MDF Theses and Dissertations (2025)
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- ItemDeterminants of crowdfunding success among Micro, Small and Medium Enterprises in Nairobi County, Kenya(Strathmore University, 2025) Haji, A.Crowdfunding has become an increasingly popular alternative financing mechanism for Micro, Small, and Medium Enterprises (MSMEs) that face persistent challenges accessing conventional financial services. This study explored the determinants of crowdfunding among MSMEs in Nairobi County, Kenya, with a focus on four key factors: entrepreneur’s characteristics, market-related factors, regulatory factors and technological factors. The research was anchored on the Transaction Cost Theory and the Diffusion of Innovations Theory, which informed the understanding of financing behaviour and technology adoption. A descriptive research design and positivist research philosophy guided the study, with data collected through structured questionnaires. The target population comprised 399 registered MSMEs, and the sample size was determined using the Yamane formula. Ultimately, 354 valid responses were received, resulting in an 88.7% response rate. Although the study aimed to cover all 17 sub-counties in Nairobi County, responses were successfully collected from 10 sub-counties namely: Embakasi West, Embakasi East, Embakasi North, Embakasi South, Kamukunji, Makadara, Mathare, Roysambu, Ruaraka, and Starehe. A stratified random sampling technique was used to ensure representation across different business sizes. Data was analysed using descriptive statistics, Pearson correlation, and multiple linear regression analysis. Diagnostic tests for normality, multicollinearity, and heteroscedasticity confirmed the model's validity. The findings revealed that entrepreneur’s characteristics and market-related factors were statistically significant determinants of crowdfunding success, while technological factors and regulatory factors were not statistically significant. These results highlighted the importance of individual entrepreneurial capacity and effective market strategies in enabling successful crowdfunding initiatives. Although digital infrastructure and regulatory conditions were considered relevant, they did not show a significant direct impact on crowdfunding success. The study concluded that enhancing digital literacy, strengthening entrepreneurial competencies, and improving market visibility can significantly improve crowdfunding outcomes for MSMEs. It recommended that policymakers streamline regulatory processes and create targeted support programs to foster crowdfunding adoption. The research offered valuable insights for entrepreneurs, digital platform developers, and regulatory bodies aiming to enhance financial inclusion and economic resilience through alternative financing models. Key words: Crowdfunding, MSMEs, Entrepreneurial Characteristics, Market Conditions, Regulatory Environment, Technology Adoption, Alternative Financing, Transaction Cost Theory, Diffusion of Innovations Theory.
- ItemDeterminants of access to credit among the Small and Medium Enterprises in Kibra, Nairobi: moderated by financial literacy(Strathmore University, 2025) Ogada, F. O.The research examined critical determinants affecting SME access to financial resources for Small and Medium Enterprises (SMEs) in Kibra Constituency, Nairobi County. The global economy depends critically on SMEs, which support substantial employment and GDP growth but still have difficulty accessing funding. The research focuses on three key factors: firm characteristics, financial characteristics, and entrepreneurial characteristics, with financial literacy as a moderating variable. Using a quantitative research design, data was collected through self-administered questionnaires to owners and managers, obtaining a sample of 200 respondents. Multiple linear regression models were used to examine the relationships between the variables, while hierarchical regression analysis was employed to assess the moderating effect of financial literacy. This approach measured how financial literacy influences the pattern of finance accessibility in relation to entrepreneurial characteristics. The findings reveal that firm size and financial characteristics such as audited financial statements, firm performance, tangible assets, and tax compliance significantly influence Access to Credit. Managers who exhibit entrepreneurial characteristics gain better outcomes concerning funding access through their accumulated work experience and active engagement in business networking activities. Financial literacy is a moderator that boosts the funding access capability of SMEs while linking their entrepreneurial characteristics to potential outcomes. The findings reveal that improving financial transparency and enhancing entrepreneurial skills and financial literacy creates essential conditions for better SME funding opportunities. Hierarchical regression results showed that financial literacy strengthened the relationship between entrepreneurial characteristics and Access to Credit. The study offered strategic recommendations to financial institutions, policymakers, and SME operators while providing critical knowledge about SME financing challenges that help similar contexts. Keywords: Access to Credit, SMEs, Financial Literacy, Kibra, Entrepreneurial Characteristics, Firm Characteristics, Financial Characteristics, Regression Analysis, Microfinance, Access to Credit, Financial Inclusion, Kenya, Loan Accessibility, SME Funding, Moderating Effect
- ItemThe Determinants of regulatory compliance among insurance companies in Kenya(Strathmore University, 2025) Wainaina, A.The increasing incidence of fines and penalties imposed on insurance companies in Kenya for non-compliance has raised concerns about their financial stability and ability to meet client obligations. This study investigates the key determinants of regulatory compliance within Kenya's insurance sector, focusing on ownership structure, board composition, and firm size. While prior studies have shown mixed results on the influence of these factors, this research adds clarity by examining them within the Kenyan context. Guided by agency theory and stakeholder theory, the study adopted a positivist philosophical stance and employed an explanatory research design based on secondary data from the Insurance Regulatory Authority (IRA) and published financial records. The analysis revealed that ownership structure and board composition significantly influence regulatory compliance among insurance companies. In contrast, firm size had no notable effect. Additional factors such as company age, leverage, and the range of insurance classes offered also played varying roles in compliance behavior. The findings underscore the critical role of ownership concentration and board independence in enhancing regulatory compliance within the Kenyan insurance sector. The study reveals that higher ownership concentration fosters greater oversight and accountability, while independent boards are better positioned to ensure adherence to regulatory standards. Based on these findings, insurance firms are encouraged to optimize their ownership structures and strengthen board independence to improve compliance. Policymakers are urged to introduce incentives for concentrated ownership and to enhance regulations promoting board independence, ensuring stronger corporate governance across the sector. This study contributes to the broader discourse on regulatory compliance by emphasizing the significance of governance frameworks in shaping compliance behavior within the insurance industry. Keywords: Regulatory compliance, Insurance companies, Corporate governance, Ownership structure, Board composition, Leverage, Kenya, Agency theory, Stakeholder theory.
- ItemFactors influencing the financial performance of SACCOs in Kenya: a comparative analysis of regulated deposit taking SACCOs versus non-deposit taking SACCOs(Strathmore University, 2025) Maritim, A. C.Savings and Credit Cooperatives (SACCOs) are a vital component of Kenya’s financial system, fostering financial inclusion by extending credit and savings services to underserved populations. However, performance disparities between Deposit-Taking (DT) and Non-Deposit-Taking (NDT) SACCOs remain underexplored. While previous studies have predominantly focused on regulated DT SACCOs, limited comparative analysis exists on how selected financial ratios and operational strategies influenced financial performance across both categories. Anchored in Agency Theory and Asymmetric Information Theory, this study sought to fill that gap by examining key determinants of performance and strategic differences between DT and NDT SACCOs in Kenya. The study adopted a mixed-methods approach, combining quantitative analysis of panel data from 357 regulated SACCOs between 2020 and 2023 using a fixed effects model, with qualitative insights from thematic analysis of primary data collected from 43 SACCOs. Financial performance represented by return on assets (ROA) was assessed using ratios from financial indicators, capital adequacy, liquidity, efficiency, and asset quality. The study also incorporated management perspectives on operational strategies to contextualize quantitative findings. The findings revealed that DT SACCOs exhibited superior financial performance in terms of capital adequacy, liquidity, and profitability, largely due to stronger regulatory oversight and access to deposits. However, they also experienced operational inefficiencies attributed to high compliance and administrative costs. In contrast, NDT SACCOs, though limited in capital mobilization and external funding, benefited from leaner structures, greater cost-efficiency, and closer member engagement, particularly in managing credit risk and asset quality. These results affirm the relevance of Agency Theory, highlighting how regulatory governance enhances financial stability in DT SACCOs but can also introduce inefficiencies. At the same time, Asymmetric Information Theory explained how NDT SACCOs leverage trust-based lending and informal governance mechanisms to maintain stable operations despite resource constraints. The study contributes to literature in cooperative finance by offering empirical insights into the differential performance drivers of DT and NDT SACCOs and underscores the need for targeted policy reforms to enhance operational efficiency, financial sustainability, and regulatory responsiveness in Kenya’s SACCO sector. Key Words: Deposit-Taking SACCOs, Non-Deposit-Taking SACCOs, Financial Performance, Capital Adequacy, Asset Quality, Efficiency, Liquidity, Operational Strategies
- ItemModerating effect of biodiversity conservation on the relationship between agroforestry practices and productivity of smallholder farmers in Mt. Elgon, Kenya(Strathmore University, 2025) Loyatum, A.Agroforestry, practiced on over 1 billion hectares globally, represents 28% of agricultural land area and offers potential solutions to smallholder farmers’ challenges, including soil degradation, low productivity and climate variability. Despite its extensive adoption, there is limited statistical evidence quantifying the impact of agroforestry practices and biodiversity conservation on farm productivity. This study sought to address this gap by examining the relationship between agroforestry practices, biodiversity conservation and productivity in Mt. Elgon Sub-County, Kenya. Specifically, the study aimed to analyze the effects of agroforestry types, implementation scale and utilization of extension services on productivity. Additionally, it evaluated how biodiversity conservation moderated the relationship between agroforestry practices and productivity. The research was underpinned by three theories: the Theory of Agroforestry Systems, which explains the ecological and economic synergies of integrated farming systems; the Resource Dependence Theory, emphasizing farmers’ reliance on external and natural resources; and the Theory of Planned Behavior, which accounts for farmers’ attitudes and intentions in adopting agroforestry. A pragmatist research philosophy guided the study, focusing on actionable insights for addressing real-world challenges. A concurrent triangulation research design was employed, combining qualitative and quantitative methods to ensure robust findings. The study targeted smallholder farmers practicing agroforestry in Mt. Elgon Sub-County, Kenya, estimated at 16,283 households. A sample size of 384 farmers was determined using Fisher’s formula, with participants selected through stratified random sampling across geographical zones and purposive sampling for key informants to ensure comprehensive representation of agroforestry practices. Data was collected through questionnaires and key informant interviews from a stratified random sample of smallholder farmers in Mt. Elgon Sub-County. Quantitative data was analyzed using SPSS Version 27, employing descriptive statistics and multiple linear regression, while qualitative data underwent content analysis. The findings revealed that the type of agroforestry system significantly influenced farm productivity, with more diverse systems showing greater benefits. Expanding the scale of agroforestry implementation had the strongest positive impact on productivity, demonstrating the advantages of wider adoption. Access to extension services contributed moderately to productivity gains, particularly when combined with other factors. Most notably, biodiversity conservation played a crucial moderating role, enhancing the positive relationship between agroforestry practices and productivity, especially when implemented at larger scales and supported by extension services. The research recommended that farmers should be supported with targeted interventions to enhance the scale and effectiveness of agroforestry implementation. This study contributes to policy frameworks and extension programs, supporting sustainable agricultural practices and biodiversity management in the region. Keywords: Agroforestry Practices, Biodiversity Conservation, Smallholder Productivity, Sustainable Agriculture, Mt. Elgon Kenya.