Ofunya Afande | Dedan Kimathi University of Technology (original) (raw)

Papers by Ofunya Afande

Purpose: This study sought to examine the effects of consumer behavior on customer loyalty scheme... more Purpose: This study sought to examine the effects of consumer behavior on customer loyalty schemes in
selected supermarkets in Nairobi. The study also sought to find out how customer loyalty schemes affect
consumers’ ability to purchase in Kenyan supermarkets, to establish how customer loyalty schemes affect
consumer’s quality perception in Kenyan supermarkets, and also to examine how customer loyalty schemes
influence product demand in Kenyan supermarkets. The study was guided by the following specific objectives:
To examine the extent to which consumers’ ability to purchase affects customer loyalty schemes in Kenyan
supermarkets; To assess the extent to which consumers’ quality perception affects customer loyalty schemes in
Kenyan supermarkets; and To investigate the extent to which product demand affects customer loyalty schemes
in Kenyan supermarkets.Methodology: The study was carried out in the city of Nairobi over a period of four
months. A census survey was employed and primary data was collected using Semi structured questionnaires.
The Data was analyzed by simple descriptive statistics with the help of Statistical Package for Social Sciences
(SPSS) version 18.0 software so as to enable meaningful description of distribution of scores or measurements
using statistics. Measures of central tendency specifically the mean and percentile were used to determine the
summary of the statistics of variables studied. The measures of variability were also used in the analysis of the
data. These measures included the standard deviation, and frequency distribution tables.Findings: Although
customer ability to decide, quality perception, and product quality and demand affect customer loyalty schemes,
negligence of any of them can cause a very diverse damage to the overall customer loyalty satisfaction in the
organization. The findings showed that each of the variables is the core pillar in the efforts of promoting
customer loyalty among respondents in the organization and thus solves the problem of promoting loyal
supermarket customers. Despite the efforts to analyze the effects of consumer behavior on customer loyalty
schemes, Kenyan supermarkets have not yet maximized the consideration of these variables at an extensive state
to attain a distinct solution to the long time communicated consumer behavior problem on customer loyalty
among supermarkets in Kenya.
Keywords: Demand; Quality Perception; Ability to Decide; Reward; Loyalty Schemes; Customer; Loyalty;
Customers

Aims: The general objective of the study was to establish the factors that influence organization... more Aims: The general objective of the study was to establish the factors that influence organizational transformation
in Life Insurance Companies in Kenya. The specific objectives of the study were; to determine the effect of
changing customer preferences on organizational transformation in the life insurance industry in Kenya, to
determine the effect of competition on organizational transformation in the life insurance industry in Kenya and
to determine the effect of technology on organizational transformation in the life insurance industry in
Kenya.Metrology: A case study design was used to undertake the study focusing on the Life Insurance Sector,
which comprises of six companies. A convenience sampling design was used to select the three respondents
from each organization. The three were selected to meet the following criteria:- The Chief Executive Officer was
meant to provide information on the strategic direction of their respective organizations; the marketing manager
was selected in order to provide information on competition and changing customer preferences with respect to
their organizations; and the Information Technology manager was selected in order to provide information on
changes in information technology and their influence on organizational transformation. Survey method was
used to collect primary data, a semi-structured questionnaire being the main data collection tool. The researcher
used the questionnaire with open questions, aimed at meeting the objectives of the study. Primary data were
analyzed by employing descriptive statistics such as frequency distributions and percentages. Statistical Package
for Social Sciences (SPSS) was used as an aid in the analysis. Results: The findings indicate that the factors that
were greatly influenced by changing customer preferences were: product diversification, market differentiation,
personal selling, offering products and services online; and establishment of customer care desks/centers. The
findings also show that competition in the insurance industry has resulted to the organizations adopting product
diversification, personal selling, increased branch networks, establishment of customers care desks/centers and
reduction of premiums costs and related charges. Further, the findings show that technological changes had
greatly influenced adoption of product diversification, personal selling, offering products and services online,
increased branch networks and reduction of related charges.
Keywords: Organizational transformation; Life insurance companies; changing customer preferences;
competition technology

Purpose: The study sought to examine the adoption of the balanced scorecard by state corporations... more Purpose: The study sought to examine the adoption of the balanced scorecard by state corporations within the ministry of Information & Communication in Kenya. The study was guided by the following specific objectives: to assess the extent to which balanced scorecard has been adopted in state corporations in the Ministry of
Information and Communication; and to evaluate the benefits derived from adoption of the balanced scorecard practices in state corporations in the Ministry of Information and communication.
Methodology: Survey design was used to undertake the study. The population of interest was all state corporations in the Ministry of Information and Communication, whose number stood at 10 as at June 30 2011. Primary data was collected through questionnaires sent to respondents who are involved with the formulation and implementation of organization’s strategies. This ensured data collected is useful to meet specific objectives of the study. The questionnaires were sent to Customer Relation Manager, Head of Finance, Head of Business
Development and Head of Operations. Descriptive statistics were used to analyze data pertaining to objectives of
the study. Computation of frequencies in tables, charts and bar graphs were used in data presentation. In addition, the researcher used standard deviations and mean scores to present information pertaining to the study objectives.
The information was presented and discussed as per the objectives and research questions of the study.
Findings and Discussions: The balanced scorecard may serve as a strategic management system in an organization. Findings of the study indicate that the BSC in practice is a system, which primarily encourages managers at all levels to make strategic decisions based on the company’s common strategies. In developing the BSC concept further, the study findings indicate that the benefits from using the BSC in organizations include:
clarify and gain consensus about strategy; communicate strategy throughout the organization; align departmental
and personal goals to the strategy; link strategic objectives to long-term targets and annual budgets; identify and align strategic initiatives; perform periodic and systematic strategic reviews; and obtain feedback to learn about and improve strategy. The balanced scorecard acts like as a new strategic management system. The system is expected to link an organization’s long-term strategy with its short-term actions. A well developed and implemented balanced scorecard should focus on the following four critical management processes, namely (i) clarify and translate vision and strategy; (ii) communicate and link strategic objectives and measures; (iii) plan, set targets, and align strategic initiatives, and (iv) enhance strategic feedback and learning.
Keywords: Balanced scorecard; Financial Perspective; Customer Perspective; Internal Business Process Perspective; Learning and Growth Perspective

Aims: The overall objective of the study was to evaluate the impact of human capacity building on... more Aims: The overall objective of the study was to evaluate the impact of human capacity building on performance of Small and Medium Enterprises. The study was guided by the following specific objectives: to examine the current human capacity building approaches used by SMEs in Kisumu; and to assess the impact of human capacity building on the performance of SMEs in Kisumu.
Study design: a descriptive survey design was used to undertake the study.
Place and duration of the study: The target population was drawn from the 7012 businesses that are licensed by the Municipal Council of Kisumu of which 80 percent are SME’s (Kisumu Municipal Office, June 2013, 2010). The study took a period of one month.
Methodology applied: The sample consisted of 320 respondents selected from owners and staff of SMEs in
Kisumu municipality. Primary data was collected from the proprietors/managers of the SMEs with the aid of semi-structured structured questionnaires. Data pertaining to the objectives of the study was analyzed using descriptive statistics, which includes measures of central tendency, measures of variability and measures of frequency among others. In order to determine the relationship between human capacity building and SMEs performance, correlation and regression analyses were undertaken. In addition, bar charts, pie charts and graphs were used. The information was presented and discussed as per the objectives.
Results: Findings of the study show that the main training approaches were used by the SMES include the following: formal training approaches only, on-the job-training approaches only; job-specific training approaches only; a combination of formal training approaches and on-the job-training approaches; and a combination of formal training approaches, on-the job-training approaches and job-specific training approaches.
Conclusions: Based on findings of the study, the following conclusions were made: Research, management, and
policy development of training in the SME sector needs to be more open and flexible in order to address the idiosyncratic nature of SME requirements; research, management and policy instruments of training support will need to interact with, and be responsive to, the subtle distinctions of context that will moderate what is more appropriate, and more likely to be welcomed, in the small business sector; and if training is to be offered to SMEs it should encourage as little time away from the workplace; it should be flexible and inexpensive.
Keywords: Human Capacity Building, performance, small and micro enterprises.

Aims: The study sought to examine the factors influencing growth of Small and Medium Scale Enterp... more Aims: The study sought to examine the factors influencing growth of Small and Medium Scale Enterprises in Nairobi Central Business District in Kenya. The study was guided by the following specific objectives: to examine the extent to which access to credit influences growth of SMEs in Nairobi CBD; to explore the extent to which age of the firm influences growth of SMEs in Nairobi CBD; and to assess the extent to which level of education of the entrepreneur influences growth of SMEs in Nairobi CBD. The specified econometric model has firm growth as the dependent variable, and the independent variables include access to credit, age of the firm and education level.
Study design: The study adopted a descriptive research design.
Place and duration of the study: Given the nation-wide spread of SMEs in Kenya, the population of interest in this study included all registered SMEs in manufacturing sector of Nairobi CBD. The study took a period of one month.
Methodology applied: The study targeted 80 questionnaires, however 75 questionnaires were successfully filled
and returned (93.8%) response rate. The collected data from the questionnaire and secondary sources was
systematically organized in a manner to facilitate analysis. The data pertaining to profile of the respondents and
the organizations were analyzed using content analysis. Quantitative data was analyzed using content analysis
while quantitative data was analyzed using descriptive statistics, which include frequencies, percentages, means
cores and standard deviations. In order to establish the relationship between the independent and dependent
variables, inferential statistics were used. A Statistical model was specified to examine the effect of access to
credit on the growth of the SMEs in Nairobi CBD.
Results: The factors were ranked in terms of extent of influence of each factor on growth of SMEs, where only
responses related to (5) a very great extent; (4) to a great extent; and (3) to a moderate extent were considered.
The rankings show that whereas access to credit was considered as having the highest positive influence on
growth of SMEs, educational level of the entrepreneur was ranked second and age of the SMEs was ranked third.
Multiple regression analysis was employed to evaluate constraints to customer satisfaction by determining the
magnitude and or direction of the relationship between the study variables.
Conclusion: There is a strong demand for the government to elaborate and implement policies and strategies for
financing SMEs as well as for developing and improving financial institutions and financial instruments; there is
a need to harmonize those policies and strategies as well as the instruments for implementing them; and the legal
framework plays an important role in the creation and successful operation of SMEs and should encourage a
simplification of the procedures involved in the creation, financing, training and other aspects of the SME sector.
Keywords: Access to credit, small and medium scale enterprises, firm growth, start-up capital, survey method,
econometric method.

Purpose: Evidence indicates that men in Kenya have in the past been less likely than women to eng... more Purpose: Evidence indicates that men in Kenya have in the past been less likely than women to engage in self-help groups. Many poverty alleviation strategies targeting the very poor and the vulnerable in Kenya are designed around Self-Help Groups (SHGs). Nevertheless, the numbers of men are considerably lower than expected, given the levels of poverty in Kenya and
in the slums. Studies indicate that all available social
institutions and processes are used as avenue for demonstrating femininities and masculinities, affirming existing
gender stereotypes and affirming power relations as handed down by patriarchy. Behavior and attitudes towards
SHGs are also linked to wider social – cultural influences which largely constitute of processes, identities,
experiences and role expectations in the society. This study sought to investigate the role that patriarchy, masculinity, socio-culture and gender stereotyping play in participation of men in SHGs. The symbolic interaction theory that analyses society by addressing the subjective meanings that people enforce on
objects, events, and behavior will be adopted as the theoretical framework.
Methodology: A mixed research design was adopted. The study location, Kawangware slums, was chosen because of the many SHGs in existence th
at are actively being used as a vehicle for poverty reduction among low income male and females and also
because it is not extensively studied as compared to other slums. Purposive sampling was used to determine male
respondents who were drawn up from members of existing SHGs, non-members of SHGs and officials of SHG
service providers. The sample size was determined by the principle of theoretical saturation. Open and closed ended questionnaires, interviews, observation and focus group discussions were used to collect data from the respondents. Data was analyzed using quantitative and qualitative methods. Qualitative data was analyzed using thematic, content and discourse methods and SPSS was used to analyze quantitative data.
Results: The results obtained were useful in revealing the reasons for low male subscription in SHGs. Policy makers, Non-
Governmental Organizations and financial organizations working with SHGs will all benefit from the results of this study.
Keywords: Chama, Gender, Masculinity, Patriarchy, Poverty, Se
lf-help groups

Purpose: The sought to examine the relationship between competitive strategies and firm performan... more Purpose: The sought to examine the relationship between competitive strategies and firm performance in Safaricom Kenya limited. The study was guided by the following specific objectives: to examine the competitive strategies adopted by Safaricom Ltd; and to assess the relationship between the competitive strategies used by Safaricom Ltd. and its performance. A review of the relevant literature was undertaken in order to eliminate duplication of what has been done and provide a clear understanding of existing knowledge base in the problem area. The literature review is based on authoritative, recent, and original sources such as journals,
books, thesis and dissertations.
Methods: A case study design was used to undertake the study
. The population of the proposed study will be the Safaricom top revenue drivers, namely consumer sales and retail departments, which are divided into regions covering the whole country. Consumer sales department is structured into six regions – Coast, Nairobi, Mountain, Eastern, Rift Valley and
Western/Nyanza and each region is represented by 4 area
managers. The Retail department is also structured into six regions - Coats, Nairobi East, Nairobi We st, Central,
Rift Valley and Western/Nyanza and each region is headed by an Area Retail Manager. The study lasted three months. A semi-structured questionnaire was used to collect primary data from the respondents. Statistical Package for Social Sciences (SPSS) was used as an aid in the analysis. Data pertaining to the profile of respondents was analyzed by employing content analysis while determination of the link between the competitive strategies and organizational performance, the strategy related items were subjected to a factor analysis to test whether the strategic practices naturally group into the various competitive strategies.
Results: The findings also show that the strategies adopted
by commercial banks in Kenya so as to cope with the competitive environment include vigorous pursuit of cost reductions; providing outstanding customer service;
improving operational efficiency; controlling quality of products/services; intense supervision of frontline personnel; developing brand or company name identification; targeting a specific market niche or segment; and providing specialty products/services. The findings also show a significant relationship between the strategies adopted by commercial banks in Kenya and their respective performances with respect to the following objective performance indicators: total revenue growth, total asset growth, net income growth, market share growth and overall performance or growth.
Keywords: Competitive strategies; firm performance; mobile communication; service industry

Purpose: The impetus for this study was attempt to bridge t he knowledge gap as concerns the fac... more Purpose: The impetus for this study was attempt to bridge t
he knowledge gap as concerns the factors that affect
the adoption of Integrated Payroll and Personnel Database (IPPD) s. The specific objectives of the study were: to establish the role of PEOU of IPPD in its adoption; to evaluate the effect of PU of IPPD on its adoption; and to determine the effects of individual perception towards the adoption of IPPD.
Methodology: The study focused on Ministry of Medical Services. The population of interest was the employees of the company who are current users of the IPPD, drawn from the human resources department, whose number stood at 150 as at 30 th June 2010. A semi-structured questionnaire was the main data collection instrument. The researcher also used interview schedules with open questions, aimed at meeting the
objectives of the study. Primary data were analyze d by employing descriptive statistics such as percentages. Statistical Package for Social Sciences (SPSS) was used as an aid in the analysis.
Findings and Discussions: The findings indicate that perceived ease of use w as a key factor in determining adoption of IPPD in Ministry of Medical Services. The employees embraced change of technology with anticipation for better performance
, which further enhanced the adoption of IPPD in the
company. In line with perceived ease of use, the other factors that influenced the adoption of IPPD in Ministry of
Medical Services include the perceived feeling of comfort when using IPPD, the user friendliness of IPPD, the speed with which IPPD processed transactions and the ability of the users to get support when using IPPD. The findings also show that Perceived Usefulness is an important factor in determining the adaptation of innovations.
The higher the perceived usefulness of the IPPD system, the higher the chances that it would be adopted.
Moreover, the degree to which an individual believe s that using a particular system would enhance his or her job
performance enhances the chances of adopting the system and the more the suitable the system is to the work
ethic of the users the higher the acceptance rate. Further, the findings show that attitudes are a significant predictor of behavior. In addition, though individual attitude is necessary in determining adoption of new
technologies, it is not sufficient condition for success. Certainly attitude may not strongly determine the intentions of an individual at the workplace regarding performance when additional factors e.g. usefulness are taken into account independently.
Keywords: Change Management; Integrated Payroll and Personnel Database; Business Processes; Adoption; Perceived Ease of Use; Perceived Usefulness; Legacy Systems.

ABSTRACT Aims: This study explores the extent to which banks have been able to partner with agen... more ABSTRACT
Aims: This study explores the extent to which banks have been able to partner with agents, commercial entities
whose primary objective and business is other than the provision of financial services. The study was guided by
the following objectives: to evaluate the extent to which geographical coverage, security, agency banking and
availability of liquidity of agency banking has promoted financial inclusion. Methods: For the purpose of this
study a descriptive research design was used. The study focused on selected commercial banks in Nyeri County,
Kenya and was completed in a period of three months. Data was collected by use of questionnaires, which were
administered to bank branch managers and appointed agents of Equity Bank, Co-operative Bank and Kenya
Commercial Bank, which have recently developed extensive networks of such agents, and then analyzed using
descriptive and inferential statistics. Results: The findings of the study indicated as follows; customers were
willing to forego the extra charge to procure banking services through agent banking outlets. Lack of liquidity
and security concerns were found to be low. Regression analysis indicated that the four factors (availability of
liquidity, geographical coverage, costs and security of agent banking services) have a positive (F=19.34) and
significant (P<0.05) relationship to financial inclusion. In addition, the regression model revealed that 64.1% of
financial inclusion can be explained by availability of liquidity, geographical coverage, costs and security of
agent banking services. Geographical coverage (P<0.05) had the highest contribution to financial inclusion since
a change in 1 unit of geographical coverage accounts for a 12.6% change in financial inclusion.Conclusions:
The study concluded that greater geographical coverage brought about by agent banking is the strongest
predictor of financial inclusion. This is because services are brought closer to the people and thus saves a lot of
time which would have been used to queue in banking halls or ATMs. The researcher recommended that more
agent banking outlets should be opened to offer more services to increase the geographical coverage and that
agents should be fully vetted and monitored to avoid lack of liquidity and security breaches.
Keywords: Agent, Agent banking business, Costs, Financial inclusion, Geographical coverage, Liquidity,
Security.

Purpose: The purpose of the study was to investigate the current practices of credit risk managem... more Purpose: The purpose of the study was to investigate the current practices of credit risk management by
commercial banks in Kenya. The study was guided by the following specific objectives: to evaluate the extent to
which commercial banks use credit risk management practices and techniques in dealing with different types of
risk; to assess the factors that influence effectiveness of Credit Risk Management practices used by commercial
banks; and to examine the internal performance measures of bank lending used by commercial
banks.Methodology: To undertake the study, a descriptive research design was used. The population consisted of
all the commercial banks in Kenya. The sampling frame was obtained from the Central Bank of Kenya and
included 45 elements. Stratified random sampling technique was used to select 33 respondents. A semistructured
questionnaire was used to collect the data from the banks. The data pertaining to background of the
respondents was analyzed using content analysis while data pertaining to objectives of the study was analyzed
using descriptive statistics; mean median and the mode. Correlations were undertaken. The data was presented
using frequency tables, charts and bar graphs. Correlations, the statistical technique that can show whether and
how strongly pairs of variables are related, was used to ascertain the relationships between factors influencing
effectiveness of CRM and the internal performance measures.Findings and Discussions: The study discloses
that commercial banks in Kenya make use of credit risk management practices that include; thorough loan
appraisal, asking for collateral and checking the credit history of the borrowers. Additionally, the bankers use
covenants, credit rationing, loan securitization, and loan syndication as risk management defensives. The factors
that influence effectiveness of credit risk management systems used by commercial banks in Kenya include
establishment of a credit policy that clearly outline the scope and allocation of bank credit facilities, maintenance
a credit administration system that with adequate controls over credit; top management support; communication
of credit guidelines to every officer in the credit department, screening of potential borrowers, employing well
trained staff, constant review of the borrowers’ liquidity and the use of supportive technology in credit analysis.
The internal performance measures of bank lending used by commercial banks in Kenya include the Basel II
criteria and bank profitability, including return on equity, return on assets and return on investment. Other indices
are the developed benchmarks that include cost per each completed loan, cost per thousand dollars of loans, noninterest
revenue from each loan, loans per employee.
Keywords: Commercial Bank; Agency Theory ; Information Asymmetry; Credit Risk Management; Risk; Moral
Hazard and Adverse Selection

This study sought to analyze the effect of the hindrances affecting the adoption of computerized ... more This study sought to analyze the effect of the hindrances
affecting the adoption of computerized accounting system by coffee societies in Nyeri County. To achieve the objectives of the study, a descriptive survey research design was adopted. The target population was 23 registered coffee societies
with 80 coffee factories in Nyeri County. The sample size was 82 managers. A self-administered semi-structured questionnaire was distributed to the managers where 86.6% response rate was achieved. Primary data was analyzed with the aid of Statistical Package for Social Sciences software to generate frequencies, mean and percentages. Data was presented by use of charts, graphs and frequency tables. A regression model to show the relationship between the independent and dependent variables was also generated. The findings of the study indicate that:
Coffee societies have not fully adopted computerized accounting systems; Cost, human resource proficiency and availability of related infrastructures are the most important hindrances affecting adoption of computerized accounting system; and
users’ perception on the computerized accounting systems is
insignificant in respect to adoption of computerized accounting systems but further studies may be commissioned to confirm or disapprove our findings.
Key Words: Adoption; Coffee factory; Coffee society;
Computerized Accounting System; Technology