Faculty of Business and Economics

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Start date: 2020Subject: search.filters.subject.Kenya

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    Structural Characteristics and Conduct of Sweet Potato Market in Rachuonyo Region, Kenya: Perception of Sweet Potato Farmers and Traders
    (East African Journal of Business and Economics, 2023-07-31) Dr. Alphonce Juma Odondo, PhD1*
    Myriad studies have been conducted on commodity markets in different parts of the world. However, such studies have yielded inconsistent results on various facets of market structure and market conduct, implying that each market may have its distinctive characteristics which impact on its performance. In SubSaharan Africa, the growth of sweet potato industry is hindered by lack of information on sweet potato market structural characteristics. Kenya’s sweet potato industry is facing a similar challenge. This scenario calls for a baseline survey on the sweet potato market structural characteristics and conduct as a basis for subsequent robust studies on the possible nexus between the market structure, conduct and performance of the industry. The study adopted a descriptive survey design based on interpretivism research paradigm. A sample size of 384 farmers, 166 retailers and 55 wholesalers were taken. Pretested questionnaires were used to gather perception of the respondents on various parameters based on a fivepoint Likert scale. The views were then summarized in terms of means scores. It was established that the sweet potato market was imperfect since there were notable elements of potato differentiation and barriers to entry into the market. Such barriers included competition from other traders and uncertainties in the demand for sweet potato. The situation was exacerbated by lack of suitable storage facilities given the perishable nature of the commodity. High market concentration was noted at the wholesale level, a likely indicator of price collusion and exploitation by the few large sellers that dominated the market. In this regard, there is need to enhance value addition activities that can enable the market players especially the farmers to be more competitive within the supply chain. Efforts should also be made to eliminate the identified market barriers.
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    Effect of Monetary Facets on Dynamic Capital Structure of Selected Commercial Banks Listedat the Nairobi Securities Exchange, Kenya
    (THE INTERNATIONAL JOURNAL OF BUSINESS & MANAGEMENT, 2021-02) Rose Adem; Dr. Alphonce Juma Odondo; Dr. Evans Ovamba Kiganda
    Dynamic capital structure is the way firms make adjustments towards the target capital structure which is proxied by debt equity ratio. There has been variation of debt equity ratio of firms at the Nairobi Security Exchange (NSE) in an effort to achieving targeted leverage that would yield targeted revenues and profits for firms.Despite this, most firms still operate at sub optimal level and experience losses. Studies in this respect have attributed the sub optimal operations to monetary facets such as inflation rate, exchange rate and interest rate. However, the studies have yielded mixed results leaving the effect of monetary facets on the dynamic capital structure unresolved. It is on this basis the study sought to establish effect of the monetary facetson dynamic capital structure of selected commercial banks listed at the NSE. The study was anchored on market timing theory and guided by correlational research design. The target population was eight tier one banks at the NSE. Secondary data spanning tenyears from 2010 to 2019 were obtained from commercial banks audited financial statements while data on monetary facets was obtained from Central Bank of Kenya database and audited financial statements of the banks. Panel data methodology was adopted to estimate Random and Fixed Effect Models and the Hausman test used to select the appropriate model. Whereas exchange rate had insignificant positive effect, interest rate had significant positive effect on the dynamic capital structure. Inflation however, had significant negative effect on the same. Therefore, to enhance performance of banks, hedging interest rate and inflation rate risks is necessary.
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    Causal Effect of Financial Market Frictions and Flight to Quality on Cost of Credit in Kenya
    (Journal of Economics and Sustainable Development, 2021-11-06) Barnabas Ochieng’ Onyango; Dr. Alphonce Juma Odondo; Prof. John Ernest Odada
    Financial market conditions have been declining over the past ten years globally as most developing countries continue to adopt more liberal financial policies, such conditions may amplify adverse shocks to the economy. The Kenyan Banking sector was highly profitable before the implementation of financial market frictions, with industry return on equity’s average of 20%. The ratio of credit supply to gross domestic product was 35%; and the economy grew by 5.6 %. Nonetheless, after its adoption, listed Banks recorded negative Earnings per Share growth of 8.2%, compared to an average positive growth of 14.1%, The Net Interest Margin declined to 8.4% from 9.4%. Studies relating to financial market frictions, flight to quality and Cost of Credit have produced mixed results. It was on this basis that this study sought to establish the effect of financial market frictions and flight to quality on cost of credit in Kenya. The study adopted correlational research design. Secondary data from the Kenyan Market for the period January 2009 to December 2019 was analyzed. Augmented Dickey Fuller and Philips-perron unit root test was used to test the stationarity of the data. VECM was estimated to establish the speed of adjustment towards the long run equilibrium; Wald statistics was also estimated to establish short run causalities amongst the variables. Based on cointegrating equations, the error correction term indicated a negative sign and was significant at 5% level (C (1) = -0.153042, .0429 < 0.05), an indication that a long run relationship exists amongst the variables. Wald statistics revealed that the estimated coefficients in the VECM were insignificantly different from zero (.8417; .5603; .9188>p=0.05),however, Central Bank rate was found to be different from zero and significant at 5% level (.0163>p=0.05), an indication that there was a short run casualty running from the Central Bank rate to cost of credit. The study therefore recommends that for Micro finance institutions to maximize their profits they should adopt new technologies like Mobile Banking for their credit facilities, this does not require administrative and operation costs, in a bid to cope with the market shocks and frictions.
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    Nexus between Inflation and Real Estate Growth in Kenya:
    (American Research Institute for Policy Development, 2021-03) Dr. Alphonce Juma Odondo
    Real estate has been one of the most profitable industry world over. In Kenya, the industry has grown exponentially and contributes significantly to her GDP. The growth has been ascribed to demographic trends like rapid urbanization at 4.4% p.a against the world’s 2.5% p.a. The trends have led to rising demand for residential services with accumulated deficit of over 2 million units. This scenario attracted the attention of Kenya Government to the extent that it identified affordable housing as one of the key strategic focus areas in its Medium Term Plan III for 2018-2022. Despite the attention, paucity of information on the nexus between real estate growth and its determinants like inflation continues to hamper policy formulation in this sub sector. In addition, studies on the nexus have generated mixed results and debate in the realm of economics. The study utilized world bank time series data and estimated a vector error correction model which revealed absence of long run nexus between real estate growth and various dimensions of inflation (core, energy and food). However, short run causality running from energy inflation to real estate growth exists. The energy inflation had a significant negative effect on real estate growth. Core inflation had a positive significant effect while food inflation had an insignificant positive effect. Thus, ceteris paribus, in order to enhance growth of the real estate industry, energy inflation should be reduced and ensure continuous stabilization of core and food inflation as an incentive to potential investors and the households seeking to acquire housing services in the economy
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    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.
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    Structural Characteristics and Conduct of Sweet Potato Market in Rachuonyo Region, Kenya: Perception of Sweet Potato Farmers and Traders
    (East African Journal of Business and Economics, 2023) Dr. Alphonce Juma Odondo
    Myriad studies have been conducted on commodity markets in different parts of the world. However, such studies have yielded inconsistent results on various facets of market structure and market conduct, implying that each market may have its distinctive characteristics which impact on its performance. In Sub-Saharan Africa, the growth of sweet potato industry is hindered by lack of information on sweet potato market structural characteristics. Kenya’s sweet potato industry is facing a similar challenge. This scenario calls for a baseline survey on the sweet potato market structural characteristics and conduct as a basis for subsequent robust studies on the possible nexus between the market structure, conduct and performance of the industry. The study adopted a descriptive survey design based on interpretivism research paradigm. A sample size of 384 farmers, 166 retailers and 55 wholesalers were taken. Pretested questionnaires were used to gather perception of the respondents on various parameters based on a five-point Likert scale. The views were then summarized in terms of means scores. It was established that the sweet potato market was imperfect since there were notable elements of potato differentiation and barriers to entry into the market. Such barriers included competition from other traders and uncertainties in the demand for sweet potato. The situation was exacerbated by lack of suitable storage facilities given the perishable nature of the commodity. High market concentration was noted at the wholesale level, a likely indicator of price collusion and exploitation by the few large sellers that dominated the market. In this regard, there is need to enhance value addition activities that can enable the market players especially the farmers to be more competitive within the supply chain. Efforts should also be made to eliminate the identified market barriers
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    Structural Characteristics and Conduct of Sweet Potato Market in Rachuonyo Region, Kenya: Perception of Sweet Potato Farmers and Traders .
    (East African Journal of Business and Economics, 2023-07-31) Dr. Alphonce Juma Odondo, PhD
    Myriad studies have been conducted on commodity markets in different parts of the world. However, such studies have yielded inconsistent results on variousfacets of market structure and market conduct, implying that each market may have its distinctive characteristics which impact on its performance. In SubSaharan Africa, the growth of sweet potato industry is hindered by lack of information on sweet potato market structural characteristics. Kenya’s sweet potato industry is facing a similar challenge. This scenario calls for a baseline survey on the sweet potato market structural characteristics and conduct as a basis for subsequent robust studies on the possible nexus between the market structure, conduct and performance of the industry. The study adopted a descriptive survey design based on interpretivism research paradigm. A sample size of 384 farmers, 166 retailers and 55 wholesalers were taken. Pretested questionnaires were used to gather perception of the respondents on various parameters based on a five point Likert scale. The views were then summarized in terms of means scores. It was established that the sweet potato market was imperfect since there were notable elements of potato differentiation and barriers to entry into the market. Such barriers included competition from other traders and uncertainties in the demand for sweet potato. The situation was exacerbated by lack of suitable storage facilities given the perishable nature of the commodity. High market concentration was noted at the wholesale level, a likely indicator of price collusion and exploitation by the few large sellers that dominated the market. In this regard, there is need to enhance value addition activities that can enable the market players especially the farmers to be more competitive within the supply chain. Efforts should also be made to eliminate the identified market barriers.
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    The Nexus between Price Negotiation and Performance of Public Health Facilities in Homa Bay County, Kenya.
    (2025-07-16) Meryl Adhiambo Mwonya; , Alphonce Juma Odondo; Simon Nyakwara
    This study investigates the relationship between price negotiation and the per formance of public health facilities in Homa Bay County, Kenya. Price negoti ation plays a pivotal role in the pharmaceutical supply chain, yet its contribu tion to procurement performance remains underexplored. Data were collected from 286 participants, including healthcare workers, suppliers, policymakers, and patients, using structured questionnaires. A multivariable linear regression model revealed that price negotiation accounts for 25.0% of the variance in health facility performance (R2 = 0.250, F = 20.118, p < 0.001). High transpar ency and fair negotiation practices correlated with lower supply costs and im proved medical services (B = 0.292, p < 0.001), and increased accountability (B = 0.152, p = 0.019). Budgetary constraints showed no significant effect (p > 0.05), indicating negotiation strategy’s greater influence over financial resources. The study recommends enhancing transparent negotiation procedures to im prove procurement outcomes. These findings provide valuable insights for health managers and policymakers operating in resource-limited settings to strengthen procurement systems.