- ItemDeterminants of inflation in Kenya and the moderating effects of governance regimes(Strathmore University, 2022) Maonga, Solomon AturaA high level of inflation is undesirable because it causes a depreciation of the local currency. It also makes long-term financial planning difficult for market participants resulting in an inefficiency in a market economy, and subsequently, a lower rate of economic growth. An ideal economy would have price stability (low and steady inflation) and the wider economic goal of strong and sustainable growth and employment would be achieved. This study examined monetary and non-monetary determinants of inflation in Kenya, a developing country with a monetary policy objective of inflation-targeting. Using an Error Correction Model (ECM) based on the Autoregressive Distributed Lag (ARDL) model to explain the short run and long run impacts of each variable on inflation, this study covered secondary quarterly data spanning 25 years (1996 – 2020). The unique contribution of the study was the investigation of the moderating effects of governance regimes on the determinants of inflation. Governance regimes were examined with respect to the President of the country and the Central Bank Governor. The study concluded that in the Kenyan context, inflation is primarily influenced by prevailing interest rates and the most recent rates of inflation in the short run. The non-monetary factors and other monetary factors examined do not have a long run nor short run impact on the level of inflation, but given the moderating effects of governance regimes, their influence may be felt sporadically. Global oil prices and public debt levels are emerging as major factors influencing the rate of inflation. The study emphasises the importance of good governance to ensure consistency of policy across regimes in order to maintain price stability.
- ItemDeterminants of illicit financial flows in Kenya(Strathmore University, 2022) Kasimu, Faith NzilaniIllicit financial flows remain a key obstacle to Africa’s attainment of the 2030 Agenda and Agenda 2063. Given the multidimensional and transnational nature of IFFs, IFFs have attracted attention globally and are now at the forefront of the international development agenda. Agenda 2030 of sustainable development identifies reduction of IFFs as a top priority in building peaceful societies all around the world. As reflected in Target 16.4 of the SDGs, combating illicit financial flows is a critical element in the global effort in promoting peace, justice and strong institutions. The target aims to significantly reduce IFFs and arm flows, strengthen the recovery and return of stolen assets and combat all forms of organized crime by 2030. The ability to attain the SDGs remains fragile when undermined by IFFs. In light of this, the study sought to examine the determinants of illicit financial flows in Kenya. The independent variables were corruption, political risks, external debt and exchange rate. Inflation and interest rate were used as control variables. Illicit financial flows was the dependent variable which was the core focus of the study. Secondary data was collected for 19 years (January 2003 to December 2020) on a quarterly basis. A descriptive correlational design was used in the study. A time series model was used in analyzing the variables. VECM findings established that corruption lagged for quarter one, two and four had a positive and significant effect on illicit financial flows in Kenya. Political risks had no effect on illicit financial flows in Kenya. External debt lagged in the second, third and fourth quarter had negative and significant effect on illicit financial flows. Lagged exchange rate for quarter one, two and four had a positive and significant effect on illicit financial flows. The study recommends that government should enforce management practices that would deter corrupt practices and prudent financial management guidelines that would enhance management of external debt to curtail odds of illicit financial flows.
- ItemThe Impact of external public debt on stock market performance in Kenya(Strathmore University, 2022) Ochieng’, Sandra Achieng’In recent years, the level of external debt in Kenya has been increasing rapidly with the stock market also experiencing a bear run over the same period. The study therefore aimed to investigate the impact of external public debt as disaggregated into its various categories on stock market performance in Kenya for the period 2015 to 2021. The study used the Nairobi Securities Exchange (NSE) All-Share Index as the dependent variable, with multilateral debt, bilateral debt, commercial debt and guaranteed external debt classified as the independent variables. Based on an assessment of past research undertaken on stock market performance, exchange rates, interest rates and domestic public debt were included as control variables. In accordance with the methods used by previous studies and the fact that the variables used in the present study were both stationary and non-stationary at level form, the research used a descriptive correlational research design and the Autoregressive Distributed Lag (ARDL) model to assess this relationship using monthly secondary data. The analysis of the time series data revealed that given multilateral debt, bilateral debt, commercial debt and guaranteed external debt, none of the variables had an impact on the stock market in the short run. In the long run, only bilateral and multilateral debt had an impact on the market with both variables recording a significant positive effect. As a result, the study recommends the continued need for the government to utilize external debt instruments within the approved limits and to employ the funds in long term, productive economic activities that positively influence the stock market. In addition, given that few studies have been conducted on external public debt when divided into its components, further studies could be carried out on other jurisdictions for comparison.
- ItemAttitude as one of the factors affecting the performance of Technical and Vocational Education and Training (TVET) students: a case of NITA College – Nairobi(Strathmore University, 2022) Odhiambo, Emmanuel OduorKenya has set itself a target of being a middle-income country in the near future as envisaged in the country’s Vision 2030. To achieve this, the Kenya Government has in the recent past made many efforts in setting up and equipping new technical institutions across the country to revamp the technical training of young people. But in spite of the many interventions by the Government to improve the technical adequacy of these institutions, many employers still complain about the quality of workmanship of the new recruits from the said institutions. This study delved into this matter and attempted to understand if non-technical factors contribute in any way to this situation. In particular, this study sought to understand the influence of the learners’ attitudes in the preparation for the jobs in the manufacturing sector, with a focus on NITA College, Nairobi. A quantitative survey approach was used. Data was collected using questionnaires and the responses captured in a Likert scale. The collected data was then analyzed using appropriate software tools and hypothesis tests carried out. These findings were discussed, implications drawn, and recommendations made. The research collected research data from 94% of the sampled participants from NITA College - Nairobi. The results showed there was a high disparity in the gender of the students with only 12% female students taking the Welding & Fabrication and Electrical Technology courses at NITA College. Furthermore, more female students were more prone to register for ICT courses as opposed to artisan and craft proficiency courses. The analysis of the student performance showed that most of the students attained a grade of 70% in their last Electrical Technology Test in NITA and a score of between 60%-69% in their last Welding & Fabrication tests. Regression tests implied that 55.4% variability in student performance can be accounted for by the variable’s attitudes based on intention, attitudes based on subjective norm, attitudes based on perceived behavior control. The study concluded that attitudes based on intention, attitudes based on subjective norm and attitudes based on perceived behavior control positively affect student performance. The study recommends that the institutions should form collaborative partnerships that will encourage the participation of female students in NITA programmes. Further, the institutions should encourage industry players to offer students internship and full-time job opportunities which can spur their academic performance. The study also recommends the institution should engage career advisers to tour secondary schools and provide materials to parents and teachers on the various programmes on offer as this will improve the student intention to enroll in the courses on offer.
- ItemEffect of digital financing on access to credit among farmers in Kirinyaga County(Strathmore University, 2022) Kiragu, AlexAccess to financing especially in the developing world has been an issue in a long time. Economic development model in the developing works has not been inclusive towards financial inclusion and exclusion but with influx of digital finance the trend has been reversed. Hence, the current study aims at examining the effect of digital finance in access to credit among farmers in Kirinyaga County. Specifically, the study aimed at examining the effect of digital finance infrastructure, digital finance ecosystem and regulatory environment on access to credit. The study was founded on supply leading hypothesis and diffusion of innovation model. The study applied descriptive correlation research design and collect primary data using questionnaires among 338 respondents selected through stratified sampling. Descriptive and inferential statistics analyzed the data that was presented in figures and tables. Results of the study revealed positive and significant effect of digital fintech infrastructure, digital fintech ecosystem and regulatory environment on access to credit among farmers in Kirinyaga County. From the findings it can be concluded that an increase in fintech infrastructure would result in an increase of credit accessibility among farmers in Kirinyaga County. Secondly, an increase in fintech ecosystem would lead to an increase in credit accessibility among farmers in Kirinyaga County. Further, an increase in regulatory framework would lead to an increase in access to credit among farmers in Kirinyaga County. The study recommends management of digital lending financial institutions to innovate lending solutions that can be accessed easily through mobile devices used by most farmers. Stakeholders such a telecommunication companies, commercial banks, technology firms and the government should be involved in establishing a solid financial ecosystem that will help farmers in accessing credit while at the same time protecting their rights. Digital lenders should also provide clear terms for farmers before accessing loans and clearly define the responsibilities of both parties.