FINANCIAL FACTORS AFFECTING PRODUCTION EFFICIENCY OF SMALL SCALE COFFEE FARMS IN BURUNDI

Purpose: The study sought to evaluate financial factors affecting the production efficiency of small-scale coffee farms in Burundi. Methodology: The research design used during the study was descriptive. The research targeted a population of 300 small-scale coffee farmers. The study had a sample population of 121 smallholder coffee farmers. The study conducted the research for a 6-year period between 2015-2020. The data was collected using a secondary data collection sheet. Secondary data was obtained from Coffee federations' annual reports, cooperatives reports, and coffee farmers’ records. Analysis of the data was done using the Eviews student 11 version. The analyzed data was presented in form of tabulations, mean and standard deviation. Findings: The study findings showed that the correlation analysis showed that the selling prices per kilogram of coffee beans had a negative and significant correlation to the production efficiency by R = 0.98. Production efficiency had a negative and significant correlation to capital availability by R = 0.260. Lastly, production efficiency had a positive and significant correlation to production costs at R = 0.500. The findings of the research obtained that selling prices per kilogram of coffee beans had a not significant negative effect on production efficiency, while capital availability and production costs had a positive effect on the production efficiency. A unique contribution to theory, practice, and policy: The study recommended that government should review the policies relating to the selling prices per kilogram of coffee beans to improve small-scale coffee farmers’ incomes. Government should also facilitate access to credit to small-scale coffee farmers. The study incorporated the Cobweb theory of price fluctuation, the theory of credit rationing also called adverse selection theory, and the high payoff inputs model.

NON-PERFORMING LOANS AND FINANCIAL STABILITY OF DEPOSIT TAKING SACCOS REGULATED BY SASRA

Purpose: The study sought to investigate the effect of non-performing loan on financial stability of deposit taking SACCOs in Kenya. Materials and Methods: The study adopted a desktop methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library Results: Nonperforming loans and their effect on the financial stability of SACCOs using have not been adequately featured in any of the studies reviewed. This leaves a gap that needs to be filled. SACCOs play a very vital role in the financial intermediation in the Kenyan economy and their uniqueness in operations. This study will therefore focus on filling this gap. Unique contribution to theory, practice and policy: the study findings of this study will assist the regulators of Sacco’s SASRA to formulate stringent policies to tame the rising cases of non-performing loans. The findings of this study will be useful to SACCOs within Nairobi County in evaluating how effective their approach to managing NPLs has been. This will enable them to identify the gaps in their management of NPLs and adjust accordingly.

LIQUIDITY RISK MANAGEMENT AND FINANCIAL PERFORMANACE OF STATE OWNED ENTERPRISES IN KENYA

Purpose: The study sought to investigate the effect of liquidity risk management on financial performance of state owned enterprises in Kenya. Materials and Methods: The study adopted a desktop methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library Results: The results revealed that the studies done had conceptual framework gap. The study also found out that the study had geographical gap because they were not conducted in Kenya and also had different time scope Unique contribution to theory, practice and policy: The study will be significant to state owned enterprises, students, general public and State Corporations Advisory Committee as it will offer contributions from both a theoretical and practical perspective. Regulatory bodies such as SCAC as well as the government can utilize the findings from the study to improve on the framework for policy formulation and regulation. The study also recommends the Commercial and manufacturing state Corporations to adopt efficient strategies to improve financial performance through risk management process.

INTEREST RATE, MONEY SUPPLY AND GROWTH OF MORTGAGE FINANCING AMONG COMMERCIAL BANKS IN KENYA

Purpose: The purpose of this study was to investigate the effects of interest rate and money supply on the growth of mortgage financing among Commercial banks in Kenya. Materials and methods: The study adopted a descriptive research design. The population contained 35 loan lending commercial banks over a period between 1985 and 2019. Secondary data was used from desired financial statements available to the public of the singular commercial banks and other posted reports of financial institutions and establishments in conformity with the study. Time-series data were analyzed using STATA version 13 software, regression analysis and model specification tests. The hypothesis was tested using the multiple regression approach a significance level of 0.05 was used. Results: The study found that interest rate (coef= -0.0822, p= 0.007) and money supply (coef= 0.548, p= 0.00) have significant effects on the growth of mortgage financing among Kenyan commercial banks. Unique contribution to theory, practice and policy: Kenya's central bank should put in place mechanisms to guarantee that interest rates and money supply do not have adverse impacts on bank mortgage financing. The government should guarantee currency stability since currency fluctuations may have a negative impact on commercial bank mortgage borrowing. The classical theory is therefore relevant in our research since interest rates impact mortgages when capital demand increases. The quantity theory of money demand also holds that individuals want cash based on the transactions they need.

EFFECT OF MACRO-ECONOMIC FACTORS ON FINANCIAL PERFORMANCE IN KENYA OF REGISTERED REAL ESTATE INVESTMENTS TRUSTS

Purpose: The purpose of the study was to determine the macroeconomic effect on Registered Real Estate Investments Trusts (REITs) financial performance in Kenya. Materials and Methods: Causal research design was used to describe the REITs financial performance. This study used the population comprising of thirteen REITs firms in Kenya. The entire population (census) was used for the study. This study utilized secondary sources of data to get the information required to satisfy the research objectives. Time series data on REITs financial performance was computed for a four-year period as at 1st January 2016 to 31stDecember 2019, thus making use of 4 data points. The process of data analysis entailed preparation of the collected data through cleaning, editing and coding so that statistics could be keyed in the SPSS (statistical package for social sciences) package. The data was presented through tables and figures Results: The regression model results without the moderating variable showed that R = 0.792, R² = 0.627 indicating that 62.7% of the variance in the REITs financial performance can be accounted for by the independent variables (macroeconomic variables). On the other hand, the regression model results with the moderating variable showed that R = 0.838, R² = 0.703 indicating that 70.3% of the variance in the REITs financial performance can be accounted for by the independent variables (macroeconomic variables) and the moderating variable considered in this study. Unique contribution to theory, practice and policy: The study recommended that the government and REITs stakeholders should focus on policies and strategies that encourage favorable balance of payment in Kenya. REITs develop and design their products to suit consumers tastes and preferences to ensure their increased as consumption increases. Lastly, the government should expand the money supply to lower the inflation rates through tight fiscal and economic policies.

WAGE BILL AND FINANCIAL PERFORMANCE OF LEVEL 5 FAITH BASED HOSPITALS IN NAIROBI METROPOLITAN, KENYA

Purpose: The main objective of this study was to examine the effect of wage bills on financial performance of Level 5 faith based hospitals in Nairobi Metropolitan, Kenya. Materials and Methods: A descriptive survey was used in this study. The target population comprised of 6 Level 5 faith based hospitals, 30 staff members in Finance departments and 6 HR Managers. In total, the target population was 36. Census technique was used to select all the 36 respondents to participate in the study. Questionnaires were used to collect the data from the respondents whereas the financial statements were also obtained from the hospitals. Cross sectional technique was used to obtain data from the financial statements of the 6 Level 5 Faith Based Hospitals. Quantitative approach of analysis was used in the study whereby descriptive and inferential statistics were involved. The data was analyzed with the use of SPSS and summarized in frequencies and percentages. The summarized data was presented using figures and tables. Results: The findings showed that salaries affected the financial performance of the faith based hospitals to some extent. Provision of performance related incentives and allowances affect the financial performance of the faith based hospitals to a greater extent. Majority of the respondents were positive that wage policy has an effect on the financial performance of faith based hospitals. Basic salary (Beta=.298) and wage policy (Beta=.364) were found to be positively related to the financial performance of faith based hospitals. On the other hand, performance related incentives and allowances had a negative inverse association. It was also found that majority of the hospitals are providing a wage bill between 36-40%. This is fairly good because it is close to the internationally accepted wage bill percentage standard of 35%. Unique contribution to theory, practice and policy: Hospital wage bills should not exceed 40 per cent of the total revenue because it may lead to delayed payment of salaries or compromising some expenditure due to financial pressure.

EFFECT OF MACROECONOMIC FACTORS ON TRADING VOLUMES OF MANUFACTURING AND ALLIED COMPANIES LISTED IN NAIROBI SECURITIES EXCHANGE

Purpose: The purpose of the study was to establish the effect of macroeconomic factors on stocks trading volumes of manufacturing and allied companies listed in Nairobi Securities Exchange. Materials and Methods: The research adopted a quantitative descriptive design that focuses on nine manufacturing and allied companies listed in NSE and make up in the list of 25-share index companies. The nine manufacturing and allied companies were selected through purposive sampling techniques, where samples were selected based specific factors. The data used in the research was collected from Central Bank of Kenya, Nairobi Security Exchange and Kenya Bureau of Statistics. This research employed a panel data analysis using STATA software. Treasury bill rate was dropped from the model due to multicollinearity. Results: The analysis found that there was a negative relationship between inflation on trading volume, exchange rate had a negative correlation with stock trading, lending rate had a negative correlation with stock trading volume of manufacturing and allied companies listed in the Nairobi Stock Exchange. Unique contribution to theory, practice and policy: The study recommends the government should initiate policies that will lower the lending rate in Kenya as lower lending rate may translate to higher stock trading volumes. Further studies should research on other factors affecting stock trade volume which may include the value of the stocks and the information size in the market.

EVALUATION OF COST-BENEFITS OF OYSTER MUSHROOM PRODUCTION USING INNOVATIVE WATER HYACINTH SUBSTRATE FOR SUSTAINABLE DEVELOPMENT OF SME, KENYA

Purpose: The study did an evaluation of cost-benefits of oyster mushroom production using innovative water hyacinth substrate for sustainable development of Sme, Kenya. Methodology: The study employed the Benefit-Cost Analysis (BCA) technique for the evaluation Findings: Oyster mushroom is edible and belongs to fungi Kingdom and can play a key role in economic development of a country. It can also contribute immensely to human wellness through enhancement of body immune system when consumed regularly. Unique contribution to theory, practice and policy There is need to evaluate the Cost-Benefits of Oyster Mushroom Production Using Innovative Water Hyacinth Substrate for Sustainable Development of SMEs in Kenya. Objectives include determination of economic Net present Value (ENPV) and determination of Economic Benefit-Cost Ratio (EBCR). The significance of this study include control of Corona Virus (COVID-19) pandemic disease, poverty reduction, reduction of unemployment crisis and enhancement of sustainable business opportunity for SME.

EFFECTS OF BLOCKCHAIN TECHNOLOGY ON PERFORMANCE OF FINANCIAL MARKETS IN KENYA

Purpose: The study sought to establish the effects of blockchain technology on the performance of financial markets in Kenya. Methodology: The study adopted an explanatory research design. The study target population was drawn from the commercial banks located in Nairobi County, Kenya. The study targeted 84 bank managers in the IT and finance department of the 42 commercial banks in Kenya. Thus the target population of the study was 84 financial market managers selected. The study population was grouped into simple identifiable group called strata and adopted a stratified simple random sampling technique with inclusion of commercial banks. A sample size of a sample size of 50 respondents was arrived at. Data was collected using a structured questionnaire. The data collected was cleaned and coded, quantified and analyzed quantitatively. Quantitative data were analyzed using SPSS 24 where descriptive and inferential statistics were used to capture the data in order to understand the pattern and nature of relationships. Results were presented using tables. Findings: The study findings showed that the correlation analysis showed that the adoption of blockchain technology had a positive and significant correlation to government policy R = 0.240. Adoption of blockchain technology had a positive and significant correlation to internet infrastructure by R = 0.293. Adoption of blockchain technology had a positive and significant correlation to transaction cost at R = 0.583. Lastly, adoption of blockchain technology had a positive and significant correlation to risk analysis at R = 0.507. Unique contribution to theory, practice and policy: The study recommended that there should be policy review on issues relating to risk analysis so as to curb illegal money transfers and enhance performance of financial markets in Kenya. The study recommends for a thorough scrutiny by the government and ensures such issues are keenly analyzed to help bring peace and stability in the world. The aspect of having good internet connectivity is beneficial to the nation in that access to proper information will be available and it enables many users to have wide access to services as well as creation of employment. There is need to conduct a study on stability of blockchain technologies use and their impact to the economic growth. The study incorporated Technology Acceptance Model and Innovation Diffusion Theory to link the study topic to the concepts

FINANCIAL OUTREACH AND FINANCIAL SUSTAINABILITY OF LICENSED DEPOSIT TAKING MICROFINANCE INSTITUTIONS IN NAIROBI CITY COUNTY, KENYA

Purpose: The purpose of this study was to investigate the relationship between financial outreach and financial sustainability of deposit taking microfinance institutions in Nairobi County, Kenya. Methodology: The study employed a positivism research philosophy to determine the relationship between financial outreach and financial sustainability. A population of 13 licensed Deposit Taking Microfinance Institution was considered for this study. Census method was preferred due to small number of target population. A static Panel linear regression model with fixed effect was developed for both operating self-sufficiency and financial self-sufficiency. Secondary data was obtained from Central Bank of Kenya from audited financial statements. Inferential analysis method was employed using Stata statistics software then descriptive statistics tool such as mean and standard deviations were used. several diagnostic tests were conducted namely: normality, multicollinearity, heteroscedasticity, serial correlation, stationarity and Hausman. Results: The study found that number of active clients (breath of outreach) had statistically significant relationship; Average loan size (depth of outreach) had insignificant; age of firm (experience of institution) had insignificant relationship on financial sustainability of DTMFIs in Nairobi County, Kenya. The moderating effect between credit risk management (portfolio at risk) and breadth of outreach (number of active clients) was positive while portfolio at risk and experience of institution (age) and depth of outreach (average loan size) was negative on the relationship between financial outreach and (OSS and FSS) financial sustainability. Further, loan loss provision coverage had positive interaction with number of active clients, age, and average loan size on the relationship between financial outreach and financial sustainability of DTMFIs in Nairobi County, Kenya. Unique contribution to theory, practice and policy: The study recommended that the government through Central Bank of Kenya should formulate policies that enhance savings with DTMFIs and therefore encourage financial inclusion. Further, DTMFIs should engage in vigorous financial education to boost financial facilities’ awareness to boost the breadth of outreach and get involved in information collection and sharing to mitigate credit risk.