An Assessment of Collaborative Development Based Approach on Poverty Reduction in Kenya: Case of Kenya Government and Civil Society Organizations

The government of Kenya has initiated several national development plans and policies to generate wealth and ensure fast economic growth so as to reduce high poverty rates in the country. To achieve this, the government is working closely with several stakeholders, especially the Civil Society Organizations (CSO) in order to attain a broad based, sustainable development for the welfare of her population. It is strongly believed that poverty alleviation needs concerted efforts so that the escalating poverty rates can be tackled effectively. The state and non state actors have vital roles to play in confronting the challenges posed by escalating poverty levels in the country. The war against poverty, diseases and ignorance has not been won fifty years since independence. The government has put in place several measures on poverty reduction without much success. The civil society has also instituted poverty reduction strategies with minimal gains. It is crystal clear that about half of the total population in Kenya is poor. Efforts geared towards poverty reduction in the country have not been fruitful because of the rising poverty and inequality rates in parts of the country. In response the government has initiated new strategies of collaborating with non state stakeholders through broad based consultations and participation. It is therefore important to investigate and critically assess Kenya’s claims of stakeholders’ collaboration, inclusion and quality participation. To this end , it is important to know who participated, in what way did they participate, in whose term did they participate, at what levels did they participate and what has been the strategic results of these in poverty reduction process. The purpose of this paper therefore is to assess the performance of stakeholders’ collaboration and participation in alleviating poverty in Kenya. The study seeks to provide an overview of the stakeholders’ participation in poverty eradication programs and identify the achievements and challenges facing the partnership approach to poverty reduction process in Kenya. Keywords: Poverty Reduction Strategy, Kenya Government &Civil Societ

Strategic Innovation and Performance of Public Universities in Kenya

The current business environment is dynamic, turbulent and unpredictable. The success of business in such environment is depended on its adaptability to respond to environmental change. Strategic innovation is a strategic tool that can be used to align the firm’s resources and capabilities with opportunities in the external environment in order to enhance survival and long term success of the organization. This study aimed at finding the relationship between strategic innovation and performance of public universities in Kenya. The specific objectives of the study were to establish the nature of strategic innovations in the universities and determine the influence of strategic innovations on the performance. The population for the study was the public universities in Kenya from which the sample was selected. The researcher adopted descriptive survey design. Data to establish the relationship was obtained with the use of structured questionnaires. Data analysis was done using multi hierarchical regression model. Mean and standard deviation were also calculated and the results presented in form of tables. The researcher obtained a 63% response rate which was deemed valid for analysis. From the analysis it was established and concluded that indeed there existed a positive relationship between strategic innovation and performance of public universities in Kenya. The study was limited to the influence of strategic innovation on the performance of public universities in Kenya. The researcher recommends that future research should focus on other analysis tools and such studies have to include other institutions that are not necessarily public universities. The implication of the findings is the need for the management to align strategic innovation strategy with the wider business strategy. They have to demonstrate their capability in understanding the customer insights and offer new and significant value if their long term success and survival is to be guaranteed. Keywords: Strategic Innovation, Knowledge Creation, Organizational Performance, Public Universities in Kenya

Determinants of Corporate Financial Distress: Case of Non-Financial Firms Listed in the Nairobi Securities Exchange

Financial statements fail to acknowledge the significance of a market mechanism in predicting bankruptcy because accounting variables are produced by a limited number of experts and accountants, but not by the market as a whole. However, in his study, he concluded that Z-score model (an accounting ratio model) produces more consistent results for the data collected and analyzed in terms of the “Max-rescaled R-square” and the “Classification Table” and seems to be reliable model (Bum, 2003). One of the classic works in the area of ratio analysis and bankruptcy classification was performed by Beaver in 1967. In a real sense, his univariate analysis of a number of bankruptcy predictors set the stage for the multivariate attempts which followed. Beaver found that a number of indicators could discriminate between matched samples of failed and non-failed firms for as long as five years prior to failure. He questioned the use of multivariate analysis. A subsequent study by Deakin in 1972 utilized the same 14 variables that Beaver analyzed, but he applied them within a series of multivariate discriminant models. The above mentioned studies imply a definite potential of ratios as predictors of bankruptcy. In general, ratios measuring profitability, liquidity, and solvency prevailed as the most significant indicators (Altman, Haldeman, & Narayanan, 1977)

The effectiveness of Poverty Reduction efforts in Kenya: An evaluation of Kenyan Government’s policy initiatives on poverty alleviation

The Government of Kenya has since independence directed its efforts to fight diseases, ignorance and poverty as part of its development agenda. According to the Sessional Paper No. 10 of 1965, the government recognized poverty, disease and illiteracy as the major constraints to human development. To date, various development plans, Poverty Reduction Strategy Papers, Participatory Poverty Assessment Reports, National Poverty Eradication Plan, Economic Recovery Strategy and Vision 2030 policies, have spelt out the strategies to fight poverty. Despite these efforts, poverty levels continue to escalate. The government has since established the causes, constraints and the processes that engender and entrench poverty. In spite of these positive developments, poverty alleviation has remained elusive. Poor economic performance has led to increase in absolute poverty as most Kenyans go without adequate food and nutrition, and face inadequate access to basic services that include education, health facilities, safe water and decent housing. The poverty reduction efforts have been unsuccessful due to weak mapping and coordination of the lead institutions, duplication of efforts, inadequate coverage by region and even gender, competition among and between players, and lack of clear policy direction. It is against this background that this paper seeks to evaluate the effectiveness of government policies in poverty reduction programs in Kenya. The purpose of this study therefore is to analyze the capacity of development policies and institutions in addressing the poverty status, in participatory planning, budgeting and implementation of development programs. The study identifies and analyzes the policies and institutions involved in poverty eradication; and seek to determine how best institutions can network to address poverty issues. The paper further examines existing policies in poverty eradication and attempts to establish a framework that will ensure effective implementation of anti-poverty programs that are targeted, coordinated and executable. The study critically analyzes the bottlenecks to effective implementation of government policies on poverty alleviation in Kenya. Key words: poverty Reduction, Policies, Kenyan Governmen

A Critical Review of the Leadership Styles on the Performance of Public Secondary Schools In National Examinations In Tana River County, Kenya

In Kenya, many teachers have been elevated to leadership positions without much formal training leading to mismanagement of schools hence poor students’ performance and disappointing results. The kind of leadership style adopted by a leader greatly determines the nature of performance in national examinations. Experience in Kenya reveals that many schools that were once effective in academic performance have lowered their standards due to poor leadership while others have greatly improved through effective leadership. Whereas good leadership initiates and sustains a slow but steady upward spiral, ineffective leadership makes academic standards plummet. The purpose of this study was therefore to examine the impact of principals’ leadership style on the performance of students in public secondary schools in K.C.S.E. The researcher used an explanatory approach based on a descriptive analysis design to establish opinions and knowledge about the impact of principals ‘leadership style on students performance in Tana River County. The study targeted 9 secondary schools in the county that had presented candidates for the national examinations between 2005 & 2009. Both purposive and simple random sampling techniques were used to select a sample of 9 principals and 40 teachers respectively. From this a sample size of 49 respondents was selected for the study. Primary data was collected from the teachers and principals using self administered questionnaires based on the profile of leadership behavior and own behavior. Both inferential and descriptive statistics were used to analyze the data. ANOVA was used to establish the perception of teachers and their principals on leadership styles exhibited by the head teachers. Correlation analysis was used to show the relationship between principals’ leadership styles and student performance in national examinations. The finding of this study strongly indicate a positive relationship between the principals’ leadership styles and students’ performance. Autocratic leadership style was found to have a significant effect on the students’ performance in national examinations. The study recommends the principals to shift to transformative approaches of leadership to enhance good performance of at the national level. The study proposes mandatory leadership training programs for the secondary school principals to update them with modern leadership trends and techniques needed for effective performance

An Assessment of Financial Literacy on Loan Repayment by Small and Medium Entreprnuers in Ngara, Nairobi County

The SMEs form a great percentage of all enterprises in the world. The global economy is heavily dependent on the success of Small Medium Entrepreneurship (SME) which creates employment, poverty alleviation and balanced developments which brings about economic growth in rural and urban setups. The government of Kenya is determined to raise the middle class status of the nation by the year 2030 through the participation of SMEs. This initiative has received the support of the banking sector, particularly Equity Bank. These enterprises allow the marginalized groups to diversify their levels of income. Equity bank has established financial literacy programs to provide the SMEs with financial skills necessary to create efficiency and effectiveness in entrepreneurship. Despite all these, the SMEs in Kenya face challenges that hinder them from attaining economies of scale. They lack training and management capacity to manage the business resources effectively. Financial literacy therefore is regarded as one of the strategies used by bankers to provide knowledge and skills needed to change attitude and attract more potential users of agent banking. The purpose of this paper was to investigate the influence of financial literacy on SMEs loan repayment. The specific objectives of this study is to establish the impact of book keeping skills, credit management and budgeting skills influence loan repayment by  the beneficiaries. The study was conducted among the beneficiaries of Equity Group Foundation Training Program (EGFTP) on SMEs in Ngara, Nairobi County. A sample of 30 SMEs was selected for the study using stratified random sampling technique. The study used a descriptive survey research to investigate the factors influencing loan repayment among the beneficiaries. The researcher used self administered structured questionnaires to collect primary data from a sample of selected beneficiaries. The collected data was coded and entered in computer software for analysis. Both descriptive and inferential statistics were used for data analysis. The study concludes that book keeping, credit management and budgeting skills significantly influenced the ability of SMEs to repay loans. The study recommends that the SMEs should enroll in financial related programs to enhance their capacities. The government and other industry players should emphasize on the importance of financial skills in to day running of their business. There is need also to initiate more financial literacy programs to reach to many SMEs for proper credit management skills hence improvement of loans repayment. Key words: Financial Literacy, Small Medium Entrepreneurs, Equity Group Foundatio

Critical Analysis of Community Designed Development Strategy on poverty reduction in Kenya: Case of NGOs participation in Kenya

Kenya has a critical challenge of reviving economic growth to enable improved standards of living of her people. The nation’s economic objective of growth, poverty reduction and improved access to essential services has not changed significantly since independence. Several efforts by the stakeholders including the national government, non-governmental organizations (NGOs) and international donors have shown limited success in reducing poverty in Kenya. As a result, poverty is still persistent in most households, both in rural areas and urban slums. The persistence of poverty in the country can be in part attributed to the top-down approach to development adopted by various poverty alleviation programs. As a result of this, community development strategies have not been effectively implemented in the country. There is rhetoric on poverty reduction and inclusion of the marginalized groups. However, poverty reduction requires measures that empower people to improve their capabilities and take ownership of poverty project. Experience indicates that the dimensions of community-driven development (CDD) strategy of empowering communities are not fully addressed in the country's poverty reduction programs, despite the fact that a community-driven approach to development and poverty reduction has the potential of lifting rural populations out of the poverty trap. This paper focuses on community development strategies and initiatives adopted by the NGOs to tackle poverty in Kenya. The study found to that the local communities in Kenya are not empowered enough to take full ownership of their projects for sustainable development. Key words: NGO, Community Designed Development strategy, poverty reductio