ANALYSIS OF SELECTED FACTORS INFLUENCING FINANCIAL PERFORMANCE OF INSURANCE COMPANIES LISTED AT THE NSE, KENYA

Insurance businesses are designed to pool and accumulate large sums of money in order to settle claims arising from their clients in the event of loss. The companies venture into stock trading, underwriting ventures and property investments in addition to their core activities of generating income from net premiums. Several factors influence the operation results of these firms. The study used descriptive research design where a sample of thirty six (36) respondents was chosen through stratified sampling. Questionnaires were administered through drop and pick method. Both descriptive and inferential statistics were analysed. Inferential analysis failed to accept the null hypotheses that there was no statistically significant influence of selected factors; risk perception, macroeconomics and investment portfolio choice on financial performance of insurance companies. The results of the study indicated that considered in isolation risk perception explained 19.6% of the variability in financial performance while macroeconomic and investment portfolio choice factors accounted for 18.2% and 15.9% respectively of the changes in financial performance. The joint independent variables were associated to 74.9% of the variability in financial performance of insurance firms. However, there are other factors that explain the variance of financial performance of insurance companies in Kenya that were not included in the model. JEL: G10; G22; G23  Article visualizations

Potential and limitations of dryland communities in adapting to climate change in Mwanga district

In order to document the potential and limitations in adapting dryland communities to climate change in Mwanga district a study was carried out in late March 2012. Because the project focused on crops production and livestock production and natural resources management (beekeeping in particular), potential and constraints of these three sectors were identified. The data were collected from households situated in four proposed project villages of Kiruru Ibwejewa, Kirya, Kwakoa and Kileo and a structured questionnaire was used in this regard. The questionnaire was administered to 64 respondents, 16 for each study village. Along with the survey, other methods used were observation transect walks, key-informant interview and literature review. The main identified constraints in crops production were unreliable rainfall, high costs of inputs, unavailability of the improved seeds and prevalence of pests and diseases. Marketing constraints for crops included low price, lack of buyer within the village, and market inaccessibility. Regarding livestock production, the main constraints were bush encroachment, poor vegetative cover and shortage of water. On the other side, beekeeping had large but unexploited potential because of lack of improved beekeeping and honey processing knowledge, and ineffective organization. Also, theft of honey and beehives was among the reported constraints. It is recommended that the understanding of contextual realities is important before implementing any climate change adaptation interventions because such understanding will provide a pointer on the appropriate and feasible interventions based on the field realities. From such understanding it will be possible to plan appropriate use of scarce financial, social and human resources in a profitable way.Research ReportClimate Change Impacts, Adaptation and Mitigation (CCIAM) Programme in Tanzani