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- ItemEffects of mergers and acquisitions on market equilibrium performance measures for processed milk market in Kenya(Strathmore University, 2016) Chege, Patrick NderituThe evaluation of the mergers and acquisitions effects on the main equilibrium performance measures is essential to the understanding of the competition policy dynamics in a market with few players. There is need for adoption of a robust mergers analysis model to address the shortcoming of the traditional SSNIP model which only focuses of prices and leaving out other important aspects of mergers and acquisitions. This study aimed to determining the effects of the mergers and acquisitions on market prices, consumer welfare, and aggregate profit of the merging firms and those of the non-merging firms and therefore answering the question on the overall effect of mergers and acquisitions on the equilibrium performance measures on milk market using data from all the 34 licensed and active milk processors in Kenya. A new model of analysis as developed from the Canadian Competition Policy maker i.e. The Canadian Competition Policy Merger Simulation Model was used. The study found that mergers and acquisitions lead to increase in market shares of the merging firms. Their non-merging counterparts also record a significant increase in their market shares after mergers and acquisitions have taken place even though they are not directly involved in the merger or acquisition. Herfindahl-Hirschman Index, or HHI which is a measure of the size of the firms in relation to the industrial and an indicator of competition and the concentration ratio (CR4) of the four largest firms in the industry increased. The study also found that mergers and acquisitions have a significant effect on product price. From the findings, the study concludes that mergers and acquisition not only leads to increase in market shares of both merging and non-merging firms but also creates market dominance due to reduction in the number of market players in the industry. This firms ends up dictating major terms of trade affecting different equilibrium measures such as product prices, volume of output released in the market, quantity produced and the social welfare. Therefore there is need for all competition policy practitioners to carry out robust analysis for proposed mergers or acquisitions before approval. However, due to the short-comings of the Canadian Competition Policy merger Simulation Model where only companies with a market share of one percent and above can be used, a mixed model approach can be used to help arrive to near accurate conclusions.
- ItemAn examination of the effect of Access to Government Procurement Opportunities (AGPO) programme on performance of youth owned enterprises in Nairobi County in Kenya(Strathmore University, 2016) Gichuhi, MonicaThrough Access to Government Procurement Opportunities (AGPO), the government seeks to unlock the potential of the youth by empowering and giving them more opportunities to do business with the government. Out of 30,000 youths, People with Disabilities (PWDs) and women owned companies, only 6,000 have benefited from government procurement opportunities between 2013 and 2014. Empirical evidence on AGPO and its influence on performance of youth owned enterprises in Kenya are non-conclusive as it fails to clearly link the effect of preferential procurement policy, capacity building component of AGPO and availability of information on AGPO to performance of youth owned enterprises in Kenya. This study sought to investigate the influence of access to government procurement opportunities programme on performance of youth owned enterprises in Nairobi County in Kenya. Specifically, the study aimed to; establish the effect of preferential procurement policy on performance of youth owned enterprises in Nairobi County in Kenya; establish the influence of capacity building component of AGPO on performance of youth owned enterprises in Nairobi County in Kenya; and determine the effect of availability of information on access to government procurement opportunities programme on performance of youth owned enterprises in Nairobi County in Kenya. This study used an exploratory research design. The target population was 1000 youth owned enterprises in Nairobi County that have registered with AGPO program. Stratified random sampling and proportionate sampling techniques were used to select a sample of 150 youth entrepreneurs. Self-administered questionnaires were used to collect primary data while secondary data was obtained from AGPO related publications. Quantitative data was analyzed using descriptive statistics; nonparametric test (Chi-test) and correlation analysis. The qualitative data was analyzed using content analysis. Reliability of the instrument was estimated using Cronbach’s Alpha Coefficient after pilot study. Findings indicated that preferential procurement policy, capacity building component and availability of information on AGPO have a significant effect on performance of youth owned enterprises in Nairobi County in Kenya. The study recommends that the government should scale up capacity building by AGPO to be carried out nationally and make it mandatory for all its agencies to publicize tenders through channels that are easily accessible to the general public particularly the youths. There should be monitoring of AGPO programme to ensure that government agencies set aside 30% tenders for the youths and other special interest groups. Youth entrepreneurs should actively build their skills and knowledge on how to participate in public procurement to fully benefit from the 30% government tenders allocated for them. The study recommends for formulation of new theories to guide public procurement meant for special interest groups that do not follow the classical theories of procurement but seem to contradict them.
- ItemThe role of rules of procedure in mitigating against unintended consequences of public interest litigation: the case study of standard gauge railway(Strathmore University, 2016) Kibui, David NjoguThis study examines the role of rules of procedure in mitigating the un intended consequences of Public Interest Litigation (PIL) with reference to the Standard Gauge Railway in Kenya as a case study. In other jurisdictions, PIL has arguably brought about social transformation and protection of social and economic rights. In Kenya, the Chief Justice formulated the Constitution of Kenya (Protection of Rights and Fundamental Freedoms) Practice and Procedure Rules 2013 that will make it possible to implement Article 22 of Constitution. PIL therefore offers a real opportunity to advance, shape and implement policies in the public sphere as expounded in the provisions of the Constitution of Kenya, 2010. These include the national values under Article 10 and which binds all State Organs, State Officers and Public Officers whenever any of them applies or interprets this Constitution, enacts or applies or interprets any law, makes or interprets public policy decisions. Article 258 allows individuals to bring actions in public interest while Article 259 allows a person to contemplate any type of litigation as long as it promotes values, rule of law, development of the law and good governance. The thesis reviews the role of rules of procedure in other jurisdictions such as United States of America, India, South Africa and Kenya for comparison purposes. Despite many positive outcomes of PIL, this paper argues that there are occasions where the objectives of PIL are outweighed by its un intended consequences. With reference to the development of the Standard Gauge Railway, it will be illustrated that the un intended consequences of PIL can be injurious to public good. Twenty one legal suits in a span of two years from 2014 have been filed against SGR. To determine the adequacy of the rules to mitigate on the un intended consequences, the Constitution of Kenya (Protection of Rights and Fundamental Freedoms) Practice and Procedure Rules 2013 applicable to PIL in Kenya were investigated to determine their adequacy as applied in SGR Cases. These rules of procedure as applied in the SGR case form the basis of this study. A review of these rules has revealed that there is need to amend the rules to include timelines, vetting potential PIL, placing of a bond before filing PIL, punishing petitioner among others in order to mitigate on the un intended consequences of PIL.
- ItemStakeholders’ perception of the implementation of the Supreme Court of Kenya’s advisory opinion on gender representation: policy lessons and perspectives.(Strathmore University, 2016) Otieno, Oketch WilliamThe study examined stakeholder perceptions’ of the implementation of the Supreme Court of Kenya’s advisory opinion on gender representation. It aimed to establish the stakeholder perception of the implementation based on four variables of government policies, capacity, satisfaction and implementation tracking. The opinion of stakeholder groups that either affected or were affected by the advisory opinion was sought through a descriptive cross-sectional study in which the researcher conducted a survey using questionnaires to interview then collecting the necessary data. The study collected data from 90 respondents representing different groups interested in the Supreme Court’s advisory opinion on gender representation. The research adopted a descriptive research design where respondents were identified using purposive random sampling approach. Data from the respondents was collected through use of a semi-structured questionnaire. Ten open-ended questions were also included on the survey to capture participants’ own views on the implementation of the advisory opinion. To better understand and complement analysis of the quantitative survey data, qualitative analysis of the ten open-ended questions was also conducted. Data was coded and analyzed using the Statistical Package for Social Sciences (SPSS) version 20. The study reveals that significant differences exist in the perceptions of stakeholders regarding the four variables under study. No considerable differences in their perception of the government’s commitment to the implementation of the advisory opinion. Other findings reveal that various stakeholder perceptions in the study supported the view that the judiciary has a significant role influencing public policy through its advisory opinion such as the one under study. The study also assessed the stakeholder perceptions of the implementation progress and challenges deriving policy lessons and perspectives. However, a majority felt that little had been achieved on implementation of the advisory opinion which was due to lack of stakeholder consensus. Based on these findings, it was recommended that government sets up formal institutions or mechanisms for stakeholder negotiations towards securing legislative consensus. The government to support the process and also fast-track legislation that would provide a formula for realizing the two-thirds threshold as well as put in place a monitoring mechanism to track the implementation steps of the advisory opinion in Kenya. Lastly, government agencies should be allocated adequate resources to enhance their compliance to policy reforms that will realize the gender representation principle.
- ItemSingle customs territory implementation ; its effect on revenue collection and trade facilitation : case of Kenya(Strathmore University, 2016) Bifwoli, Thomas W.In June 2013, the presidents of Kenya, Uganda, and Rwanda decided to fast track the full implementation of East African Community’s Customs Union by launching a Single Customs Territory which is a form of a Customs Union. Its implementation and envisaged benefits have been documented. This study explores the details of aspects of SCT that could be having an effect on Kenya customs objectives which among others are revenue collection and trade facilitation. Data was obtained from Kenya Revenue Authority and analyzed. This data was for goods on transit from Mombasa through to Malaba exit point and of import data through Malaba. The period of the data under consideration was from January 2013 to December 2015. The defining date for this study is July 1 2014, when Single Customs Territory came in force. Analysis of the data was conducted to determine the effect of Single Customs Territory on trade facilitation and revenue collection before and after implementation of Single Customs Territory. Correlation analysis and a paired t-test ware done to compare extend of variance between the two periods, before and after SCT. The analysis showed that there has been significant increase in trade volumes of transit goods from Mombasa port through Malaba exit point. Similarly there has been an increase of goods imported through Malaba border point to Kenya. The increase in trade volumes is indicative of better trade facilitation by Kenya Revenue Authority after implementation of Single Customs Territory. Secondly the analysis showed that customs value reduced for both transit, and import goods through Malaba. Customs value is the basis for taxation. This means that with low customs value (tax base), revenue collection has also reduced. Based on this study, it is recommended that a review of the Single Customs Territory regime be undertaken by Kenya. The relevant government department should consider having an in-depth look into the observed negative effects of SCT in this case effect on revenue collection. Secondly necessary steps for implementation of a Customs Union needs to be completed including harmonizing of internal tariffs, common collection point of revenue among others. This will make it possible for the achievement of the SCT objectives.