Joseph Wambua - Academia.edu (original) (raw)

Papers by Joseph Wambua

Research paper thumbnail of Discussion Paper No.40 of 2004 on Understanding Interest Rates Structure in Kenya

The Kenya Institute for Public Policy Research and Analysis, 2004

Research paper thumbnail of Working Paper No. 12 of 2005 on Kenya's Reform Experience: What Have We Learnt?

Research paper thumbnail of Assessing the determinants of interest rate spread of commercial banks in Kenya: An empirical investigation

Despite the liberalization of the financial sector, high interest rate spreads is still an issue ... more Despite the liberalization of the financial sector, high interest rate spreads is still an issue of concern in a number of African countries, including Kenya. This paper investigates the determinants of interest rate spreads in Kenya’s banking sector based on panel data analysis. The empirical results show that bank-specific factors play a significant role in the determination of interest rate spreads. These include bank size based on bank assets, credit risk as measured by non-performing loans to total loans ratio, liquidity risk, return on average assets and operating costs. The impact of macroeconomic factors such as real economic growth and inflation is not significant. Similarly, the impact of policy rate as an indicator of monetary policy is found to be positive but weak. On average, big banks have higher spreads compared to small banks. There is need for explore policy options meant to enhance competition in the industry and measures to break market dominance will be one such...

Research paper thumbnail of What factors drive interest rate spread of commercial banks? Empirical evidence from Kenya

Review of Development Finance, 2014

The paper empirically investigates the determinants of interest rate spread in Kenya's banking se... more The paper empirically investigates the determinants of interest rate spread in Kenya's banking sector based on panel data analysis. The findings show that bank-specific factors play a significant role in the determination of interest rate spreads. These include bank size, credit risk as measured by non-performing loans to total loans ratio, return on average assets and operating costs, all of which positively influence interest rate spreads. On the other hand, higher bank liquidity ratio has a negative effect on the spreads. On average, big banks have higher spreads compared to small banks. The impact of macroeconomic factors such as real economic growth is insignificant. The effect of the monetary policy rate is positive but not highly significant. The results largely reflect the structure of the banking industry, in which a few big banks control a significant share of the market.

Research paper thumbnail of Assessing the effectiveness of monetary policy in Kenya: Evidence from a macroeconomic model

Economic Modelling, 2014

This paper examines the effectiveness of monetary policy in Kenya based on policy simulations fro... more This paper examines the effectiveness of monetary policy in Kenya based on policy simulations from a structural macroeconometric model. The analysis is conducted using the policy rate, i.e. the central bank rate (CBR) and the cash reserve ratio (CRR) with respect to the interest rate and bank lending channels, respectively. The results indicate that whereas a change in the policy rate is effective in influencing short term rates, the long term lending rates respond marginally. Consequently, the transmission to the real economy and the overall impact on inflation is minimal. However, a change in CBR has a comparatively higher impact on inflation while a change in CRR has a relatively larger impact on aggregate demand. Enhancing the effectiveness of the CBR and strengthening of the interest rate channel have the potential of anchoring inflation expectations and boosting the effectiveness of monetary policy in Kenya.

Research paper thumbnail of Kenya's Reform Experience: What Have We Learnt?

... Rose W. Ngugi Phylis Makau Joseph Wambua Linet Oyugi Macroeconomics Division ... Acknowledgem... more ... Rose W. Ngugi Phylis Makau Joseph Wambua Linet Oyugi Macroeconomics Division ... Acknowledgements We would like to thank Prof. Terry Ryan, Christopher Wambua, Njeru Kirira, Solomon Kitungu, and Dr. Kang'ethe Gitu for their critical com-ments on earlier drafts. ...

Research paper thumbnail of Human interaction in the Swedish biogas sector

The aim of this thesis is to investigate the role of human interaction in defining, shaping, and ... more The aim of this thesis is to investigate the role of human interaction in defining, shaping, and continuously re-shaping interpretations towards the biogas phenomenon in Sweden. This investigation was conducted via two forms of inquiry. First, a theoretical inquiry was conducted which was grounded in the principles of symbolic interactionism. The purpose of this inquiry was to create a theoretical framework that can be applied to better understand the phenomenon of human interaction. Second, an empirical inquiry was conducted based on participatory research that involved direct interaction with actors working within the Swedish biogas context. The empirical inquiry provided the opportunity to present concrete, tangible results regarding the role of human interaction in the biogas sector, and was based on my own direct participation in the Swedish biogas-context. This theoretical-empirical framework (created through the two forms of inquiry) was established through a somewhat interdependent process; that is, the underlying theoretical framework was used as a reference point from which to conduct the empirical inquiry, while the theory itself was derived with empirical results and observations in mind. As such, each form of inquiry served to support and complement the other. A main component of both inquiries was to investigate the role symbols play during interaction. Key symbols that were observed during biogas-related interaction were outlined and discussed. A discussion was also provided regarding the role these symbols played in facilitating shared meaning and cooperation amongst the actors, as well as their role in learning, perspective change and knowledge creation. To complement these empirical observations, a personal account of how direct interaction in the Swedish biogas sector has shifted my own perspective towards the biogas phenomenon was also provided.

Research paper thumbnail of Discussion Paper No.40 of 2004 on Understanding Interest Rates Structure in Kenya

The Kenya Institute for Public Policy Research and Analysis, 2004

Research paper thumbnail of Working Paper No. 12 of 2005 on Kenya's Reform Experience: What Have We Learnt?

Research paper thumbnail of Assessing the determinants of interest rate spread of commercial banks in Kenya: An empirical investigation

Despite the liberalization of the financial sector, high interest rate spreads is still an issue ... more Despite the liberalization of the financial sector, high interest rate spreads is still an issue of concern in a number of African countries, including Kenya. This paper investigates the determinants of interest rate spreads in Kenya’s banking sector based on panel data analysis. The empirical results show that bank-specific factors play a significant role in the determination of interest rate spreads. These include bank size based on bank assets, credit risk as measured by non-performing loans to total loans ratio, liquidity risk, return on average assets and operating costs. The impact of macroeconomic factors such as real economic growth and inflation is not significant. Similarly, the impact of policy rate as an indicator of monetary policy is found to be positive but weak. On average, big banks have higher spreads compared to small banks. There is need for explore policy options meant to enhance competition in the industry and measures to break market dominance will be one such...

Research paper thumbnail of What factors drive interest rate spread of commercial banks? Empirical evidence from Kenya

Review of Development Finance, 2014

The paper empirically investigates the determinants of interest rate spread in Kenya's banking se... more The paper empirically investigates the determinants of interest rate spread in Kenya's banking sector based on panel data analysis. The findings show that bank-specific factors play a significant role in the determination of interest rate spreads. These include bank size, credit risk as measured by non-performing loans to total loans ratio, return on average assets and operating costs, all of which positively influence interest rate spreads. On the other hand, higher bank liquidity ratio has a negative effect on the spreads. On average, big banks have higher spreads compared to small banks. The impact of macroeconomic factors such as real economic growth is insignificant. The effect of the monetary policy rate is positive but not highly significant. The results largely reflect the structure of the banking industry, in which a few big banks control a significant share of the market.

Research paper thumbnail of Assessing the effectiveness of monetary policy in Kenya: Evidence from a macroeconomic model

Economic Modelling, 2014

This paper examines the effectiveness of monetary policy in Kenya based on policy simulations fro... more This paper examines the effectiveness of monetary policy in Kenya based on policy simulations from a structural macroeconometric model. The analysis is conducted using the policy rate, i.e. the central bank rate (CBR) and the cash reserve ratio (CRR) with respect to the interest rate and bank lending channels, respectively. The results indicate that whereas a change in the policy rate is effective in influencing short term rates, the long term lending rates respond marginally. Consequently, the transmission to the real economy and the overall impact on inflation is minimal. However, a change in CBR has a comparatively higher impact on inflation while a change in CRR has a relatively larger impact on aggregate demand. Enhancing the effectiveness of the CBR and strengthening of the interest rate channel have the potential of anchoring inflation expectations and boosting the effectiveness of monetary policy in Kenya.

Research paper thumbnail of Kenya's Reform Experience: What Have We Learnt?

... Rose W. Ngugi Phylis Makau Joseph Wambua Linet Oyugi Macroeconomics Division ... Acknowledgem... more ... Rose W. Ngugi Phylis Makau Joseph Wambua Linet Oyugi Macroeconomics Division ... Acknowledgements We would like to thank Prof. Terry Ryan, Christopher Wambua, Njeru Kirira, Solomon Kitungu, and Dr. Kang'ethe Gitu for their critical com-ments on earlier drafts. ...

Research paper thumbnail of Human interaction in the Swedish biogas sector

The aim of this thesis is to investigate the role of human interaction in defining, shaping, and ... more The aim of this thesis is to investigate the role of human interaction in defining, shaping, and continuously re-shaping interpretations towards the biogas phenomenon in Sweden. This investigation was conducted via two forms of inquiry. First, a theoretical inquiry was conducted which was grounded in the principles of symbolic interactionism. The purpose of this inquiry was to create a theoretical framework that can be applied to better understand the phenomenon of human interaction. Second, an empirical inquiry was conducted based on participatory research that involved direct interaction with actors working within the Swedish biogas context. The empirical inquiry provided the opportunity to present concrete, tangible results regarding the role of human interaction in the biogas sector, and was based on my own direct participation in the Swedish biogas-context. This theoretical-empirical framework (created through the two forms of inquiry) was established through a somewhat interdependent process; that is, the underlying theoretical framework was used as a reference point from which to conduct the empirical inquiry, while the theory itself was derived with empirical results and observations in mind. As such, each form of inquiry served to support and complement the other. A main component of both inquiries was to investigate the role symbols play during interaction. Key symbols that were observed during biogas-related interaction were outlined and discussed. A discussion was also provided regarding the role these symbols played in facilitating shared meaning and cooperation amongst the actors, as well as their role in learning, perspective change and knowledge creation. To complement these empirical observations, a personal account of how direct interaction in the Swedish biogas sector has shifted my own perspective towards the biogas phenomenon was also provided.