http://41.89.164.27:8080/xmlui/handle/123456789/31 2026-05-09T16:55:17Z http://41.89.164.27:8080/xmlui/handle/123456789/2638 MODERATING EFFECT OF DIGITAL FINANCE SERVICE ON THE RELATIONSHIP BETWEEN FINANCIAL MANAGEMENT PRACTICES AND FINANCIAL PERFORMANCE OF SELECTED SMEs IN ELDORET CITY, KENYA. JEPLETING, GLADYS Financial performance refers to the measure of how well a company is using its assets to generate revenue, profit, firm credibility, and value for shareholders and its ability to pay off debts. Challenges affecting SMEs financial performance include poor financial management, lack of technological skills and enough resources. As a result, it was necessary to investigate the moderating effect of digital finance service on the relationship between financial management practices and financial performance of selected SMES in Eldoret city, Kenya. The specific objectives of the study were to examine the effect of cash flow management, budget planning, investment decision and digital financial services on financial performance of selected SMEs. In addition, the study sought to examine the moderating effect of digital financial services on the relationship between; cash flow management, budget planning, investment decision and financial performance of selected SMEs. The research was guided by the priority- based budgeting theory, modern portfolio theory and resource-based theory. The study utilized explanatory research design. Target population was 1236. Simple random sampling techniques was utilized to collect data from 302 selected SMEs using self- administered questionnaires. Cronbach alpha was applied to test reliability while factor analysis was applied to test construct validity. Hierarchical regression analysis was employed to examine direct and moderating effects, with firm age and firm size controlled as covariates. The findings indicate that firm age has a statistically significant positive effect on financial performance (β=0.282, p=0.022), whereas firm size does not (β=0.070, p=0.149) affirming the need to control these variables. The study revealed that cash flow management (β=0.237, p=0.000), budget planning (β=0.364, p=0.000), and investment decision (β=0.366, p=0.000) positively influence financial performance, collectively accounting for 71% of the variance (R2=0.742, ∆R2=0.713, p≤0.05). The study further examined the direct effect of digital finance services on financial performance, with results showing a positive and significant influence (β=0.137, p=0.007), contributing an additional 1% variance (∆R2=0.007) to the model. However, digital finance services did not moderate the relationship between cash flow management and financial performance (β=0.002, p=0.852), indicating no significant interaction (∆R2=0.000). Conversely, digital finance services significantly moderated the relationship between budget planning and financial performance (β=-0.049, p=0.000, ∆R2=0.016), and between investment decision and financial performance (β=0.035, p=0.042, ∆R2=0.003), resulting in a combined explained variance of 80% in financial performance (R2=0.798). The study provides valuable insights for SME managers, policymakers, and financial institutions, emphasizing the importance of targeted digital finance tools to optimize financial management practices and support SME growth. SMEs owners or managers should assess and adopt digital finance solutions that align with their financial management practices. 2025-01-01T00:00:00Z http://41.89.164.27:8080/xmlui/handle/123456789/2633 INFLUENCE OF E-LOGISTICS ON SUPPLY CHAIN PERFORMANCE OF MANUFACTURING FIRMS, IN UASIN GISHU COUNTY, KENYA. MODERATED BY ELECTRONIC RESOURCE PLANNING CHEPKEMOI, CLARA Supply chain performance is crucial for businesses to increase efficiency, reduce expenses, and meet changing client needs in a competitive environment. However, manufacturing firms in Kenya face challenges such as competition, high production costs, and untimely product availability. This study aimed to examine the moderating influence of Enterprise Resource Planning (ERP) on the relationship between e- logistics and supply chain performance of manufacturing firms in Uasin Gishu County, Kenya. Specific objectives were to assess the influence of electronic order processing, transportation management, automated warehousing, inventory management, and enterprise resource planning systems on supply chain performance. The study further assessed the moderating influence of enterprise resource planning on the relationship between electronic order processing, transportation management, automated warehousing, inventory management systems, and supply chain performance of these firms. The study was guided by Resource-Based, Innovation, and Transaction Cost Theories. Explanatory research design and a census approach were adopted in collecting data using a closed-ended questionnaire from 270 Heads of 9 Departments closely linked to the study variables in 30 manufacturing firms. Cronbach’s alpha and factor analysis were used to assess reliability and construct validity. Data analysis was performed using descriptive and inferential statistics, with a hierarchical regression model used to test all the study hypotheses. Results indicate that firm age (β=0.190, p = 0.021) significantly influences supply chain performance while firm size (β=0.101, p=0.223) does not. These control variables explain 4.8% of the variance in supply chain performance, as shown by an R2 of 0.048. Findings further revealed that electronic order processing system (β1=0.316, p=0.001), transportation management system (β2=0.167, p=0.011), automated warehousing systems (β3=0.217, p=0.008), and inventory management system (β4=0.232, p=0.001) significantly influence supply chain performance. These variables explain 56.6% of the variance in supply chain performance (R2 = 0.566 inclusive of the controls) and 51.8% (∆R2 = 518 exclusive of the controls). Results further indicate that ERP (β=0.094, p=0.010), influences supply chain performance. It explains 1.2% of the variation in supply chain performance (∆R2 =0.12). Furthermore, ERP was found to moderate the relationship between electronic order processing system (β=0.100, p=0.000), transportation management system (β=0.054, p=0.012), inventory management system (β=-0.120, p=0.002), and does not moderate the link between automated warehousing system and supply chain performance (β=-0.013, p=0.701). The entire Hierarchical model accounts for 64.5% (R2 = 0.645) of the variance in supply chain performance, much more than the direct effect model, which explains 56.6% (R2 = 0.566). The study concludes that electronic order processing, transport management, automated warehousing, inventory management systems, and ERP influence supply chain performance. ERP moderates the link between electronic order processing, transport management, inventory management systems, and supply chain performance, but does not moderate automated warehousing systems and supply chain performance. This study contributes to knowledge by examining the interaction of ERP and study variables. Future scholars will benefit from the study's findings as they conduct new research in e-logistics and supply chains in various industries. The policymakers and management may use the results to develop policies and strategies for investing in e-logistics and ERP, as these enhance efficiency in supply chain performance. 2025-01-01T00:00:00Z http://41.89.164.27:8080/xmlui/handle/123456789/2632 EFFECT OF PUBLIC DEBT, EXPORT TO GDP RATIO AND GOVERNMENT EXPENDITURE ON ECONOMIC GROWTH IN KENYA CHEWOREI, PETER PTENGWER An investigation into the growth of GDP and public debt in Kenya shows that during the period 1963 to 2008, the economy experienced cyclical booms and depressions with the economic booms in mid 1970s, late 1980s, and early 2000s, as well as global economic depressions in early 1980s, early 1990s and in 2008. As a result, the Kenyan government turned to external and domestic borrowing during these periods to plug the budget deficits, which has contributed immensely on the country negatively and this has led to high dependency ratio as compared to the previous years. The study sought to assess the effect of domestic borrowing, external borrowing, export to GDP ratio as well as government expenditure on economic growth in Kenya. The study was anchored on the Keynesian theory of economic growth and the dynamic theory of public spending to establish the effect of public debt on Kenya’s economic growth by conducting longitudinal research design on quarterly secondary time series data from the treasury for the period 1988-2018. The study employed the autoregressive distributed lag (ARDL) regression model to carry out analysis using STATA version 15 software at five percent significance level. The study found that there exists a significant inverse short-term relationship between economic growth and domestic debt where one percent increase in domestic debt causes 1.25 percent decline in Kenya's economic growth (β =1.25342, p < 0.05). The findings of the study shows that one percent increase in external debt causes 1.10 percent decline in economic growth in Kenya (β =1.09536, p < 0.05), and 1.745 positive relationship between export to GDP ratio and economic growth in Kenya (β =1.74536, p < 0.05) whereas government expenditure has a significant short-run, positive relationship with economic growth in Kenya with a correlation coefficient of 1.4537 β =1.493762, p < 0.05. The study concluded that Kenya's economic growth is significantly correlated with all four explanatory variables. Based on the study findings, it was recommended that to ensure a steady economic growth in the country, both external and domestic debt stocks should be kept at manageable levels, while government expenditures remain sustainable. 2025-01-01T00:00:00Z http://41.89.164.27:8080/xmlui/handle/123456789/2631 EFFECT OF MACROECONOMIC VARIABLES ON PUBLIC HEALTH EXPENDITURE IN KENYA NYABOGA, CYNTHIA KWAMBOKA Health spending is a major concern in low- and middle-income countries because of the less finances allocated in the health sector. One of the main goals of the Kenyan government's "big four" development strategy, which is scheduled for completion by 2022 and was achieved in some few counties in 2023 is universal health care. Health has consistently been prioritized over time and has occupied a central position in political campaign platforms. The government has consistently spent huge amount of money into the health sector. In Kenya, majority of people depend on public insurance and only a very small portion of Kenyans can afford to have access to the private insurance and out of pocket payment, this has led to increased level of poverty and higher dependency ratio. Despite all these efforts, Kenya still has challenges in the allocation of public health expenditure. The purpose of this study was to ascertain how macroeconomic factors affected Kenya's public health spending. This study aimed to establish effects of GDP per capita, corruption, unemployment fiscal deficit and tax revenue on public health expenditure in Kenya. The key theoretical anchors of the study are Public Expenditure theory and Wagner’s theory. Explanatory research design was used. Secondary data from the Kenya National Bureau of statistics (KNBS) was used with annual time series data spanning from 1990 to 2023. The data was subjected to stationarity test using Augmented Dickey Fuller (ADF) test, Phillips and Perron (PP) and Kwiatkowski–Phillips–Schmidt– Shin (KPSS) for unit root test. The study employed Autoregressive Distributed Lag model (ARDL) to evaluate the relationship among the variables. The long run ARDL analysis revealed that the coefficients of; corruption -2.231 (p-value 0.002<0.05), per capita gross domestic product 0.001(p-value 0.02<0.05), tax revenue 0.075(p-value 0.025<0.05), and unemployment 0.227(p-value 0.03<0.05) significantly affected public health expenditure in Kenya. However, the fiscal deficit was found to be insignificant in the long run 0.008(p- value 0.914>0.05). To ensure prudent public health expenditure in Kenya, the study recommends strengthening anti-corruption laws, maintaining fiscal discipline through effective budgeting, promoting per-capita economic growth by boosting productivity and investments. Optimizing tax revenue through efficient policies and broadening the tax base is vital to fund public services. Addressing unemployment by creating jobs and investing in education is crucial for effective use of the labor force. 2025-01-01T00:00:00Z http://41.89.164.27:8080/xmlui/handle/123456789/2623 EFFECT OF MACROECONOMIC VARIABLES ON EXCHANGE RATE VOLATILITY IN KENYA KINUTHIA, JOSEPH NGIGI Foreign direct investment, government expenditure, public debt, inflation rate, interest rates, and money supply are essential macroeconomic variables that can alter currency volatility and its impact on the Kenyan economy. The exchange rate of the Kenyan shilling has exhibited significant volatility against major currencies such as the US dollar. In 2022, the KES depreciated by an average of 0.6% monthly. This trend intensified in early 2023, with average monthly depreciation rates reaching 4%, and some months witnessing increases of up to 6%. By October 2023, the exchange rate reached KES 148.4 per US dollar, up from KES 120.8 in early 2022, marking a 13% depreciation in 2023. In January and February 2024, the KES continued to weaken, exceeding KES 160 and 163.98 per US dollar, respectively. This sharp fluctuation in the Kenyan shilling highlights concerns about currency stability. The objective of this study was to examine the effect of foreign direct investment, government expenditure, public debt, inflation rates, interest rates, and money supply on exchange rate volatility in Kenya. The study was informed by the Purchasing Power Parity Theory, the General Equilibrium Theory of Exchange Rate Determination, the International Fisher Effect theory, and the Interest Rate Parity theory. The study used an explanatory research design, analysing annual secondary data from 1971 to 2024. Data was collected using a structured review matrix and tested for stationarity and cointegration before analysis using descriptive statistics and the ARDL model. Descriptive statistics results showed that the average FDI, government expenditure, and public debt were 0.71, 15.68% and 47.60% respectively. Interest rates, inflation rate, and money supply growth averaged 6.20%, 11.31% and 34.77%, respectively. Inferential results revealed that in the long run, a unit increase in foreign direct investment and government expenditure reduced exchange rate volatility by 36.4% and 341.5%, respectively, while inflation and money supply increased it 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 http://41.89.164.27:8080/xmlui/handle/123456789/2619 MODERATING EFFECT OF SELF-CONTROL ON THE RELATIONSHIP BETWEEN FINANCIAL LITERACY AND RETIREMENT PLANNING AMONG COMMERCIAL BANK EMPLOYEES IN ELDORET CITY, KENYA CHESEREK, GLADYS Retirement planning, defined as a goal-oriented behavior where individuals devote effort to prepare for their retirement life, can effectively reduce retirement worry, keep stress under wraps, and enhance retirement preparedness and confidence. However, there is little literature about retirement planning among employees working in Kenyan Commercial banks. To fill this gap, this study aimed to establish the moderating effect of self-control on the relationship between financial literacy and retirement planning among commercial bank employees in Kenya. The study was guided by the following specific objectives: to assess the effect of financial knowledge, financial behavior, financial attitude, and self-control on retirement planning among commercial bank employees in Eldoret City, Kenya. In addition, the study examined the moderating effect of self-control on the relationship between financial knowledge, financial behavior, financial attitude, and retirement planning. This study was guided by goal- setting theory, social cognitive theory, and behavioral life cycle theory. The study adopted an explanatory research design, with data being collected from a target population of 1058 employees of 32 commercial banks in Eldoret town. A sample size of 290 respondents was obtained using Yamane’s formula. The study used systematic sampling techniques to select employees as respondents. Data was collected using a structured, closed-ended questionnaire. The researcher ensured the reliability of the research instrument through a pilot study and further confirmed it with Cronbach's alpha, which was above the score of 0.7. Construct validity was assessed using factor analysis, while content validity was assessed by having supervisors and experts in the field review the test items to make sure they were relevant and representative of the content that was being measured. Descriptive and inferential statistical analyses were conducted using SPSS (Statistical Package for the Social Sciences) version 25, with study hypotheses tested through a hierarchical regression model. It was found that Financial Knowledge had a significant positive impact on retirement planning (β = 0.402, p < 0.05), confirming that employees with better financial knowledge are more likely to plan effectively for retirement. Financial Behavior also showed a positive and significant influence on retirement planning (β = 0.182, p < 0.05), indicating that prudent financial actions enhance retirement preparedness. Financial Attitude similarly exhibited a significant positive effect on retirement planning (β = 0.267, p < 0.05). Self- control not only directly impacted retirement planning (β = 0.174, p < 0.05) but also moderated the relationship between financial knowledge (β = 0.120, p < 0.05), financial behavior (β = 0.099, p < 0.05), financial attitude (β = -0.047, p < 0.05), and retirement planning. The study concludes that self-control moderates the relationship between financial knowledge, financial behavior, financial attitude, and retirement planning among commercial bank employees in Eldoret City, Kenya. The results of this study can be used by practitioners and policymakers in developing strategies and formulating policies for retirement systems in the workplace. The findings contribute knowledge to the literature and theory related to financial literacy, self-control, and retirement planning. 2025-01-01T00:00:00Z http://41.89.164.27:8080/xmlui/handle/123456789/2584 Hygiene and Safety Measures Practised by Roadside Meat Vendors of Namawojjolo and Lukaya Food Markets, Uganda Nanfuka, Annet; Mewa, Eunice; Rachuonyo, Harold Anindo Handling and preparation of roadside roasted meats may often be compromised, considering the general conditions of the makeshift structures and the common minimal education levels of vendors. The study’s objectives were to assess hygiene and safety practices applied in handling, preparing, and vending of roadside roasted meats. Conducted in October 2024 at Namawojjolo and Lukaya, two major food markets along central Uganda's busiest highways, the research used an observational checklist and questionnaires to collect data from 90 meat vendors selling roasted beef, chicken, or goat meat on compliance with best known practices. Descriptive results on hygienic and handling practices were generated, and scores above 70% were used as a hallmark for best practice. Only 6.7% instituted complete sanitation and hygienic practices, while 88.9% did not store leftover meat in refrigerators. Among them, 67.8% kept meat in clean containers, 5.6% stored utensils on clean shelves, and 6.7% had clean roasting areas. Most (93.3%) separate raw meat from ready-to-eat meat, and 37.8% had stalls without rodents. Hygienically, 75.6% wore aprons while working, among whom 85.3% were considered clean aprons, 46.7% had hair covered, 91.1% had short and clean fingernails, 93.3% washed hands with soap, 1.1% covered food while presenting to customers, and 11.1% wore jewellery while working. Training on food safety was undertaken by 63.3% and 78.9% served food in paper bags. Personal hygiene practices of most vendors were fairly good, but most lacked sanitation facilities and demonstrated relatively low knowledge of best and acceptable practices in meat handling. There is a need for more sensitisation and provision of sanitation facilities to vendors to improve both the quality and safety of roadside vendor products. 2025-07-01T00:00:00Z http://41.89.164.27:8080/xmlui/handle/123456789/2556 MACROECONOMIC EFFECTS OF FINANCIAL DEEPENING BETWEEN 1990 TO 2023 ON ECONOMIC GROWTH IN KENYA MOREKA, MARTHA KERUBO Financial deepening has been found to stimulate economic growth by its capability to mobilize investments, thereby making financial resources readily available and, hence, raising efficiency. However, the reviewed empirical literature on the relationship between financial deepening and economic growth is not very clear in Kenya. The primary objective of the study is to examine the macroeconomic effect of financial deepening on economic growth in Kenya. The specific objectives are to determine the effect of credit to the private sector, stock market capitalization, commercial bank liquidity liabilities, broad money supply, and commercial bank deposits on the growth of the economy in Kenya. The study employed the following theories: the Endogenous Growth theory, the Neoclassical theory, Financial Liberalization Theory, Supply Leading theory. The study employed an explanatory research design and used secondary data from the World Bank and KNBS, with data spanning from 1990 to 2023. The data was subjected to stationarity and cointegration tests to test if the time series has stationary and long-run properties. Autoregressive Distributed Lag (ARDL) model estimation technique was used to achieve the research objectives. The ARDL regression results show that in the long run credit to the private sector 0.41(p-value 0.00&lt;0.05), stock market capitalization 0.04(p-value 0.00&lt;0.05), bank deposit 1.419(p-value 0.00&lt;0.05), liquidity liabilities 0.004(p-value 0.00&lt;0.05), broad money 1.55(p-value 0.00&lt;0.05) and deposit interest rate 0.08(p-value 0.00&lt;0.05) have significant positive effect on economic growth. In contrast, inflation rate -0.08(p-value 0.00&lt;0.05) has a negative impact. In the short run, credit to private sector 0.15(p-value 0.01&lt;0.05), stock market capitalization 0.02(p-value 0.03&lt;0.05), bank deposit 0.84(p-value 0.00&lt;0.05), broad money 0.30(p-value 0.02&lt;0.05) and interest rate 0.03(p-value 0.00&lt;0.05) are positively related to economic growth while inflation rate -0.03(p-value 0.00&lt;0.05) has a negative impact. Liquidity liabilities - 0.0004(p-value 0.15&gt;0.05) is negatively related to economic growth but statistically insignificant in the short run. Further, the results show a relationship between financial deepening and GDP growth in Kenya. Thus, the policymakers should improve the money supply in the economy to stimulate economic growth. This could be achieved through policies encouraging savings and investment and broadening the financial instruments available to the public. Financial institutions should be incentivized to innovate and offer various attractive savings and investment products to different population segments. By doing so, they can mobilize more funds from the public, which can then be channeled into productive investments that drive economic growth. 2025-01-01T00:00:00Z 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