Sustainable tourism and economic growth nexus in Kenya: policy implications for post-Covid-19

Purpose: The COVID-19 global pandemic has caused an unprecedented socio-economic impact. It has also raised our awareness of the role sustainability needs to play in our economic activities. This study investigated how sustainable tourism has contributed to economic growth in Kenya. Research Methodology: Eviews 10 software was used to analyze the time-series data. Drawing on data from 1995 to 2020, Johansen co-integration, Granger causality, and regression approaches were used. Results: The study found out that tourism employment and GDP are positively connected to economic growth in Kenya. The causality was unidirectional from economic growth to tourism contribution to GDP and employment, with a long-run linkage of the study determinants. Limitations: Since this research used the secondary sources of data, similar studies in the future may concentrate on the primary data sources to investigate the relationship between tourism employment and economic advancement. Contribution: At the new normal in the post-Covid-19 period, the study suggests that legislators and tourism policymakers should focus on the policies aimed at promoting sustainable tourism. Sustainable tourism should be managed following the three pillars of sustainability. Keywords: Development, Domestic, Moderate, Regional, Scenari

Factors Influencing the Development of Capital Markets in a Developing Economy: A Case Study of Nairobi Securities Exchange in Kenya

The study examined the factors influencing the growth and development of capital markets in an emerging economy.  The study focused on the factors that influence the growth and development of the Nairobi Securities Exchange in Kenya (N.S.E.). This study sought to survey the factors that impinge on the growth and development of the stock market. The Nairobi Securities Exchange has experienced lack luster performance over its entire existence since it was founded in 1954. Over the years the number of stocks traded has stagnated at around 53 quoted companies. Ordinarily one would expect to find a significant degree of correlation between economic growth and the growth of the stock exchange. The former has averaged 3.8% p.a. in the period 1985-1996 while the latter averaged only 0.6% as measured by the number of quoted companies. To achieve the study objectives both primary and secondary data was used. Primary data was generated through the administration of questionnaires to the stakeholders of the NSE. Key informants were drawn from managers of investment banks; staff of the NSE, capital markets Authorities, Ministry of finance, Economic planning and the Central Bureau of statistics. The target population were all the 53 firms listed at N.S.E.  Stratified random sampling based on the segmentation of the trading counters was used for sampling the population of the study.  A sample of 30 firms was selected. Data was summarized using the inferential statistical methods. Descriptive research design was adopted and used for the study. The findings of the study indicated that the government policy reforms were viewed as having major influence on the growth and development of capital markets in Kenya. The NSE has experienced growth over the previous years, however the rate of growth has been dismal. The key factors that influence the growth and development of NSE include the strong regulatory and legal framework, good macroeconomic environment, investor education and awareness, improved market infrastructure, and increased participation by foreign investors. Keywords: Capital Markets, Nairobi Securities Exchang

Effects of Corporate Governance on Micro Finance Institutions Financial Sustainability in Kenya

The study focused on the effects of corporate governance on Microfinance Institutions financial sustainability in Kenya over a period of eleven years from 2000-2011. The study was necessitated by the lack of documented literature on the effects of corporate governance in Kenya given the dynamic structure in the liability composition of these institutions. The main objective of the study was to investigate the effect of corporate governance on Kenyan Microfinance institutions sustainability. The relevant literature was reviewed for the purposes of this study. Explanatory research design was used in trying to establish the causal effect relationship between corporate governance variable (which were; board size; CEO duality; composition of the board and CEO gender) and the financial sustainability of the MFIs in Kenya (measured using ROA). The target population were the 42 registered Micro Finance Institutions under the umbrella body AMFI where a random sample of ten institutions were selected using the cluster sampling technique. Data was collected from both primary sources and secondary sources. Primary data was captured using structured questionnaires completed by the CEOs and the senior management team as they were in a better position to comment on corporate governance affairs. Secondary data was collected from the Mix market which is the most reliable source of microfinance financial data. The study utilized panel data analysis methodology in drawing conclusions about the study. It was found that the average board size was 8 members with 10% of the institutions having the CEO double up as the chairman.40% of the institutions surveyed had a female CEO. Empirical findings confirmed that board size was significant in affecting financial sustainability at 99% confidence level (t values=2.79), CEO gender was significant at 99% confidence level (t values=2.487), CEO duality was significant at 95% confidence level (t values= 7.69) and board composition significant at 99% confidence level (t values=-2.57). The study recommends moderate board size a higher board independence separation of CEO and chairman and a greater incorporation of women in the board. Key Words: Micro-Finance Institutions, Sustainability, Board Size, Board Composition, CEO duality, CEO Gender

Influence of Financial Leverage on Financial Sustainability: A Case of Microfinance Institutions in Kenya

Microfinance institution plays a crucial role in economic development and financial inclusion. Financial sustainability is the key dimension to microfinance institutions growth. This further indicate the importance of which Financial sustainability is. Therefore, the present study investigated the effect of financial leverage on MFI financial sustainability. The specific objective was to establish the effect of financial leverage on the financial sustainability of MFIs. The study was guided by agency theory and life-cycle theory. The study adopted an explanatory research design where a panel approach was used as well as the positivist paradigm. The study adopted the census approach method. Panel data was drawn from 30 MFIs for a period between 2010 and 2018 from the mix market database using the data collection schedule. The study used both descriptive and inferential statistics to analyze data with the help of STATA software. Fixed effect model based on Hausman test (X2 = 45.41, p= 0.000 ≤ 0.05). Based on the findings of the study financial leverage ( the study had a positive and significant effect on the financial sustainability of MFIs. The study recommended MFIs managers to engage in the prudent use of financial leverage so that they enhance their overall profitability and boost investor confidence in their strategic decision-making resulting in financial sustainability. The results have an implication to business managers and policymakers given the vital role in service delivery and the challenges hindering the sector from the realization of financial sustainability in the economy

Does Portfolio Quality Influence Financial Sustainability? A Case of Microfinance Institutions in Kenya

This article studies the relationship between portfolio quality and the financial sustainability of microfinance institutions in Kenya. The analysis is based on a panel dataset of 30 microfinance institutions in the period 2010 to 2018. The study is guided by institutional theory which is built on conformance and continuity. The study adopts an explanatory research design where a panel approach is used under positivist paradigm. The study finds that portfolio quality has a positive significant effect on the financial sustainability at 1% statistical significance level. Based on this finding, the study concludes that portfolio quality is an essential element of MFIs financial sustainability. The study recommends that MFIs managers should devise good collection policies to improve portfolio quality while lessening loan default rate. The portfolio quality may improve the overall profitability and enhance investor confidence in their strategic decision-making on refinancing. It is important to note in order to ensure financial inclusion; the stakeholders must be involved

Adherence of healthcare practitioners to the adolescent reproductive health and development policy at The Garissa Provincial General Hospital, Kenya

Background: Kenya’s policies relating to population, family planning (FP) and reproductive health (RH) receive weak/fluctuating levels of adherence. The Adolescent Reproductive Health and Development  (ARH&D) policy gives directives and actions to follow in meeting identified ends and goals in the  reproductive and developmental needs of the youth- majority of Kenya’s population (Ministry of  Health-Youth Friendly Services (MOH-YFS), National Coordination Agency for Population and Development(NCAPD), 2011).Objective: To evaluate adherence of healthcare practitioners (HCPs) to the Adolescent Reproductive Health and Development (ARH&D) policy at the Garissa Provincial General Hospital, Kenya (GPGH).Design: A cross sectional study.Setting: Garissa Provincial General Hospital, Kenya.Subjects: Comprised of 172 Healthcare practitioners (HCPs), including 88 nurses, 14 doctors and 17  clinical officers (COs) and 53 adolescent clients.Results: The HCP policy utilisation rate of the ARH&D which was 62.2% was influenced by religious  affiliation, age, frequency of supervision. Adolescent client satisfaction level was about 34%. Severity of infibulations has reduced in severity among the Somali people. Consanguineous marriages of under-age girls, drug addiction, poverty, HIV and AIDS and FP stigmatisation are still high in North Eastern Province.Conclusion: Adherence to the ARH&D policy was about 62% at the GPGH. There was no ideal set up for YFS. The adolescent satisfaction low was at about 34%. Infibulation has reduced. There were  shortcomings with the HCP characteristics, facility deficits, and service management hurdles

Census and ear-notching of black rhinos (Diceros bicornis michaeli) in Tsavo East National Park, Kenya

This paper updates the status of the black rhino population in Tsavo East National Park (NP). Data were acquired through aerial counts of the black rhino between 3 and 9 October 2010 using three fixed-wing husky aircrafts and a Bell 206L helicopter in an area of about 3,300 km2. Based on previous sightings of rhinos, the area was divided into 14 blocks, with each block subdivided into 400 m transects. An aircraft flying at about 500 m above the ground was assigned to carry out the aerial survey following these transects within each block. Observers scanned for rhinos about 200 m on either sides of the flight paths. Intensive searches in areas with dense vegetation, especially along the Galana and Voi Rivers and other known rhino range areas was also carried out by both the huskies and the helicopter. The count resulted in sighting of 11 black rhinos. Seven of these individuals were ear notched and fitted with radio transmitters and the horns were tipped off to discourage poaching. Three of the seven captured rhinos were among the 49 animals translocated to Tsavo East between 1993 and 1999. The other four animals were born in Tsavo East. Two female rhinos and their calves were not ear-notched or fitted with transmitters. It is recommended that another count be carried out immediately after the wet season as the rhinos spend more time in the open areas while the vegetation is still green. The repeat aerail count is to include blocks north of River Galana

The Level Of Corporate Dividend Payout To Stockholders: Does Optimal Dividend Policy Exist For Firms Quoted At The Nairobi Stock Exchange?

The objective of this study was to determine the level of corporate dividend payout to stockholders and establish if the optimal dividend policy exists for the firms quoted at the Nairobi Stock Exchange (NSE).  An analysis was done for the all the 43 firms trading in the main investment market at the Nairobi Stock Exchange.  Secondary data was obtained from the Nairobi Stock Exchange library, Internet & company libraries. Companies that were quoted at the stock exchange for a period of thirteen years and paid and/or did not pay dividends during that period were sampled. According to the findings of this study, the aggregate dividend payout ratio for the Kenyan market was obtained to be 44.14% for the period between 1991- 2003. The findings of this research suggest that the average corporate dividend payout to stockholders for 40% of the firms is low and stable and that 28% of the firms quoted paid out high and stable dividends. It was also observed that most of the firms that paid high and stable dividends are the blue chip firms, which are the main movers of trading at the NSE. The dividend model provides a summary of the factors that influenced and continue to influence the dividend decisions for this market including and not limited to the tax systems, clientele preferences, signaling, sustainability, low liquidity, high growth, ownership control and dividends as residual etc. From the model it is possible to predict the likely dividend decisions of the firms in future

Impact Of Retirement Benefit Act (RBA) On Investment Returns To Pension Funds In Kenya

This study focused on the analysis of the impact of RBA guidelines on the return on investments of both pension funds under management and those for pension schemes. A random sample of 175 fund trustees and a census of 13 fund managers from registered fund management companies participated in the survey. The questionnaire was administered through the drop-and-pick method. Data were analyzed using SPSS (Statistical Package for Social Sciences) and summarized in descriptive statistics, such as mean, standard deviation, frequencies, percentages, and t-tests for mean differences were used. The study determined that annual investment return for retirement benefits schemes in the past three years ranged between 10 and 27.52%, sometimes falling below the annual inflation.  The Kenya pension funds are in compliance with the prescribed broad guidelines with regard to maximum percentages of total asset value of fund by the RBA Act. They are, however, moderately in compliance with the regulations requiring that that they maintain an actuarial solvency of 80% and above. The overall weighted returns before the implementation of RBA Guidelines was low (average scale of 1.9) while the weighted returns after the implementation of RBA Guidelines was high, at an average scale of 3.7. An analysis of the trend, however, showed that long-run performance has slowed down. The highest growth was realized for mortgage and cash returns as opposed to rights issues and bonus shares. There is need to fashion out the appropriate mix of reforms suitable for Kenya that will ensure the long-run sustainability of its pension systems. The challenge is for the country to adopt a unified, harmonized, and transparent regulatory framework that will integrate the pension system in order to ensure sustainability in its financing and mobilizing of adequate funds to cater for the ever-increasing population of beneficiaries in this regard, comprehensive pension reform policy with wider target radar and one that will consolidate and harmonize the various legislations touching on retirement benefits industry in line with Retirement Benefits Act. The Regulator needs to implement measures to ensure pension funds are insulated from inflationary and other risks.  An effective way is to institute a pension risk insurance fund that will underwrite and compensate such losses as will be prescribed. Further, there is need for a systematic indexation of benefits to inflation. RBA should strengthen its compliance and enforcement function in order to ensure that it appropriately deals with emerging present and future regulatory challenges

The Perceptions of Low, Middle and High Income Socio-Economic Groups in Nairobi on Tourist Attraction Sites

Kenya is among the developing countries of the world and has actively supported the development of tourism to promote its economy and the livelihood of the people. Kenyans lack the perception that tourism is essential to life, unlike their counter parts in Western Europe and North America where travel is a symbol of socio-economic status. Tourism products and services are not well understood by many Kenyan’s and therefore not well utilized. The study was conducted in Nairobi, the capital city of Kenya The groups and the study population were selected using the systematic random sampling technique from the zoning map by the Nairobi city council urban policy plan (NCCUP).  The study adopted a descriptive survey design using both quantitative and qualitative research methods to gather data. Data were collected using the questionnaire, likest-scale and the interview schedule. This study purposed to investigate the factors that contribute to the minimal participation by locals in domestic tourism among low, middle and high income socio-economic groups in Nairobi, Kenya. Data were analyzed using the statistical package for social sciences (SPSS) version 12.5. Factors affecting perception of domestic tourists were subjected to Kaiser Criterion principle component (factor analysis) to reduce the number of variables by varimax rotation. Efforts to promote domestic tourism have continued to bear little fruit. Majority of Kenyans believe that the tourism industry and the hospitality industry that goes with it belong to the white man. This attitude was contributed by the ownership and management of economic activities related to the tourism industry that were entirely in the hands of foreign colonial settler population and later a few Indians. Education is an important factor in shaping the level of positive attitude towards domestic tourism. Residents have different perceptions on domestic tourism and vest the responsibility for their education and understanding on government and tourist service providers. The drop in the international tourists in the 1990s led to a decrease in revenue and had to be substituted by domestic tourism. Several approaches by the ministry of Tourism and wildlife (MTW) through Kenya Tourism Development Council of Kenya (DTCK) and African Tours and Hotels (AT & H) did not achieve much participation by locals remained low at 12.7% of the total visitors. The respondents who were negative about game parks were generally more than those who were in the affirmative. Their negative attitude could be because revenues generated from the national park go to the central government and tourist industry operators and little if not none trickles to communities living around these areas and even very little of this is spent on the economic development of the affected population The values of beliefs and the feelings of the people of Kenya if known will assist in alleviating misconceptions about tourist attraction sites and the hospitality industry. The domestic Tourism Council of Kenya (DTCK) should be revived to generate information and statistics on domestic tourists. Key words: perceptions, socio-economic groups, domestic touris