Browsing by Author "Dr. Job Omagwa"

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    An Assessment of the Impact of Financial Literacy on the Profitability of SMEs in Kiambu County, Kenya
    (International Journal of Social and Development Concerns, 2025-10-08) Dr. Job Omagwa; Fathi Asad Abd; Edward Wasike
    Kenya's economy depends heavily on small and medium-sized businesses (SMEs), but many of them still have low profitability and high failure rates because of poor financial management. This study evaluated how financial literacy affected SMEs' profitability in Kenya's Kiambu County. The study was guided by the Profit Maximization Theory, which emphasizes that firms make rational decisions to maximize net profits. An explanatory research design and a mixed methodology were employed to examine how financial literacy influences the profitability of SMEs in Kiambu County, Kenya. Data were gathered from a sample of 73 SMEs chosen by stratified random sampling using an explanatory research design. The results showed that SMEs' budgeting, saving, investing, and diversification practices are greatly improved by financial literacy, which raises profitability. Regression analysis revealed that 65.9% (R² = 0.659) of the variation in profitability can be explained by financial literacy, while the correlation results demonstrated a strong and statistically significant positive relationship between financial literacy and profitability (r = 0.812, p < 0.01). These findings support the idea that financially literate business owners are better at-risk mitigation, resource management, and financial decision-making that enhances company performance. The study came to the conclusion that one of the main factors influencing SME profitability and long-term viability is financial literacy. The study recommends digital platforms and mentorship programs to promote good financial management practices that support profitability and growth, as well as improving financial literacy training and incorporating financial education into SME development programs.
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    Analyzing the Effect of Liquidity on Financial Stability: Evidence from Kenyan Deposit-Taking Savings and Credit Cooperative Societies
    (Stratford Peer Reviewed Journals and Book Publishing, 2024-05) Dr. Job Omagwa; Hesborn Birisi Birisi; Salome Musau
    Non-performing loans have been on the rise among DT SACCOs in Kenya over the past five years as evidenced by the increase in percentage of NPLs to gross loans in SACCO regulatory authority report of 2020. Consequently, if this trend is allowed to continue then this sector’s contribution to financial intermediation through provision of financial services will be negatively affected. In view of the above this study sought to investigate the effect of firm characteristics and financial stability of deposit taking savings and credit cooperative societies in Kenya. In view of the above this study sought to assess the effect of liquidity on financial stability of deposit taking savings and credit and cooperative societies in Kenya. The study was anchored on agency theory. Positivist research philosophy was adopted in this study. The study adopted explanatory research design. The target population for the study comprised 160 DT SACCOs which were fully operational in the period. A census approach was used for the study. This study utilized quantitative secondary data which was obtained from the society’s financial statements and supervision reports from the savings and credit cooperatives regulatory authority. The study utilized annual panel data for the period of 2017 to 2021. Multicollinearity test, normality tests, autocorrelation test, homoscedasticity, stationarity test and model specification test were carried out prior to panel data analysis. Data was analyzed using descriptive statistics, Pearson’s correlation analysis and panel regression analysis. STATA software was used for the analysis. The findings showed that liquidity had a strong, positive effect on NPLs ratio (β = 0.410056, p=0.003<0.05). In view of the findings, the study recommends that DT SACCOs with high liquidity levels should consider implementing rigorous lending practices to ensure that loans are extended to creditworthy borrowers. Additionally, effective credit risk assessment and continuous monitoring of borrower repayment behavior are essential to minimize NPLs. DT SACCOs should focus on improving management efficiency by implementing cost-effective operational processes.
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    Anti-Money Laundering Training and Profitability of Commercial Banks in Kenya
    (EdinBurg Peer Reviewed Journals and Books Publishers, 2025-06-11) Dr. Job Omagwa; Obed Kipkirui Terer; Dr. Lucy Wamugo Mwangi
    The commercial banks' profitability has experienced fluctuations over the past decade. The study sought to determine the effect of anti-money laundering training on the profitability of commercial banks in Kenya. The research employed an explanatory research design. The targeted population comprised 35 regulated commercial banks as at December 31, 2021. The study period was eight (8) years (2014 to 2021). Respondents were chosen through purposive sampling. Primary data was gathered using structured questionnaires, while secondary data was derived from the annual banking supervision report from the Central Bank of Kenya. Data was analyzed using descriptive statistics and regression analysis. The findings revealed that anti-money laundering (AML) training had a positive and significant effect on the profitability of commercial banks (β = 0.222, p-value = 0.005 < 0.05). The study concludes that employing and retaining employees with adequate anti-money laundering skills improves the proactiveness of banks in identifying and preventing potential money laundering activities. Commercial banks should institutionalize structured AML training programs by implementing both on-the-job and off-the-job together with assessments to validate employee understanding and competency.
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    Bank-Specific Characteristics, Bank Concentration and Financial Distress of Commercial Banks in Kenya
    (International Academic Journal of Economics and Finance (IAJEF), 2024-11-02) Dr. Job Omagwa; Mary Wangechi Githinji; Dr. Eddie Simiyu
    Empirical evidence on the banking industry in Kenya indicates that local banks have been prone to financial distress. Commercial banks in Kenya have been experiencing cycles in Financial Distress and though such cycles have been precipitated by Bank-Specific Characteristics in other countries. It is still a challenge for empirical investigation as to know whether Bank-Specific Characteristics significantly affect Financial Distress in Kenya’s banking industry. Subsequently, the basis of this research was to evaluate the connection between Bank-Specific Characteristics and Financial Distress of commercial banks in Kenya. Explicitly, the research was informed by determining the moderating effect of bank concentration on the connection between bank-specific characteristics and financial distress of commercial banks in Kenya. The Gambler’s ruin theory, Wrecker’s theory, Agency theory and Institutional theory provided theoretical anchorage to the research. Positivism research philosophy and causal research design were adopted for the study. The research was a census of all the 36 fully operational commercial banks in Kenya for the period 2011 through 2019. Secondary data was utilized in this study. Data sources included: websites of the CBK and individual Commercial Banks, audited financial statements and Annual supervision reports. Data analysis entailed use of descriptive and inferential statistics where the latter involved dynamic panel logistic regression analysis. Diagnostic tests undertaken in the study included: model specification, stationarity, autocorrelation, and multicollinearity tests. Hypotheses were tested at a significance level of 0.05. Data was displayed through frequency tables and graphs. Based on the dynamic panel Logistic regression analysis, the research revealed that Bank Concentration had a significant moderating effect on the connection between Bank Characteristics and Zmijewski Score (p=0.0003). The study recommended that CBK should take into account bank concentration when designing policies and strategies for commercial banks. Specifically, regulators of commercial banks should consider the level of bank concentration in a particular market and how it can affect the relationship between different bank-specific characteristics and financial distress. This could involve measures such as encouraging competition among banks, regulating mergers and acquisitions, and promoting diversity in the banking sector to mitigate the negative impact of bank concentration on financial stability.
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    Credit Administration and Financial Stability of Non-Withdrawable Deposit Taking Savings and Credit Cooperative Organizations in Kiambu County, Kenya
    (International Journal of Social and Development Concerns, 2025-10-07) Dr. Job Omagwa; Charity Minoo Mbithi; Salome Musau
    Savings and Credit Cooperative Organizations (SACCOs), member-owned financial institutions, have faced financial instability due to ineffective credit management. The study investigated the financial instability of Non-Withdrawable Deposit Taking SACCOs in Kiambu County, Kenya, focusing on the impact of credit administration practices. The research aimed to assess how credit risk management, credit worthiness, credit policy, and credit information sharing affect financial stability. Anchored on loanable funds, agency, liquidity preference, and profit maximization theories, the study used a cross-sectional design targeting all 17 SACCOs in the county. Stratified sampling selected respondents, and data spanning 2020–2024 was collected via structured questionnaires, pretested in two SACCOs. Descriptive statistics and simple linear regression analysis were employed as the data analysis techniques, with diagnostic tests for normality, multicollinearity, and heteroscedasticity conducted beforehand. Credit risk management practices, including thorough risk identification (M=4.241), efficient mitigation (M=3.177), and strict adherence to credit approval processes (M=4.190), these shows efficient credit risk management boosts financial stability. The study recommends legislative reinforcement of SACCO regulations through mandatory information sharing, robust risk management, and structured credit scoring. SACCOs should adopt transparent lending practices, proactive risk strategies, strong internal systems, and clear credit policies. The results support financial intermediation and credit risk theories, highlighting the integration of policy, credit worthiness, and information sharing for sustainability. Future research should explore regulation, Fintech innovations, rural-urban disparities, cultural factors, and long-term impacts on SACCO stability.
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    Enterprise Risk Management and the Quality Of Financial Reporting For Commercial Banks Listed at the Nairobi Securities Exchange, Kenya
    (International Journal of Economics, Commerce and Management, 2025-10) Dr. Job Omagwa; Moses Aluoch; Mary Wanjiru Karanja
    Quality financial reports are very important in sound investment decisions making and thus the reports need to be transparent, reliable and verifiable. However, regulators, investors, market participants and scholars have voiced concerns about the accuracy of financial reporting globally and even specifically in Kenya. Corporate governance systems like enterprise risk management are essential in making sure that organizations remain open and highly accountable. The purpose of the study was to examine the effect of enterprise risk management on quality of financial reporting in commercial banks listed at the Nairobi Securities Exchange, Kenya. The study was anchored on Enterprise Risk Management Theory. The study used descriptive survey design. The target population was 11 commercial banks listed at the Nairobi Securities Exchange, Kenya. The study adopted census method. Respondents consisted of 11 finance managers, internal auditors, company secretaries and risk and compliance officers of the 11 listed commercial banks totaling to 44 respondents. A structured questionnaire was used to obtain main data and a collection sheet to obtain the secondary data. Data was analyzed using descriptive statistics and linear regression analysis through SPSS 30. The study found out that the independent variable negatively correlated with the dependent variable. Enterprise risk management (r=-0.635) with p value of 0.000. The study recommends that regulatory bodies should encourage periodical risk management audits to evaluate the maturity and effectiveness of risk management systems within financial institutions. Central bank of Kenya and capital market authorities should periodically review and update governance and reporting regulations to reflect emerging risks and global best practices.
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    Entrepreneurial Orientation and Growth of Small and Medium Enterprises
    (Stratford Peer Reviewed Journals and Book Publishing, 2025-10) Dr. Job Omagwa; Francis Mutinda; Dr. Joanes Kyongo
    The role of small and medium enterprises(SMEs)in the economy cannot be understated. This sector contributes to the majority of employment, both in the informal and formal sectors. However, these enterprises face several challenges, ranging from inadequate skills to run their operations, inaccessible credit finance, limited credit terms and conditions, and external environmental factors such as pandemics and global economic recessions, which often hinder their growth. This study, therefore, investigated the effect of entrepreneurial orientation on the growth of SMEs. A corresponding hypothesis was formulated and tested. Data was collected from a sample of 384 SMEs spread across eight sub-economic sectors using a 5-point Likert scale structured questionnaire. Analysis was conducted using multiple regression after testing for diagnostic assumptions. The findings of the study showed that entrepreneurial orientation statistically and significantly affected growth of SMEs with a p=0.0001. Coefficient statistics showed a beta value of 0.492, which meant that entrepreneurial orientation increased the growth of SMEs by up to 49% of the realized changes. The study concluded that SMEs should pursue skills and knowledge, which are requirements for effective and better running of business operations, including accounting, marketing, and financial management for growth.
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    Influence of Mobile Banking on The Profitability of Deposit-Taking Saccos in Kenya
    (International Journal of Social Science and Humanities Research, 2025-03) Dr. Job Omagwa; Otieno Lilian Atieno
    The Deposit Taking Savings and Credit Cooperative Societies in the Country are gradually adapting to rapid changes by embracing new ways such as establishing loan products, enhanced communication, knowledge and technology. Savings and credit deposits Cooperative societies have adopted transactional self-service via mobile and telephone banking. Through the introduction of Front Office Services, Savings and credit deposits Cooperative societies also use of computerized technology, like the networks of Automated Teller Machines, to serve its customers this has led to increased customer satisfaction, transaction costs have decreased, and the efficiency and profitability of banks have both improved from the widespread embracing of electronic banking. Therefore, this study sought to assess the influence of mobile banking on the profitability of deposit-taking SACCOs in Kenya. The study used a descriptive survey research design. With a focus on forty companies that are licensed by the Savings and Credit Co-Operative Societies Regulatory Authority and function in Kenya. A census took place on all forty teacher-based companies with a scope of five years from 2018 to 2022. Secondary data was used that was obtained through a specialized data gathering instrument. In addition, the study relied on publicly available information sources, such as published financial statements and annual reports for the enumerated Savings and credit deposits Cooperative societies. To evaluate data, descriptive statistics (percentages, measures of central tendency and frequencies) as well as multiple regression analysis was used. The research revealed a significant positive impact of mobile banking on the profitability of deposit-taking Savings and Credit Co-Operative Societies in Kenya. The research finds that the companies analyzed which implement mobile banking access a wider customer segment, enabling them to draw in additional deposits and enhance their ability to lend. The research suggests that companies should create a mobile banking app that is user-friendly and straightforward to navigate, allowing individuals of all ages to utilize it efficiently.
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    Macroeconomic Dynamics and Profitability of Insurance Firms Listed atNairobi Securities Exchange, Kenya
    (Stratford Peer Reviewed Journals and Book Publishing, 2024-04) Dr. Job Omagwa; Milka W. Muteru
    Kenya’s insurance industry has been growing steadily since 2013, with premium revenue and capital investment increasing. However, Return on Assets has declined over the past four years and reached an all-time low in 2022 compared to the previous five years which was partly attributed to the reforms introduced to cater the impact of Corona virus pandemic on and the need to close infrastructure gaps. As a result, as gross domestic product grows, firm deposits and loans rise along with interest income and loan losses. This study focused on understanding how macroeconomic dynamics affect the profitability of insurance companies listed on NSE in Kenya. It particularly looked into how changes in exchange rates, interest rates, and the overall price rise in the economy (inflation) influence these companies' profits. The study was guided by the theoretical frameworks of purchasing power parity, deflation, the balance of payment, the classical theory of interest, and the balance scorecard model. The study adopted an explanatory research design and targeted the six insurance firms listed on the NSE. The secondary data collection for this study involved the utilization of secondary data sheets. Data was obtained from the official audited financial statements of the insurance firms for the fiscal years 2016 through 2022. Data analysis involved both descriptive and inferential analysis. Inferential analysis incorporated both correlation analysis and panel regression analysis. The study found that key macroeconomic dynamics had significant impact on the profits of insurance companies listed on the NSE, explaining 57.71% of the changes in profits (R-squared = 0.5771). It discovered that while changes in the exchange rate do not significantly affect profits (β = 0.0761, p = 0.5358), higher interest rates lead to higher profits (β = 2.1647, p = 0.0233), and inflation negatively impacts profits (β = -0.3447, p = 0.0011). The study's validity is supported by strong statistical evidence (F-statistic = 21.0100, p-value = 0.0000). It suggests that insurance companies in Kenya should focus on managing risks related to economic changes to improve their financial performance. This research adds to the understanding of how macroeconomic dynamics affect the profitability of insurance firms in the context of the NSE.
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    Market Orientation and Growth of Small and Medium Enterprises in Machakos County, Kenya
    (International Journal on Science and Technology (IJSAT), 2025-10-09) Dr. Job Omagwa; Mr. Francis Mutinda1; Dr. Joanes Kyongo
    Enterprises realize revenue through marketing of the products and services to potential customers across the economy. Therefore, to orient a firm’s strategies to identify, capture, and turn those market leads into sales and profits requires proper market orientation capabilities. Sadly, not all Small and Medium Enterprises have the capacity to fully align themselves with market opportunities and surmount existing challenges to reap the benefits of such markets. Cognizing this gap, the study investigated the role of market orientation and its effect on growth of Small and Medium Manufacturers in Machakos County, Kenya. A total of 384 SME owners and managers participated in the study by responding to Likert scale questionnaire during the survey. Data was analyzed using multiple regression to test for the null hypothesis. The findings of the study showed that market orientation significantly influenced the growth of SMEs Manufacturing in Machakos County, Kenya, with a p=0.0001. Coefficient of regression showed a positive direction meaning that market orientation influenced growth of SMEs with up to 46% of the change (ꞵ=0.461). Drawing from these results, the study concluded that small and medium enterprises' market orientation, intrinsic resources such as the identification of both current and future markets, aligning strategies towards capturing those markets, and developing products and services required are critical elements that must be possessed by entrepreneurs. It was therefore recommended that owners and managers of these firms must deliberately train and build their skills towards participating in newer markets and innovatively developing newer products and services embedded in technological capabilities to increase their revenue, a critical recipe for growth. Future studies should assess the internal capabilities required by SMEs Manufacturers in participating in regional markets to further boost growth and the larger realization of economic benefits for countries.
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    Moderating Effect Of Market Power On The Relationship Between Bank-Specific Characteristics And Profitability Of Commercial Banks In Kenya
    (IOSR Journal of Business and Management (IOSR-JBM), 2025-09-06) Dr. Job Omagwa; Nancy Mwali; Dr. Ruth Ndanu King’oo
    Commercial banks are essential for the Kenyan economy since they make significant contributions to its growth and development. Empirical data from the Central Bank of Kenya shows that the commercial banking industry has experienced fluctuations in profitability for the period covering 2013 through 2023 despite the bank-specific factors being in line with regulatory expectations hence, the effect of such factors on bank-profitability remains an issue for further investigation. Accordingly, the purpose of the study was to determine the moderating effect of market power on the relationship between bank-specific characteristics and profitability of commercial banks in Kenya. The study was anchored on the Profit Maximization Theory. A Census Design was adopted, which involved 39 banks licensed and regulated by Central Bank of Kenya for the period covering 2013 through 2023. Given the outcome of panel regression analysis, the study established that the interaction between bank-specific characteristics (bank size, capital adequacy, liquidity, and asset quality) and market power was negative and statistically significant in prediction of profitability (β=-.026, p=.000). Accordingly, the study recommends that commercial banks should focus on customer service and innovative financial solutions that have the potential to promote organic growth as opposed to their overreliance on market size as the main driver of performance.
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    Risk Management and Profitability of Agribusiness Firms in Kiambu County, Kenya
    (International Journal of Economics, Business and Management Research, 2025-10-13) Dr. Job Omagwa; Githaiga Jane Njeri; Moses Aluoch
    Profitability is a key indicator of performance and sustainability for agribusiness firms in Kenya, particularly in Kiambu County where agriculture plays a vital role in household income and food security. Despite this, many firms in the region have faced stagnant and some a decline in profitability. This study examined the influence of three dimensions of risk management that is fraud prevention, insurance adoption and systematic risk assessment, on the profitability of agribusiness firms in Kiambu County, Kenya. Primary data was collected through semistructured questionnaires administered to firm managers, finance managers, and internal auditors, with a sample of 55 firms drawn from a population of 64 agribusinesses, resulting to 165 respondents. Data covering the period 2020 to 2024 were analysed using descriptive statistics, multiple regression analysis, and diagnostic tests with SPSS version 21. The findings revealed that systematic risk assessment had a positive and statistically significant effect on profitability, while insurance adoption and fraud prevention showed positive but insignificant effects, due to high insurance premiums, delayed claim settlements, and limited integration of fraud control systems in smaller firms. The study concludes that structured risk management is indispensable for sustaining profitability in agribusiness firms. The study recommends that managers institutionalize comprehensive risk assessment processes, adopt cost-effective insurance products aligned to firm needs, and strengthen fraud prevention frameworks. Policymakers are encouraged to support affordable insurance schemes, streamline claim settlement processes, and promote risk management capacity building among agribusiness firms.
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    Strategic Alignment and Service Delivery Excellence in Level Six Hospitals in Kenya: An Empirical Review
    (Stanford Research and Publishing Institute, 2025-03-29) Dr. Job Omagwa; Mr. Simon Waithaka; Dr. Joanes Kyongo
    This study sought to explores the link between strategic alignment and service delivery excellence in Level Six hospitals in Kenya. An empirical review of peer-reviewed articles published in the last decade was conducted, focusing on databases like PubMed, Scopus, and Web of Science. The review synthesized empirical data to uncover themes related to strategic alignment and hospital performance. Findings highlight that hospitals with aligned strategies and operational processes show higher patient satisfaction, driven by timely services, quality care, and staff professionalism. However, disparities exist between urban and rural hospitals. In terms of performance, strategic alignment leads to improved financial outcomes, operational efficiency, and resource management. Yet, rural hospitals face infrastructure challenges that hinder performance, while aligning strategies with national policies remains difficult due to budget and staffing limitations. This review emphasizes the critical need for strategy alignment to enhance patient satisfaction and hospital performance and calls for addressing regional disparities and policy alignment for service excellence.
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    The Link between Capital Adequacy and Financial Stability: Evidence from Deposit Taking Savings and Credit Co-Operative Societiesin Kenya
    (Stratford Peer Reviewed Journals and Book Publishing, 2024-05) Dr. Job Omagwa; Hesborn Birisi Birisi; Salome Musau
    In Kenya, financial stability of Deposit Taking(DT) Savings and Credit Cooperative Societies (SACCOs)as evident in non-performing loans of DT SACCOS has been an issue of concern over the past few years due to evidence indication fluctuating trends. Consequently, should this continue then this sector’s contribution to financial intermediation through provision of financial services will be negatively affected. Though DT SACCO shave sought to enhance their capital adequacy, its effect on enhancement of financial stability remains an issue for further empirical investigation. In view this, the study sought to investigate the effect of capital adequacy on financial stability of DT SACCOS in Kenya. The study was anchored on agency theory. Positivist research philosophy was adopted in this study. The study adopted explanatory research design. The target population for the study comprised160 DT SACCOs which were fully operational in the period. A census approach was used for the study. This study utilized quantitative secondary data which was obtained from the society’s financial statements and supervision reports from the savings and credit cooperatives regulatory authority. The study utilized annual panel data for the period of 2017 to 2021. Multicollinearity test, normality tests, autocorrelation test, homoscedasticity, stationarity test and model specification test were carried out prior to panel data analysis. Data was analyzed using descriptive statistics, Pearson’s correlation analysis and panel regression analysis. STATA software was used for the analysis. Ethical standards and regulations were adhered to accordingly. The regression results revealed that capital adequacy had a significant negative effect on NPLs (β=-0.3249614, p-value=0.000<0.05).In view of the findings, the study that regulatory authorities in Kenya should take a proactive response in establishing and enforcing robust capital adequacy standards for DT SACCOs. In addition, higher levels of capital adequacy and improved management efficiency are associated with reduced NPLs ratio among DT SACCOs in Kenya, hence improved financial stability.
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    Transaction Monitoring Effect on Profitability of Commercial Banks in Kenya
    (EdinBurg Peer Reviewed Journals and Books Publishers, 2025-05) Dr. Job Omagwa; Obed Kipkirui Terer; Lucy Wamugo Mwangi
    Commercial banks' performance is fundamental to the economy as providers of financial services. In offering this service, commercial banks are exposed to a range of risks that negatively affect financial position and ultimately influence profitability. Profitability is indicative of a bank's stability and potential for growth. Enhancing commercial banks' profitability contributes to shareholder return on investment. In June 2018, five banks were fined a total of Kshs. 392 million by the Central Bank of Kenya for breaching anti-money laundering regulations. Consequently, banks had to invest resources to improve their anti-money laundering measures. Consequently, raising operational and compliance overheads. This study sought to determine the effect of transaction monitoring on profitability of commercial banks in Kenya. The research employed an explanatory research design. The targeted population comprised all the thirty-nine regulated commercial banks as of December 31, 2021. The study period was eight (8) years (2014 to 2021). Respondents were chosen through purposive sampling. Primary data was gathered using structured questionnaires, while secondary data was derived from audited financial reports of commercial banks and the annual banking supervision report from the Central Bank of Kenya. Subsequently, the collected data underwent analysis employing descriptive statistics and regression analysis. The research results disclosed that transaction monitoring positively and significantly influenced commercial banks profitability. Consequently, bank managers should incorporate transaction monitoring into their operations to augment the overall efficacy to detect and report potentially suspicious activities, and to strengthen operational controls.
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    Transaction Monitoring Effect on Profitability of Commercial Banks in Kenya
    (EdinBurg Peer Reviewed Journals and BooksPublishers, 2024-05) Dr. Job Omagwa; Obed Kipkirui Terer; Lucy Wamugo Mwangi
    Commercial banks' performance is fundamental to the economy as providers of financial services. In offering this service, commercial banks are exposed to a range of risks that negatively affect financial position and ultimately influence profitability. Profitability is indicative of a bank's stability and potential for growth. Enhancing commercial banks' profitability contributes to shareholder return on investment. In June 2018, five banks were fined a total of Kshs. 392 million by the Central Bank of Kenya for breaching anti-money laundering regulations. Consequently, banks had to invest resources to improve their anti-money laundering measures. Consequently, raising operational and compliance overheads. This study sought to determine the effect of transaction monitoring on profitability of commercial banks in Kenya. The research employed an explanatory research design. The targeted population comprised all the thirty-nine regulated commercial banks as of December 31, 2021. The study period was eight (8) years (2014 to 2021). Respondents were chosen through purposive sampling. Primary data was gathered using structured questionnaires, while secondary data was derived from audited financial reports of commercial banks and the annual banking supervision report from the Central Bank of Kenya. Subsequently, the collected data underwent analysis employing descriptive statistics and regression analysis. The research results disclosed that transaction monitoring positively and significantly influenced commercial banks profitability. Consequently, bank managers should incorporate transaction monitoring into their operations to augment the overall efficacy to detect and report potentially suspicious activities, and to strengthen operational controls.
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    Working Capital Management and Profitability of Tea Processing Firms in Aberdare Ranges Region, Kenya
    (The Strategic Journal of Business & Change Management, 2024-04-27) Dr. Job Omagwa; David Njathi Wanyoike
    This research determined the effect of working capital management on profitability of tea processing firms in the Aberdare Ranges region of Kenya. The empirical investigation was anchored on the liquidity preference theory, the operational cycle theory, and the theory of profitability-liquidity trade-off. This study adopted a descriptive survey approach and target tea processing factories in the Aberdare ranges region of Kenya under the Kenya Tea Development Authority management. The study adopted purposive sampling to target unit managers, procurement managers, and finance managers as the chosen respondents as they possess the necessary data for the study. A census approach was adopted as the sampling design focusing on all 21 tea processing firms in Aberdare ranges region in the study. The study utilized both primary and secondary data that was collected by use of questionnaires and data collection sheets, respectively. The study considered a five-year span from 2017-2021. Multiple linear regression analysis, correlation analysis, and descriptive analysis were used to analyse data. The results were displayed as graphs, charts, and tables. The study found that cash management had a positive and significant effect on the profitability of tea processing firms in the Aberdares region of Kenya. In addition, inventory management had a significant and positive effect on the profitability of tea processing firms in the Aberdares region. The findings also indicated that debt management had a positive and effect on the profitability of tea processing firms in Aberdares region of Kenya. Further, the study established that credit management had a positive and significant effect on the profitability of the tea processing firms in Aberdares region of Kenya. The study recommends that the management of tea processing firms should make use of cash budgeting, review of target cash balance and preparation of cash flow statements to improve the profitability of their firms. In addition, tea processing firms should make use of effective and efficient order management as a strategy for inventory management so as to improve profitability. By implementing effective order management strategies, businesses can optimize inventory levels, minimize stock outs, and improve customer satisfaction.