Effect of Transaction Costs on Current Milk Marketing Structure in Uasin Gishu and Nandi North Districts in Kenya

The improvement of milk production is a key issue in Kenya since the country relies heavily on agriculture for economic growth.  However, there is inadequate empirical evidence on the extent to which transaction costs constraint or prevent access to information and markets, especially for small-scale dairy farmers.  This paper highlights the factors determining the milk marketing structure based on a study to assess marketing constraints faced by small-scale dairy farmers in Nandi North and Uasin Gishu districts. A combination of multi-stage, simple random and systematic random sampling methods was used to select the study district and small scale dairy farmers, where 270 respondents were interviewed using structured questionnaires and interview guides. An analysis of the milk marketing structure in the area showed that farmers facing considerable transactions costs were likely to sell surplus milk to their neighbours and hawkers rather than to milk processors, milk bars and farmer cooperatives. The study concluded that accessibility to formal market outlets is limited by considerable farm-to-market distance, poor infrastructure, inadequate transportation, and constraints of acquiring knowledge about milk prices, searching for buyers, negotiating, bargaining and monitoring milk contracts. It is recommended that due consideration be given to the development of a better physical and institutional infrastructure which would effectively link these producer areas to markets and improve market knowledge by providing relevant market information and farming skills Keywords: Effect, Transaction Costs, Current Milk Marketing Structure, Uasin Gishu District, Nandi North District, Keny

Influence of Professional Expertise on Dividend Policy among Listed Firms in Nairobi Securities Exchange in Kenya

Management of corporations has been faced by challenges emerging from internal managers not being able to effectively offer stewardship. The organizations owners therefore have to improvise means of ensuring that their interests are protected. In modern corporation’s owners embrace mechanisms like board diversity to mitigate against managers failures to act in their interests. The purpose of this study was to examine the influence o professional expertise on Dividend Policy among listed firms in Nairobi Securities Exchange. In the recent past, most corporations in developing economies experience unstable dividend payment hence the need to determine whether professional expertise can remedy dividend payment situation prevailing. The study examined how professional expertise can influence dividend policy in companies listed on the NSE. The study was guided by agency, signaling, resource dependency and power circulation theories. The study used the explanatory research design. Document analysis was used to collect secondary data from annual reports of firms. Data was analyzed using descriptive statistics such as the mean, median, and standard deviation and fixed effect multiple regression analysis was done to examine the effects between professional expertise and dividend policy in annual reports of firms. The study was also expected to contribute new knowledge on the relationship between professional expertise and dividend policy. The regression results showed that professional expertise (β = .226, p = .490) exhibit a strong direct relationship with dividend policy. The study recommends that policy makers to ensure development of regulations to enhance professional expertise among firms since professional expertise brings about overwhelming benefits to corporate owners by minimizing agency problems related to free cash flows hence enhance payout to shareholder and reduce risk of misallocation of excess resources by firm managers. The study also recommends further studies to be carried out on the relationship between professional expertise and dividend policy on privately owned, SME’s, both listed and unlisted firms using similar study variables and a longer period for the same study to determine whether optimal results would be achieved. Keywords: Professional Expertise, Dividend, Policy, Resource dependency, securities exchang

Commercial Bank Diversification and Financial Performance: The Moderating Role of Risk

Commercial banks in Kenya have posted good financial performance as indicated by ROA and ROE. This coincides with a period of enormous diversification occasioned by global financial sector liberalization, allowing banks to venture into a range of businesses while maintaining the traditional intermediation business. Theory and empirical evidence is equivocal on the financial performance impact of diversification. Often, theory provides an isolated analysis of the diversification – performance relationship which limits their generalizations especially in the face of systemic financial risks and crisis. Using an ex post factoexplanatory design we investigate whether bank diversification affects financial performance and whether this effect is moderated by solvency and credit risk based on panel data from 34 commercial banks in Kenya over nine firm years. The authors find that income and asset diversification negatively and significantly affect commercial bank ROA while geographical diversification significantly – positively affect both ROA and ROE. We also find a significant positive moderation effect of credit risk on relationship between income diversification and ROA but a significant negative effect on relationship between asset diversification and geographical diversification with both ROA and ROE. On solvency risk, we find a significant positive moderation effect on relationship between geographical diversification and ROE

A Theoretical Survey

Abstract The banking industry in the entire world has experienced tremendous diversification levels spurred by the sector liberalization and deregulation in the last two decades. This is especially so because of the competitive pressure that has resulted from non-bank institutions entry into the sector as well as the resulting reductions in cost efficiencies and profit margins earlier associated with the intermediation business. While banks have resolved to creative diversification strategies to overcome the profit compression and competition pressure, a number of questions central to this practice still linger and which this paper seeks to address. First, what is diversification in banking? Though, it is clearly defined in strategic management literature, the true meaning of diversification in banking has remained elusive. Secondly, what is the theoretical motivation behind firms and managers pursuit of diversification? Lastly, what are the avenues through which banks can execute a diversification strategy? The research find out that bank diversification is best understood by disaggregating the various elements that constitute the operations, assets and liabilities of commercial banks and can be defined as the conglomeration of different activities, income sources, assets and liabilities in banking operations. The theoretical diversification of diversification stems from the search for market power hypothesised in market power theory, the exploitation and utilization of resource bundles to attain sustainable competitive advantage as proposed by the resource based view theory or pursuing of managerial self interests hypothesised in agency theory. The common approaches through which banks pursue diversification are income diversification, assets diversification, credit diversification, geographical diversification and international diversificatio

Effect of Knowledge Management on Firm Competitive Advantage Among Commercial Banks in Kenya

We examine the effect of knowledge management on firms’ competitive advantage among commercials banks in Kenya. Using multiple regression analysis, we found support for the proposition that knowledge acquisition, knowledge dissemination and responsiveness to knowledge enhance firms’ competitive advantage. Given the increasingly critical role of Knowledge management in connection with firm competitiveness in today’s dynamic market place organizations are required to manage effective knowledge to ensure they have a sustain competitive advantage. Keywords: firm competitive advantage, knowledge acquisition, knowledge dissemination and responsiveness to knowledge

Effect of Attitude Towards Risk on Individual Portfolio Choice at the Nairobi Securities Exchange, Kenya

Attitude towards riskplays a major role of determining a portfolio choice of an investment portfolio composed of a single or multiple assets that an investor chooses within a certain period of time. Although there exist numerous controversial arguments of the factors that determine the level of individual portfolio choice, focus on multidimensional perceptions of investors characteristics have been given little attention. The objective of this study was to determine the effect of investor’s attitude towards risk on individual portfolio choice at the Nairobi securities exchange and  to investigate the moderating effect of investor’s age on the correlation between attitude towards riskand individual portfolio choice on common stocks at the Nairobi securities exchange. The study is anchored on risk aversion theory. A correlational research design was used for collecting data for the variables under study over a period of five years from January, 2013 to December, 2017. The population consisted of individual investors estimated at 2.4 million as at 31st December 2017 based on Central Depository and Settlement Corporation Limited (CDSC). A target population of 997,605 active retail investors who also form the accessible population at Nairobi securities exchange(NSE) were used to draw a sample size of 385 active individual retail investors. Both stratified and convenience sampling was used to select the required number of respondents. A structured questionnaire was used to collect the data whereby drop and pick approach was used by the researcher and research assistants. Pilot testing of the instruments was performed to assess its reliability. Further, multiple regression techniques were used to analyze the data obtained that was presented using frequency tables, means, standard deviations and correlation tables. The study findings revealed that attitude towards risk, have a positive and significant effect on the common stocks. As such a unit increase in a predictor variable leads to an increase in investment in common stocks. Further, the results of the study indicated that age moderate the relationship between attitude towards risk and the individual portfolio choice in respect to common stocks. The study will benefit management of investment banks and brokerage firms in policy formulation to assist individual investors in their portfolio choices and also to the academicians to advance the conceptual arguments of the moderating effect of age on the relationship between attitude towards risk and individual portfolio choice. Keywords: Attitude towards risk, Individual portfolio choice, Risk aversion,Investor’s age. DOI: 10.7176/RJFA/13-20-01 Publication date:October 31st 202

Evaluation of treatment outcomes and associated factors among patients managed for tuberculosis in Vihiga County, 2012‐ 2015

Background: Tuberculosis (TB) treatment outcomes are used to evaluate program and patient success. Despite this, factors driving and sustaining high rates of poor TB treatment outcomes in Vihiga County are not well understood.Objective: To evaluate treatment outcomes and associated factors among patients managed for TB in Vihiga County between 2012 and 2015.Design: Descriptive cohort study.Setting: Vihiga County.Subjects: Notified TB patients >15years who were on drug susceptible TB treatment.Results: Of the 3288 eligible patients more than half were male 1961 (60%), 85% were from the public sector while 23% were over 45years. Among the TB patients, 2865 (87%) were successfully treated, 299 (9%) died and 124 (4%) had other poor treatment outcomes. On multivariate analysis, advancing age (Adjusted Odds Ratio (AOR) 3.3, 95% CI2.03‐5.38, P<0.001), HIV positive (AOR1.78, 95% CI1.27‐2.49, P0.001), previously treated (AOR1.78, 95% CI1.2‐2.49, P<0.001) and unknown HIV status (AOR 2.11, 95% CI 1.21‐3.68, P 0.008) increased the risk of death. TB patients with positive sputum results during initiation of treatment (AOR=0.68, CI=0.50‐0.94, P‐value 0.018) and those with normal body mass index (BMI) (AOR 0.37, 95% CI 0.24‐0.58, P<0.001), were less likely to die.Conclusion: While higher BMI and bacteriological confirmation reduced the risk of death, advancing age, unknown HIV status, HIV positive, being a previously treated TB case increased the risk of death. We recommend early and accurate diagnosis of TB cases, TB/HIV integration and active involvement of community health volunteers in TB management

Treatment outcomes for drug resistant tuberculosis among children below 15 years in Kenya, 2010‐2016

Background: Tuberculosis is a common cause of morbidity and mortality in children. Children are less likely to acquire resistance during the treatment of tuberculosis (TB). Most of the drug resistant TB infection in children is transmitted from adults.Objective: To determine the characteristics and treatment outcomes among children below 15 years managed for drug resistant TB in Kenya, 2010 – 2016.Design: Retrospective descriptive study.Setting: All health facilities managing drug resistant TB in KenyaSubjects: Children below 15 years treated for drug resistant TB between 2010 and 2016.Results: Sixty three children were notified with DR TB between 2010 and 2016. The median (IQR) age was11 (10‐13) years with a female to male ratio of 1:1. With 32 (52%) and 31 (51%) with smear and culture positive laboratory results respectively. Primary drug resistance was present in 25 (40%) of the children All the sputum and culture converted negative at month three of treatment. HIV testing uptake was 100% with a positivity rate of 26 (41%) and 100% anti‐retroviral therapy uptake. The treatment success rate for the cases was 31(91%) with a mortality rate of 2(5%) and lost‐to‐follow up 1 (3%).Conclusion: Drug‐resistant tuberculosis can be successfully treated and therapy well tolerated among children. There  is need for contact tracing and screening for all at risk including paediatric population

Assessment of neonatal care in clinical training facilities in Kenya.

OBJECTIVE: An audit of neonatal care services provided by clinical training centres was undertaken to identify areas requiring improvement as part of wider efforts to improve newborn survival in Kenya. DESIGN: Cross-sectional study using indicators based on prior work in Kenya. Statistical analyses were descriptive with adjustment for clustering of data. SETTING: Neonatal units of 22 public hospitals. PATIENTS: Neonates aged 20% in prescriptions for penicillin (11.6%, 95% CI 3.4% to 32.8%) and gentamicin (18.5%, 95% CI 13.4% to 25%), respectively. CONCLUSIONS: Basic resources are generally available, but there are deficiencies in key areas. Poor documentation limits the use of routine data for quality improvement. Significant opportunities exist for improvement in service delivery and adherence to guidelines in hospitals providing professional training

Gender difference in mortality among pulmonary tuberculosis HIV co-infected adults aged 15-49 years in Kenya

Setting: Kenya, 2012–2015 Objective: To explore whether there is a gender difference in all-cause mortality among smear positive pulmonary tuberculosis (PTB)/ HIV co-infected patients treated for tuberculosis (TB) between 2012 and 2015 in Kenya. Design: Retrospective cohort of 9,026 smear-positive patients aged 15–49 years. All-cause mortality during TB treatment was the outcome of interest. Time to start of antiretroviral therapy (ART) initiation was considered as a proxy for CD4 cell count. Those who took long to start of ART were assumed to have high CD4 cell count. Results: Of the 9,026 observations analysed, 4,567(51%) and 4,459(49%) were women and men, respectively. Overall, out of the 9,026 patients, 8,154 (90%) had their treatment outcome as cured, the mean age in years (SD) was 33.3(7.5) and the mean body mass index (SD) was 18.2(3.4). Men were older (30% men’ vs 17% women in those ≥40 years, p = \u3c0.001) and had a lower BMI \u3c18.5 (55.3% men vs 50.6% women, p = \u3c0.001). Men tested later for HIV: 29% (1,317/4,567) of women HIV tested more than 3 months prior to TB treatment, as compared to 20% (912/4,459) men (p\u3c0.001). Mortality was higher in men 11% (471/4,459) compared to women 9% (401/4,567, p = 0.004). There was a 17% reduction in the risk of death among women (adjusted HR 0.83; 95% CI 0.72–0.96; p = 0.013). Survival varied by age-groups, with women having significantly better survival than men, in the age-groups 40 years and over (log-rank p = 0.006). Conclusion: Women with sputum positive PTB/HIV co-infection have a significantly lower risk of all-cause mortality during TB treatment compared to men. Men were older, had lower BMI and tested later for HIV than women