Faculty of Business and Economics

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RELATIONSHIP BETWEEN FINANCIAL LITERACY AND BORROWING BEHAVIOUROF SMALL-SCALE BUSINESS OWNERS INHOMA BAY TOWN, KENYA
(EPRA International Journal of Economic and Business Review, 2017-03-03) Dickence Aketcha; Dr. Alphonce Odondo
S mall-scale businesses play an important role in the global economy with over 60% of the population depending on them for employment. About 30% of the population in Kenya depends on Small-scale businesses for their livelihoods. However, up to 70% of the businesses are collapsing under the burden of unserviced loans. In Homa Bay town, 60% of the non-performing loans portfolio among commercial banks is from small-scale businesses, suggesting poor borrowing behaviour. While prior studies indicate that financial literacy generally influences borrowing behaviour, there is no clear link between financial literacy and borrowing behavior of small-scale business owners, particularly in Homa-bay town. On this basis, the study sought to establish the relationship between financial literacy and borrowing behavior among the small business owners. It was guided by correlational research design and anchored on the theory of Reasoned Action and the theory of Planned Behaviour. Out of 1220 business, a sample of 301 small scale business owners was taken. Stratified random sampling technique was used to draw individual respondents. Primary data were collected using questionnaires while secondary data were from the business records. Reliability coefficient for the questionnaires was 0.815 and content validity index was 0.723. Peason correlation and multiple regression were used to establish the relationship. The study revealed that 65% and 49.8% changes in the borrowing behaviour were associated with the business owners’ knowledge of key money concepts and knowledge on the financial institutions respectively. The estimated model could explain up to 59.6% variations in the borrowing behaviour of the business owners. The study concludes that borrowing behavior of the small-scale business owner is significantly related to the owner’s financial literacy. It is recommended that the small-scale business owners be educated more on financial matters, particularly the key money concepts and the existing financial institutions. Findings from the study may benefit both the borrowers and lenders in financial planning. Researchers may also use the findings as a source of literature for further research in the field of study.
RELATIONSHIP BETWEEN FINANCIAL LITERACY AND BORROWING BEHAVIOUR OF SMALL-SCALE BUSINESS OWNERS IN HOMA BAY TOWN, KENYA
(EPRA JOURNALS, 2017-03-03) Dickence Aketcha; Dr. Alphonce Odondo
Small-scale businesses play an important role in the global economy with over 60% of the population depending on them for employment. About 30% of the population in Kenya depends on Small-scale businesses for their livelihoods. However, up to 70% of the businesses are collapsing under the burden of unserviced loans. In Homa Bay town, 60% of the non-performing loans portfolio among commercial banks is from small-scale businesses, suggesting poor borrowing behaviour. While prior studies indicate that financial literacy generally influences borrowing behaviour, there is no clear link between financial literacy and borrowing behavior of small-scale business owners, particularly in Homa-bay town. On this basis, the study sought to establish the relationship between financial literacy and borrowing behavior among the small business owners. It was guided by correlational research design and anchored on the theory of Reasoned Action and the theory of Planned Behaviour. Out of 1220 business, a sample of 301 small scale business owners was taken. Stratified random sampling technique was used to draw individual respondents. Primary data were collected using questionnaires while secondary data were from the business records. Reliability coefficient for the questionnaires was 0.815 and content validity index was 0.723. Peason correlation and multiple regression were used to establish the relationship. The study revealed that 65% and 49.8% changes in the borrowing behaviour were associated with the business owners’ knowledge of key money concepts and knowledge on the financial institutions respectively. The estimated model could explain up to 59.6% variations in the borrowing behaviour of the business owners. The study concludes that borrowing behavior of the small-scale business owner is significantly related to the owner’s financial literacy. It is recommended that the small-scale business owners be educated more on financial matters, particularly the key money concepts and the existing financial institutions. Findings from the study may benefit both the borrowers and lenders in financial planning. Researchers may also use the findings as a source of literature for further research in the field of study.
EFFECT OF FOREIGN REMITTANCES ON SELECTED MACROECONOMIC VARIABLES IN EAST AFRICA COMMUNITY
(International Journal of Economics, Commerce and Management, 2017-05-20) Penuel Nyaanga Ondieng’a; Alphonce Juma Odondo; Benjamin Owuor Ombok
Over the years, remittances in East Africa Community (EAC) have grown remarkably becoming the second largest capital flow after Official Development Assistance (ODA). However, most of the studies conducted on its effects are non EAC specific and have not expanded the analysis beyond output to other macroeconomic variables like consumption, investment and imports. This study therefore, sought to empirically test the link between remittances and its effect at macro level in EAC. The study was anchored on the Keynesian model of Economic growth and was guided by correlational research design. Panel data set for the period 1985-2014 from theWorld Bank database for the five EAC countries consisting of Kenya, Uganda, Tanzania, Rwanda and Burundi were used. The study used Two Stage Least Square (TSLS) method of estimation and established that foreign remittances have positive effects in EAC, an increase ofremittances by one dollar, through impact and dynamic multiplier effects increased consumption, investment, import and output. However, the impact is in the first year and wears out in the subsequent years with exception of Rwanda where it reduces gradually over a fouryear period. The study concludes that foreign remittances have significant positive effects on consumption, investment, import and output. Macroeconomic policies should therefore, focus on its sustainability to promote economic growth. At the end, study makes implications for policy and further research.
EFFECT OF FOREIGN REMITTANCES ON PRIVATE CONSUMPTION, INVESTMENT, IMPORT AND OUTPUT IN EAST AFRICA COMMUNITY
(International Journal of Social Science and Economic Research, 2017-06-06) Penuel Nyaanga Ondieng’a; Dr. Alphonce Juma Odondo (PhD); Dr. Benjamin Owuor Ombok (PhD)
Foreign remittances to East Africa Community (EAC) have increased considerably in the past two decades becoming one of the largest sources of foreign currency earnings. However, despite the remarkable growth of remittances in EAC, little has been researched on its effect on consumption, investment, import and output at macro level. Most of the available literatures concentrates on its effect on poverty reduction at household levels. This study, therefore, sought to empirically test the link between remittances and consumption, investment, import and output. The study used correlational research design anchored on a linear Keynesian macroeconomic model with a dynamic outlook. Panel data set for the period 2000-2014 from the World Bank database for the five EAC countries, namely; Kenya, Uganda, Tanzania, Rwanda and Burundi were used. The study used a Two Stage Least Square (TSLS) method of estimation and established that of foreign remittances have a positive effect on private consumption, investment, import and output in EAC. The study recommends that macroeconomic policies should focus on its sustainability to promote economic growth and makes implications for policy and further research.
The Link Between Food Import and Cereals Production in Kenya: Evidence from Cointegration and Granger Causality Analysis Using Time Series Data .
(International Knowledge Sharing Platform., 2017-07-15) Dr. Alphonce Juma Odondo (PhD)
Kenya is the leading economy in the East African Community (EAC) and its economy significantly depends on agriculture both directly and indirectly. Approximately 45% of her revenue is derived from agriculture. Besides employing about 60% of her populace, the sector provides over 75% of industrial raw materials and slightly above 50% of the economy’s export earnings. This sector is however, facing a myriad of challenges such as low purchasing power of the population due to high poverty level, frequent drought, high cost of inputs and high global food prices. This situation among other factors, has forced the government to rely on food aid and to divert her foreign exchange reserves and resources earmarked for development to procurement of food. However, the underlying question would be, if Kenya is relying on food aid which is noted to have little effect on local production of food but rather displaces imports, what then is the causality between the food import and foodproduction? This paper sought to address the above question. The study was anchored on the ideas of classical economists, particularly the concepts of production and consumption. It was based on diagnostic research design. Time series data from the World Bank for the period 1976 to 2013 were employed. Granger causality test was undertaken to establish the directional causality between food import and cereals production. This was done by estimating Vector Autoregressive (VAR) models. Vector error correction (VEC) models were also estimated to assess the possibility of long run relationship between the variables and Wald statistics for possible short run relationships. Other econometric tests included: Normality using Jarque-Bera statistics, Breusch-Godfrey LM Test for serial correlation and the ARCH test for Heteroskedasticity. The study revealed bidirectional causality between food import and cereals production in Kenya. In addition, food import had long run causality on cereals production. On the other hand, cereals production had no long run causality on food import, though there was short run causality running from cereals production to food import. The negative significant short runrelationship between cereals production and food import imply that food import may react to cereals production, a likely indication that cereals production my alter food import in the long run. The country should thus enhance cereals production to reduce food imports which could be ascribed to food shortage in the economy. This study may be a source of literature for econometricians and help in policy formulation to address the food insecurity situation in the country.
An Investigation of the Relationship between Government Spending and Private Consumption in Kenya.
(SAS Publishers (Scholars Academic and Scientific Publishers), 2017-09-30) Kametu Evans Ndia; Dr. Nyongesa Destaings Nyenyi; Dr. Odondo Alphonse Juma
Over the past years, the relationship between government spending and private consumption remains one of the contentious issues in macroeconomics literature. The question of whether public expenditure is neutral or crowds in or out private consumption has dominated theoretical and empirical debate. Three major schools of thought on the issue are observed in the literature, these are the Ricardian equivalence theorem, the Keynesian framework and the Substitutability hypothesis each with a distinct set of explanations. These contrasting schools of thought have triggered several empirical studies attempting to investigate the relationship between government spending and private consumption. However, conclusions from the empirical studies are inconclusive. Most of the empirical studies, on the subject have mainly focused on the high-income countries which have different structural properties in their economic structure and government spending patterns. There is scanty literature on the relationship between private consumption and government spending in the less developed economies. In Kenya, most of the studies focus on the relationship between government expenditure and economic growth. The government expenditure in Kenya has been increasing gradually over the years. The average value of government expenditure was 9.96 billion U.S. dollars with a minimum of 0.56 billion U.S. dollars in 1961 and a maximum of 50.29 billion U.S. dollars in 2015. On the other hand, the private consumption, average increment was 2.06 billion U.S. dollars with a minimum of 0.09 billion U.S. dollars in 1960 and a maximum of 9.19 billion U.S. dollars in 2015. Though there is upward trend of both private consumption and public spending in Kenya, the relationship between the variables is not clear. This study sought to investigate the relationship between government spending and private consumption in Kenya. The specific objectives of this study were to; determine the correlation between government spending and private consumption, establishthe long run equilibrium linkage between government spending and private consumption and determine the causality link between government spending and private consumption in Kenya. This study was based on correlational research design and used the Autoregressive Distributed Lag (ARDL) estimation technique. The model was subjected to several diagnostic tests, Breusch- Godfrey serial correlation LM test, CUSUM test and Bound test to ensure validity and reliability. The results of the study revealed that government spending has a significant positive effect on private consumption both in short run (= 0.376,) and long-run (= 0.888,). The results also indicated that the variables had a positive trend with a strong, statistically significant positiveassociation (0.998,). The Granger causality test results indicate that there is long run unidirectional causal relationship running from government consumption to private consumption. Based on the results, this study recommends the enhanced use of public spending to stimulate the private consumption.
Logit Analysis of the Relationship between Interest Rate Ceiling and Micro Lending Market in Kenya
(Canadian Center of Science and Education, 2018-07-10) Onyango Barnabas Ochieng; Alphonce Juma Odondo
Interest rate ceilings have been declining over the past decades as most developing countries continue liberalizing their financial policies. Prior to 2015, Kenya‟s banking sector was vibrant and highly profitable. The sector loan book grew at an impressive compound annual rate of 16% in 2011 to 35% in 2015. However, after interest rate cap in 2016, there has been a general slowdown in micro lending and rise in non-performing loans. Some studies argue that the ceiling protects consumers from exploitation and guarantees access to credit while others observe the contrary. This study sought to establish the relationship between interest rate ceiling and micro lending in Kenya. It was anchored on financial accelerator effect theory and the theory of financial repression. The study relied on secondary data from Banks and Micro Entrepreneurs. Logit models were estimated to establish the relevant relationships. It was established that interest rate ceiling had significant negative association with credit supply and default rate. However, it had a significant positive association with cost of Credit. Both Nagelkerke‟s R2 and Cox and Snell‟s showed that the estimated model fitted well. The Wald criterion demonstrated that credit supply, costs of credit and default rate were significantly different from zero. Thus, the independent variables were significantly affected by interest rate ceiling. It is recommended that banks pursuing policy of increasing credit supply and reducing cost of credit should advocate for the repeal of interest rate ceiling while those interested in reducing default rate should advocate for its retention.
CAUSALITY BETWEEN REAL INTEREST RATE AND GROSS CAPITAL FORMATION IN KENYA: THE HICKSIAN HYPOTHESIS
(EPRA JOURNALS, 2018-09-10) Ochieng Otieno Benjack; Dr. Odondo Alphonce Juma
In 2016, the Government of Kenyan introduced interest rate cap of 14% per annum to spar investments through cheaper credit acquisition from commercial banks. This objective was not realized as evidenced by deteriorating levels of investments as reported by the Central Bank of Kenya (CBK) in 2017. In response to this incongruity, causal relationship between Real Interest Rate (RIR) and Gross Capital Formation (GCF) together with the relevance of Hicksian Hypothesis was tested in Kenya. Correlational research design was adopted and World Bank Time series data from 1980 to 2017 was used. Long run causality was tested using Vector error correction model (VECM) and revealed a long run causality with the speed of adjustment towards equilibrium = 1.696590 at p =0.0061. Wald test pointed to the existence of short run causality between the two variables. The study found a bi directional causality between RIR and GCF in the short and long-run periods. Consequently, investments decisions in Kenya closely follow the Hicksian hypothesis. Although bidirectional causality was established, a weak negative association existed between the two variables, suggesting the existence of other factors which determine GCF in Kenya given the outlined incongruity. Hence, the two variables should be jointly considered together with other GCF determinants during policy formulation in order to enhance investment activities in the economy.
EMPLOYEE COMPENSATION ON JOB PERFORMANCE IN THE COUNTY GOVERNMENT OF KAKAMEGA, KENYA
(strategicjournals.com, 2019-08-13) Puka, S.; Wanyama, K. W.; Aliata, V. L.
Despite the fact that County Governments have been investing heavily in staff empowerment strategies since inception its effect on job performance still remains vague. Several studies have been conducted on this subject and their results were diverse. More than 25% of organizations reported no significant empowerment-oriented practices in their organizations. The main purpose of this study was to investigate the effect of employee compensation on job performance among staff in the County Government of Kakamega, Kenya. This study was anchored on the Resource Based View Theory. A correlation research design was adopted for the study and the study targeted 242 respondents, drawn from all the county departments in the County Government of Kakamega. A sample size of 171 respondents was used. The questionnaire was the main instrument for data collection. Reliability analysis results illustrated that Cronbach alpha coefficients were above 0.7. The study employed criterion validity, construct validity of the instruments, and face validity. Data analysis and interpretation were based on descriptive statistics as well as inferential statistics using SPSS version 22. The findings of the study illustrated that employee compensation and employee performance were found to be linear, positive and significant (p-value less than 0.05). It was concluded that employee compensation accounted for 62.1% variation of job performance among staff of the County Government of Kakamega. This implied that if employee compensation were enhanced in the County Governments, employee job performance will be automatically improved. It was recommended that the county governments should fairly remunerate their employees through use of various types of bonuses like annual/year-end bonus and incentive bonus to motivate employees to better performance. The output of the study would be utilized by the Department of Human Resources Management by the County Governments of Kenya in the formulation of a systematic process of applying employee compensation. It would further guide formulation of policy in the key areas of employee compensation by County Governments and other policy makers. Finally, it would also contribute to scientific knowledge base for academic purposes for researchers in the area of employee compensation.
Effect of Domestic Saving on Capital Formation in Kenya
(www.iiste.org, 2019-08-31) Mukhongo Wafula; Nelson Obange; Alphonce Odondo
Kenya’s average rate of gross capital formation of 20.13% of GDP over the period 2006-2017 falls short of at least 25% necessary for developing countries to experience sustainable growth. The attendant effects of low capital formation have entrenched unemployment rate above 39% line and consigned more than 65 per cent of the country’s population to living on less than $ 2 a day. The statistics suggest the need for urgent policy intervention aimed at accelerating capital formation in Kenya. But whether the government should respond by mobilizing more domestic saving or not is the question which this study sought to answer. This is because majority of the previous studies that investigated the effects of domestic saving on development indicators limited themselves to growthsaving nexus. Those that investigated the effect of domestic saving on capital formation either restricted themselves to a bivariate framework or controlled for a few sources of capital formation. This implies that the effect of domestic saving on capital formation is not clear. Besides, the response of capital formation to shocks in domestic saving is not clear. The purpose of this study was to investigate the effect of domestic saving and the response of capital formation to shocks in domestic saving. The study was anchored by Solow’s capital accumulation model within a correlational studies research design. Data over 1974-2017 period was sourced from the World Bank. ARDL bounds test found the existence of cointegrating relationship among gross capital formation, gross domestic saving and the controlled variables when gross capital formation was specified as the target variable. The short-run dynamic model estimates indicated that ECM term corrects 39.56% of deviations from long run equilibrium in one year. ARDL estimation indicated that in the long run, gross domestic saving has positive significant effect on gross capital formation. The results were robust for IRFs analysis which found the response of gross capital formation to innovations in gross domestic saving to be positive and significant. The study concluded that in the long-run, Kenya’s capital formation will be driven by domestic saving. Therefore, to achieve high capital formation in the long-run, the study recommended policies that enhance positive effects of domestic saving for consideration by the government of Kenya.
Effect of Foreign Multilateral Aid and Foreign Bilateral Aid on Capital Formation in Kenya
(American Research Institute for Policy Development, 2019-09) Mukhongo Wafula; Alphonce Odondo; Nelson Obange
Low capital formation in Kenya, averaging rate 20.13% of GDP over the period 2006-2017 has kept unemployment rate above 39% with more than 65 per cent of people living on less than $ 2 a day. Yet previous studies do not have a clear answer to the question of whether increasing bilateral aid/multilateral aidenhances capital formation or not. This study’s purpose was to investigate the effect of multilateral aid and bilateral aid on capital formation in Kenya. The study was anchored by Solow (1956) model. Autoregressive distributed lag estimates for data over 1974-2017 suggested that multilateral aid has positive insignificant effect on capital formation while bilateral aid has negative significant effect after one year. Error correction mechanism model estimates suggest that bilateral aid has positive significant effect on capital formation in the short-run during the programme year but becomes negative thereafter. The results were robust for impulse response analyses. The study concluded that bilateral aid retards capital formation in the long run but enhances it in the short-run during the first year.Soliciting for more bilateral aid was recommended in order accelerate capital formation in Kenya in the short-run.
Job Promotion and Employee Performance among the Administration Police in Bungoma County, Kenya
(Cross Current International Journal of Economics, Management and Media Studies, 2020) Belyndah Shitakwa Ligare; Dr. Kadian Wanyonyi Wanyama; Dr. Victor Lusala Aliata
According to Kenya Police Service Annual Crime Reports (KPSACR) of 2016, the number of criminal offences is still on the increase with the 2013, 2014 and 2015 reports evidencing an offence number of 71832, 72,490 and 73,376 respectively. Based on this upward trend, it is still unclear if the trend is related to human resource practices such as job promotion as applied in the administration police which in turn have an effect on the performance of the administration police. In the service industry, especially the Kenya National Police Service, little research has been conducted on job promotion and employee performance especially in Bungoma County. The purpose of this study was to establish the influence of job promotion on the performance of administration police. The study adopted a descriptive survey design. The target population was 1,318 administration police officers in Bungoma County rom which a sample size of 384 respondents was used. Questionnaires were the main instruments used to collect primary data. Stratified random sampling, simple random sampling and systematic random sampling techniques were used. Data was analyzed using both descriptive and inferential statistics. Reliability analysis gave an average Cronbach alpha value of 0.8034 which indicated that the instruments were reliable. Results of the study showed that there was a statistically significant positive relationship between job promotion and employee performance and that job promotion accounted for 71.3% (R2 = 0.713) variations in the employee performance. It was concluded that if job promotion was well executed in the administration police, the performance of the staff would be enhanced. The following were the recommendations of the study: organizations should adhere strictly to its promotion policy, ensure promotion process is fair and that employees are promoted based on merit. The findings of this study is expected to inform administration police management policy makers, the government and other stakeholders on relevance and implications of on job promotion in the administration police aimed at improving the performance of staff
Job Promotion and Employee Performance among the Administration Police in Bungoma County, Kenya
(Cross Current Int J Econ Manag Media Stud, 2020-01-16) Belyndah Shitakwa Ligare; Dr. Kadian Wanyonyi Wanyama; Dr. Victor Lusala Aliata
According to Kenya Police Service Annual Crime Reports (KPSACR) of 2016, the number of criminal offences is still on the increase with the 2013, 2014 and 2015 reports evidencing an offence number of 71832, 72,490 and73,376 respectively. Based on this upward trend, it is still unclear if the trend is related to human resource practices such as job promotion as applied in the administration police which in turn have an effect on the performance of the administration police. In the service industry, especially the Kenya National Police Service, little research has been conducted on job promotion and employee performance especially in Bungoma County. The purpose of this study was to establish the influence of job promotion on the performance of administration police. The study adopted a descriptive survey design. The target population was 1,318 administration police officers in Bungoma County rom which a sample size of 384 respondents was used. Questionnaires were the main instruments used to collect primary data. Stratified random sampling, simple random sampling and systematic random sampling techniques were used. Data was analyzed using both descriptive and inferential statistics. Reliability analysis gave an average Cronbach alpha value of 0.8034 which indicated that the instruments were reliable. Results of the study showed that there was a statistically significant positive relationship between job promotion and employee performance and that job promotion accounted for 71.3% (R2= 0.713) variations in the employee performance. It was concluded that if job promotion was well executed in the administration police, the performance of the staff would be enhanced. The following were the recommendations of the study: organizations should adhere strictly to its promotion policy, ensure promotion process is fair and that employees are promoted based on merit. The findings of this study is expected to inform administration police management policy makers, the government and other stakeholders on relevance and implications of on job promotion in the administration police aimed at improving the performance of staff.
The Effect of Corporate Operational Strategy on Financial Performance of Telecommunication Company in Rwanda
(ijird, 2020-04) Intwaza Y. A; Dr. Mulyungi P.
Around the word corporate organization performance have identified corporate operational strategies as their key driver in all area of financials indicator success. Statistics published by Harvard Business Review (2015) revealed that around 85% to 90% of corporate companies are unable to implement their strategies but on other hand an increase of revenue between 80% and 120% are noticed in period of three year for those who succeed in implementing them. Among them 10% realized two thirds of their corporate strategic plans, also 36% realized between 51%-68% and 55% achieving less than 49% (Harvard Business Review, 2015).Report published by Rwanda Development Board revealed that foreign investments worth $463.0 Millionwere invested in the year 2018, with 17.9% in ICT sector (RDB, 2019). Having corporate structure working in new environment with operational decisions to conduct their business, the Rwanda telecom industry is held by multinational corporate companies only,MTN Rwanda, TIGO, AIRTEL, KTR and RWANDATEL, respectively subsidiary of NTN Group, Millicom, Bharti AIRTEL, Korea Telecom and Liquid Telecom (RURA, 2018). MTN Rwanda one of the 22 subsidiaries of MTN groups; South African Corporate company follow the samerule as everywhere in the world; by making operational decisions to embrace corporate strategy. MTN group corporate strategy is to; Create and managing stakeholder value, create a distinct customer experience, drive sustainable growth and transforming operating model.Poor performance, of some multinational corporate company in developing countries and Rwanda among them continue to be exhibited in terms of low return on investigate and return on equity, Even though the benefits and awareness of the use of competitive strategy to attain fully competitive advantage is known all over the world(Janice et al, 2014). A continuous rapid competition grows and inflexible pressure in telecom industry, are a big challenge for corporate
Effect of leadership style on the relationship between the employee empowerment and job performance among staff in the County Government of Kakamega, Kenya
(IOSR Journal Of Humanities And Social Science (IOSR-JHSS), 2020-06-01) Dr.Victor LusalaAliata,PhD; Stellah Puka
County Governments have invested a lot in staff empowerment strategies such as employee training, employees rewards and information flow since inception. However, their effect on job performance has not been ascertained. Several studies have been conducted on this subject and their results were diverse.More than 25% of organizations reported no significant empowerment-oriented practices in their organizations.The purpose of this study was to analyse the effect of leadership style on the relationship between employee empowerment and job performance in the county government of Kakamega. This study covered the following theories: Agency Theory, Empowerment Theory, and Resource Based View Theory. A correlation research design was adopted for the study and the study targeted 242 respondents, drawn from all the county departments in the County Government of Kakamega. Simple random sampling, stratified sampling and purposive sampling were used in the study. A sample size of 171 respondents was used. The questionnaire was the main instruments for data collection. Reliability analysis results illustrated that Cronbach‘s alpha coefficients were above 0.7. The study employed criterion validity, construct validity of the instruments, and face validity.Data analysis and interpretation were based on descriptive statistics as well as inferential statistics using SPSS version 22. Data was presented using frequency tables, percentages and pie charts. The findings established that Introduction of leadership style on the relationship between employee empowerment and job performance among staff in the County Government of Kakamega decreased employee job performance from 69.8% (R2= 0.698) to 56.3% (R2= 0.563). It was recommended that the County government should consider embracing autocratic & participative leadership styles to enhance the relationship between employee empowerment and job performance.The output of the study would be utilized by the Department of Human Resources Management by the County Governments of Kenya in the formulation of a systematic process of applying employee empowerment. Finally, it would also contribute to scientific knowledge base for academic purposes for researchers in the area of employee empowerment.
Effects of Strategy Control Measures on Strategy Implementation at the Lake Victoria North Water Services Board, Homabay County,Kenya
(2020-07) Belyndah Shitakwa Ligare; Thomas Okoth Otieno; Dr. Victor Aliata
The Lake Victoria North Water Services Board (LVNWSB) in Homabay initiated a project with the aim of improving and expanding the network and infrastructure for drinking water and its sanitation in the county of Homabay. At that time, about 92% of the population had no access to piped water which was also of poor quality and high cost. Only 8% of the residents benefited from a continuous water supply. The Homabay Project is worth Ksh 300M which was to be completedby 2017 but up to date it has not been completed. The objective of this study was to establish the effect of strategy control measures on strategy implementation at the LVNWSB, in Homa Bay County, Kenya. The stakeholder theory was used in the study that suggests that an organization is a social construction made of interaction of various stakeholders. This study used correlation survey design.The target population for this study was 50 employees of LVNWSB. Census method was used to survey the target population. The respondents were given questionnaires that were administered through drop and pick method.The questionnaires were pre-tested by conducting a pilot survey from 5 respondents taken from the 50 employees using the internal consistency technique by employing Cronbach Coefficient Alpha test for reliability. Validity was determined using Content Validity Index (CVI). The research instrument was designedto collect qualitative and quantitative data. The researcher used multiple regression analysis using SPSS so as to determine the effects of independent variables on dependent variable.The study findings revealed that strategic control systems have a positive significant effect on strategy implementation (β=.389, p=.000). The study concluded that strategic control systems have positive effect on strategy implementation. The study therefore recommends that the government improves the strategic control measures to enhance strategy implementation at LVNWSB.Findings from this study will be valuable to a number of stakeholders in and outside thewater sector: expanding existing knowledge, referencing and finding comparisons in the quest of getting an ideal strategy-ethics composition and policy approach to stakeholder involvement that would improve service delivery.
Comparative Economic Analysis of Clonal Tea Yield Response to Nitrogen Fertiliser Rates within Selected Geographical Areas in Kenya
(International Journal of Tea Science, 2020-09-09) Rosebell A. Owuor; Alphonce J. Odondo; P. Okinda Owuor; David M. Kamau
Tea sector contributes approximately 30% of export earnings in Kenya. Despite the industry continuing to realize positive gross margins, high costs of production coupled with weak trends in export prices threaten its future contributions. Nitrogen fertiliser is mandatory in tea production and its appropriate use promotes tea growth rate and yields. Previous studies using different tea cultivars established that optimal fertiliser rates varied with clones and geographical area of production. However, economics of nitrogenous fertilisers use on same tea cultivar in different tea growing regions in Kenya remains undefined. This study evaluated response of NPKS 25:5:5:5 fertiliser applied at 0, 75, 150, 225 and 300 kg N/ha/year on clone BBK35 to determine the viable economic rate under uniform management in different locations (Karirana, Timbilil, Changoi, Sotik Highlands and Kipkebe) within Kenya. The study used time series tea yield data and corresponding variable costs from field experiments running from 1997 to 2007. The data were subjected to Partial Budget Analysis (PBA) procedures for economic analysis of on-farm experiments. The economic returns varied with rate of nitrogen and region of production. Maximum marginal rate of return (MRR) were achieved at 75 kg N/ha/year at Kipkebe, Changoi and Timbilil, and 150 at Sotik Highlands and Karirana. However best economic returns were recorded at 300 kg N/ha/year in Kipkebe and Sotik Highlands, 225 kg N/ha/year in Changoi, and at 150 kg N/ha/year in Timbilil and Karirana. These results demonstrate that current uniform fertiliser recommendation rate of 100 to 220 kg N/ha/year may not be suitable for all regions. There is need to develop region specific nitrogen fertiliser requirements for tea growing areas in Kenya.
EFFECT OF TANGIBILITY ON CUSTOMER SATISFACTION AMONG MICRO FINANCE BANKS CUSTOMERS IN KENYA
(European Journal of Business and Strategic Management, 2021) Hakim Omondi Nyabundi; Dr.Victor Lusala Aliata, PhD; Dr. Alphonce Odondo, PhD
Purpose: Financial markets and institutions are central to the process of economic growth. The provision of credit has increasingly been regarded as an important tool for raising the incomes of populations, mainly by mobilizing resources to more productive uses. However, microfinance institutions in Kisumu City Kenya are still far off from reaching the required customer satisfaction index. The main purpose of the study was to establish the effect of tangibility on customer satisfaction among micro finance banks (MFB) customers in Kisumu City. Methodology: This study was anchored on a Market based theory; Survival based theory and the Expectancy Disconfirmation theory. A correlation research design was used. Study targeted 10,300 MFB customers in Kisumu City. A sample size of 370 MFB customers was drawn from the target population using simple random sampling technique. The study used primary data from questionnaires. Findings: The findings indicated that Tangibility is associated with 63.1% of the variation in customer satisfaction, an increase in tangibility affects customer satisfaction by 0.341. The correlation analysis to determine the effect of tangibility on customer satisfaction shows a significant correlation existed (r = 0.631, p < 0.05). This shows 63.1% of the variations on customer satisfaction are associated with tangibles. Unique Contribution to Theory, Practice and Policy: The organization needs to train employees on various aspects of tangibility. Systems should be in place that ensures certain aspects like security and quality are retained and improved throughout customers’ lifetime. Keywords:
INFLUENCE OF RECRUITMENT AND SELECTION ON RETENTION OF TEACHERS SERVICE COMMISSION SECRETARIAT STAFF IN BUSIA COUNTY, KENYA
(2021) Esther Tawarar; Dr. Sylvia C. Sirai, PhD; Dr.Victor Lusala Aliata, PhD
Purpose: Employee retention has been a key source of competitive advantage as well as achievement of business goals and objectives. Employee turnover can have a detrimental influence on the implementation of business strategies and eventually lead to productivity reduction. The secretariat staff labour turnover at the Teachers Service Commission (TSC) has for years increased and this has affected the overall performance at the TSC since qualified employees with experience leave the TSC yearly. For example, in 2018, the recorded turnover of employees was at 20% and the efficiency of TSC fell by 5%. The purpose of the study was to establish the influence of recruitment and selection on retention of Teachers Service Commission secretariat staff in Busia County, Kenya. Methodology: Human Capital and Motivation theories served as the foundation for this study. In this study, a descriptive research design was used. The target population was115 employees working at the TSC in Busia County as secretariat staff. The sample size was 115 according to Slovins, (1980). Findings: The findings revealed that recruitment and selection had a positive significant effect on retention (β=.408, p<.05). The study concluded that HRM practices have a positive influence on employee retention. Unique Contribution to Theory, Practice and Policy: The output of the research may be utilized by the Department of HRM practices at the TSC Kenya, by employers, academicians, employees, trade unions, HR practitioners, Ministry of Labour in the formulation of a systematic process of ensuring employee retention at work places. The outcome may also lead to efficient and effective service delivery as well as proper utilization of resources by all the departments at the TSC offices in Kenya.
Dynamics of Core Inflation, Energy Inflation, Food Inflation and Manufacturing Sector Output Growth in Kenya: Econometric Analysis of Causality and Effects
(www.iiste.org, 2021-01-31) Dr. Alphonce Juma Odondo
World over, the manufacturing sector plays an important role in spurring economic development by boosting employment opportunities for semi-skilled labour and building a nation’s competitiveness through exports. Globally, only a few nations have managed to realize their development status without manufacturing sector playing a leading role. Kenya has not managed to develop a robust manufacturing sector and its growth has been majorly ascribed to the agricultural and service sectors. It has therefore, experienced de industrialization as evidenced by the decline in GDP contribution by the manufacturing sector from a paltry 10% in 2018 to 9.7% in 2019. The de industrialization has been characterized by fluctuating inflation rates, a scenario that has elicited debate as to whether there exists any nexus between manufacturing sector output growth and inflation rate. A few empirical studies have been conducted on the same, however, the exact relationship is not well defined. Furthermore, inflation has been largely treated as an aggregate, a scenario that hampers policy formulation. A disaggregated approach to the analysis thus motivated this study. Time series data from the world bank was used and VECM estimated to assess long run dynamics after stationarity test by ADF and Cointegration test by Johannes’s approach. Short run causalities were assessed via Wald test. The study revealed long run relationship between manufacturing output growth and the variables (core inflation, energy inflation and food inflation). Short run causality running from each of the inflation types to manufacturing output growth also exists. Food inflation negatively and significantly influences manufacturing output growth while core inflation has significant positive effect on the same. To enhance manufacturing output growth in Kenya, food inflation should be reduced and stabilized. In the same vain, low and stable level of core inflation should be ensured over time.