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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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Consumer Culture Moderating Effect on Customer Dispositions, Enablers on Toothpaste Brand Loyalty Among Millennials in Kenyan Private Universities.
(The Strategic Journal of Business & Change Management, 2023-10-15) Thaisaiyi, Zephania Opati; Gesimba, Paul; Njanja, Lily
Millennials are avid users of technology giving them a platform to transition from local to global buyers via social media use therefore blurring boundary between consumer private life and marketing. While dispositions and consumers capabilities have an influence on brand loyalty few studies have positioned culture as moderator among the millennials. This study examined the moderation effect on the relationship between customer dispositions and enablers influencing brand loyalty among the millennials in the Kenyan private universities. Studies indicate that culture influences brand loyalty but its moderating effect is not known among millennials given their attitudes and capabilities. A descriptive research design using Hofstede Cultural Dimension was adopted to anchor the study. 399 millennials aged 23 to 43 studying at 19 chartered private universities students were targeted using a multi-stage sampling method via a self-administered Likert scale questionnaire. Additionally, Hierarchal Structural Equation Modeling Regression Analysis and Hayes PROCESS used to analyze the data. Results showed that consumer culture does not moderate the relationship between customer dispositions, enablers and toothpaste brand loyalty among millennials. They have a youth culture, avoid have perceived high-quality brands and opt for relevant cheaper one. They revere emotional connected brands which have built high switching costs. Managers should understand youth culture to formulate effective strategies for optimizing the millennials brand loyalty. Future research should explore the influence of culture and social media impact on shaping loyalty tendencies not only among millennials.
Corporate Governance and Triple Bottom Line Performance of Microfinance Institutions In Kenya
(African Journal of Emerging Issues (AJOEI), 2025-10-15) Phanice Bushuru Ambutsi; Prof. Muturi Wachira; Prof. Laban Peter Ayiro
Statement of the Problem:Corporate governance plays a critical role in the sustainability of Microfinance Institutions (MFIs), which contribute to poverty reduction and financial inclusion. However, recent failures and declining performance of MFIs in Kenya have raised concerns about their governance structures. Between 2022 and 2024, only four of fourteen licensed MFIs reported profits, with the sector recording a combined loss of Ksh. 3.5 billion in 2024. Purpose of the Study:This study examined the effect of board diversity and board committees on the financial, social, and environmental performance of Microfinance Institutions in Kenya.Methodology:The study adopted an explanatory research design with a pragmatist philosophical approach. The target population comprised all 14 licensed deposit-taking MFIs registered with the Central Bank of Kenya. Primary data were collected using structured questionnaires administered to senior management, while secondary data were obtained from audited financial reports and regulatory documents. Data analysis employed descriptive statistics, correlation analysis, and hierarchical multiple regression.Results:The findings revealed that both board diversity and board committees have moderate,positive, and statistically significant effects on TBL performance. Board committees showed a correlation coefficient of r = 0.612 (p < 0.05), while board diversity showed r = 0.493 (p < 0.05). Regression analysis indicated that a unit increase in board diversity leads to 0.298 increase in TBL performance, explaining 58.8% of variance, while board committees contribute 0.338 increase, accounting for 60.4% of variance.Conclusion:Corporate governance mechanisms, particularly board diversity and committee structures, significantly enhance MFIs' capacity to achieve integrated financial sustainability, social outreach, and environmental responsibility, thereby reducing agency costs and aligning institutional actions with stakeholder interests.Recommendations:MFI boards should strengthen diversity and establish specialized committees. Policymakers should develop Kenya-specific governance frameworks for MFIs and integrate TBL performance indicators into regulatory supervision to promote sustainable performance across financial, social, and environmental dimensions.
The Moderating Effect of Regulatory Framework on the Relationship Between Corporate Governance and Triple Bottom Line Performance of Microfinance Institutions in Kenya
(StratfordPeerReviewedJournalsandBookPublishing, 2025-10) Phanice Bushuru Ambutsi; Muturi Wachira; Prof. Laban Peter Ayiro
Microfinance institutions in Kenya continue to face persistent financial instability despite their critical role in promoting financial inclusion andsocio-economic growth. This study examined how the regulatory framework moderates the relationship between corporate governance and Triple Bottom Line (TBL) performance of microfinance institutions (MFIs). The purpose was to determine whether regulatory structures strengthen or weaken the effect of governance practices on financial, social, and environmental outcomes. Primary data were obtained through structured questionnaires administered to 84 respondents drawn from 14 purposively selected microfinance banks out of 47 institutions registered under the Association of Microfinance Institutions of Kenya as of December 2024. Stratified random sampling was applied, and data were analyzed using SPSS through descriptive statistics, Pearson correlation, and hierarchical multiple regression. Results revealed that governance indicatorsboard size, activity, diversity, independence, and audit qualitypositively influenced TBL performance, while inclusion of the regulatory framework increased explanatory power from 53.2% to 65.1%. Significant interaction effects between regulation and governance variables, particularly board size, independence, and audit quality, confirmed the moderating role of the regulatory framework. The study concludes that effective regulation amplifies good governance, thereby enhancing financial stability, social outreach, and environmental responsibility. However, excessive regulatory pressure can hinder innovation and impose compliance burdens that weaken performance. The study recommends that policymakers and regulators adopt a balanced approach that integrates governance reforms with adaptive regulatory oversight to promote resilient, socially inclusive, and environmentally sustainable microfinance institutions aligned with Kenya’s Vision 2030 and the Sustainable Development Goals.
The Moderating Effect of Business Category on Investment Management Structure Choices among Insurance Companies in Kenya
(The International Journal of Business & Management, 2020-06-30) M’Ariba R. Kinoti; Dr. Agnes Njeru
Insurance business is conducted in two broad categories namely general insurance and life insurance. A firm’s business category is an important consideration in making key decisions. This paper examines the moderating effect of firm business category on investment efficiency, firm size and market influence as antecedents of the choice of the investment management structure to adopt. The study adopts a descriptive approach relying on a binary logistic regression model. The study sample consisted of forty-six (46) companies licensed to undertake insurance and reinsurance business in Kenya in 2017. Both primary and secondary data were collected. Data processing and analysis was undertaken using STATA. The study findings indicate that business category is not a statistically significant factor moderating the influence of the other predictor variables in the investment management structure choices of firms although it had the effect of amplifying or diminishing their importance. It is recommended that insurance companies must be cognizant of their business category effects but need not factor it in their decisions on the investment management structures to adopt.
Investment Governance: Delegation Decision Antecedents by Insurance Companies in Kenya
(European Scientific Journal, 2020-05-31) Rogers Kinoti M’Ariba; Oluoch Oluoch
Delegation decisions comprise a key component of investment governance structures of firms. Based on agency theory, this paper explores corporate governance and market dynamics as antecedents of investment management delegation by insurance firms in Kenya. Investment governance structures employed by firms are shaped by their unique circumstances and diverse considerations. The objectives of this research were to establish the influence of corporate governance and market dynamics on the investment governance structures of insurance firms in Kenya. The study adopted a descriptive approach with a target population of forty six firms in insurance and reinsurance business in Kenya. Both primary data and secondary data were collected. Data analysis was conducted using STATA relying on a binary logistic regression model. The study found that shareholder control, board diversity and avoidance of agency problems leads firms towards delegating their investment management activities. Desire to access alternative assets, peer influences and asset allocation considerations had a lesser extent of influence on firms towards delegation. The study concludes that large shareholder dictations and lack of investment management expertise in boards causes firms to adopt delegation models in their investment management. On the other hand, easy access to investment markets and constant supply of high yielding government bonds pulls firms towards internal investment management. It is recommended that firms make appropriate choices on extent of delegation by carefully evaluating their needs and developing structures that deliver best outcomes.
Investment Management Structure Choice Among Insurance Companies in Kenya
(International Journal of Economics, Business and Management Research, 2020) Rogers Kinoti M’ariba; Dr. Agnes Njeru
The choice of the investment management structure to adopt is a critical first step in the investment management decision making process. Using a mixed methods approach, this paper explores the influence of investment efficiency and firm size as possible antecedents of this investment decision making among insurance companies in Kenya. Investment management structures were dichotomized into in house management and delegation. The study considered the forty six (46) companies licensed to undertake insurance and reinsurance business in Kenya in 2017. Primary data was collected from the respondents using a self-administered questionnaire while secondary data was collected from regulatory filings and company financial statements. Data processing and analysis was undertaken using a binary logistic regression model in STATA. Results show that in house investment management structure was more prevalent than delegation. Investment efficiency and firm size were found to have a positive influence over firms in favour of delegation. Based on this research it is recommended that insurance companies pay close attention to their investment efficiency needs while taking full cognition of their size as they choose their investment management structures.
Analysing Mobile Banking Quality Factors from Neutrosophic Set Perspective: A Case of Study of Turkey
(Journal of Economics, Finance and Accounting, 2017) Basil Oluoch Okoth; Serpil Altinirmak; Mustafa Ergun; Caglar Karamasa
Purpose - Mobile banking, also known as m-banking, provides low cost, innovative and easily accessible services to customers with technological developments as compared to retail banking. In this context, m-banking quality factors of the banks are considered to be important issues for customers. The aim of this study is to analyze the m-banking quality factors and to rank banks offering this service in Turkey under incomplete, inconsistent and indeterminate information. Methodology - First linguistic expressions of experts are converted to crisp values via approximation approach proposed by Chen and Hwang. Then, the Single Valued Neutrosophic Set (SVNS) based entropy, which deals with incomplete, indeterminate and inconsistent environment better than fuzzy set, is used to rank the banks providing m-banking services in Turkey. Findings- Findings - show that the Denizbank has the best performance in m-banking applications followed by TEB and ING. Additionally, in terms of entropy weights, response time was found to be the most important criterion followed by accessibility, accuracy and trust. Conclusion- Banks could consider the criteria of response time, accessibility, accuracy and trust for improving the performance in mbanking services implementation.

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