MMA Theses and Dissertations (2022)

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Entrepreneurial orientation and performance of smallholder avocado women farmers in Uasin Gishu County, Kenya
(Strathmore University, 2022) Korir, Clare
It is commonly recognized that entrepreneurial activity contributes to the development of economies both locally and worldwide. Farmers with small plots of land in developing nations, particularly in sub-Saharan Africa, are active participants in agricultural markets such as export and domestic chains. The general objective of the study was to determine the effects of Entrepreneurial Orientation on performance of avocado smallholder women farmers in Uasin Gishu County, Kenya. The specific objectives were to identify effects of innovativeness, risk-taking propensity, proactiveness, and training on performance of avocado smallholder women farmers in Uasin Gishu County, Kenya. The study was guided by the Kirzner Theory and The Social Cultural Theory of Entrepreneurship. This study adopted mixed method approach. This captured both qualitative and quantitative data. The target population for this study was small scale avocado farmers from Turbo, Soy, Ainabkoi, Moiben, Kessess and Kapseret sub counties of Uasin Gishu County. Cluster sampling procedure was applied to select the subjects of study based on geographical location. Convenience sampling procedure was then used to pick the sample based on availability and willingness to provide information for the study. Data was collected through a questionnaire structured to meet the objectives of the study. Descriptive analysis was used to make sense of the data. The data were coded, and then analyzed using SPSS version 21, and the findings obtained presented in the form of tables, charts, and figures. The data collected in each Entrepreneurial Orientation were analyzed in a table to get the mean and standard deviation, respectively. The findings indicated that innovativeness, risk-taking propensity, proactiveness, and training significantly influence performance of farmers in Uasin Gishu County. The study recommended that more research should be done in the area of innovativeness to determine other methods that can help farmers define creative ideas to deal with challenges. The study also recommends that the County Government of Uasin Gishu should have trainings and workshops in place to encourage interactions and sharing of ideas by farmers. In addition, they should share new information, trends and ideas with farmers, so they grow as global exporters of avocados.
Effects of the Central Bank of Kenya’s discount rate on aggregate agricultural lending by financial institutions in Kenya
(Strathmore University, 2022) Kinuthia, Simon
Agriculture contributes substantially to the economy of Sub-Saharan African nations. In Kenya, it contributes up to 26% of the annual Gross Domestic Product (GDP) and is a significant employer. Previous research indicates that the sector receives minimal funding from banks, which subsequently limits production. Banks' portfolio lending to agriculture is estimated to be between 3% and 5% of their total lending business with farming considered a high-risk business. Through the monetary policy tools, which include interest on reserve, reserve requirements, discount rate, and open market operations, the Central Bank of Kenya (CBK) plays a very crucial role in regulating the flow of money within the banking system. The CBK can thus increase or limit banks' lending to borrowers. However, there is a lack of knowledge on the extent to which the monetary policy in Kenya influences lending to the agriculture sector. Notably, this study aimed at assessing the effect of the discount rate on aggregate agricultural lending by financial institutions regulated by the CBK. Specifically, the study objectives intended to establish how the discount rate’s expansionary, contractionary, and incentives/ innovations measures affect aggregate lending to agriculture by CBK-regulated financial institutions. The study was anchored on the both the Klein-Monti loan-pricing model and the quantity theory of money as these models exposit the factors that lenders consider while advancing credit to borrowers. The study adopted a correlational research design and relied on a time-series approach involving data drawn from the years 2011 to 2021. The unit of analysis was the CBK with data aggregated from 38 Commercial Banks and 14 Microfinance Banks. The study employed purposive sampling to focus on the CBK-regulated financial institutions. The research involved the collection of quantitative aggregated agricultural lending and discount rate time-series data from published CBK reports and other reliable research sources. Data analysis on the relationships between the independent and dependent variables involved both descriptive and inferential statistics. From the study variables, the correlational analysis results indicated an inverse relationship between the discount rate and aggregate lending to agriculture by the CBK-regulated financial institutions (R= - 0.32). As such, a decrease in the discount rate (expansionary measure) would lead to an increase in aggregate lending to agriculture. The reverse is also true. In addition, from the regression analysis, the study also established that changes in the discount rate had a statistically significant inverse effect on the banks’ monthly aggregate lending to agriculture (β = - 1.68) with a unit change in the discount rate resulting into a 168% inverse change in the monthly aggregate lending to agriculture. In other words, by decreasing the discount rate, the CBK can promote lending to the agriculture sector. Lastly, the CBK can adopt the seasonal discount window credit to allow smaller community banks with agricultural lending products to access the discount window funds thus facilitating increased lending to the agricultural sector.
Corporate governance effects on financial performance of top 100 Small and Medium Enterprises in Kenya
(Strathmore University, 2022) Simiyu, Tonny
The main objective of this research was to establish the effects of corporate governance on the financial performance of top 100 SMEs in Kenya. Specific objectives included analyzing background information on top 100 SMEs’ corporate governance in Kenya, establishing the relationship between board attributes and the financial performance of the top 100 SMEs in Kenya, and establishing management view on the relationship among the top 100 SMEs in Kenya. The dependent variable (financial performance) was measured by return on asset ratio (ROA). Independent variables included board size measured by the number of directors, board gender diversity measured by the number of female directors in the board, and directors’ age measured by the biological age of the directors. This research was grounded on agency theory and resource dependence theory, adopted positivism research philosophy and applied correlational research design. Primary data was collected by way of structured questionnaires. The likert scale was used in the questionnaires. Stata software version 13 was used to analyze panel data with the application of the Hausman test that determined the adoption of Fixed Effects Model after returning 3.79% p-value. Data was collected for a period of five years (2015-2019). The population was 260 with a sample size of 158 top 100 SMEs. The study adopted purposive sampling technique. The diagnostic tests carried out include normality, multi-collinearity, autocorrelation, stationarity, heteroscedasticity, misspecification and reliability tests. A total of twenty-two companies responded from a total of one hundred questionnaires that were submitted reflecting 22% response rate. The independent variables influenced the dependent variable by 19.02%. Director’s age and board size influenced ROA negatively while female directorship influenced ROA positively. On management view, 59% of the respondents believed functional boards improved their financial performance, 45% believed that large boards improved their financial performance and 51% believed that female directors did not improve their financial performance. Recommendations were for SMEs to establish a policy on gender composition as well as the limit on directors age, a similar study could be done but with a higher sample size as well as with more board attributes as variables for a longer period of time probably more than five years. The researcher also recommends for the organizers of top 100 SME challenge (Nation Media Group and KPMG) to encourage these top 100 SMEs to support students and other research organizations on research matters.
Factors influencing the productivity of hay in Lanet Division, Nakuru West Sub - County
(Strathmore University, 2022) Kinge, Kevin
Kenya suffers large deficits of feed for its dairy sector and there are projections that demand will continue to surpass production due to the fast-growing population leading to an increase in demand for milk and milk products hence more livestock to feed. This has created a huge market for fodder and in Kenya, the most common is Boma Rhodes grass. There is a large potential opportunity for many small-scale fodder farmers if they manage to increase production, reduce their cost, improve quality and connect better to market or consumer. (de Zeeuw & Dubbeling, 2022). Dairy farmers are increasingly becoming more reliant on the fodder hence the need to grow more fodder, specifically Boma Rhodes grass. So, the grass is doing well in Lanet. This research sought to find the determinants of hay productivity in Lanet, Nakuru County. The study hypothesized that socioeconomic factors, farm management and farm characteristic as factors that influence the productivity of hay. The study adopted a descriptive design approach and data was collected through the use of structured questionnaire. Several findings were established, with regards to farm characteristics, farm ownership was found to have a positive effect on productivity. Similarly, loam soil was established to contribute to more productivity of Boma Rhodes grass compared to black cotton soil. When it comes to farm management practices that was measured using record keeping, post-harvest management and storage, use of technology and value addition, the findings of the study reveal that they have a positive effect on productivity. Finally, on socio-economic factors, the study found out that income per acre in the immediate previous season positively affects productivity. The study also found that farmers with a higher value of farm assets are in a better position to grow with specialized tools and make more profits compared to farmers with very few. Finally, farm equipment cost results to increase in productivity.
Economic sustainability in the floriculture value chain in Kenya
(Strathmore University, 2022) Njogu, George M.
This study analyzed the value addition process in floricultural value chain among small scale, medium and large scale producers in Central Kenya. The analysis took an evaluative process and assessed the conversion of inputs to outputs by employing resources that add value during the production process. Value chain in agribusiness is a continuum which starts from the point of production where inputs are sourced and used by actors to facilitate basic agricultural production, activities and successive input from other stakeholders such that in each process step, value is added until the product reaches the end consumer. The objective of this study was to conduct an in-depth analysis of floriculture value chains and their economic sustainability in Kenya. The research used a mixed method approach using quantitative and qualitative data. A sample of 103 small scale, medium scale and large-scale firms was drawn from a population of 179 Kenya Flower Council members. A questionnaire was used to collect general firm data, production data, supply chain strategies and challenges along the floriculture value chains. Data was tabulated, classified, cleaned then analyzed using tables, charts, graphs and other statistical tools. The results showed that supply chain strategies had variable effects on economic performance. The study established that firms that used direct/mass market made higher returns than those that used auctioneers and therefore better positioned towards achieving economic sustainability. There was a strong correlation between marginal cost and economic performance. Despite the significant correlation between the two variables, marginal cost alone was not a good predictor of performance and economic sustainability of floriculture firms in Kenya. However, the utilization of economies of scale in horizontal integration yielded lower marginal costs. In particular, the utilization of performance management as a tool was statistically significant in enhancing marginal cost effect for improved economic performance of floriculture industry in Kenya. The study identified freight cost of floricultural products as the major value chain constrain that had significant effect on performance of floriculture industry economic sustainability. The researcher suggested a need for firms to utilize the opportunity in mass/direct markets, mainstream performance management tool, jointly lobby and seek alternatives to airfreight in order to cement a trajectory for economically sustainable floriculture value chains.

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