http://41.89.164.27:8080/xmlui/handle/123456789/1821 2026-06-29T14:09:10Z http://41.89.164.27:8080/xmlui/handle/123456789/2784 Determinants of Energy Consumption in Kenya: A Macroeconomic Perspective Aburuki, Sharleen; Mose, Naftaly; Matundura, Erickson To achieve reliable and sustainable energy access in Kenya, it is crucial to explore alternatives to traditional biomass and fossil fuels to address the challenges of limited electricity, affordable and clean cooking energy. Using the Autoregressive Distributed Lag (ARDL) technique, this study assessed macroeconomic factors affecting energy consumption in Kenya from 1980 to 2024. The results indicate that interest rates (β = –0.034, p = 0.038) and trade openness (β = –0.015, p = 0.006) negatively impact energy consumption, while foreign direct investment (FDI) has a positive effect (β = 0.020, p = 0.029). Economic growth and inflation were found to be statistically insignificant. Short-term energy consumption is characterised by inertia, driven by the immediate effects of interest rate fluctuations and trade liberalisation. Initially, FDI seems to reduce energy use due to project delays. The study concludes that structural and external factors— specifically FDI, interest rates, and trade openness—play a more significant role in energy consumption than economic growth or inflation. Recommendations include promoting energy-efficient investments through green FDI and aligning monetary policy with energy objectives. 2025-01-01T00:00:00Z http://41.89.164.27:8080/xmlui/handle/123456789/2776 The Effect of Macroeconomic Determinants on Public Health Expenditure in Kenya Nyaboga, Cynthia; Matundura, Erickson; Naftaly, Mose Health spending remains a significant concern in low and middle-income countries due to limited financial resources allocated to the health sector. In Kenya, one of the key objectives of the government's Big Four development agenda, which is targeted for completion by 2022 and partially realized in some counties by 2023, is achieving universal health coverage. Over the years, health has remained a top priority and a focal point in political campaign agendas, with the government consistently investing substantial funds in the sector. A majority of Kenyans rely on public health insurance, while only a small percentage can afford private insurance or out-of-pocket healthcare payments. This has contributed to increased poverty levels and a higher dependency ratio. Despite these efforts, Kenya continues to face challenges in the allocation of public health expenditure. This study aimed to examine the impact of macroeconomic factors on Kenya's public health spending. This study aimed to examine the effects of corruption, unemployment, and tax revenue on public health expenditure in Kenya. The research was anchored on public expenditure theory, and an explanatory research design was adopted. Secondary data from the Kenya National Bureau of Statistics (KNBS) was utilized, covering annual time series data from 1990 to 2023. Stationarity testing was conducted using the Augmented Dickey-Fuller (ADF) test, Phillips-Perron (PP) test, and Kwiatkowski–Phillips– Schmidt–Shin (KPSS) test to check for unit roots. The study employed the Autoregressive Distributed Lag (ARDL) model to assess the relationship among the variables. The long-run ARDL analysis revealed that corruption (-2.231, p-value = 0.002 < 0.05), tax revenue (0.075, p-value = 0.025 < 0.05), and unemployment (0.227, p-value = 0.03 < 0.05) had a significant impact on public health expenditure in Kenya. To enhance prudent public health expenditure, the study recommends strengthening anti-corruption laws, optimizing tax revenue through efficient policies and broadening the tax base to support public services. Addressing unemployment through job creation and investment in education is essential for maximizing labor force utilization and ensuring sustainable public health financing. 2025-04-01T00:00:00Z http://41.89.164.27:8080/xmlui/handle/123456789/2687 Determinants of Energy Consumption in Kenya: A Macroeconomic Perspective Aburuki, Sharleen; Mose, Naftaly; Matundura, Erickson To achieve reliable and sustainable energy access in Kenya, it is crucial to explore alternatives to traditional biomass and fossil fuels to address the challenges of limited electricity, affordable and clean cooking energy. Using the Autoregressive Distributed Lag (ARDL) technique, this study assessed macroeconomic factors affecting energy consumption in Kenya from 1980 to 2024. The results indicate that interest rates (β = –0.034, p = 0.038) and trade openness (β = –0.015, p = 0.006) negatively impact energy consumption, while foreign direct investment (FDI) has a positive effect (β = 0.020, p = 0.029). Economic growth and inflation were found to be statistically insignificant. Short-term energy consumption is characterised by inertia, driven by the immediate effects of interest rate fluctuations and trade liberalisation. Initially, FDI seems to reduce energy use due to project delays. The study concludes that structural and external factors— specifically FDI, interest rates, and trade openness—play a more significant role in energy consumption than economic growth or inflation. Recommendations include promoting energy-efficient investments through green FDI and aligning monetary policy with energy objectives. 2025-12-01T00:00:00Z http://41.89.164.27:8080/xmlui/handle/123456789/2683 Determinants of Energy Consumption in Kenya: A Macroeconomic Perspective Aburuki, Sharleen; Naftaly, Mose; Matundura, Erickson To achieve reliable and sustainable energy access in Kenya, it is crucial to explore alternatives to traditional biomass and fossil fuels to address the challenges of limited electricity, affordable and clean cooking energy. Using the Autoregressive Distributed Lag (ARDL) technique, this study assessed macroeconomic factors affecting energy consumption in Kenya from 1980 to 2024. The results indicate that interest rates (β = –0.034, p = 0.038) and trade openness (β = –0.015, p = 0.006) negatively impact energy consumption, while foreign direct investment (FDI) has a positive effect (β = 0.020, p = 0.029). Economic growth and inflation were found to be statistically insignificant. Short-term energy consumption is characterised by inertia, driven by the immediate effects of interest rate fluctuations and trade liberalisation. Initially, FDI seems to reduce energy use due to project delays. The study concludes that structural and external factors— specifically FDI, interest rates, and trade openness—play a more significant role in energy consumption than economic growth or inflation. Recommendations include promoting energy-efficient investments through green FDI and aligning monetary policy with energy objectives. 2025-12-01T00:00:00Z http://41.89.164.27:8080/xmlui/handle/123456789/2504 Income Inequality And Economic Growth in Kenya Chemwok, Christopher Kipruto; Siele, Richard; Saina, Ernest K. Kenya aimed to achieve an economic growth of 10% annually by the year 2012. However, the 10% economic growth rate has not been achieved as at the end of the year 2022. This is an indication that the economic growth rate has been lagging the target for the vision 2030. The gap between the richest and poorest has reached extreme levels in Kenya. Less than 0.1% of the population owns more wealth than the bottom 99.9%. The findings of this research indicate high levels of income disparity are affecting the economyʹs growth process as well as contributing to the rise in poverty. The increase in economic growth has the tendency to lessen income inequality after a certain point. The process of changing a countryʹs economy from an agrarian society to an industrial society was responsible for the significant income inequality during the early stages of economic expansion. Kuznets also highlighted the fundamental adjustments made in economic growth. A negative relationship was observed which meant that a rise in income inequality would have a deteriorating effect on economic growth. This study therefore recommends that Kenya should devise appropriate measures such as deregulating the economy, setting up strong and accountable institutions to ensure the principle of equity is observed in the allocation and distribution of resources. This can be made possible through development of inclusive political and economic institutions that would promote the principle of equity as enshrined in the constitution of Kenya. 2023-01-01T00:00:00Z http://41.89.164.27:8080/xmlui/handle/123456789/2489 Assessing the Impact of Financial Inclusion on Financial Performance of Micro, Small and Medium Enterprises in Baringo County, Kenya Cheruto, Alice; Ng’eno, Elijah; Mose, Naftaly Financial sectors that effectively mobilize savings and allocate resources play a crucial role in promoting financial inclusion, which in turn enhances resource allocation and risk management, ultimately influencing financial performance. However, financial institutions in Baringo County, Kenya, are currently underperforming, which hinders micro, small, and medium enterprises (MSMEs) from benefiting from financial inclusion. This study explores the impact of financial access, usage, and awareness on the performance of MSMEs, guided by theories of financial inclusion and credit access. Data were collected from 111 MSMEs across six sub-counties using a simple random sampling method and analysed through both descriptive and inferential statistics. The findings reveal that increased access to lending institutions and higher levels of entrepreneurial literacy improved the performance of MSMEs by 0.46% and 0.95%, respectively. Conversely, higher interest rates hurt performance, reducing it by 0.33%. While an increase in savings balances and the frequency of daily bank transactions enhanced performance by 0.98% and 1.08% respectively. Equally, financial awareness especially through credit access guidance and risk management training increased the performance of MSMEs by 0.25% and 0.14%, respectively. To bolster the performance of MSMEs, policymakers should focus on improving access to financial institutions and enhancing entrepreneurial literacy, while also regulating interest rates to promote sustainable growth and development. Promoting savings and increasing financial awareness will further support the sustainable growth of these enterprises. 2025-09-01T00:00:00Z http://41.89.164.27:8080/xmlui/handle/123456789/2477 Macroeconomic Drivers of Subnational Debt: Evidence from Kenyan Counties after COVID-19 Kiprop, Ruth Jepchirchir; Ng’eno, Elijah; Odwori, Paul This study examined how economic growth, tax revenue, government expenditure, and corruption levels affect the indebtedness of county governments in post-COVID-19 Kenya. It was based on the theory of debt accumulation and employed a fixed effects regression model. The model's results revealed that government expenditure (coefficient = 0.1724, p < 0.01) and the corruption rate (coefficient = 0.2611, p < 0.01) had significant positive effects on indebtedness. Tax revenue also had a significant positive impact (coefficient = 0.2982, p < 0.01), while economic growth was statistically insignificant (coefficient = -0.0284, p = 0.099). The study concludes that excessive government spending and corruption are the primary drivers of county indebtedness in the postCOVID-19 period. It recommends enhancing fiscal discipline, enforcing strict controls on expenditure, strengthening anti-corruption measures, and improving the mobilization of own-source revenue to reduce reliance on debt and ensure sustainable financing for counties. 2025-01-01T00:00:00Z http://41.89.164.27:8080/xmlui/handle/123456789/2476 Effect of Inventory Management on Competitiveness of Food and Beverage Manufacturing Firms in Uasin Gishu County, Kenya Kiptoo, Rachel Jerotich; Keittany, Pauline; Tanui, Emmanuel The food and beverage processing sector in Kenya is vital to the national economy due to its role in job creation and its contribution to GDP. However, its competitiveness has faced challenges stemming from high operational costs and inefficient supply chain processes. This study examined the effect of inventory management on competitiveness of food and beverage manufacturing firms in Uasin Gishu county, Kenya. The study was guided by the Resource-Based View Theory. An explanatory research design was adopted, targeting 924 departmental staff across 22 food and beverage firms. A sample of 279 respondents was selected using Yamane’s formula and simple random sampling employed. Data was collected through structured, closed-ended questionnaires, and a pilot study in Nakuru County was conducted to validate the research instrument. Data analysis was performed using SPSS version 25, incorporating both descriptive and inferential statistics, including correlation and hierarchical regression analyses. Findings revealed that inventory management (β1=0.152, p=0.004) significantly and positively influenced competitiveness. The study concluded that effective inventory management greatly contributes to the increase in competitiveness among food and beverage manufacturing firms in Uasin Gishu County. The study recommends that food and beverage firms should enhance their inventory management systems by integrating advanced tools and practices such as regular audits, forecasting, and lean inventory strategies. The study's findings will be valuable to food and beverage manufacturing firms by informing managers on optimizing limited resources for competitive advantage through inventory management, guiding the Ministry of Trade in policy formulation within Kenyan borders, and contributing to the broader academic discourse. 2025-01-01T00:00:00Z http://41.89.164.27:8080/xmlui/handle/123456789/2466 Moderating Effect of Financial Literacy on The Relationship Between Clan Culture and Financial Performance of SMEs in Nandi County, Kenya Kemboi, Philiph Kimutai; Simiyu, Gabriel; Tarus, John The main aim of this study is to examine the moderating role of financial literacy on the relationship between clan culture and the financial performance of Small and medium-sized enterprises. The study employed the Resource-Based View Theory, an explanatory research design, and cluster sampling techniques to collect data using a closed-ended questionnaire from a sample of 376 Small and Medium-Sized Enterprises. A Hierarchical regression model was used to test the study's hypotheses. The study findings indicate that Clan culture (β = 0.605, p = 0.000) and financial literacy (β = 0.456, p = 0.000) positively influence financial performance. In addition, the results reveal that financial literacy moderates the relationship between clan culture (β = -0.100, p = 0.000) and financial performance. Managers and owners of SMEs should recognize the importance of organizational culture in a firm's performance. They should create and implement an appropriate culture that fosters joint effort and mutual trust, ensuring high and sustainable performance for their SMEs. In addition, the moderation results reveal that managers in financially savvy businesses shouldn't depend entirely on clan culture for determining financial performance. On the contrary, they should combine data-driven practices or information with culture to enhance performance. The originality of this research paper lies in the moderation hypothesis. The moderation results contribute to theory and literature, as there are minimal studies that have been tested. 2025-01-01T00:00:00Z http://41.89.164.27:8080/xmlui/handle/123456789/2456 Macroeconomic Drivers of Exchange Rate Volatility: Evidence from Kenya Kinuthia, Joseph Ngigi; Chepng’eno, Winrose Chepng’eno; Ng’eno, Elijah This study examined the macroeconomic determinants of exchange rate volatility based on evidence from Kenya from 1971 to 2024. The study employed Autoregressive Distributed Lag (ARDL) bounds testing for co-integration and estimated the error correction model. Furthermore, ARCH and GARCH models were analyzed to measure the volatility of a time series by fitting an autoregressive model to the squared residuals of the time series. The ARCH and GARCH results suggest the volatility of the exchange rate markets in Kenya is not random. The speed of adjustment of the volatility in the Kenyan economy's exchange rate is 59.7%. The study found that in the long run, a unit increase in foreign direct investment (FDI) and government expenditure reduced exchange rate volatility by 36.4% and 341.5%, respectively, while inflation and money supply increased by 55.2% and 239.7%, respectively. Short-run results showed that a 1% increase in FDI, money supply and inflation rate increased volatility by 18.31%, 19.26%, and 111.83%, respectively, while government spending and public debt reduced volatility by 90.65% and 42.18%, respectively. To reduce or stabilise exchange rate volatility, the study recommended a combination of monetary policy interventions to policymakers. These included foreign exchange operations, interest rate adjustments, hedging strategies, and export diversification. Additionally, the central bank is advised to regulate the growth of the money supply to prevent excessive inflation and currency depreciation, which could exacerbate exchange rate fluctuations. 2025-01-01T00:00:00Z