Liquidity, Capital Adequacy and Operating Efficiency of Commercial Banks in Kenya

This study aimed at examining the effect of liquidity and capital adequacy on the operating efficiency of commercial banks in Kenya.  Specifically, we sought to establish the effect of bank specific liquidity ratios (Interbank ratio, loan ratio, net loans to total deposits, liquid assets to short term liabilities ratio) and capital adequacy ratios (core capital ratio, risk  based capital ratio, total capital ratio, equity capital to total asset ratio) on their operating efficiency. The findings of the study indicate that the previous year operational efficiency ratio, liquid assets to short-term liabilities ratio and total capital ratio positively and significantly affect the bank operating efficiency. The study adopted an explanatory research design and analysed the data using Fixed Effects Regression. From the regression results, the overall R2 of 0.4108 was derived meaning that 41.08% of banks operational efficiency is as a result of the study variables.  This implies that the history of a firm’s performance will definitely influence how a firm moves forward in an effort to streamline its operational strategies. Therefore, banks should seek on mechanisms to improve their liquid assets to deposits ratio and total capital ratio in readiness to improve operating efficiency and remain competitive in the market. Keywords: Commercial Banks, Operating Efficiency, Liquidity, Capital Adequac

Liquidity, Capital Adequacy and Operating Efficiency of Commercial Banks in Kenya

This study aimed at examining the effect of liquidity and capital adequacy on the operating efficiency of commercial banks in Kenya.  Specifically, we sought to establish the effect of bank specific liquidity ratios (Interbank ratio, loan ratio, net loans to total deposits, liquid assets to short term liabilities ratio) and capital adequacy ratios (core capital ratio, risk  based capital ratio, total capital ratio, equity capital to total asset ratio) on their operating efficiency. The findings of the study indicate that the previous year operational efficiency ratio, liquid assets to short-term liabilities ratio and total capital ratio positively and significantly affect the bank operating efficiency. The study adopted an explanatory research design and analysed the data using Fixed Effects Regression. From the regression results, the overall R2 of 0.4108 was derived meaning that 41.08% of banks operational efficiency is as a result of the study variables.  This implies that the history of a firm’s performance will definitely influence how a firm moves forward in an effort to streamline its operational strategies. Therefore, banks should seek on mechanisms to improve their liquid assets to deposits ratio and total capital ratio in readiness to improve operating efficiency and remain competitive in the market. Keywords: Commercial Banks, Operating Efficiency, Liquidity, Capital Adequac

Seven-Year Efficacy of RTS,S/AS01 Malaria Vaccine among Young African Children

Background The RTS,S/AS01 malaria vaccine candidate is being evaluated for implementation. Methods We conducted 7 years follow-up of children who were randomized at age 5 to 17 months to receive three doses of either the RTS,S/AS01 vaccine or control vaccine (rabies). The endpoint was clinical malaria (temperature ≥37.5°C and infection with Plasmodium falciparum of ≥2500 parasites per µl). Each child’s malaria exposure was estimated using the prevalence of malaria among residents within a 2km radius of their homestead. Vaccine efficacy was defined as 1 minus the hazard ratio (HR) or incidence rate ratios (IRR) of the RTS,S/AS01 vaccinated versus rabies vaccinated groups. Results We identified 1002 clinical malaria episodes among 223 children randomized to RTS,S/AS01 and 992 clinical malaria episodes among 224 children randomized to control vaccination over seven years follow-up. Intention-to-treat vaccine efficacy (VE) was 4.4% (95%CI: -17 to 21.9, p value=0.67) and per-protocol VE was 7.0% (95%CI -14.5 to 24.6%, p=0.5) by negative binomial regression. VE waned over time (p=0.006 for the interaction between vaccination and time), including negative efficacy during the fifth year among children at higher malaria parasite exposure (-43.5%, 95%CI: -100.3 to -2.8, p value=0.033 by intention-to-treat and -56.8%, 95%CI -118.7 to -12.3, p=0.008 per-protocol). Conclusion A 3-dose vaccination with RTS,S/AS01 is initially protective against clinical malaria, but this is offset by rebound in later years in areas with higher malaria parasite exposure. Further data are needed on longer-term outcomes following four-dose vaccinations. </p

Socio-Economic and Institutional Constraints to Accessing Credit among Smallholder Farmers in Nyandarua District, Kenya

Amongst the challenges faced by smallholder farmers in production is inaccessibility to credit. This study sought to identify household socio-economic and institutional constraints influencing access to credit among smallholder farmers in Nyandarua District. The study used a Logit model. Both quantitative and qualitative data were acquired from primary and secondary sources. Primary data was collected using questionnaires through a survey design. A sample of 164 smallholder farmers was selected using stratified, multi-stage random sampling techniques. Data was analyzed using descriptive statistics and maximum likelihood method using Statistical Package for Social Sciences (SPSS). The study established that socio-economic constraints such as age, gender, household size, farm income, collateral and awareness are critical determinants of access to credit. The study also established that institutional requirements such as costs involved in operating / maintaining bank accounts, loan requirements and transaction costs involved in the credit process influenced access to credit. The study concludes that household socio-economic characteristics and institutional requirements influence access to credit. Key recommendations made include the need by government to deal with bureaucracies involved in land registration to benefit majority of smallholder farmers who remain insecure in the land they use without proof of ownership and also to make easier the registration of lease certificates for those who do not own land and use land on leasehold tenure system. Financial institutions should also put in place less stringent credit requirements and reduce credit costs especially interest rates to make credit more affordable. Keywords: socio-economic and institutional constraints, credit access, smallholder farmers, logit model

Assessment of Farmers’ Adaptation to the Effects of Climate Change in Kenya: the Case of Kyuso District

The study was carried out to assess how farmers in Kyuso District have adapted to the effects of climate change. Survey data was collected from 246 farmers from six locations that were sampled out through a multistage and simple random sampling procedure. The probit regression model was fitted into the data in order to assess factors influencing farmers’ adaptation to the effects of climate change. The analysis revealed that 85% of the farmers had adapted in various ways to the effects of climate change. In this regard, the age of the farmer, gender, education, farming experience, farm income, access to climate information, household size, local agro-ecology, distance to input/output market, access to credit, access to water for irrigation, precipitation and temperature were found to have significant influence on the probability of farmers to adapt to climate change. The study suggests that more policy efforts should thus be geared towards helping all the farmers in the district to adapt to climate change. Key words: climate change, adaptation, probit regression model, Kyuso District

Analysis of Farmers’ Perceptions of the Effects of Climate Change in Kenya: the Case of Kyuso District

A cross-sectional analysis was carried out to evaluate how farmers in Kyuso District have perceived climate change. Data was collected from 246 farmers from six locations sampled out through a multistage and simple random sampling procedure. The logistic regression analysis was carried out to assess factors influencing farmers’ perceptions of climate change. The analysis revealed that 94% of farmers in Kyuso District had a perception that climate was changing.  In this regard, age of the household head, gender, education, farming experience, household size, distance to the nearest input/output market, access to irrigation water, local agro-ecology, access to information on climate change, access to extension services, off farm income and change in temperature and precipitation were found to have significant influence on the probability of farmers to perceive climate change. Since the level of perception to climate change revealed by the study was found to be high (94%), the study suggests that more policy efforts should thus be geared towards helping farmers to adapt to climate change. Key words: Climate change, Perceptions, Logistic regression, Kyuso District

Gametocyte carriage in an era of changing malaria epidemiology: A 19-year analysis of a malaria longitudinal cohort

Background: Interventions to block malaria transmission from humans to mosquitoes are currently in development. To be successfully implemented, key populations need to be identified where the use of these transmission-blocking and/or reducing strategies will have greatest impact. Methods: We used data from a longitudinally monitored cohort of children from Kilifi county located along the Kenyan coast collected between 1998-2016 to describe the distribution and prevalence of gametocytaemia in relation to transmission intensity, time and age. Data from 2,223 children accounting for 9,134 person-years of follow-up assessed during cross-sectional surveys for asexual parasites and gametocytes were used in logistic regression models to identify factors predictive of gametocyte carriage in this cohort. Results: Our analysis showed that children 1-5 years of age were more likely to carry microscopically detectable gametocytes than their older counterparts. Carrying asexual parasites and recent episodes of clinical malaria were also strong predictors of gametocyte carriage. The prevalence of asexual parasites and of gametocyte carriage declined over time, and after 2006, when artemisinin combination therapy (ACT) was introduced, recent episodes of clinical malaria ceased to be a predictor of gametocyte carriage.  Conclusions: Gametocyte carriage in children in Kilifi has fallen over time.  Previous episodes of clinical malaria may contribute to the development of carriage, but this appears to be mitigated by the use of ACTs highlighting the impact that gametocidal antimalarials can have in reducing the overall prevalence of gametocytaemia when targeted on acute febrile illness.</ns4:p

Repeated clinical malaria episodes are associated with modification of the immune system in children

The study received funding from the UK Medical Research Council, (MRC Programme grant #: MR/M003906/1). MB and AR are supported by the Wellcome Trust (Grant #: WT 206194).Background There are over 200 million reported cases of malaria each year, and most children living in endemic areas will experience multiple episodes of clinical disease before puberty. We set out to understand how frequent clinical malaria, which elicits a strong inflammatory response, affects the immune system and whether these modifications are observable in the absence of detectable parasitaemia. Methods We used a multi-dimensional approach comprising whole blood transcriptomic, cellular and plasma cytokine analyses on a cohort of children living with endemic malaria, but uninfected at sampling, who had been under active surveillance for malaria for 8 years. Children were categorised into two groups depending on the cumulative number of episodes experienced: high (≥ 8) or low (< 5). Results We observe that multiple episodes of malaria are associated with modification of the immune system. Children who had experienced a large number of episodes demonstrated upregulation of interferon-inducible genes, a clear increase in circulating levels of the immunoregulatory cytokine IL-10 and enhanced activation of neutrophils, B cells and CD8+ T cells. Conclusion Transcriptomic analysis together with cytokine and immune cell profiling of peripheral blood can robustly detect immune differences between children with different numbers of prior malaria episodes. Multiple episodes of malaria are associated with modification of the immune system in children. Such immune modifications may have implications for the initiation of subsequent immune responses and the induction of vaccine-mediated protection.Publisher PDFPeer reviewe

The ratio of monocytes to lymphocytes in peripheral blood correlates with increased susceptibility to clinical malaria in Kenyan children.

BACKGROUND: Plasmodium falciparum malaria remains a major cause of illness and death in sub-Saharan Africa. Young children bear the brunt of the disease and though older children and adults suffer relatively fewer clinical attacks, they remain susceptible to asymptomatic P. falciparum infection. A better understanding of the host factors associated with immunity to clinical malaria and the ability to sustain asymptomatic P. falciparum infection will aid the development of improved strategies for disease prevention. METHODS AND FINDINGS: Here we investigate whether full differential blood counts can predict susceptibility to clinical malaria among Kenyan children sampled at five annual cross-sectional surveys. We find that the ratio of monocytes to lymphocytes, measured in peripheral blood at the time of survey, directly correlates with risk of clinical malaria during follow-up. This association is evident among children with asymptomatic P. falciparum infection at the time the cell counts are measured (Hazard ratio (HR)  =  2.7 (95% CI 1.42, 5.01, P  =  0.002) but not in those without detectable parasitaemia (HR  =  1.0 (95% CI 0.74, 1.42, P  =  0.9). CONCLUSIONS: We propose that the monocyte to lymphocyte ratio, which is easily derived from routine full differential blood counts, reflects an individual's capacity to mount an effective immune response to P. falciparum infection

Estimating Individual Exposure to Malaria Using Local Prevalence of Malaria Infection in the Field

BACKGROUND: Heterogeneity in malaria exposure complicates survival analyses of vaccine efficacy trials and confounds the association between immune correlates of protection and malaria infection in longitudinal studies. Analysis may be facilitated by taking into account the variability in individual exposure levels, but it is unclear how exposure can be estimated at an individual level. METHOD AND FINDINGS: We studied three cohorts (Chonyi, Junju and Ngerenya) in Kilifi District, Kenya to assess measures of malaria exposure. Prospective data were available on malaria episodes, geospatial coordinates, proximity to infected and uninfected individuals and residence in predefined malaria hotspots for 2,425 individuals. Antibody levels to the malaria antigens AMA1 and MSP1(142) were available for 291 children from Junju. We calculated distance-weighted local prevalence of malaria infection within 1 km radius as a marker of individual's malaria exposure. We used multivariable modified Poisson regression model to assess the discriminatory power of these markers for malaria infection (i.e. asymptomatic parasitaemia or clinical malaria). The area under the receiver operating characteristic (ROC) curve was used to assess the discriminatory power of the models. Local malaria prevalence within 1 km radius and AMA1 and MSP1(142) antibodies levels were independently associated with malaria infection. Weighted local malaria prevalence had an area under ROC curve of 0.72 (95%CI: 0.66-0.73), 0.71 (95%CI: 0.69-0.73) and 0.82 (95%CI: 0.80-0.83) among cohorts in Chonyi, Junju and Ngerenya respectively. In a small subset of children from Junju, a model incorporating weighted local malaria prevalence with AMA1 and MSP1(142) antibody levels provided an AUC of 0.83 (95%CI: 0.79-0.88). CONCLUSION: We have proposed an approach to estimating the intensity of an individual's malaria exposure in the field. The weighted local malaria prevalence can be used as individual marker of malaria exposure in malaria vaccine trials and longitudinal studies of natural immunity to malaria