MDF Theses and Dissertations (2023)

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    The Effects of financial inclusion on entrepreneurial venture formation in marginalized areas in kenya - a case of Chepyuk Ward, Mt. Elgon Sub-County
    (Strathmore University, 2023) Kipnusu, T. K.
    Financial inclusion has widely been touted as a vital tool in alleviating poverty and reducing income imbalance among the rural-poor in developing economies. The concept of financial inclusion (FI) has become popular and has been described as a means of easy and voluntary access to basic financial services. This study sought to determine the effect of financial inclusion on entrepreneurial venture formation in marginalized areas with focus on Chepyuk Ward, Mt. Elgon Sub-County in Kenya. The highest financial exclusion of 29% is in marginalized areas compared to 2% in non-marginalized areas. Further, Commission for Revenue Allocation identifies Mt Elgon in Bungoma County, Western Kenya among 1,424 areas in 47 counties as most deprived and therefore marginalized. The overall objective of the study was to determine the effect of financial inclusion on entrepreneurial venture formation in marginalized areas with focus on Chepyuk Ward, Mt. Elgon Sub-County in Kenya. The study had three specific objectives: The first specific objective was to establish the extent of access to financial services and its effects on entrepreneurial venture formation in Chepyuk Ward, Mt. Elgon Sub-County in Kenya. The second specific objective was to establish the extent of usage of financial services and its effects on entrepreneurial venture formation in Chepyuk Ward, Mt. Elgon Sub-County in Kenya. The third specific objective was to investigate the level of awareness of existence of financial services and its effects on entrepreneurial venture formation among the marginalized areas of Chepyuk Ward, Mt. Elgon Sub-County in Kenya. This study used two theories; Capabilities theory and theory of asymmetric information. Descriptive research design was applied and a sample size of 379 households from a target population of 7,274 households from Chepyuk ward was used in this study. Two research assistants were trained and supported data collection process. The study adopted a spearman`s rank correlation coefficients and binary logit regression model. Results of the study indicated that there was a positive and not significant effect of access to financial services on entrepreneurial venture formation. There was an inverse and not significant effect of usage of financial services on entrepreneurial venture formation. Moreover, there was an inverse and significant effect of level of awareness of financial services and entrepreneurial venture formation in Chepyuk Ward, Mt. Elgon Sub-County. The study concludes that extent of financial access, access to financial training and financial literacy are catalysts of entrepreneurial venture formation. There is need for cost benefit analysis by financial services providers so as to examine the costs of credit facilities, use of mobile financial services and micro insurance so as to match the need with costs incurred by service seekers, especially the low income earners in the marginalized areas. There is need for deployment of strategies that may alter the inverse effect of access of financial services, access of financial training and financial literacy. There is need for development of policy programs that would mitigate against the levels of information asymmetry and ultimately increase uptake of financial products and reverse the trend of entrepreneurial venture formation.
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    The Effects of financial literacy on the performance of Agro processing companies in Nairobi County, Kenya
    (Strathmore University, 2023) Mwirichia, D. N.
    Globally, financial literacy has gained attention in the business industry due to its significant impact on the sustainability of a business. This study sought to assess the effects of financial literacy on the performance of Agro processing companies in Nairobi County. The specific objectives of the study were: to determine the effects of financial budgeting literacy on the performance of Agro processing companies in Nairobi County; to establish the effects of financial risk management literacy on the performance of the Agro processing firms and to determine the effects of debt management literacy on the performance of Agro processing firms in Nairobi County. The study was anchored on financial literacy theory and used a descriptive correlational research design. The study target population comprised of all the 112 Agro processing companies in Nairobi County with the target respondents being the financial officers, chief accountants and other senior individuals in the firms’ finance and accounting departments. The study used census survey approach to obtain information from the 112 Agro processing companies in Nairobi County. Data was collected using questionnaires which were online administered using Google Docs. Gathered data was cleaned and then analyzed qualitatively and quantitatively. Qualitative data was analyzed thematically while quantitative data was analyzed by the aid of statistical software SPSS version 24. The study found that is a significant positive relationship between financial budgeting literacy, financial risk management literacy and debt management literacy as evidenced by the positive correlation. Further the model of the study concluded that financial budgeting literacy has a statistically significant impact on performance of Agro processing companies. The study recommends that Agro processing companies should move with speed in enhancing their staff members’ knowledge on emerging and disruptive financial concepts in relation to financial budgeting in order to maintain steady financial growth
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    Factors influencing the participation of youth in agribusiness in Kiambu and Machakos Towns in Kenya
    (Strathmore University, 2023) Mullu, L. M.
    Despite the high levels of unemployment, the youth rarely exploit opportunities in the agribusiness sector due to preconceived misconceptions and negative perceptions of agriculture as a career choice. However, agriculture is a significant contributor to the country’s economic development and the participation of the youth in the sector would surely play a significant role in easing the income challenges faced by the youth. To this end, the research sought to examine the factors that influence the participation of the youth in agribusiness activities. Specifically, the examination focused on the effect of market factors, technological factors, government factors and socioeconomic factors on the participation of the youth in agribusiness. The theoretical scope of the research was limited to the Push-Pull Theory and the Theory of Planned Behavior, which are relevant to the study. The research adopted a descriptive research design. The population of the research was 1,289,820 youth members drawn from both Kiambu and Machakos Counties. The study adopted convenience random sampling in the selection of the research participants, who were determined using the Krejcie and Morgan table. A sample of 384 youth members was selected, and the participants were apportioned across the two counties. Data was collected through structured questionnaires with focus interviews conducted with key informants in the agribusiness field. Data analysis was done using the SPSS software. The research implemented descriptive and inferential statistics in the analysis. The research further applied content analysis to review the qualitative research data within the study objectives. The analyzed research data was presented through pie charts, tables and graphs. Out of the response being sought in the study, the research was able to garner a 97% response rate which was deemed adequate for quantitative analysis. Overall regression analysis revealed that market factors have no statistically significant effect on youth participation in agribusiness, technology factors have a positive and significant effect on youth participation in agribusiness, socioeconomic factors a positive and significant effect on youth participation in agribusiness, and demographic factors have a significant relationship with youth participation in agribusiness in Kiambu and Machakos town. Regression results were that there was no statistically significant effect of market factors have no significant effect on youth participation in agribusiness. Findings led to the conclusion that technology factors and socioeconomic factors have a statistically significant effect on youth participation in agribusiness. Further, the study found that demographic factors such as gender, employment status, age and level of income have insignificant impacts on youth’s participation in agribusiness. On the other hand, the size of the household and the academic achievement of the youth were determined to have significant influences on the likelihood of participating in agribusiness. The study findings provide evidence that the youth are highly enthusiastic and motivated to participate in agribusinesses and that under the right conditions, more youth will get involved in the country’s biggest income earner. The study further calls on the inclusion of agricultural programs in schools from an early age to ensure the citizenship recognizes agriculture as a viable business activity from a young age. Another recommendation is for increased marketing and financing of agribusiness as a vital component of the economy to increase its attractiveness to foreign investors who can bring in newer farming methods, technologies and expertise. Key words: Market factors, technological factors, socioeconomic factors, Youth in agribusiness
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    The Effect of budget implementation on budgetary control in Elgeyo Marakwet County
    (Strathmore University, 2023) Kanda, M. J.
    The Controller of Budget has raised concerns about implementation of budget by the county governments among them being Elgeyo Marakwet. The county government has been marred by problems of budget deficits since the beginning of county governments in 2013-14 Financial year. It has also been facing challenges of under absorption of the recurrent and development expenditures. This study sought to investigate the effect of budget implementation process on budgetary control of Elgeyo Marakwet County in Kenya. The study also investigated the relationship between the budgetary control and the independent variables which are the budget expenditure, resource allocation and the Own Source Revenue Mobilization. The study was guided by budget theory and allocation theory. Data was collected from secondary sources, data of approved reports from the office of the Auditor General. Analysis of the data was based on the descriptive statistics and regression model analysis. The study used the Vector Autoregressive analysis. The choice of the model was informed by stationarity of data in levels. A lag selection of 2 was adopted, to ensure that the model was well-specified and had enough degrees of freedom. From the estimation, the study established that expenditure has a negative effect on budgetary control in the first and second lag. Own source revenue had a positive effect in the first lag. On the other hand, recurrent absorption had a negative effect on budgetary control in both the first lag and second lags. Finally, development expenditure absorption had a negative effect on budgetary control in both lags. The study suggests that the Elgeyo Marakwet county government need to enhance its revenue stream while also improving revenue collection efficiency by blocking leakages. This will guarantee that the approved budget is adequately funded. Secondly, the county government need to prioritize development initiatives and ensuring that projects are begun on schedule and within the time frame specified.
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    An Investigation of the challenges in sustainable finance for water and sanitation in Kenya
    (Strathmore University, 2023) Bundi, P. K.
    Water and sanitation are critical to achieving the Sustainable Development Goals in addition to having an impact on health, particularly that of children under the age of five. Economic losses prevalent because of increased household expenditures on health-related expenditures and decreased productivity because of water and sanitation-related diseases, translate into additional budgetary allocation requirements for curative health that could otherwise be used for developmental initiatives and projects in a country's economy. The study set out to investigate the challenges that impede sustainable financing of water and sanitation, as well as to investigate solutions that will aid in bridging the gap in the sustainable financing of water and sanitation in Kenya. The sustainability theory and stakeholder theory formed the foundation of this study. A qualitative research design was used for the study, with the respondents comprising of officials from the Ministry of Health (MoH) (national and county), the Ministry of Water, Sanitation, and Irrigation (MoWSI), developmental organisations, and financial institutions. The study gathered qualitative data from 30 experienced key informants and an interview guide was used to guide the interviews. Content analysis was used to analyse qualitative data, and the results were presented in prose form. The challenges impeding sustainable finance in water and sanitation including inadequate financing, dependency syndrome, rapid urbanisation, affordability, and knowledge gaps were examined, and solutions to bridge the gap in water and sanitation financing were discussed. Financial innovations such as blended finance, institutional arrangements, improvement of the regulatory framework, promotion of accountability in water and sanitation financing were among the solutions. Alignment of the solutions brought out the fact that water and sanitation sector harmonisation was crucial for its sustainable financing to aid in enhanced intersectoral monitoring and knowledge harmonisation, which would not only improve information exchange for improved sector monitoring and informed investment choices for the sector's sustainable finance for water and sanitation but also aid in the development of the water and sanitation sector financing governance framework. With these a market that attracts sustainable finance for the sector because of increased transparency, readily available information, and a market whose risks have been evaluated, mitigation measures developed, and information made available to all stakeholders, would result in the development of suitable financial solutions, and enhanced access to sustainable finance. Key Words: Sustainable Finance, Sustainable Development Goals, Stakeholder