans that offer more security and investment return. Arising from these conclusions, recommendations made include the need to undertake more initiatives to increase the awareness on the necessity and importance of saving for retirement, especially among the Generation Y employees; Organizations need to introduce initiatives that will encourage employees’ commitment to organizations; and the need to increasing financial literacy among employees of the different age groups so as to enable them make wise financial saving decisions. Further research is required with a focus on the investment initiatives being undertaken by employer sponsored retirement schemes. This study brought out that employees undertake other saving initiatives away from their employer sponsored schemes so as to increase their investment return. This indicates that either the employer sponsored schemes are not aggressive in their investments patterns resulting to low returns or the schemes are not being well managed. The study on investment initiatives being undertaken will also help in bringing out the preferred saving options that employer sponsored schemes can incorporate in there schemes so as to encourage more retirement saving among the different age groups of employees.
- ItemEvaluating employee turnover and the adoption of modern retention strategies in Kenyan insurance firms(Strathmore University, 2015) Kinyanjui, NjeriEmployee turnover and its relationship to retention strategies employed by firms is a complex area of study. Many investigations have been published about employee turnover and job satisfaction however; there is a paucity of information in the literature about the traditional and modern employee retention strategies and their effect on employee turnover. The purpose of this study therefore was to evaluate employee turnover and the adoption of modern employee retention strategies in the Insurance industry with a view of recommending strategies to reduce employee turnover. The study used the descriptive design and the methodology was quantitative. A multi stage sampling technique was used to select a sample of the top five insurance companies in Kenya and the respondents from the selected firms. The main instrument of data collection was a questionnaire. The findings indicate that the employee turnover rate in the insurance firms was moderately high but there were efforts by the respective management to reduce this rate. Inadequate and mismatched employee pay package as well as few promotion opportunities was regarded as the greatest cause of employee turnover in the firms. The most common traditional retention strategy employed by the firms was salary increments and subsidized insurance premiums for the employees. The findings also indicated that most of the modern retention strategies were used to a less extent though the develop-deploy-connect seemed to be gaining traction in use by the firms. The highlighted recommendation was that the firms should seek to employ modern retention strategies as they have been proven to be effective in developing economies.
- ItemEvaluating the implementation of energy and transportation projects using Public Private Partnership (PPP) model in Kenya : a multiple case study(Strathmore University, 2015) Hirani, NarendraDevelopment of its Infrastructure is critical for Kenya to achieve its socio-economic development and poverty reduction goal. However, for Kenya to develop its infrastructure to achieve national development targets it needs to fill a funding gap of USD 40 Billion over the next eight years. The gap in the funding can be filled by using alternative ways to implement the projects. PPP model can be used to implement the projects. However, for the PPP projects to be successfully implemented, certain frameworks need to be in place as well as certain key areas of activity be identified in which favourable results are desired. These key area of activities are defined as Critical Success Factors (CSFs). The study analyses two case studies namely; Kenya and Uganda Railways Concession and Kipevu II Power Project to assess the impact of the CSFs on the successful implementation of the project. The frameworks present at the time of implementation are also taken into account. The study revealed that the CSFs influenced the successful implementation of the project. The study also established that the impact of the CSFs is dependent on the framework in place at the time of implementation and the risks associated with the Project. The study recommends staffing of the relevant bodies with trained and experienced staff and training the incumbent staff on implementation of PPP projects, improve the regulatory environment and develop financial capacity locally. In addition it also recommends that the private parties form appropriate consortiums to successfully undertake the projects. The study further recommends that projects in other sectors are studies as well as projects that shall be implemented wholly under the ambit of the PPP Act.
- ItemAn evaluation of information technology uptake by hotels : a case of Nairobi County(Strathmore University, 2015) Ogembo, Martin OdhiamboSustainability of hotels in Nairobi County are threatened by low levels of adoption of technology in their operations compared to their peers in the developed countries. If they can reach comparable levels of IT uptake then they will be exposed to the same level of technological potentials and advantages. Information Technology offers them a chance to quickly catch up and close this gap and ensure participation in a more equitable playing field and access new and lucrative global markets as they will benefit immensely from increased operational efficiencies, customer satisfaction, reduction in the degree of inefficiencies and uncertainty and achieve higher profitability and better management of their products. The purpose of this study was therefore to analyse the barriers/factors that are causing low information technology uptake by the hotels in Nairobi County and to develop/validate a framework that can be adopted by the hotels. The study used the descriptive survey research design method through use of mainly questionnaires to collect data. The major findings of the study are that although most of the hotels have established IT departments (89.6%), others outsource partly (54.2%), and IT resources was found to be insufficient (64.6%) in many establishments. The study also revealed that the areas that majority of hotels have adopted IT to a large extent are in security systems such as in using an integrated CCTV system (97.9%), intrusion detection security systems (58.3%) and biometric identification system (54.2%). The study further showed that among the processes that the hotels have integrated IT to a high extent are mainly in all core business processes such as process of check in/check out of guests (97.9%), process of information/data exchange (89.6%) and process of Food and Beverage control (83.3 %). Finally, the study showed that the main barriers to adoption of information technology in the hotels are high cost of implementation (35.4%) and difficulty in making returns on investment justification (20.8%), reluctance/fear of change (12.5%), lack of strategic management (10.4%), lack of clear vision and objectives (10.4%) and lack of corporate executive level support (10.4%). The results of the framework developed and validated show that 50% of the hotels sampled had a low score implying least readiness/willingness to adopt ICT. Based on the findings of the study, hotels must clearly define their business aims and objectives, then develop a strategy to most effectively use technologies that will enable them realize these objectives and invest an appropriate amount into infrastructure and applications as well as provide support to top management and IT skills training for employees. Focus must shift from adopting IT to mainly support operations to assisting management in strategic decision making and thereby help transition to a knowledge industry. They must aggressively embrace technologies such as smart systems and applications such as Enterprise Resource Planning, Property Management Systems, and Activities Management Systems to enhance their competitive edge.
- ItemAn evaluation of the role of information sharing in mitigating non-performing loans in Kenya’s banking sector(Strathmore University, 2015) Maina, Naomi WanjikuThis research was an evaluation of the role of information sharing in mitigating non-performing loans in Kenya’s banking sector. Guided by five research objectives, the study established quarterly distribution trend of the non-performing loans (NPL) from 2004-2013, identified factors accounting for NPL, examined the relationships between the key factors, evaluated the effect of information sharing on NPL and proposed strategies on improving information sharing towards mitigating NPL for Kenya’s banking sector. A census of 44 banks and 2 credit reference bureaus (CRBs) was undertaken using self-administered questionnaires and interviews, respectively. Descriptive statistics, factor and regression analysis were employed on the primary and secondary data collected. Limitations to the study included denied access by Central Bank of Kenya (CBK) and some commercial banks resulting in a 63% response rate. The study confirmed that information sharing practice is only one among other factors that account for NPL. The behaviour of the NPL trend in 2004-2013 was observed as affected directly or indirectly by bank lending rates, real GDP, annual overall inflation and specific provision. Three factors account for NPL behaviour – regulation, macroeconomic and bank-specific factors. In a multiple regression model bank-specific factors - bank lending rates and specific provision- have significance; macroeconomic factor overall annual inflation showed significance; real GDP showed non significance. As a bank specific factor, information sharing role is critical in mitigating NPL as it corrects the moral hazard problem of information asymmetry. All banks confirmed submitting and receiving ‘full file’ credit information to either of the CRBs. Negative credit information received from CRBs assists banks’ decision to ration credit, demand collateral and reject loan application; while positive information guides banks’ as one of several other assessment criteria required before loan approval. Strategies to improve the mechanism include expansion of borrower data captured by CRBs, CBK to promote innovation in information sharing products, quality and reliability of the data. The peculiar and contradicting behaviour of macroeconomic factors – overall annual inflation and real GDP – in affecting levels of NPL in a multiple regression model is a suggested area of further study.
- ItemExamining the factors that contributed to the turnaround of Chase Bank (Kenya) Ltd(Strathmore University, 2015) Waweru, M. GitauThe main objective of this study was to examine the factors that contributed to the turnaround of Chase Bank (Kenya) Ltd from insolvency in 1995 to a vibrant solid 2nd tier bank by 2010. The study sought to establish the factors that contributed to the bank’s turnaround. The study adopted a case study methodology. Primary data was collected through interviews with 10 employees, a longstanding customer and a representative of the industry association. The study results suggest that leadership, focus on stakeholder needs and strategy would explain the bank’s successful turnaround more than focus on process improvement does. With respect to leadership, the study found that openness with stakeholders, including openly admitting mistakes, discussing the bank’s vision, getting commitment from the employees and building confidence in the institution were some of the leadership factors that contributed to the turnaround. With respect to strategy, the study found that identifying and developing expertise in a niche market, nurturing relationships with customers in the niche, evolving this strategy by converting to an SME bank assisted the bank in generating profitability necessary for the turnaround. Further, by involving every one of its employees, directly and indirectly in the strategy development, employing the balanced scorecard, linked to the performance management system to monitor strategy implementation, the bank ensured that its employees understood and implemented the strategy. The bank also used various means to gain the support from its main stakeholders. In terms of process improvement, the bank’s IT systems did not play a major part in the turnaround, but the bank tried to ensure that it provided first class services to its customers even though they had a system that was largely manual. The study concludes that leadership, strategic focus and stakeholder focus contributed the most in the turnaround of Chase Bank. Process improvement focus may not have made significant contribution to the turnaround, but this shortcoming was compensated for by first class customer service. This research adopted a qualitative approach. Further research using a quantitative approach may throw more light into how leadership, strategic focus, stakeholder focus and process improvement focus interacted with each other.
- ItemExamining the role of social entrepreneurship in water resources users associations in enhancing the management and conservation of water resources(Strathmore University, 2015) Ogut, Petronilla A.It is expected that as the world population continues to soar, there will be an increased pressure on the available water resources. This study sought to examine the role of social entrepreneurship in water resources users associations (WRUAs) in enhancing the management and conservation of water resources in Kenya. Specifically, the study explored the motivation behind the formation of WRUAs, the sustainability of their social mission and their economic sustainability while at the same time unraveling the opportunities available to them and which were capable of enhancing them to attain their mandate. The study further explored the challenges faced by WRUAs. All this was carried out with the aim of establishing a clear inter-linkage of WRUAs and the concept of social entrepreneurship in order to establish a sustainable social entrepreneurship framework in the management and conservation of water resources. The study was carried out in two catchment areas; Tana and Athi Catchment Basins. It was qualitative in nature and was able to draw the participation of one hundred and thirty five (135) members drawn from fifty three (53) WRUAs and six (6) key informants from institutions that were key players in water management and conservation. While focus group discussion was used to gain insights from the members of the WRUAs, interview schedules were used to gather information from the key informants. Observations in the form of transect walk enabled the study to capture more insights into the operations of the WRUAs. In total, twelve (12) focus group discussions were carried out. The data gathered was analyzed through content analysis and descriptive inferences made out it. The findings of the study reveal that the motivating factors leading to the formation of WRUAs are centered on the conservation and management of water resources at the sub-catchment zones. Such factors include; the need to address environmental degradation, create a sustainable solution to water related conflicts, curb pollution of water resources, address the issues of water scarcity, quality and quantity among others. The WRUAs address these issues by relying on member contribution, annual subscriptions and from funding from Water Resources Management Authority, Water Services Trust Fund and other stakeholders. At the same time, most of the WRUAs in this study had been able to engage in commercial activities in order to raise revenue to sustain their administrative, operation and maintenance expenses. Nevertheless, most of these associations had not been able to realize economic sustainability by the time of this study. The main challenges facing the WRUAs were those of lack of adequate financial capacity leading them to be over reliant on the membership contributions and annual subscriptions as well as funding from government agencies and donations from well wishers, NGOs and other stakeholders. Weak institutional structures and the existence of many overlapping role of government agencies was also another challenge that affected the ability of the WRUAs to be economically sustainable and successful in many of their ventures. The study was able to find out that WRUAs were a valuable component in many sectors of the economy such as agriculture, tourism, energy and were a source of employment to many. Nevertheless, the non-existence of tools to measure the performance and impact of WRUAs was a challenge that negatively impacted on the ability of the value proposition of WRUAs to be clearly articulated. The respondents were of the view that more needs to be done if WRUAs were to become a sustainable venture both economically and socially. To achieve this, the study found the social entrepreneurship concept as one of the best tools of addressing the economic sustainability of the WRUAs.
- ItemAn exploratory study of the relationship between corporate governance mechanisms and firm performance in Kenyan stockbrokerage firms(Strathmore University, 2015) Kamau, Florence MuchunuThe application of corporate governance in capital markets intermediaries’ firms is aimed at ensuring stability and profitability of these firms. Stockbrokers in particular are expected to operate on the pillars of honesty, prudence and integrity and therefore the need to apply corporate governance mechanisms. The Capital Markets Authority (CMA) is the only body mandated to regulate Stockbrokers in Kenya. In order to strengthen governance and safeguard public interests in the capital markets industry, the CMA introduced the CMA 2011 guidelines on corporate governance. The rationale of this study was to investigate the corporate governance mechanisms and determine their effects on firm performance among the Kenyan stockbrokerage firms. The specific objectives of the study were to establish the corporate governance mechanisms and practices relevant to the Kenyan stockbrokerage firms, to determine whether there is a relationship between corporate governance mechanisms and firm performance, identify the challenges in implementing the corporate governance mechanisms and to assess the extent of implementation of the CMA regulation on Corporate Governance. The research design was exploratory and quantitative methods were used. The target populations were all the nineteen stockbrokerage firms listed and licensed in Kenya by the CMA and the main instrument was the questionnaire. Descriptive tables for mean, standard deviation, kurtosis and frequencies were then drawn and linear regression used to determine the relationship between the corporate governance mechanisms and firm performance (turnover). The forecasting model for performance of Kenyan stockbrokerage firms, was moderately significant with R2 of 48.3%. The study concluded that the board and the audit committees are instrumental in managing the businesses in a professional manner. The study concluded that the extent of the implementation was mainly driven by regulatory requirement to comply with the guidelines as opposed to business objective. It is recommended that future studies include other dependent variables such as return on investments, net profit, shareholders value, quality of products/service, market share and customer satisfaction.
- ItemAn exploratory study on consumer purchase drivers towards private label brands : a case of Nakumatt Supermarkets in Nairobi(Strathmore University, 2015) Ng’aru, Martha NjeriPrivate label branding strategies are an emerging trend among retail supermarkets in Kenya. Though previous studies on private label brands have been done in other countries, none has been done in Kenya, hence the gap explored in this study. The study sought consumer perceptions towards private label branded products by examining their response to consumer purchase drivers of price, promotion, store image, packaging and product quality. A descriptive survey design was used for the study with a total of 166 respondents drawn from various Nakumatt stores in Nairobi. Collected data was analysed using a quantitative approach. The results from the regression analysis model showed that quality, price and store image were most influential in consumers’ decision to purchase Nakumatt’s Blue Label branded products. Further, using ANOVA test the study demonstrated that consumers do perceive private label brands to be different from established national brands, with regard to price and packaging. In view of the findings, to retailers offering private label brands in Kenya, the study proposes differentiation and cost leadership strategies. These strategies embedded on the most influential consumer purchase drivers, will enable retailers effectively compete with established brands and gain a bigger market share among retail supermarket shoppers in Kenya. As the study focused on Nakumatt only, future studies may include other major retail supermarkets in Kenya and compare the results on consumer perceptions towards private label brand offering. Further studies may also be done to identify and include other factors that may influence consumer purchase decisions.