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Cost Leadership Strategies and Credit Access Among Micro, Small, and Medium Enterprises in Nairobi City County, Kenya
(East African Finance Journal, 2025) Kithandi, Charles Katua; Ndungu, John Karugu; Onchomba, Molson
Access to credit remains a critical challenge for micro, small, and medium enterprises (MSMEs) in Kenya. Despite their recognized role in driving economic growth, job creation, and social transformation, many MSMEs face difficulties meeting lender requirements due to limited adoption of strategic cost leadership practices. This study sought to examine the effect of cost leadership strategies on credit access among MSMEs within Nairobi City County, with a specific focus on how government regulation moderates this relationship. Specifically, it assessed the effect of operational efficiency, cost minimization, and resource utilization practices in relation to credit access. The study was guided by three theoretical perspectives: Porter’s Generic Strategies Model, Resource-Based View (RBV) Theory, and Transaction Cost Economics (TCE) Theory. These frameworks provide a robust foundation for understanding how cost leadership influences MSMEs’ ability to access and utilize credit effectively. The research adopted a descriptive and correlation research design and targeted a population of 268,100 licensed MSMEs within Nairobi City County, from which a random sample of 440 MSME owners was selected as respondents. Data was collected through structured questionnaires focusing on the study’s four dimensions of cost leadership and their effect on credit access. The data was then coded, cleaned, and analyzed using descriptive statistics including frequencies, percentages, means and standard deviation. Inferential statistics were also utilized including correlation and regression analysis. To ensure reliability and accuracy of the regression model, several diagnostic tests were conducted, including tests for normality using histograms, multicollinearity tests to assess correlations among independent variables, linearity tests to confirm the nature of relationships, and the Durbin-Watson statistic to test for autocorrelation. The quantitative findings are presented using tables and figures while qualitative findings are presented in continuous prose. The correlation results showed a positive and significant association between; operational efficiency and credit access (r= 0.599, p =0.000); cost minimization and credit access (r= 0.463, p =0.000), and resource utilization and credit access (r= 0.557, p =0.000). However, correlation results showed a negative and significant association between; government regulation and credit access (r=- 0.535, p =0.000). The regression results showed a positive and significant relationship between operational efficiency and credit access (β1 = 0.456, p = 0.000), cost minimization and credit access (β2= 0.163, p = 0.000), and resource utilization and credit access (β3 = 0.521, p = 0.000). However, the regression results showed a negative and significant moderating effect between cost leadership and government regulation (β =-0.004, p =0.000). The study concluded that operational efficiency, cost minimization, and resource utilization significantly enhance MSMEs’ access to credit, while stringent government regulations negatively moderate this relationship by increasing compliance costs and operational burdens. It recommends that MSME managers strengthen cost leadership practices through efficiency, prudent cost management, and resource optimization to improve creditworthiness. Policymakers should streamline regulatory frameworks, reduce compliance barriers, and introduce targeted incentives to support MSME financing. The study suggests further research on sector-specific effects of cost leadership on credit access, the moderating role of entrepreneurial education, comparative analyses across counties, and the impact of digitalization on MSME financing.
Credit Access and Financial Performance of Micro, Small, and Medium Enterprises in Dagoretti North Sub County, Kenya
(East African Finance Journal, 2025) Kithandi, Charles Katua; Chemaket, Africanos Sumburi
The micro, small, and medium enterprises play a significant role in contributing towards the economic development of many countries of the world. It is the leading sector in the creation of job opportunities for millions of young people in the developing countries across the globe, and in Kenya in particular. Despite this significant contribution of this sector towards economic development, the sector faces a myriad of challenges when it comes to access to credit, financial transactions, and financial literacy influencing their performance (World Bank, 2025). The study's purpose was to assess the influence of access to credit on the financial performance of MSMEs in Dagoretti North Sub-County. The research was anchored on the Theory of Financial Inclusion, advanced by Morduch, Quantitative research methods were employed, while correlational research design was used. The target population was 5,112 licensed and registered MSMEs in Dagoretti North Sub-County, Nairobi City County. Based on Yamane’s formula, the sample size of 371 MSME owners/managers was selected. Stratified random sampling and purposive techniques were used to select the sample size. The data was collected using questionnaires with close-ended questions. A pilot study was conducted to establish the validity and reliability of the questionnaire. The quantitative data was analyzed using SPSS. The Pearson correlation test was used to determine the existence of relationships, while regression analysis was used to determine the extent to which the study variables relate with each other. Results revealed a positive and significant relationship between financial performance and credit access (r = .35, p < .01). Overall, the study showed that MSMEs in Dagoretti North benefit a lot from financial inclusion. The study underscored the importance of strengthening initiatives that support financial literacy, access to credit, and transaction convenience, as this has been shown to make MSME businesses thrive.
Project Management Practices and Performance of CDFFunded Educational Infrastructure Projects in Mavoko Constituency, Kenya
(African Journal of Commercial Studies, 2025) Kithandi, Charles Katua; Nzuki, Joshua
This study explores the relationship between Project management practices and the performance of educational projects, specifically focusing on Constituency Development Fund (CDF) funded educational infrastructure projects in Mavoko Constituency, Kenya. The study sets the stage for understanding how various management practices influence the success of educational projects financed through the CDF. It provides a comprehensive background on the role of CDF in educational development, outlining the significance of effective project management practices in enhancing project outcomes. The study articulates the problem statement as inconsistences performance of educational infrastructure (cost, time, quality) due to, substandard construction, and resource misallocation hence need for better project management practices. The objectives of the study were to examine the project management practices employed in the implementation of CDF-funded educational projects in Mavoko Constituency; To assess the performance of CDF-funded educational projects in Mavoko Constituency in terms of cost, time, quality, and stakeholder satisfaction; To determine the relationship between project management practices and the performance of CDF-funded educational projects in Mavoko Constituency. The research focuses on key theories namely, Project Management Theory, Stakeholder Theory, and Results-Based Management (RBM) aiming to evaluate the impact of project planning, stakeholder management, and quality management, on project performance. The study employed descriptive research design since it describes the characteristics of a population without manipulating variables. The target population was 800 participants from a total population of 105, both primary and secondary public schools. The sample size included 266 respondents selected through stratified random sampling techniques. Primary data collected using a questionnaire issued to a sample population of respondents in teachers, CDF officers, project team at selected schools within Mavoko constituency. and analyzed using statistical page for the social sciences (SPSS). The study employed standardized data collection procedures and rigorous analysis techniques to ensure reliability, using Cronbach’s Alpha. To enhance validity, this study triangulated data from interviews and questionaries to strengthen the evidence base and ensure that the findings robustly address the research questions. A pilot test was conducted at Kathiani Primary School with 10% of sample size to establish both the content validity and reliability of the questionnaire. Regression analysis analyzed the relationship between two variables and made predictions, inferring causal relationships, provided the assumptions are met. between variables. Data was presented with descriptive statistics. Study findings were: Inadequate Planning, 47% disagreed that planning was sufficient. limited Stakeholder Involvement, 41% felt that engagement was inconsistent and Weak Monitoring and Evaluation, 50% disagreed on the regularity of monitoring practices. Finally, the study concluded that strengthening project planning practices— specifically in planning, stakeholder involvement, and monitoring & evaluation is essential for enhancing project performance. It recommends prioritizing training for project managers on effective planning tools. Additionally, institutionalizing stakeholder engagement through a participatory approach in project identification, planning, and implementation is vital to foster collaboration and ensure that all stakeholders are actively involved. Implementing these recommendations can significantly improve project outcomes.
Mediating Effect of Job Satisfaction in the Relationship between Reward System and Employees’ Work Performance of Commercial Banks in Kenya
(East African Finance Journal, 2024) Ondolla, Jesse Victor; Kithandi, Charles Katua
Employee work performance is the key driver to organizational success. An organization with a poor employee reward system is likely to be on a pathway of organizational failure. The purpose of this study is to examine the mediating effect of job satisfaction in the relationship between reward system and employees’ work performance. The target population was 11 banks listed in the Nairobi Securities Exchange. A random sampling method integrating qualitative and quantitative design methods was employed in this study. A random sample of 383 employees was selected from the 11 banks. The study used a Partial Least Squares structural equation modeling (PLS-SEM) to assess the magnitude and relationship and thus come up with a finding of the relationship of independent and dependent variables. Using bootstrapping to evaluate indirect effects, the results showed significant mediation: β = 0.711, t = 7.663, p < 0.001, with employee performance R² = 0.803, f² = 0.004. Since the confidence interval (0.530, 0.895) did not include zero, the mediation is statistically significant. Bootstrapping also revealed that the direct effect of the reward system on performance was not significant when job satisfaction was included (β = 0.053, t = 0.520, p = 0.603). However, the total effect (excluding the mediator) remained significant: β = 0.764, t = 11.214, p < 0.001. VAF confirmed full mediation with a value of 0.996. According to agency theory, HR departments play a critical role in aligning organizational goals with employee interests. Well-designed reward systems enhance job satisfaction, which subsequently improves performance. This creates synergy between employees (agents) and shareholders (principals), ultimately boosting firm value. The findings confirm that job satisfaction components like training, fair compensation, conducive work environments, and fringe benefits mediate the effect of reward systems on performance.
Stakeholder Engagement and Sustainability of Donor Funded Projects Among Non-Governmental Organizations in Kenya: Case of Toll-Free Lines Project
(African Journal of Commercial Studies, 2025) Kithandi, Charles Katua; Ekambi, Jonathan; Bukhala, Elin
Sustainability of donor-funded projects remains a critical challenge for Non-Governmental Organizations (NGOs) in Kenya, particularly after the withdrawal of donor support. In this regard, the project team needs to employ strategies to ensure project sustainability and meet long term project goals. This study investigated the influence of stakeholder engagement on the sustainability of such projects, using FIDA Kenya’s toll-free call lines initiative as case study. The study focused on the following specific research objectives; to determine the influence of stakeholder identification on sustainability of donor funded projects; to evaluate the extent to which stakeholder involvement impacts sustainability of donor funded projects in NGOs and to examine the stakeholder communication methods used to achieve project sustainability. The study was anchored on stakeholder theory, supported by sustainability theory, participatory development theory and institutional theory. The research adopted explanatory and cross-sectional research design to capture a snapshot of the effect of stakeholder engagement strategies and their impact on project sustainability. From a study population of 3,135, the target population of 90 stakeholders directly and indirectly involved was selected. The study used census sampling technique, the target population of 90 formed the sample size. The study achieved a response rate of 74%, with 67 completed questionnaires. Quantitative data was collected using structured questionnaires and analyzed with SPSS version 27, employing both descriptive and inferential statistical techniques. Descriptive statistics were used to summarize stakeholder perceptions, while inferential statistics including correlation and regression analyses were employed to determine the strength and nature of relationships between stakeholder engagement variables and project sustainability. The analysed data was presented using tables and graphs for clarity. The findings revealed that stakeholder identification (β = 0.923), stakeholder involvement (β = 0.587) and stakeholder communication (β = 0.981), significantly influence project sustainability, while legal and regulatory compliance (β = 0.161) plays a supportive role. The regression model demonstrated that these factors collectively explain 82.2% of the variation in project sustainability (R² = 0.822). The study concludes that structured and inclusive stakeholder engagement strategies is essential for long-term project viability. The study recommended that NGOs in Kenya should consider adopting evidence-based stakeholder engagement strategies by systematically identifying, involving, and communicating with stakeholders throughout the project phases. These insights are valuable for NGOs, donor agencies, and policymakers seeking to enhance the sustainability of donor-funded initiatives.