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Papers by robert mindila
Journal of economics and sustainable development, 2013
Budget deficits have attracted a great deal of attention over the past few decades. This is so be... more Budget deficits have attracted a great deal of attention over the past few decades. This is so because financial experts have blamed it on all assortments of ills that beset developing countries. Some of these ills include: high inflation rates, over indebtedness, loss of a country's sovereignty, crowding out of the private sector among others. In spite of its various attempt to widen the tax base and the numerous austerity measures to cut down on its recurrent expenditures, the Kenyan government like most of the other developing countries has over the years been a perpetual casualty of budget deficit. The purpose of this study was therefore to evaluate the economic strategies measures that the Kenyan government may put in place in order to reduce budget deficit. Specifically the research addressed how; tax policy, Inflation, technological innovation and government expenditure affects reduction of budget deficit in Kenya. The research will be of great significance to: the Kenyan Government, future scholars as well as the government of other countries with deficit budget. The research design adopted for the study was descriptive research design; the population was the 33 tax seniors in the 5 leading audit firms in the country namely PKF Kenya, Deloitte & Touché, KPMG, Ernst & Young Kenya and Price Water House & Coopers Kenya. Census method of sampling was adopted for selecting elements under study. Moreover both primary and secondary methods of data collection were used to collect data and the results thereon analyzed using Minitab version 17 and presented in form of: tables, charts, graphs and inferential statistics. The response rate from the questionnaires issued was 76% and most of the respondents asserted that the tax policy and the government expenditure were the main causes of the persistent budget deficits in Kenya and a number of recommendations were put forth on how best to address the same, among the recommended measures to deal with the tax policy included; widening the tax base to capture the juakali sector, revamping of the turnover tax system, more stringent measures to ensure compliance and a total overhaul of the VAT system which still has a very big growth potential. On the issue of government expenditure it was recommended that the numerous austerity measures that have over the years been proposed by the various Finance Bills be strictly adhered to so us to cut down on the avoidable public expenditures and equally the government to utilize concessional loans that have zero interest rates so as to cut down on interest repayments on its loans. Moreover the researcher found out that inflation was heavily contributing to the budget deficit in Kenya hence recommendable that the government initiates various fiscal and monetary policies to contain inflation to manageable levels. The researcher further recommended that investment in information technology be expedited as through it, KRA will be in a position to bring more persons in the tax net and consequently widen the tax base and equally fasten the tax collection process and facilitate various audit by the authority.
The International Journal of Business and Management, Jul 31, 2022
This study focused on examining the impact of Capital budgeting on the innovation capability of S... more This study focused on examining the impact of Capital budgeting on the innovation capability of Small and Medium Enterprises in Nakawa Division, Kampala Capital City Authority. The role of SMEs in the economic activity of Uganda is significant. These enterprises account for approximately 90% of the private sector industry, and they occupy a significant position in the country's industrial structure (UIA, 2016). The SMEs in Uganda create jobs and serve as a good mechanism to address unemployment in the country. There is a common belief among economists that businesses with the innovation capability can incorporate their organizations' key abilities and assets to effectively empower advancement and expand on their production and market share. Innovation capabilities have enabled large firms to achieve desired outcomes by acquiring new technologies and knowledge that help them to effectively compete in the market, the favor obtained through establishing an efficient and effective financial management system. Thus, more financially literate and informed entrepreneurs in the SMEs sector would probably benefit from the practice of capital budgeting. Consequently, capital budgeting would positively connect with SMEs' innovation capabilities. Based on their crucial role in creating new jobs, rise in GDP, entrepreneurship, and innovation, Small and Medium Enterprises (SMEs) are recognized as the drivers of socioeconomic growth in developed and developing countries. Historically, SMEs are traced back to the time of the industrial revolution in the 1850s, and most of them were initiated as small factory workshops (Ruthrock, 2013). These enterprises were associated with different challenges, such as limited capital to buy the stock and equipment to most of these enterprises. In the United States of America (USA), SMEs emerged rampant by 1782, with less than 500 workers for manufacturing business enterprises and less than $7,000,000 in annual receipts for most nonmanufacturing businesses (Lepoutre & Aime, 2006). In India, by 1920, SMEs got classified into two categories: those that used power with less than 50 employees and those that did not use power with the employee strength being more than 50 but less than 100 (National Research Development Corporation, 2008). 1.1. Background Information In East Africa, SMEs started in 1930s with the introduction of Rupees. At the time of independence in the 1960s, industries were playing the most crucial role in the economic development of the whole region, although they had challenges with management functions (Musiitwa, 2015). Nowadays, the nature and features of SMEs in the region differ from country to country and from industry to industry, as well as the legal definition. Each SME needs a business plan;
Research Journal of Finance and Accounting, 2013
Internet banking (IB) allows functional banking activities online. Adoption of IB varies signific... more Internet banking (IB) allows functional banking activities online. Adoption of IB varies significantly across commercial banks. Banks with large size tend to adopt IB earlier. In 2006, 96 percent of banks with assets over Kshs 24 billion had a website, compared to only 51 percent with assets under Kshs 8 billion. These observations raise important questions: what explains these variations of diffusion rates across banking groups? This study reports the results of a descriptive survey on factors causing variations in adoption of IB. A structured questionnaire was administered to all financial managers in all 46 commercial banks with a response rate of 70%. The SPSS was used to run simultaneous-equation regressions on data collected. Factors driving adoption of IB include increase average bank assets, non adopters imitating early adopters and loan specialisation in consumer lending. Factors hindering IB adoption include competition among banks and average age of a bank. The study recommends that to enhance IB adoption, banks should; strive to increase their average assets size, non adaptors to carefully study early adaptors, specialize in consumer lending, feed off competition by forming strategic alliances finally new banks have the advantage of installing IB technology in a package with other computer facilities compared to old banks. The study is important because banks have been blamed for not initiating programmes that adequately satisfying demand for financial services. The research contributes to the debate on how to enhance access to financial services in Kenya. Key word: Adoption of Technological Innovation, Organizational performance 1.0 Background to the Study Banking technology is generally a bundle or package of different technological elements such as improved varieties of products and services (processes). consisting of the tool that embodies the technology as a material or physical object such as machines; and software aspects, consisting of the information base for the tool such as technical knowledge and skills about how to use the hardware aspect of technology (Rogers, 1995). Advances in information and communication technologies and the emergence of the internet have revolutionized business activities enabling new ways of conducting business referred to as electronic commerce (Zwass, 2003; Turban et al., 2004). Electronic commerce innovation in banks describes the process of buying, selling, transferring, or exchanging products, services, and/or information especially through computer, (the internet) networks (Turban et al., 2004). Integrated banking technology can be defined as "that innovation that enables the sharing of business information, maintaining of business relationships, and conducting of business transactions by means of telecommunications networks" (Zwass, 2003). Technological innovation activities include the inter-organizational processes of market-based sell-buy relationships and collaboration (and consumer-oriented activities (business-to-consumer and consumer-to-consumer), as well as the intra-organizational processes that support them (Zwass, 2003). Adoption of internet technologies as a way of doing business has significant advantages. Organizations are embracing e-commerce as a means of expanding markets, improving customer service, reducing costs, and enhancing productivity (Wenninger, 1999). Efficiencies are experienced in marketing and advertising; new technologies make disintermediation possible, eliminating the middleman (Turban et al., 2004). Other efficiencies include reduced inventory and round the clock access at no additional cost. Superior banking technologies enable higher customization (Choi & Whinston, 2000) allowing organizations to improve customer service. A vital benefit of an integrated banking technology is access to global markets which enables businesses to expand their reach. For instance, the internet allows for unconstrained awareness, visibility and opportunity for an organization to promote its products and services (Senn, 2000). Technological innovation involves an improvement to something already existing. In the 20th century, innovations in semiconductor technology increased the performance and decreased the cost of electronic materials and devices by a factor of a million, an achievement unparalleled in the history of any technology (Rogers, 1981
Research Journal of Finance and Accounting, 2013
The banking sector in any economy serves as a catalyst for growth and development. Banks are able... more The banking sector in any economy serves as a catalyst for growth and development. Banks are able to perform this role through their crucial functions of financial intermediation, provision of an efficient payment system and facilitating the implementation of monetary policies. Bank profitability is usually expressed as a function of internal and external determinants. The overall performance and profitability of the banking sector in Kenya has improved tremendously over the last 10 years. The aim of this study was to close the gap in knowledge by investigating profitability determinants within commercial banks in Kenya. The determinants studied were loan portfolio, interest expense, and administration costs and assets value. A descriptive survey design was employed in this study. The population of the study was the management employees working for commercial banks in Kenya. The sample was accessed by use of both stratified and simple random sampling. A questionnaire was used to gather the primary information. The questionnaires were self-administered and were served to the respondents by self-introduction. Research assistants were used to follow up on duly completed questionnaires. Statistical package for social sciences (SPSS) was used to analyse primary data while the SAS v.6 of 2009 was used to analyse the secondary data gathered from the banks. Findings of the study showed that public sector banks and private sector banks were not much affected by increasing or decreasing of interest margin. It can therefore be interpreted that the profitability growth of public and private sector banks are not dependent on fluctuation of interest rate although the foreign banks have the benefit of high return due to increase or decrease in interest margin. Key Words: Loan portfolio Management on organization profitability, commercial Banks in Kenya 1.0 Background As financial intermediaries, banks play an important role in the operation of an economy. Banks are the sole providers of funds, and their stability is of paramount importance to the financial system. As such, an understanding of determinants of their profitability is essential and crucial to the stability of the economy (Babalola, 2012). The banking sector in any economy serves as a catalyst for growth and development. Banks are able to perform this role through their crucial functions of financial intermediation, provision of an efficient payment system and facilitating the implementation of monetary policies (Abreu, 2002). The stream of bank failures experienced in the USA during the great depression of the 1940s prompted considerable attention to bank performance. This attention has grown ever since then (Heffernan, 2005). The recent global financial crisis of 2007/2009, also demonstrated the importance of bank performance both in national and international economies and the need to keep it under surveillance at all times. Aburime (2008) argued that the importance of banks is more pronounced in developing countries because financial markets are usually underdeveloped, and banks are typically the only major source of finance for the majority of firms and are usually the main depository of economic savings (Tobias and Themba, 2011). It is not surprising therefore, that governments over the world, attempt to evolve an efficient banking system, not only for the promotion of efficient intermediation, but also for the protection of depositors, encouragement of efficient competition, maintenance of confidence and stability of the system and protection against systemic risk and collapse (Babalola, 2012) During the last decades the banking sector has experienced worldwide major transformations in its operating environment. Both external and domestic factors have affected its structure and performance. Despite the increased trend toward bank disintermediation observed in many countries, the role of banks remains central in financing economic activity in general and different segments of the market in particular (Brock and Franken, 2002). In today's economic environment, achieving improved performance and efficiency in public and private sector banking institutions has been prioritized more than ever before. Banking organizations aim at achieving these with the objective of improving competitiveness, delivering better service, and reducing costs. It is against such a background that organizations around the world have prioritized achieving heightened performance and efficiency with such goals in perspective. To achieve milestones in profitability increments, commercial banks should understand and address the determinants of their profitability. Only when these determinants are understood, can organizations be able to tackle the matter of profits improvement (Demirguc-Kunt and Huizinga, 2000 and Goddard, 2004).
European Journal of Business and Management, 2013
International Journal of Applied Information Systems, Sep 10, 2013
Information Technology has become a vital and integral part of every business in the World. IT is... more Information Technology has become a vital and integral part of every business in the World. IT is one of the strongest drivers for competitive, innovation and change in modern business environment. The SME sector in Kenya employs 80 percent of the total population and contributes over 40 percent to GDP. Majority of people employed in this sector is the youthful population. However, adoption and deployment of Information Technology in this sector has not been satisfactory compared to large corporations. This paper examined the Determinants to Adoption and Deployment of Information Systems in this sector. A quantitative Descriptive Survey Design was used in this Study. Data was collected from 3 SMEs in TransNzoia County using interviews and Questionnaire. Results obtained from this study shows that CEOs characteristics, IS characteristics, Organization's characteristics and Environmental Characteristics play a significant role in determining whether IS will be adopted and deployed in the SMEs. It is hoped that the findings from this study will enable policy makers in the ICT sector formulate proper legislative framework that informs how well ICT can be harnessed for the growth of the SME sector in Kenya.
The International Journal of Business and Management, Apr 30, 2020
Health-care financing should be impartial. In numerous evolving states such as Kenya, variations ... more Health-care financing should be impartial. In numerous evolving states such as Kenya, variations to health-care financing organisms are being executed as a means of providing impartial admittance to health attention with the intention of accomplishing Universal Health Coverage (UHC). According to Witter, Govender, Ravindan and Yates (2017), there are three sources of health financing in Kenya that include Out Of Pocket (OOP) payments, government expenditures and donor funding. Munge and Briggs (2014), on the other hand argued that there were four sources of health financing that included Direct and Indirect Taxes, Out Of Pocket Payment, contribution to Private Insurance and contribution to National Hospital Insurance Fund. According to Mossialos et al., (2002) there are five methods of health funding which comprises of taxation, social health insurance, voluntary and private insurance; out-of-pocket or cash-and-carry and donations. Out Of Pocket (OOP) payment is the most used method of healthcare financing. This has led to catastrophic spending to a level of impoverishing the family unit through sale of assets (Wangui, 2018); diversion of their scanty income into health care services; to even smuggling patients in bags risking their safety (Marita, 2019). This situation is magnified mostly in the informal sector because of scanty source of livelihood (Chuma & Okungu, 2017). Health care financing has remained an increasing worry to various emerging nations in latest era. Granted that health funding is intended to shield formal and informal sectors, rural and urban locations, low and high income employees. However it comes with serious and also contested means in developing nations when it is pursued in the direction of devising, activating and bringing about operational health funding configurations. It remains held that finding a justifiable root of funding health care in the world has certainly turn into main subject for debate across the world's
The International Journal of Business & Management
Islamic finance is a substantive paradigm premised on Islamic epistemology. This is a new concept... more Islamic finance is a substantive paradigm premised on Islamic epistemology. This is a new concept in Uganda. In the amended Financial Institution Act, legislation was passed to develop Islamic finance. This will enable the creation of a series of Islamic finance products benefiting the Ugandan populace. In addition, the passing of the final Regulations of the Act by the Ministry of Finance is expected to provide accommodation of Islamic finance into the laws of Uganda. Concomitantly this study sought to explore awareness, attitudes towards and perceived value of Islamic finance towards its acceptability by white collar elite in the capital city of Uganda. The study adopted a purposive sampling and a multivariate linear regression was used to understand the effect of three key factors anticipated to affect the acceptability of Islamic financing in Uganda that is attitude, perceived value and awareness. The results reveal that awareness of Islamic banking products and services is like...
The International Journal of Business and Management, Jul 31, 2022
This study focused on examining the impact of Capital budgeting on the innovation capability of S... more This study focused on examining the impact of Capital budgeting on the innovation capability of Small and Medium Enterprises in Nakawa Division, Kampala Capital City Authority. The role of SMEs in the economic activity of Uganda is significant. These enterprises account for approximately 90% of the private sector industry, and they occupy a significant position in the country's industrial structure (UIA, 2016). The SMEs in Uganda create jobs and serve as a good mechanism to address unemployment in the country. There is a common belief among economists that businesses with the innovation capability can incorporate their organizations' key abilities and assets to effectively empower advancement and expand on their production and market share. Innovation capabilities have enabled large firms to achieve desired outcomes by acquiring new technologies and knowledge that help them to effectively compete in the market, the favor obtained through establishing an efficient and effective financial management system. Thus, more financially literate and informed entrepreneurs in the SMEs sector would probably benefit from the practice of capital budgeting. Consequently, capital budgeting would positively connect with SMEs' innovation capabilities. Based on their crucial role in creating new jobs, rise in GDP, entrepreneurship, and innovation, Small and Medium Enterprises (SMEs) are recognized as the drivers of socioeconomic growth in developed and developing countries. Historically, SMEs are traced back to the time of the industrial revolution in the 1850s, and most of them were initiated as small factory workshops (Ruthrock, 2013). These enterprises were associated with different challenges, such as limited capital to buy the stock and equipment to most of these enterprises. In the United States of America (USA), SMEs emerged rampant by 1782, with less than 500 workers for manufacturing business enterprises and less than $7,000,000 in annual receipts for most nonmanufacturing businesses (Lepoutre & Aime, 2006). In India, by 1920, SMEs got classified into two categories: those that used power with less than 50 employees and those that did not use power with the employee strength being more than 50 but less than 100 (National Research Development Corporation, 2008). 1.1. Background Information In East Africa, SMEs started in 1930s with the introduction of Rupees. At the time of independence in the 1960s, industries were playing the most crucial role in the economic development of the whole region, although they had challenges with management functions (Musiitwa, 2015). Nowadays, the nature and features of SMEs in the region differ from country to country and from industry to industry, as well as the legal definition. Each SME needs a business plan;
International Journal of Applied Information Systems, 2013
Information Technology has become a vital and integral part of every business in the World. IT is... more Information Technology has become a vital and integral part of every business in the World. IT is one of the strongest drivers for competitive, innovation and change in modern business environment. The SME sector in Kenya employs 80 percent of the total population and contributes over 40 percent to GDP. Majority of people employed in this sector is the youthful population. However, adoption and deployment of Information Technology in this sector has not been satisfactory compared to large corporations. This paper examined the Determinants to Adoption and Deployment of Information Systems in this sector. A quantitative Descriptive Survey Design was used in this Study. Data was collected from 3 SMEs in TransNzoia County using interviews and Questionnaire. Results obtained from this study shows that CEOs characteristics, IS characteristics, Organization's characteristics and Environmental Characteristics play a significant role in determining whether IS will be adopted and deployed in the SMEs. It is hoped that the findings from this study will enable policy makers in the ICT sector formulate proper legislative framework that informs how well ICT can be harnessed for the growth of the SME sector in Kenya.
The purpose of this study was to determine the effects of principal’s instructional supervision o... more The purpose of this study was to determine the effects of principal’s instructional supervision on academic performance in Sameta primary School in Kisii, Kenya. The specific objectives of this study were; to determine if there was effective instructional supervision by the principal, to investigate the quality of teaching and learning process, to explore the level of syllabus coverage in all classes, to identify challenges encountered by the principal while conducting instructional supervision and give recommendation on how to mitigate the challenges of instructional supervision by the principal. A descriptive survey research design was used in this study. The study focused on the head teacher, heads of departments and teachers. The study targeted the school due to its drop in performance over the years from 2008 to 2012. For this purpose census method was used to select all 6 heads of departments, 13 teachers and 1 head teacher. The sample size for the study is 20. This method ens...
Journal of economics and sustainable development, 2013
Budget deficits have attracted a great deal of attention over the past few decades. This is so be... more Budget deficits have attracted a great deal of attention over the past few decades. This is so because financial experts have blamed it on all assortments of ills that beset developing countries. Some of these ills include: high inflation rates, over indebtedness, loss of a country’s sovereignty, crowding out of the private sector among others. In spite of its various attempt to widen the tax base and the numerous austerity measures to cut down on its recurrent expenditures, the Kenyan government like most of the other developing countries has over the years been a perpetual casualty of budget deficit. The purpose of this study was therefore to evaluate the economic strategies measures that the Kenyan government may put in place in order to reduce budget deficit. Specifically the research addressed how; tax policy, Inflation, technological innovation and government expenditure affects reduction of budget deficit in Kenya. The research will be of great significance to: the Kenyan Gov...
European Journal of Business and Management, 2013
The purpose of this research was to establish the relationship and the link between financing ins... more The purpose of this research was to establish the relationship and the link between financing institutions and the level of development, growth of small and medium enterprises in Mombasa County. In the course of the research it was found out that many factors contribute to the growth and development of SMEs in Mombasa County as it is also envisaged in other parts of the country. However the element of financing came out clearly as a major factor that contributes positively to the development of SMEs. The research covered various categories which included but not limited to formal, informal, public and private owned enterprises. It was interesting to note that most of the SMEs could not survive the third year incubation period which was attributed to lack of adequate and relevant financing information. Empirical evidence from this study suggests that SMEs operators need information on available bank loans, sources of business finance, SMEs loan schemes, information on venture capital...
Research Journal of Finance and Accounting, 2013
The banking sector in any economy serves as a catalyst for growth and development. Banks are able... more The banking sector in any economy serves as a catalyst for growth and development. Banks are able to perform this role through their crucial functions of financial intermediation, provision of an efficient payment system and facilitating the implementation of monetary policies. Bank profitability is usually expressed as a function of internal and external determinants. The overall performance and profitability of the banking sector in Kenya has improved tremendously over the last 10 years. The aim of this study was to close the gap in knowledge by investigating profitability determinants within commercial banks in Kenya. The determinants studied were loan portfolio, interest expense, and administration costs and assets value. A descriptive survey design was employed in this study. The population of the study was the management employees working for commercial banks in Kenya. The sample was accessed by use of both stratified and simple random sampling. A questionnaire was used to gat...
The purpose of this study was to determine the effects of principal’s instructional supervision o... more The purpose of this study was to determine the effects of principal’s instructional supervision on academic performance in Sameta primary School in Kisii, Kenya. The specific objectives of this study were; to determine if there was effective instructional supervision by the principal, to investigate the quality of teaching and learning process, to explore the level of syllabus coverage in all classes, to identify challenges encountered by the principal while conducting instructional supervision and give recommendation on how to mitigate the challenges of instructional supervision by the principal. A descriptive survey research design was used in this study. The study focused on the head teacher, heads of departments and teachers. The study targeted the school due to its drop in performance over the years from 2008 to 2012. For this purpose census method was used to select all 6 heads of departments, 13 teachers and 1 head teacher. The sample size for the study is 20. This method ens...
Globally, businesses have continued to focus on cost reduction and effectiveness in operations. O... more Globally, businesses have continued to focus on cost reduction and effectiveness in operations. Organizations have to be transparent when incurring costs. Stakeholders in general need detailed insights about costs and financial performance of organizations to which they are associated. However, this is limited by absence of adequate knowhow, good systems and necessary data. There has been a lot of concern over rising operational costs across the globe and more so particularly in Kenya due to high energy costs, staff costs and borrowing costs among others. Mumias Sugar Company Limited made a total loss of Kshs 10.3 billion from 2013 to 2015 as per the published annual financial statements. The financial performance of Nzoia Sugar Company Limited was also affected by interest on borrowed loans, aged machinery and high input costs of materials, fuel, fertilizer and lubricants. The purpose of the study was to evaluate Activity Based Cost Analysis as a tool on financial performance of th...
Internet banking (IB) allows functional banking activities online. Adoption of IB varies signific... more Internet banking (IB) allows functional banking activities online. Adoption of IB varies significantly across commercial banks. Banks with large size tend to adopt IB earlier. In 2006, 96 percent of banks with assets over Kshs 24 billion had a website, compared to only 51 percent with assets under Kshs 8 billion. These observations raise important questions: what explains these variations of diffusion rates across banking groups? This study reports the results of a descriptive survey on factors causing variations in adoption of IB. A structured questionnaire was administered to all financial managers in all 46 commercial banks with a response rate of 70%. The SPSS was used to run simultaneous-equation regressions on data collected. Factors driving adoption of IB include increase average bank assets, non adopters imitating early adopters and loan specialisation in consumer lending. Factors hindering IB adoption include competition among banks and average age of a bank. The study r...
The study took place in North Rift Region of Kenya where escalation of client exits from MFIs was... more The study took place in North Rift Region of Kenya where escalation of client exits from MFIs was identified as a problem. The purpose of this study was to explore the relationship between Loan conditions and Client exit in Kenya Women Finance Trust. Microfinance is a new concept in finance sector that has evolved rapidly in the last decade. This concept has gained popularity by the use of innovative ways of lending financial products to the low financial earners who don’t qualify for credit from formal financial institutions. In recent times many people have been attracted in the first borrowing but are declining to take a repeat financial product. Non exit clients’ loan repayment practices or repeat borrowing is critical for the long-term financial viability of microfinance institutions (MFIs). High client exit may hamper organizational and financial sustainability, Simanowitz, (2012). This study sought to explore the relationship between Loan conditions and Client exit in microfi...
The International Journal of Business & Management
Journal of economics and sustainable development, 2013
Budget deficits have attracted a great deal of attention over the past few decades. This is so be... more Budget deficits have attracted a great deal of attention over the past few decades. This is so because financial experts have blamed it on all assortments of ills that beset developing countries. Some of these ills include: high inflation rates, over indebtedness, loss of a country's sovereignty, crowding out of the private sector among others. In spite of its various attempt to widen the tax base and the numerous austerity measures to cut down on its recurrent expenditures, the Kenyan government like most of the other developing countries has over the years been a perpetual casualty of budget deficit. The purpose of this study was therefore to evaluate the economic strategies measures that the Kenyan government may put in place in order to reduce budget deficit. Specifically the research addressed how; tax policy, Inflation, technological innovation and government expenditure affects reduction of budget deficit in Kenya. The research will be of great significance to: the Kenyan Government, future scholars as well as the government of other countries with deficit budget. The research design adopted for the study was descriptive research design; the population was the 33 tax seniors in the 5 leading audit firms in the country namely PKF Kenya, Deloitte & Touché, KPMG, Ernst & Young Kenya and Price Water House & Coopers Kenya. Census method of sampling was adopted for selecting elements under study. Moreover both primary and secondary methods of data collection were used to collect data and the results thereon analyzed using Minitab version 17 and presented in form of: tables, charts, graphs and inferential statistics. The response rate from the questionnaires issued was 76% and most of the respondents asserted that the tax policy and the government expenditure were the main causes of the persistent budget deficits in Kenya and a number of recommendations were put forth on how best to address the same, among the recommended measures to deal with the tax policy included; widening the tax base to capture the juakali sector, revamping of the turnover tax system, more stringent measures to ensure compliance and a total overhaul of the VAT system which still has a very big growth potential. On the issue of government expenditure it was recommended that the numerous austerity measures that have over the years been proposed by the various Finance Bills be strictly adhered to so us to cut down on the avoidable public expenditures and equally the government to utilize concessional loans that have zero interest rates so as to cut down on interest repayments on its loans. Moreover the researcher found out that inflation was heavily contributing to the budget deficit in Kenya hence recommendable that the government initiates various fiscal and monetary policies to contain inflation to manageable levels. The researcher further recommended that investment in information technology be expedited as through it, KRA will be in a position to bring more persons in the tax net and consequently widen the tax base and equally fasten the tax collection process and facilitate various audit by the authority.
The International Journal of Business and Management, Jul 31, 2022
This study focused on examining the impact of Capital budgeting on the innovation capability of S... more This study focused on examining the impact of Capital budgeting on the innovation capability of Small and Medium Enterprises in Nakawa Division, Kampala Capital City Authority. The role of SMEs in the economic activity of Uganda is significant. These enterprises account for approximately 90% of the private sector industry, and they occupy a significant position in the country's industrial structure (UIA, 2016). The SMEs in Uganda create jobs and serve as a good mechanism to address unemployment in the country. There is a common belief among economists that businesses with the innovation capability can incorporate their organizations' key abilities and assets to effectively empower advancement and expand on their production and market share. Innovation capabilities have enabled large firms to achieve desired outcomes by acquiring new technologies and knowledge that help them to effectively compete in the market, the favor obtained through establishing an efficient and effective financial management system. Thus, more financially literate and informed entrepreneurs in the SMEs sector would probably benefit from the practice of capital budgeting. Consequently, capital budgeting would positively connect with SMEs' innovation capabilities. Based on their crucial role in creating new jobs, rise in GDP, entrepreneurship, and innovation, Small and Medium Enterprises (SMEs) are recognized as the drivers of socioeconomic growth in developed and developing countries. Historically, SMEs are traced back to the time of the industrial revolution in the 1850s, and most of them were initiated as small factory workshops (Ruthrock, 2013). These enterprises were associated with different challenges, such as limited capital to buy the stock and equipment to most of these enterprises. In the United States of America (USA), SMEs emerged rampant by 1782, with less than 500 workers for manufacturing business enterprises and less than $7,000,000 in annual receipts for most nonmanufacturing businesses (Lepoutre & Aime, 2006). In India, by 1920, SMEs got classified into two categories: those that used power with less than 50 employees and those that did not use power with the employee strength being more than 50 but less than 100 (National Research Development Corporation, 2008). 1.1. Background Information In East Africa, SMEs started in 1930s with the introduction of Rupees. At the time of independence in the 1960s, industries were playing the most crucial role in the economic development of the whole region, although they had challenges with management functions (Musiitwa, 2015). Nowadays, the nature and features of SMEs in the region differ from country to country and from industry to industry, as well as the legal definition. Each SME needs a business plan;
Research Journal of Finance and Accounting, 2013
Internet banking (IB) allows functional banking activities online. Adoption of IB varies signific... more Internet banking (IB) allows functional banking activities online. Adoption of IB varies significantly across commercial banks. Banks with large size tend to adopt IB earlier. In 2006, 96 percent of banks with assets over Kshs 24 billion had a website, compared to only 51 percent with assets under Kshs 8 billion. These observations raise important questions: what explains these variations of diffusion rates across banking groups? This study reports the results of a descriptive survey on factors causing variations in adoption of IB. A structured questionnaire was administered to all financial managers in all 46 commercial banks with a response rate of 70%. The SPSS was used to run simultaneous-equation regressions on data collected. Factors driving adoption of IB include increase average bank assets, non adopters imitating early adopters and loan specialisation in consumer lending. Factors hindering IB adoption include competition among banks and average age of a bank. The study recommends that to enhance IB adoption, banks should; strive to increase their average assets size, non adaptors to carefully study early adaptors, specialize in consumer lending, feed off competition by forming strategic alliances finally new banks have the advantage of installing IB technology in a package with other computer facilities compared to old banks. The study is important because banks have been blamed for not initiating programmes that adequately satisfying demand for financial services. The research contributes to the debate on how to enhance access to financial services in Kenya. Key word: Adoption of Technological Innovation, Organizational performance 1.0 Background to the Study Banking technology is generally a bundle or package of different technological elements such as improved varieties of products and services (processes). consisting of the tool that embodies the technology as a material or physical object such as machines; and software aspects, consisting of the information base for the tool such as technical knowledge and skills about how to use the hardware aspect of technology (Rogers, 1995). Advances in information and communication technologies and the emergence of the internet have revolutionized business activities enabling new ways of conducting business referred to as electronic commerce (Zwass, 2003; Turban et al., 2004). Electronic commerce innovation in banks describes the process of buying, selling, transferring, or exchanging products, services, and/or information especially through computer, (the internet) networks (Turban et al., 2004). Integrated banking technology can be defined as "that innovation that enables the sharing of business information, maintaining of business relationships, and conducting of business transactions by means of telecommunications networks" (Zwass, 2003). Technological innovation activities include the inter-organizational processes of market-based sell-buy relationships and collaboration (and consumer-oriented activities (business-to-consumer and consumer-to-consumer), as well as the intra-organizational processes that support them (Zwass, 2003). Adoption of internet technologies as a way of doing business has significant advantages. Organizations are embracing e-commerce as a means of expanding markets, improving customer service, reducing costs, and enhancing productivity (Wenninger, 1999). Efficiencies are experienced in marketing and advertising; new technologies make disintermediation possible, eliminating the middleman (Turban et al., 2004). Other efficiencies include reduced inventory and round the clock access at no additional cost. Superior banking technologies enable higher customization (Choi & Whinston, 2000) allowing organizations to improve customer service. A vital benefit of an integrated banking technology is access to global markets which enables businesses to expand their reach. For instance, the internet allows for unconstrained awareness, visibility and opportunity for an organization to promote its products and services (Senn, 2000). Technological innovation involves an improvement to something already existing. In the 20th century, innovations in semiconductor technology increased the performance and decreased the cost of electronic materials and devices by a factor of a million, an achievement unparalleled in the history of any technology (Rogers, 1981
Research Journal of Finance and Accounting, 2013
The banking sector in any economy serves as a catalyst for growth and development. Banks are able... more The banking sector in any economy serves as a catalyst for growth and development. Banks are able to perform this role through their crucial functions of financial intermediation, provision of an efficient payment system and facilitating the implementation of monetary policies. Bank profitability is usually expressed as a function of internal and external determinants. The overall performance and profitability of the banking sector in Kenya has improved tremendously over the last 10 years. The aim of this study was to close the gap in knowledge by investigating profitability determinants within commercial banks in Kenya. The determinants studied were loan portfolio, interest expense, and administration costs and assets value. A descriptive survey design was employed in this study. The population of the study was the management employees working for commercial banks in Kenya. The sample was accessed by use of both stratified and simple random sampling. A questionnaire was used to gather the primary information. The questionnaires were self-administered and were served to the respondents by self-introduction. Research assistants were used to follow up on duly completed questionnaires. Statistical package for social sciences (SPSS) was used to analyse primary data while the SAS v.6 of 2009 was used to analyse the secondary data gathered from the banks. Findings of the study showed that public sector banks and private sector banks were not much affected by increasing or decreasing of interest margin. It can therefore be interpreted that the profitability growth of public and private sector banks are not dependent on fluctuation of interest rate although the foreign banks have the benefit of high return due to increase or decrease in interest margin. Key Words: Loan portfolio Management on organization profitability, commercial Banks in Kenya 1.0 Background As financial intermediaries, banks play an important role in the operation of an economy. Banks are the sole providers of funds, and their stability is of paramount importance to the financial system. As such, an understanding of determinants of their profitability is essential and crucial to the stability of the economy (Babalola, 2012). The banking sector in any economy serves as a catalyst for growth and development. Banks are able to perform this role through their crucial functions of financial intermediation, provision of an efficient payment system and facilitating the implementation of monetary policies (Abreu, 2002). The stream of bank failures experienced in the USA during the great depression of the 1940s prompted considerable attention to bank performance. This attention has grown ever since then (Heffernan, 2005). The recent global financial crisis of 2007/2009, also demonstrated the importance of bank performance both in national and international economies and the need to keep it under surveillance at all times. Aburime (2008) argued that the importance of banks is more pronounced in developing countries because financial markets are usually underdeveloped, and banks are typically the only major source of finance for the majority of firms and are usually the main depository of economic savings (Tobias and Themba, 2011). It is not surprising therefore, that governments over the world, attempt to evolve an efficient banking system, not only for the promotion of efficient intermediation, but also for the protection of depositors, encouragement of efficient competition, maintenance of confidence and stability of the system and protection against systemic risk and collapse (Babalola, 2012) During the last decades the banking sector has experienced worldwide major transformations in its operating environment. Both external and domestic factors have affected its structure and performance. Despite the increased trend toward bank disintermediation observed in many countries, the role of banks remains central in financing economic activity in general and different segments of the market in particular (Brock and Franken, 2002). In today's economic environment, achieving improved performance and efficiency in public and private sector banking institutions has been prioritized more than ever before. Banking organizations aim at achieving these with the objective of improving competitiveness, delivering better service, and reducing costs. It is against such a background that organizations around the world have prioritized achieving heightened performance and efficiency with such goals in perspective. To achieve milestones in profitability increments, commercial banks should understand and address the determinants of their profitability. Only when these determinants are understood, can organizations be able to tackle the matter of profits improvement (Demirguc-Kunt and Huizinga, 2000 and Goddard, 2004).
European Journal of Business and Management, 2013
International Journal of Applied Information Systems, Sep 10, 2013
Information Technology has become a vital and integral part of every business in the World. IT is... more Information Technology has become a vital and integral part of every business in the World. IT is one of the strongest drivers for competitive, innovation and change in modern business environment. The SME sector in Kenya employs 80 percent of the total population and contributes over 40 percent to GDP. Majority of people employed in this sector is the youthful population. However, adoption and deployment of Information Technology in this sector has not been satisfactory compared to large corporations. This paper examined the Determinants to Adoption and Deployment of Information Systems in this sector. A quantitative Descriptive Survey Design was used in this Study. Data was collected from 3 SMEs in TransNzoia County using interviews and Questionnaire. Results obtained from this study shows that CEOs characteristics, IS characteristics, Organization's characteristics and Environmental Characteristics play a significant role in determining whether IS will be adopted and deployed in the SMEs. It is hoped that the findings from this study will enable policy makers in the ICT sector formulate proper legislative framework that informs how well ICT can be harnessed for the growth of the SME sector in Kenya.
The International Journal of Business and Management, Apr 30, 2020
Health-care financing should be impartial. In numerous evolving states such as Kenya, variations ... more Health-care financing should be impartial. In numerous evolving states such as Kenya, variations to health-care financing organisms are being executed as a means of providing impartial admittance to health attention with the intention of accomplishing Universal Health Coverage (UHC). According to Witter, Govender, Ravindan and Yates (2017), there are three sources of health financing in Kenya that include Out Of Pocket (OOP) payments, government expenditures and donor funding. Munge and Briggs (2014), on the other hand argued that there were four sources of health financing that included Direct and Indirect Taxes, Out Of Pocket Payment, contribution to Private Insurance and contribution to National Hospital Insurance Fund. According to Mossialos et al., (2002) there are five methods of health funding which comprises of taxation, social health insurance, voluntary and private insurance; out-of-pocket or cash-and-carry and donations. Out Of Pocket (OOP) payment is the most used method of healthcare financing. This has led to catastrophic spending to a level of impoverishing the family unit through sale of assets (Wangui, 2018); diversion of their scanty income into health care services; to even smuggling patients in bags risking their safety (Marita, 2019). This situation is magnified mostly in the informal sector because of scanty source of livelihood (Chuma & Okungu, 2017). Health care financing has remained an increasing worry to various emerging nations in latest era. Granted that health funding is intended to shield formal and informal sectors, rural and urban locations, low and high income employees. However it comes with serious and also contested means in developing nations when it is pursued in the direction of devising, activating and bringing about operational health funding configurations. It remains held that finding a justifiable root of funding health care in the world has certainly turn into main subject for debate across the world's
The International Journal of Business & Management
Islamic finance is a substantive paradigm premised on Islamic epistemology. This is a new concept... more Islamic finance is a substantive paradigm premised on Islamic epistemology. This is a new concept in Uganda. In the amended Financial Institution Act, legislation was passed to develop Islamic finance. This will enable the creation of a series of Islamic finance products benefiting the Ugandan populace. In addition, the passing of the final Regulations of the Act by the Ministry of Finance is expected to provide accommodation of Islamic finance into the laws of Uganda. Concomitantly this study sought to explore awareness, attitudes towards and perceived value of Islamic finance towards its acceptability by white collar elite in the capital city of Uganda. The study adopted a purposive sampling and a multivariate linear regression was used to understand the effect of three key factors anticipated to affect the acceptability of Islamic financing in Uganda that is attitude, perceived value and awareness. The results reveal that awareness of Islamic banking products and services is like...
The International Journal of Business and Management, Jul 31, 2022
This study focused on examining the impact of Capital budgeting on the innovation capability of S... more This study focused on examining the impact of Capital budgeting on the innovation capability of Small and Medium Enterprises in Nakawa Division, Kampala Capital City Authority. The role of SMEs in the economic activity of Uganda is significant. These enterprises account for approximately 90% of the private sector industry, and they occupy a significant position in the country's industrial structure (UIA, 2016). The SMEs in Uganda create jobs and serve as a good mechanism to address unemployment in the country. There is a common belief among economists that businesses with the innovation capability can incorporate their organizations' key abilities and assets to effectively empower advancement and expand on their production and market share. Innovation capabilities have enabled large firms to achieve desired outcomes by acquiring new technologies and knowledge that help them to effectively compete in the market, the favor obtained through establishing an efficient and effective financial management system. Thus, more financially literate and informed entrepreneurs in the SMEs sector would probably benefit from the practice of capital budgeting. Consequently, capital budgeting would positively connect with SMEs' innovation capabilities. Based on their crucial role in creating new jobs, rise in GDP, entrepreneurship, and innovation, Small and Medium Enterprises (SMEs) are recognized as the drivers of socioeconomic growth in developed and developing countries. Historically, SMEs are traced back to the time of the industrial revolution in the 1850s, and most of them were initiated as small factory workshops (Ruthrock, 2013). These enterprises were associated with different challenges, such as limited capital to buy the stock and equipment to most of these enterprises. In the United States of America (USA), SMEs emerged rampant by 1782, with less than 500 workers for manufacturing business enterprises and less than $7,000,000 in annual receipts for most nonmanufacturing businesses (Lepoutre & Aime, 2006). In India, by 1920, SMEs got classified into two categories: those that used power with less than 50 employees and those that did not use power with the employee strength being more than 50 but less than 100 (National Research Development Corporation, 2008). 1.1. Background Information In East Africa, SMEs started in 1930s with the introduction of Rupees. At the time of independence in the 1960s, industries were playing the most crucial role in the economic development of the whole region, although they had challenges with management functions (Musiitwa, 2015). Nowadays, the nature and features of SMEs in the region differ from country to country and from industry to industry, as well as the legal definition. Each SME needs a business plan;
International Journal of Applied Information Systems, 2013
Information Technology has become a vital and integral part of every business in the World. IT is... more Information Technology has become a vital and integral part of every business in the World. IT is one of the strongest drivers for competitive, innovation and change in modern business environment. The SME sector in Kenya employs 80 percent of the total population and contributes over 40 percent to GDP. Majority of people employed in this sector is the youthful population. However, adoption and deployment of Information Technology in this sector has not been satisfactory compared to large corporations. This paper examined the Determinants to Adoption and Deployment of Information Systems in this sector. A quantitative Descriptive Survey Design was used in this Study. Data was collected from 3 SMEs in TransNzoia County using interviews and Questionnaire. Results obtained from this study shows that CEOs characteristics, IS characteristics, Organization's characteristics and Environmental Characteristics play a significant role in determining whether IS will be adopted and deployed in the SMEs. It is hoped that the findings from this study will enable policy makers in the ICT sector formulate proper legislative framework that informs how well ICT can be harnessed for the growth of the SME sector in Kenya.
The purpose of this study was to determine the effects of principal’s instructional supervision o... more The purpose of this study was to determine the effects of principal’s instructional supervision on academic performance in Sameta primary School in Kisii, Kenya. The specific objectives of this study were; to determine if there was effective instructional supervision by the principal, to investigate the quality of teaching and learning process, to explore the level of syllabus coverage in all classes, to identify challenges encountered by the principal while conducting instructional supervision and give recommendation on how to mitigate the challenges of instructional supervision by the principal. A descriptive survey research design was used in this study. The study focused on the head teacher, heads of departments and teachers. The study targeted the school due to its drop in performance over the years from 2008 to 2012. For this purpose census method was used to select all 6 heads of departments, 13 teachers and 1 head teacher. The sample size for the study is 20. This method ens...
Journal of economics and sustainable development, 2013
Budget deficits have attracted a great deal of attention over the past few decades. This is so be... more Budget deficits have attracted a great deal of attention over the past few decades. This is so because financial experts have blamed it on all assortments of ills that beset developing countries. Some of these ills include: high inflation rates, over indebtedness, loss of a country’s sovereignty, crowding out of the private sector among others. In spite of its various attempt to widen the tax base and the numerous austerity measures to cut down on its recurrent expenditures, the Kenyan government like most of the other developing countries has over the years been a perpetual casualty of budget deficit. The purpose of this study was therefore to evaluate the economic strategies measures that the Kenyan government may put in place in order to reduce budget deficit. Specifically the research addressed how; tax policy, Inflation, technological innovation and government expenditure affects reduction of budget deficit in Kenya. The research will be of great significance to: the Kenyan Gov...
European Journal of Business and Management, 2013
The purpose of this research was to establish the relationship and the link between financing ins... more The purpose of this research was to establish the relationship and the link between financing institutions and the level of development, growth of small and medium enterprises in Mombasa County. In the course of the research it was found out that many factors contribute to the growth and development of SMEs in Mombasa County as it is also envisaged in other parts of the country. However the element of financing came out clearly as a major factor that contributes positively to the development of SMEs. The research covered various categories which included but not limited to formal, informal, public and private owned enterprises. It was interesting to note that most of the SMEs could not survive the third year incubation period which was attributed to lack of adequate and relevant financing information. Empirical evidence from this study suggests that SMEs operators need information on available bank loans, sources of business finance, SMEs loan schemes, information on venture capital...
Research Journal of Finance and Accounting, 2013
The banking sector in any economy serves as a catalyst for growth and development. Banks are able... more The banking sector in any economy serves as a catalyst for growth and development. Banks are able to perform this role through their crucial functions of financial intermediation, provision of an efficient payment system and facilitating the implementation of monetary policies. Bank profitability is usually expressed as a function of internal and external determinants. The overall performance and profitability of the banking sector in Kenya has improved tremendously over the last 10 years. The aim of this study was to close the gap in knowledge by investigating profitability determinants within commercial banks in Kenya. The determinants studied were loan portfolio, interest expense, and administration costs and assets value. A descriptive survey design was employed in this study. The population of the study was the management employees working for commercial banks in Kenya. The sample was accessed by use of both stratified and simple random sampling. A questionnaire was used to gat...
The purpose of this study was to determine the effects of principal’s instructional supervision o... more The purpose of this study was to determine the effects of principal’s instructional supervision on academic performance in Sameta primary School in Kisii, Kenya. The specific objectives of this study were; to determine if there was effective instructional supervision by the principal, to investigate the quality of teaching and learning process, to explore the level of syllabus coverage in all classes, to identify challenges encountered by the principal while conducting instructional supervision and give recommendation on how to mitigate the challenges of instructional supervision by the principal. A descriptive survey research design was used in this study. The study focused on the head teacher, heads of departments and teachers. The study targeted the school due to its drop in performance over the years from 2008 to 2012. For this purpose census method was used to select all 6 heads of departments, 13 teachers and 1 head teacher. The sample size for the study is 20. This method ens...
Globally, businesses have continued to focus on cost reduction and effectiveness in operations. O... more Globally, businesses have continued to focus on cost reduction and effectiveness in operations. Organizations have to be transparent when incurring costs. Stakeholders in general need detailed insights about costs and financial performance of organizations to which they are associated. However, this is limited by absence of adequate knowhow, good systems and necessary data. There has been a lot of concern over rising operational costs across the globe and more so particularly in Kenya due to high energy costs, staff costs and borrowing costs among others. Mumias Sugar Company Limited made a total loss of Kshs 10.3 billion from 2013 to 2015 as per the published annual financial statements. The financial performance of Nzoia Sugar Company Limited was also affected by interest on borrowed loans, aged machinery and high input costs of materials, fuel, fertilizer and lubricants. The purpose of the study was to evaluate Activity Based Cost Analysis as a tool on financial performance of th...
Internet banking (IB) allows functional banking activities online. Adoption of IB varies signific... more Internet banking (IB) allows functional banking activities online. Adoption of IB varies significantly across commercial banks. Banks with large size tend to adopt IB earlier. In 2006, 96 percent of banks with assets over Kshs 24 billion had a website, compared to only 51 percent with assets under Kshs 8 billion. These observations raise important questions: what explains these variations of diffusion rates across banking groups? This study reports the results of a descriptive survey on factors causing variations in adoption of IB. A structured questionnaire was administered to all financial managers in all 46 commercial banks with a response rate of 70%. The SPSS was used to run simultaneous-equation regressions on data collected. Factors driving adoption of IB include increase average bank assets, non adopters imitating early adopters and loan specialisation in consumer lending. Factors hindering IB adoption include competition among banks and average age of a bank. The study r...
The study took place in North Rift Region of Kenya where escalation of client exits from MFIs was... more The study took place in North Rift Region of Kenya where escalation of client exits from MFIs was identified as a problem. The purpose of this study was to explore the relationship between Loan conditions and Client exit in Kenya Women Finance Trust. Microfinance is a new concept in finance sector that has evolved rapidly in the last decade. This concept has gained popularity by the use of innovative ways of lending financial products to the low financial earners who don’t qualify for credit from formal financial institutions. In recent times many people have been attracted in the first borrowing but are declining to take a repeat financial product. Non exit clients’ loan repayment practices or repeat borrowing is critical for the long-term financial viability of microfinance institutions (MFIs). High client exit may hamper organizational and financial sustainability, Simanowitz, (2012). This study sought to explore the relationship between Loan conditions and Client exit in microfi...
The International Journal of Business & Management