Effect of Management Information Systems on the Effectiveness of Internal Audit in the Public Sector in Kenya

Governance and core business strategy view internal auditing as vital management tool which focuses on internal controls and monetary assessment. The Kenyan government is grappling with inefficiencies, wastage of resources, fraud, corruption and non-achievement of value for money which calls into question the role of internal auditing in management of resources. The purpose of the study was to investigate the effect of management information system on the effectiveness of internal audit in the public sector in Kenya, a case of the National Treasury. To achieve the above objective, the study was guided by the system theory in an attempt to explain the phenomena under study using descriptive research design.  A sample of 139 internal auditors were selected from a target population of Three hundred and ninety-five (395) internal auditors drawn from the National Treasury in Kenya using stratified random sampling technique. Data was collected through online questionnaires sent through emails. The Descriptive statistics and regression analysis showed that management information system (adjusted R=.70) has a positive and significant effect on the effectiveness of internal audit. Further the descriptive findings supported the notion established by other studies that information system plays a vital role in ensuring efficiency and effectiveness of an organization’s operations. Despite of the positive contribution that management information system can provide to an organization, this study found out that the internal auditors in the national treasury have not yet embraced the use of technology in their function and very few of them have been trained on the use of IFMIS which is the information system expected to be used by public entities in Kenya. On the basis of this findings the study recommends that there should be adequate budgetary provision for the requisite equipment, networking and reliable internet for easier communication and faster response as well as for proper training of the internal auditors on the use of IFMIS. These would streamline governance processes, management of risk and control systems and assisting management improving operations of organization. Internal audit   effectiveness     Governance      Management information system DOI: 10.7176/RJFA/11-17-12 Publication date:October 31st 202

An Assessment of Financial Literacy and the Performance of UWEZO Funded SME’s in Kirinyaga County, Kenya

The study sought to assess the financial literacy and performance of Uwezo funded SMEs in Kirinyaga County. Lack of finance has been attributed to be the cause of poor performance of SMEs necessitating the government of Kenya to initiate programs such as UWEZO fund to provide the much needed finances for the success of these SMEs. Among the Kenya government initiatives is the financial literacy training program that is provided to the UWEZO fund beneficiaries as a prerequisite for getting the funds. Guided by financial literacy theory the study surveyed the level of financial literacy among 88 uwezo funded SMEs who were randomly selected and assessed the effect of the financial literacy on the performance of the SMEs. The findings of the study reveal that there is a significant positive relationship between financial literacy and the performance of the sampled SMEs. It was established that the SME owners had good financial literacy skills in terms of personal savings, record keeping, credit management and budgeting but had difficulties in implementing these skills in their day to today business decisions. The study therefore recommends that the providers of the financial literacy training programs should have a review program to ensure that the SMEs are able to apply the skills acquired to be able to make better business decisions. The study also recommends that a similar study can be conducted on the same SMEs to identify the cause of the knowledge gap. Key words: Financial literacy, personal savings, record keeping, credit managemen

Influence of Cashflow Liquidity on Dividend Payout Among Deposit Taking Saving and Credit Cooperative Societies (SACCOs) in Kenya

In the recent past Saving and Credit Cooperatives Societies in Kenya have gained popularity as a result of high interest being charged by commercial banks and borrowers have shifted their focus to the SACCOs due to their fixed interest rates on loans. SACCOs pay high dividends in comparison to commercial banks, however the level of dividend payout keeps on fluctuating and thus shareholders are not aware of what they expect in the next financial year. Studies have been carried out to examine the determinants of dividend of payout, where various factors have been identified and inconsistency results have been found in regard to the influence of cashflow liquidity on dividend payout. Therefore, the main purpose of this study was to establish the influence of cashflow liquidity on dividend payout among deposit taking saving and credit cooperative societies (SACCOs) in Kenya. The study focused on deposit taking SACCOs as more researchers have focused on commercial banks and SACCOs in general. The study used descriptive and correlational research design. The target population was the 176 the deposit taking SACCOs in Kenya, out of which a sample of 108 respondents were randomly selected each SACCO that was included in the sample. Questionnaire and document analysis were used to collect data and which was analyzed with the help of SPSS (23). The study findings revealed that there was a significant positive relationship between cashflow liquidity and dividend payout.  It was concluded that cashflow liquidity influenced dividend payout, among deposit taking SACCOs in Kenya. It was recommended to improve cashflow liquidity SACCOs should adopt conservative approach for management of working capital elements. The study also recommended that to improve cashflow liquidity, SACCOs should reduce the proportion of their long-term loans to short term loans. The study recommended further analysis on the influence of cash reserve ratio on dividend payout. Keywords: Dividend payout, cash flow liquidity, Deposit-taking, SACCO

The Moderating Effect of the Listing Sector on the Relationship Between Capital Structure and Financial Distress of Non-Financial Companies Listed in Kenya

This paper sought to investigate the moderating effect of the listing sector on the relationship between capital structure and financial distress of listed non-financial firms in Kenya. In total, non-financial firms are listed across seven sectors depending on their primary commercial activity. Capital structure was operationalized by total debt, long-term debt and short term debt financing. The degree of financial distress was measured using the Altman’s Z-score index as reviewed for the emerging markets. Secondary data from audited and published financial statements was collected for the 40 listed non-financial firms for 10 years between 2007 and 2016. The study estimated the specified panel regression model for fixed effects as supported by the Hausman test results. Feasible Generalized Least Squares (FGLS) regression results revealed that the listing sector has a significant moderating effect on the relationship between capital structure and financial distress of non-financial firms. On the basis of these empirical findings, the study recommended that managers of listed non-financial companies should always consider the sector-specific factors in making leverage choice decisions for their entities. Keywords: Capital Structure, Financial Distress, Listing secto

Introduction from the Wild and Growth Characterization of Three Provenances of Calotropis procera (Ait) in a Domesticated State in Dry lands of South Eastern Kenya

Calotropis procera is a wild species that is drought-resistant and important in production of wool, fibre, biomass among other uses. There exist high demand of the wool in Asian countries and collection from the wild has been going on in Kenya and other countries. However, this collection does not meet the quantity required. Domestication of the species may be the key in bridging the quality and quantity demands for the wool. A study is being undertaken to evaluate growth, phenology and wool productivity of selected provenances of C. procera in dry lands of S. Eastern Kenya. The research site is situated between 01.313580S, 037.755460 E and 01.314220S, 037.755760E and elevation of 1173m a.s.l in South Eastern Kenya University (SEKU), Kitui County, Kenya. The research started in January 2015 with the main focus on monitoring the growth, phenological characteristics and wool productivity of the species in a typical farm setting. This paper focuses on growth characterization of three provenances of C. procera under different spacings (1.5mx1.5m, 2mx2m and 3mx3m). Results indicate that the species can be domesticated, it is hardy and capable of achieving an average field survival of over 97%. The species is multi-stemmed with Tharaka provenance showing highest mean branching of 13.25 followed by Baringo (12.22) then Kibwezi (11.98). Kibwezi recorded a slightly higher DBH growth of 3.90cm followed by Baringo (3.83) then Tharaka (3.82). Tharaka had highest mean height of 187.89cm, Baringo (184.25) and Kibwezi (182.63). Test of homogeneity of variances showed significant statistical differences (P<0.5) with Kibwezi being the least significant (0.043), Baringo (0.01) and Tharaka (0.000). All provenances showed a strong positive correlation (Pearson, P<0.01, n = 12) of branching, DBH and Height with Kibwezi recording rs = 0.975, Baringo (rs = 0.988) and Tharaka (rs = 0.996). Differences in spacing levels started affecting growth parameters from the age of ten months with 3x3 showing highest DBH followed by 2x2 then 1.5x1.5. In terms of height, 1.5x1.5 has the highest (182.85cm), 2x2 (172.42) and 3x3 (168.65). 3x3 was not statistically significant (0.806, P<0.05) while 2x2 and 1.5x1.5 had significance of 0.001 and 0.000 respectively. All spacing levels showed strong positive correlations (Spearman, P<0.01, n = 12) of the study parameters where 1.5x1.5 had rs = 0.614, 2x2 (rs = 0.972) and 3x3 (rs = 0.986) all at P<0.01. The study can authoritatively conclude that the species can establish and grow well in a typical farm setting in dry lands. Spacing affects growth parameters from the age of 10 months. Baringo provenance and 2x2 spacing have performed best. The study recommends analysis of wool productivity to justify the best provenance and spacing. Keywords: Calotropis procera, Domestication, Kibwezi Provenance, Tharaka Provenance, Baringo provenanc

Bacteriological diagnosis of childhood TB: a prospective observational study.

Childhood TB diagnosis is challenging. Studies in adults suggest Microscopic Observation Drug Susceptibility (MODS) culture or the Xpert MTB/RIF assay might be used to expand bacteriological diagnosis. However data from children are more limited. We prospectively compared MODS and Xpert MTB/RIF with standard microscopy and culture using the BD MGIT 960 system among 1442 Kenyan children with suspected TB. 97 specimens from 54 children were TB culture-positive: 91 (94%) by MGIT and 74 (76%) by MODS (p = 0.002). 72 (74%) culture-positive and 7 culture-negative specimens were Xpert MTB/RIF positive. Xpert MTB/RIF specificity was 100% (99.7-100%) among 1164 specimens from 892 children in whom TB was excluded, strongly suggesting all Xpert MTB/RIF positives are true positives. The sensitivity of MGIT, MODS and Xpert MTB/RIF was 88%, 71% and 76%, respectively, among all 104 true positive (culture and/or Xpert MTB/RIF positive) specimens. MGIT, MODS and Xpert MTB/RIF on the initial specimen identified 40/51 (78%), 33/51 (65%) and 33/51 (65%) culture-confirmed pulmonary TB cases, respectively; Xpert MTB/RIF detected 5 additional culture-negative cases. The high sensitivity and very high specificity of the Xpert MTB/RIF assay supports its inclusion in the reference standard for bacteriological diagnosis of childhood TB in research and clinical practice

Appropriateness of clinical severity classification of new WHO childhood pneumonia guidance : a multi-hospital, retrospective, cohort study

Background: Management of pneumonia in many low-income and middle-income countries is based on WHO guidelines that classify children according to clinical signs that define thresholds of risk. We aimed to establish whether some children categorised as eligible for outpatient treatment might have a risk of death warranting their treatment in hospital. Methods: We did a retrospective cohort study of children aged 2–59 months admitted to one of 14 hospitals in Kenya with pneumonia between March 1, 2014, and Feb 29, 2016, before revised WHO pneumonia guidelines were adopted in the country. We modelled associations with inpatient mortality using logistic regression and calculated absolute risks of mortality for presenting clinical features among children who would, as part of revised WHO pneumonia guidelines, be eligible for outpatient treatment (non-severe pneumonia). Findings: We assessed 16 162 children who were admitted to hospital in this period. 832 (5%) of 16 031 children died. Among groups defined according to new WHO guidelines, 321 (3%) of 11 788 patients with non-severe pneumonia died compared with 488 (14%) of 3434 patients with severe pneumonia. Three characteristics were strongly associated with death of children retrospectively classified as having non-severe pneumonia: severe pallor (adjusted risk ratio 5·9, 95% CI 5·1–6·8), mild to moderate pallor (3·4, 3·0–3·8), and weight-for-age Z score (WAZ) less than −3 SD (3·8, 3·4–4·3). Additional factors that were independently associated with death were: WAZ less than −2 to −3 SD, age younger than 12 months, lower chest wall indrawing, respiratory rate of 70 breaths per min or more, female sex, admission to hospital in a malaria endemic region, moderate dehydration, and an axillary temperature of 39°C or more. Interpretation: In settings of high mortality, WAZ less than −3 SD or any degree of pallor among children with non-severe pneumonia was associated with a clinically important risk of death. Our data suggest that admission to hospital should not be denied to children with these signs and we urge clinicians to consider these risk factors in addition to WHO criteria in their decision making

Anti-Severe Acute Respiratory Syndrome Coronavirus 2 Immunoglobulin G Antibody Seroprevalence Among Truck Drivers and Assistants in Kenya.

In October 2020, anti-severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) immunoglobulin G seroprevalence among truck drivers and their assistants (TDA) in Kenya was 42.3%, higher than among healthcare workers and blood donors. Truck drivers and their assistants transport essential supplies during the coronavirus disease 2019 pandemic, placing them at increased risk of being infected and of transmitting SARS-CoV-2 over a wide geographical area

Performance of the MGIT TBc Identification Test and Meta-Analysis of MPT64 Assays for Identification of the Mycobacterium tuberculosis Complex in Liquid Culture▿†

Rapid MPT64-based immunochromatographic tests (MPT64 ICTs) have been developed to detect Mycobacterium tuberculosis complex (MTBC) in culture. We demonstrated the noninferiority of one commercial MTP64 ICT, the MGIT TBc identification (TBcID) test, to GenoType line probe assays for MTBC identification in positive MGIT cultures. Meta-analysis of MPT64 ICT performance for identification of MTBC in liquid culture confirmed similar very high sensitivities and specificities for all three commercial MPT64 assays for which sufficient data were available