Influence of Selected Factors on the Choice of Capital Structure of Small and Medium Enterprises (SMEs) in Kiambu County, Kenya

This study is on the effect of selected factors influencing the capital structure of small and medium size enterprises in Kiambu County, Kenya. SMEs play a pivotal role towards the achievement of the broad goals outlined in vision 2030 and are critical drivers towards making Kenya an industrialized country with high quality of life for its citizens. The study observes that despite their significance, past statistics indicate that 3 out of 5 SMEs fail within the first few months of operation and those that continue 80 per cent fail before the fifth year; it is therefore necessary to eliminate the many constraints facing these small businesses for Kenya to become an industrialized state by the year 2030. The objectives of the study were to determine the effect of firm size, information availability, purpose of finance, cost of finance, and collateral requirement on the capital structure of SMEs in Kiambu County. The study findings will assist Government planners in understanding how to come up with policies that will help the SMEs sector in raising affordable capital as this will have a great impact on the country’s economic growth; financiers will benefit from the findings by developing a better understanding of the factors that influence the capital structure of SMEs. In addition, the findings from the study will contribute to knowledge about financing decisions of SMEs. The study was guided by pecking order theory, credit rationing theory, the agency theory, and the life cycle approach. This study utilized descriptive research design, employing survey methods. The population of interest are the 889 SMEs in Kiambu County registered in the Kiambu Business Directory. The study used proportionate sampling by utilizing a sample of 268 respondents, determined by Fisher’s formula. The data were collected from interview schedules using questionnaires. Descriptive and inferential statistics (Pearson’s correlation and regression). Data were presented in figures and percentages on pie charts and frequency distribution tables for easier interpretation.  The study findings indicated that the size of the business influenced the capital structure of the firms to great extent (33.6%) and to greatest extent (33.6%) respectively compared with those who were not sure at 18.7%. Availability of information influenced choice of capital structure to a great extent (36.2%) and to greatest extent (45.5%) respectively.  The purpose of the finance influenced choice of capital structure to a great and greatest extent according to 39.9% and 47.8% of the respondents. Personal savings were generally recommended for SMEs with 22.0%, 29.1% and 48.9% of the respondents indicating average, high and very high recommendation. Family and friends borrowing got mixed recommendation with 23.5% and 24.3% of the respondents indicating low and high recommendation respectively, compared with 45.1% who gave average recommendation. Finally, the research sought to test the hypotheses in order to fulfill the objectives of the study by using Pearson’s correlation and regression model and applying t-test to test for the significance in the relationship. All of the null hypotheses were rejected on the basis that the significance of the t-statistic was 0.000 which was less than p-value 0.05 set for the study. Therefore, all the selected factors had an impact on the choice of capital structure for SMEs in Kiambu County. Keywords: Capital Structure, Small and Medium Enterprise

Implications of Charcoal Briquette Produced by Local Communities on Livelihoods and Environment in Nairobi Kenya

The residents of Nairobi, Kenya, use 700 tonnes of charcoal per day, producing about 88 tonnes of charcoal dust that is found in most of the charcoal retailing stalls that is disposed of in water drainage systems or in black garbage heaps. The high costs of cooking fuel results in poor households using unhealthy materials such as plastic waste. Further, poor households are opting to cook foods that take a short time to prepare irrespective of their nutritional value. This article presents experiences with community self-help groups producing charcoal fuel briquettes from charcoal dust in poorer nieghbourhoods of Nairobi for home use and sale. Households that produced charcoal fuel briquettes for own use and those that bought them saved 70% and 30% of money spent on cooking energy respectively. The charcoal fuel briquettes have been found to be environmentally beneficial since they produce less smoke and increase total cooking energy by more than 15%, thereby saving an equivalent volume of trees that would be cut down for charcoal. Charcoal briquette production is a viable opportunity for good quality and affordable cooking fuel. Bioenergy and waste management initiatives should promote recovery of organic by-products for charcoal briquette production

Assessing water availability under pastoral livestock systems in drought-prone Isiolo District, Kenya

Water availability / Water demand / Surface water / Groundwater / Wells / Salinity / Livestock / Grazing / Land use / Water supply / Drainage / GIS / Databases / Cost recovery

Use of rapid diagnostic tests in malaria school surveys in Kenya: does their under-performance matter for planning malaria control?

Malaria rapid diagnostic tests (RDTs) are known to yield false-positive results, and their use in epidemiologic surveys will overestimate infection prevalence and potentially hinder efficient targeting of interventions. To examine the consequences of using RDTs in school surveys, we compared three RDT brands used during a nationwide school survey in Kenya with expert microscopy and investigated the cost implications of using alternative diagnostic approaches in identifying localities with differing levels of infection. Overall, RDT sensitivity was 96.1% and specificity was 70.8%. In terms of classifying districts and schools according to prevalence categories, RDTs were most reliable for the 40% categories and least reliable in the 1-4.9% category. In low-prevalence settings, microscopy was the most expensive approach, and RDT results corrected by either microscopy or polymerase chain reaction were the cheapest. Use of polymerase chain reaction-corrected RDT results is recommended in school malaria surveys, especially in settings with low-to-moderate malaria transmission

Evaluation of the Performance of Smallholder Pumped Irrigation Systems, in Arid and Semi-arid Areas of Kenya

A study was carried out to evaluate the performance of smallholder pumped irrigation systems with a view of comparing if the system operated within the designed optimal engineering standards. Different parameters studied were selection, design and operations of the irrigation systems with detailed analysis on energy uses for pumping (fuel use), efficiency of pumping devices as well as pump power required and energy losses (headlosses) during pumping. Semi structured questionnaires were administered to 80 smallholder farmers practicing pumped irrigated agriculture in Mitubiri location of Kakuzi division and Kithimani sub location of Yatta division, Kenya. An observational study was done to identify the irrigation methods used. Detailed study was done in 10 farms (5 in each study site) using pumped irrigated agriculture and water application through furrow irrigation system. 79 % of the farmers assessed used small motorized pumps run by petrol and diesel fuel and ranging from 4.0-6.5 horsepower. Water was pumped from nearby rivers and conveyed to their farms using closed conduits, open channels or a combination of both.  Furrow irrigation method was widely used by 94% of the farmers studied in the two study areas. 60% of the irrigation setups using PVC pipes in water conveyance had the allowable water discharge within the design optimal range. The frictional head loss in the PVC pipes used exceeded the design limit for 60% of the irrigation systems while 90% of the irrigation setups used fittings whose resultant frictional head losses were within the desired optimal range. Of the 10 pumps evaluated, 6 of them operated below the optimal design efficiency level while fuel consumption rate of each pump varied. The study of the amount of fuel used to run the different pumps used in the 10 farm setups varied from one farm to the other. In some farms, mean fuel amount used to irrigate 1 hectare of land was in excess of 60L/ha while in other farm setups, fuel used was as low as 5L/ha. The varied fuel amounts used could be attributed to varied factors in each farm such as topographic elevations, water conveyance distance and different make and model of pump. An assessment of fuel consumption rate for each of the 10 pumps at similar operational speed was also different. Pumps age did not affect its efficiency. A comparison of the calculated pump power required and the power rated on the pumps being used showed a big difference indicating that the farmers used pumps which had a higher power rating than required. The effect of using an oversized pump is high initial cost of purchasing the pump as well as high operation costs due to high fuel use.From the study, it was found that smallholder pumped irrigated agriculture despite showing tremendous increase in uptake faces numerous challenges ranging from components selection, design and use leading to poor performance

Farm water use efficiency assessment for smallholder pumped irrigation systems in the arid and semi-arid areas of Kenya

Water use efficiency for irrigated agriculture still remains low.  This presents a risky trend in the near future due to diminishing water resources as well as rising population demanding increased food supplies.  The objective of the study was to investigate pumped irrigation methods used by smallholder farmers in the arid and semi-arid land environments as well as assess the water use efficiency during crop production under usual farmer management.  The study was carried out in Mitubiri location of Kakuzi division and Kithimani sub location of Yatta division, Kenya.  Observational study during the field transect walks in the study sites identified methods of irrigation used by the smallholder farmers, water conveyance as well as application methods and the soil physical properties.  Questionnaires were developed and administered to 80 farmers in order to find out the socio-economic status of the people and the agricultural practices carried out.  A detailed study was carried out in 10 experimental plots set in the study areas.  Water losses during conveyance and application were assessed in the experimental plots.  Of the five farms where water conveyance was through secondary canals, the mean water conveyance efficiency was found to be 81.4%.  Water application efficiency in the ten blocks under different crops grown i.e. baby corns (Zea mays L.), French beans (Phaseolus vulgaris L), tomatoes (Lycopersicon esculentum L) and water melon (citrullus lanatus) in the months of April to July 2009 was assessed.  On average, water application efficiency ranged from 19.5% to 30 % for the crops assessed which was far below the recommended range of 65% for surface irrigation methods.  The study hence shows that there is a need to improve water use efficiency in smallholder irrigated agriculture in order to conserve water and ensure no shortages of water during the times of high water demand

Financial Management Reforms and the Economic Performance of Public Sector in Kenya

The research aimed at determining the impact of financial management reforms on the economic performance of public sector entities in Kenya. The study used the economic unit performance contracting results as the measure of performance. The study’s main objective was to determine the relationship between financial management reforms and the economic performance of the public sector in Kenya. The study used descriptive survey design. The population was the 42 ministries and departments that were in existence during the period of the study.  The study was carried out at the Ministry’s headquarters based in Nairobi. Data was collected from secondary and primary sources for five years between financial years 2007/2008 – 2011/2012.Analysis was done using ordinary least squares (OLS) method. Three types of financial reforms were targeted; budgetary reforms, accounting reforms and auditing reforms. The findings of the study revealed that financial reforms achieved more than half of the intended performance targets over the period under investigation. The results show that budgetary reforms had the strongest explanatory power on performance indicators at 0.681, followed by accounting reforms at 0.47 and audit reforms at 0.387. We therefore conclude that audit reform does not aid in improving performance of public sector entities while budgetary and accounting reforms are the most effective tools. The reason for this misnomer could be that civil servants could have developed a negative attitude against audit and see it as slowing down delivery of services or that audit is a conduit for corruption. More financial and budgetary reforms should therefore be undertaken for improved results. Audit reforms need to be closely reevaluated and new approaches employed to yield better results and economic performance. Key words: Financial reforms, Budgeting, Accounting, Auditing, public secto

Recovering bioenergy in Sub-Saharan Africa: gender dimensions, lessons and challenges

There is a strong link between gender and energy in view of food preparation and the acquisition of fuel, especially in rural areas. This is demonstrated in a range of case studies from East and West Africa, where biochar, human waste and other waste resources have been used to produce briquettes or biogas as additional high-quality fuel sources. The synthesis of the cases concludes that resource recovery and reuse for energy offers an alternative to conventional centralized grid projects which, while attractive to investors and large-scale enterprises, do not necessarily provide job opportunities for marginalized communities. Reusing locally available waste materials for energy production and as soil ameliorant (in the case of biochar) in small enterprises allows women and youth who lack business capital to begin modest, locally viable businesses. The case studies offer concrete examples of small-scale solutions to energy poverty that can make a significant difference to the lives of women and their communities

A review of 40 years of enteric antimicrobial resistance research in Eastern Africa: what can be done better?

The emergence and persistence of antimicrobial resistance is driven by varied factors including the indiscriminate use of antibiotics and variable drug efficacy and presents a major threat to the control of infectious diseases. Despite the high burden of disease in sub-Saharan Africa and the potential health and economic consequences, the level of research on antimicrobial resistance in the region remains unknown. Little data exists to quantify the contribution of different factors to the current levels of antimicrobial resistance. To identify the factors that contribute most to the emergence, amplification, persistence and dissemination of antimicrobial resistance in humans and animals, we used the PRISMA 2009 guidelines to conduct a systematic review of studies on antibiotic-resistant enteric bacteria in Eastern Africa. We searched PubMed and Google Scholar databases and identified 2,155 probable articles, of which 89 studies on humans and 28 on animals remained after full-text review. These were articles from Kenya, Tanzania, Uganda, Ethiopia, Rwanda and Burundi, published between 1974 and 2013, that reported resistance in Salmonella, Shigella, Escherichia coli and Vibrio sp. The majority (98%) of human studies were based on hospital- (rather than community-wide) sampling and although they report high levels of antimicrobial resistance in the region, study design and methodological differences preclude conclusions about the magnitude and trends of antimicrobial resistance. To remedy this, we discuss and propose minimum reporting guidelines for the level of detail that should be explicitly provided for antimicrobial resistance study designs, testing of samples and reporting of results that would permit comparative inferences and enable meta-analyses. Further, we advocate for increased focus on community- rather than hospital-based sampling to provide a better indication of population-wide trends in antimicrobial resistance. This approach, together with the establishment of a robust regional surveillance network, should over time build a pool of evidence-based data useful for policy decisions and interventions aimed at controlling antimicrobial resistance. ELECTRONIC SUPPLEMENTARY MATERIAL: The online version of this article (doi:10.1186/s13756-014-0041-4) contains supplementary material, which is available to authorized users

Social Mobilization and Compliance with Mass Treatment for Lymphatic Filariasis Elimination in Kenya

This study aimed to establish the role of social mobilization in mass drug administration (MDA) uptake during the National Programme to Eliminate Lymphatic Filariasis (LF) in Kenya. MDA for LF based on diethylcarbamazine (DEC) and albendazole using community-based treatment approach has been conducted for three years (2003, 2005 and 2008) in Kwale and Malindi districts. In each district, one high and one low, compliance locations were selected based on 2008 MDA data. From the four locations, nine villages were systematically sampled and a total of 965 randomly selected household heads interviewed. Sixteen focus group discussions with adult and youth male and female groups and separate in-depth interviews with eighty opinion leaders and eighty LF patients with clinical manifestations, purposively selected were conducted. Semi-structured interviews were held separately with fifteen community drug distributors, five health personnel and four LF coordinators also purposively selected. The results showed that knowledge about MDA for LF was not significantly associated with compliance (P>0.05). Seventy three percent in low and 78% in high compliance villages knew about MDA. The most common source of MDA information given by 49% of respondents in high and 40% in low compliance villages were the community drug distributors (CDDs). The content of MDA information received influenced compliance (P< 0.001), 71% in high compared to 61% in low compliance villages received correct information. The frequency of receiving MDA information also influenced compliance (P< 0.001), 65.5% in high compared to 50% in low compliance villages received the correct information at least once before treatment. Opinion towards the source of MDA information was also associated with compliance, 46% in high compared to 43% in low compliance villages considered the source as adequate (P< 0.001). The study results show that for MDA to be successful, information dissemination should be done by all stakeholders with the health personnel taking the lead role so that more adequate and factual content is relayed. Community sensitization and mobilization should be done repeatedly for all to get the information in good time to comply with treatment. Keywords: Compliance; Lymphatic Filariasis; Mass Drug Administration; Social Mobilizatio