Determinants of Foreign Direct Investment Growth: Kenya’s Manufacturing Sector

The FDI indicators in Kenya show a mixed signal and although institutional indexes for Kenya have been worsening over the years, foreign direct investment inflows (FDI) though sluggish has been on the rise. While many theories of FDI have been put forward, mostly ownership, location and internationalization (OLI), the extent to which institutional determinants influence growth of FDI in the Kenyan manufacturing sector has not gotten adequate attention. The combination of institutional determinants and OLI framework in determining flows of FDI has been avoided in this sector. This study using FDI inflows in the Kenyan manufacturing sector and governance indicators data performed a cross-sectional analysis for the period 2009-2013. The findings indicated significant positive relationship between governance and FDI growth which implies that governance determines growth of FDI in the Kenyan manufacturing sector. The evidence presented confirms that a good political climate and good corporate governance are important for foreign investment to flow into a Country. Keywords: foreign direct investment; corporate governance; political risk; manufacturing secto

Regulating the Broadcasting Watershed Period

The broadcasting watershed period is a government policy used to protect minors from the harm and offence that could be caused by exposure to adult programs. It ensures that general exhibition programs i.e. programs suitable for all age groups are aired when children are most likely to be part of the audience. It also ensures that programs that contain adult themes are scheduled for a later time of the night when children are most likely to be asleep. A study conducted to find out the factors that influence compliance with the Watershed period among broadcasters in Kenya measured the level of compliance with the watershed period regulations within the study, respondents were asked if they found the current government regulations effective in protecting children from harmful content in broadcasts. They were also asked whether they were in support of the government regulation of program content through the watershed period or whether they preferred self regulation among broadcasters. Majority of the respondents supported government regulation as opposed to self regulation. Despite this, Kenyan broadcasters have for a long time pushed to adopt self-regulation within the sector. In many instances, audiences have turned to the government regarding inappropriate broadcast programming urging them to rid the airwaves of this content, this fact illustrates the reliance that the audiences have in the government to regulate media content. Many texts point out that the main reason throughout the world for government regulation of programme content is the protection of minors, it is perhaps because of this that citizens, parents lawmakers and regulators, should not relent on the government regulation of broadcasting content and specifically the watershed period within Kenya. The paper argues why the governmen

Effect Of Dividend On Share Price Volatility In Frontier Exchanges: Kenya’s Perspective

Equity investors are faced by very pertinent decisions in the course of their portfolio management such as how to manage the share price volatility. While the extent to which dividend influences volatility is not contentious, the most suitable proxy between the two measures: dividend yield or pay-out is especially in a frontier market is. This study using prices and company performance data of firms listed in Nairobi Stock Exchange performed a cross-sectional analysis for the period 2013-2014. Significant positive association between dividend and share price volatility has been found. Multicollinearity is present between dividend yield and dividend payout which is extended by low R2 when yield is regressed against price volatility. The study not only confirms that dividend payout as a predominant determinant but the only credible determinant (as a proxy variable for dividends) of share price volatility in a frontier market. Evidence deduced confirms congruence to dividend relevance accompanied by weak market efficiency. Keywords: share price volatility; dividend; dividend pay-out; dividend yield; proxy variable; technical and fundamental analysi

Effect of Market Structure on Financial Performance of Deposit Taking Microfinance Institutions in Nairobi City County, Kenya

The purpose of this study was to investigate the effect of market structure on financial performance of Deposit Taking Microfinance Institutions (DTMIs) in Nairobi City County, Kenya. Mixed method of research design was used and data was collected using questionnaires and secondary data collection sheet. Target population was the 12 registered DTMIs in Kenya from which sixty (60) portfolio managers and credit officers were randomly selected to form the sample size. Cronbach test of 0.809 was obtained and validity of the research instruments was ensured through content, criterion and construct validity testing. Data was analyzed using descriptive statistics and inferential statistics which included correlation analysis, ANOVA and multiple regression analysis. The study established a positive statistically significant relationship between market structure and financial performance. The market structure explained 62.2% of the changes in the financial performance DTMIs in Kenya. It’s recommended that, market share should be strengthened in financial institutions to enable them proactively increase their deposit accounts and number of clients. Keywords: market structure, financial performance, Deposit Taking Microfinance Institutions (DTMIs

Effect of Risk Management Practices on Financial Performance in Kenya Commercial Banks

The purpose of this study was to investigate the effect of risk management practices on Commercial Banks performance. Mixed method of research design was used and data was collected using questionnaires and interview schedules.  Target population was 43 licensed Commercial Banks in Kenya from which one hundred and thirty three (133) managers were randomly selected to form sample size. Cronbach test of 0.874 was obtained and validity of the research instruments was ensured through content, criterion and construct validity testing. Data was analyzed using descriptive statistics and inferential statistics which included correlation analysis, bivariate regression analysis and multiple regression analysis. The study established a positive statistically significant relationship between risk management practices and financial performance. The risk management practices explained 62.2% of the changes in the financial performance in commercial banks in Kenya. It’s recommended that, risk management framework should be adopted in financial institutions to enable them proactively mitigate risks. Keywords: Risk management practices, financial performance, Commercial Banks

Effect of Entrepreneurial Orientation on the Growth of women Micro and Small Enterprises in Trans Nzoia County, Kenya

The MSEs are globally the focus of policy makers due to their ability to distribute incomes in both rural and urban areas for poverty reduction. Entrepreneurial orientation is one of the major  determinant of women MSE business start up, growth and graduation in to medium and large scale enterprises. The objective of the study was to determine the effect of Entrepreneurial Orientation on the growth of women owned Micro and Small Enterprises in Trans Nzoia County, Kenya. Questionnaires, interview schedules and observation methods were used to collect data from 170 sampled women group MSE owner managers under Women Enterprise Fund subsidized entrepreneurial credit scheme in Trans-Nzoia County who were licensed by the county revenue department and have been in business between 2009 and 2015.  Growth was measured in terms of change in sales revenue, profit and number of employees before and after Women Enterprise Fund intervention measures. The data was summarised and analysed using descriptive and inferential statistics of frequency distribution, mean, percentages, correlation and  linear regression.  The study found out that Entrepreneurial orientation had statistically significant relationship with growth of women MSEs at 0.05 level of significance. It was recommended that the Government in conjunction with County Governments should nurture an entrepreneurial culture through continuous technology upgrading courses in National polytechnics in addition to experiential learning through exchange visits and attendance of  national and international trade fairs. The government should provide modern business infrastructure to women Micro and MSEs in order to spur their meaningful and faster growth. To attain production and marketing economies of scale, clustering of women MSEs with subsequent subcontracting arrangements with medium and large enterprises was also recommended

Physics Practical Work and Its Influence on Students’ Academic Achievement

In Kenyan secondary schools, form two is an important class for all students. The students choose relevant subjects to study in form three and four. Physics is compulsory at form one and two but optional thereafter. Performance in the subject at the end of the secondary school is usually dismal. Majority of students lack motivation for most activities related to the subject. Few boys and even fewer girls opt to study this subject. The teacher centered mode of study has often been reported as the culprit leading to this problem. This study investigated whether structured practical work can aid the process of learning the subject. Specifically, the study sought to find out the difference in academic achievement in physics between students taught using intensive practical activities and those taught using conventional teaching methods, mostly theoretically. The findings were analyzed ovarally and gender wise.  The study involved two groups from sampled average performing secondary schools in Kakamega South Sub-County-Kenya. The quasi-experimental pre-test, post test non- equivalent group research design was adopted. The study period covered term two and three. The end of form two term one physics examination scores formed the pretest. The cumulated result on the chosen topics at the end of form two formed the post test for both groups. Two instruments were used to collect data. These are End of Term One Form Two Examination (EOTOFTE) and the Performance Test on the Chosen Topics (PTCT). Validity of the instrument was ascertained with the aid of experienced secondary school physics teachers and science education instrument construction experts. Reliability of the Performance Test on the Chosen Topics determined using Kuder Richardson KR-20 was found to be 0.95. The performance on the pre-test result was comparable for both experimental and control groups. The results of the post-test were analyzed using the t-test, Analysis of Variance and Chi-Square. Experimental group recorded better performance than the control group. The study helped in determining the value of experimentation in physics instruction. It is hoped to help shape policy on the nature and quality of practical work to be encouraged in secondary school physics instruction. The study was aimed at contributing towards realization of needs to resolve problems w               3q2         1`inherent in physics reflected in the poor performance in the subject. The findings are formed on the basis of dynamic and creative instructional strategies since good learner’s intelligence and skills can be expressed if better instructional methods are in place. Keywords: Science Concept, Science instruction, Science Process skills, Practical Work, Average Performing Schools

Mediating Influence of Information Technology Infrastructure in the Relationship Between Supply Chain Process Integration Capabilities and Supply Chain Performance of Public Universities in Kenya

Research conducted under Research Authorization Permit NACOSTI/P/IT/97613/18539 of 20th September, 2017 issued by National Commission for Science Technology and Innovation, Kenya. The Technical University of Kenya sponsored the PhD Course. Abstract The purpose of the study was to investigate the mediating effect of information technology infrastructure in the relationship between Supply Chain Process Integration Capabilities (SCPIC) and Supply Chain Performance (SCP) of public universities in Kenya. Information technology was hypothesized to have a positive mediation influence on the relationship between supply chain process integration capabilities and supply chain performance of public universities in Kenya. The study was grounded on Resource Dependency Theory and adopted a descriptive survey design.  A self-administered questionnaire was distributed to 31 public universities in Kenya. The response rate was 81%. Descriptive statistics, correlation and regression techniques were used to analyze the data. The results of the study show a statistically significant relationship between SCPIC and supply chain performance. The approach for testing the mediation was adopted from Memon, Cheah, Ramayah, Ting, & Chuah, (2018). The results show that the relationship between SCPIC and SCP is mediated by information technology infrastructure. The study contributes to our understanding of the effect of information technology infrastructure in the relationship between supply chain process integration capabilities and supply chain performance of universities. From the study, an integrated information technology infrastructure enables consistent and real-time transfer of information between supply chain management related applications and functions that are distributed across partners. The study recommends that public universities should invest in technology not only in their institutions but also in partnership with stakeholders like suppliers so as to streamline operations in the supply chain for organizational competitiveness. Keywords: Supply chain process integration capabilities, Information technology infrastructure, Supply chain performanc

Joint Effect of Supply Chain Process Integration Capabilities, Information Technology Infrastructure and Government Policy on Supply Chain Performance of Public Universities in Kenya

Although the individual effects of supply chain process integration capabilities, information technology infrastructure and government policy on performance have to some extent been researched on, the joint effect has not been subjected to research. The objective of the study was to establish the joint effect of supply chain process integration capabilities, information technology infrastructure and government policy on supply chain performance of public universities in Kenya. It was hypothesized that the joint effect of supply chain process integration capabilities, information technology infrastructure and government policy on supply chain performance of public universities in Kenya is different from their individual effects. The study was guided by the resource based view (RBV). The study adopted a descriptive survey design.  A self-administered questionnaire was distributed to 31 public universities in Kenya with a target of 62 respondents one from procurement and one from the information communication technology departments respectively. The response rate was 81 per cent. Descriptive statistics, correlation and regression techniques were used to analyze the collected data. The results of the study indicate that there is a joint effect of supply chain process integration capabilities, information technology infrastructure and government policy on supply chain performance of public universities in Kenya of R2 =0.688, F= 34.586, at P< 0.05. The implication of the study is that policy makers and implementers have to formulate superior supply chain process integration capabilities, information technology infrastructure and government policy to achieve high levels of supply chain performance in public universities. This can build robust and agile end to end supply chains, policies, procedures, and practices for attainment of competitive advantages in operations. Keywords: Supply chain process integration capabilities, information technology infrastructure, government policy, supply chain performance, public universities DOI: 10.7176/PPAR/10-11-06 Publication date: November 30th 202

Influence of Return on Investment of Debt Financing on Financial Portfolio Diversification among Commercial Sugarcane Farmers in Kenya

The study’s specific objective was to evaluate the relationship between financial returns of debt financing and financial portfolio diversification among commercial sugarcane farmers in Kenya. Descriptive correlation was then used to describe and establish the relationships among the study variables. The target population for this study comprised of all sugarcane farmers in Kakamega and Bungoma Counties. The study variables were measured using both the ordinal scale and summated scale (likert-type scale).The questionnaire was pre-tested on pilot respondents who were not be part of the study respondents but knowledgeable in the study aspects in order to ensure their validity and relevance. Cronbach’s alpha coefficient was used to measure the reliability of the scale. The study focused on farmers of two counties: Bungoma and Kakamega. The regression results reveal statistically significant positive linear relationship between return on investment of debt financing and financial portfolio diversification (β = 0.789, p-value = 0.002). At the individual level, all the indicators of return on investment of debt financing had positive and significant effect on financial portfolio diversification as follows: Profits from Debt financing had positively influenced on financial portfolio diversification (β = 0.789 and p-value = 0.002) while Security flexibility of debt financing also positively affected financial portfolio diversification (β = 0.117, p-value = 0.003). The results also showed that financial return on investment of debt financing had moderately high explanatory power on financial portfolio diversification among commercial sugarcane farmers in Kenya in that it accounted for 62.3 percent of its variability therefore commercial sugarcane farmers in Kenya need to take into account financial return on investment of debt financing measures such as profits from farm outputs are sufficient enough to support my individual needs even as they diversify their portfolios