Browsing by Author "Moragwa, Christine"

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    Impact of Global Oil Price Volatility on Inflation in Kenya
    (Daystar University, School of Business & Economics, 2023-10) Moragwa, Christine
    Inflation rate is one of the main variables in macroeconomics. Changes and overall fluctuations of inflation rate have significant impact on how economic agents make decisions. Oil shocks for decades have had a significant impact on how inflation rises or declines in most economies. The purpose of this study was to evaluate the impact of global oil price volatility on inflation in Kenya. The objectives of the study were to describe the trends in oil prices, oil price volatility, and inflation. The research examined the impact of oil price volatility and oil price volatility, and focuses on the relative importance of each shock in affecting inflation in Kenya. Phillips curve, Monetarist Theory and Quantity Theory of money anchor the research study. The study uses a descriptive, causal and correlational research design. The study used secondary annual data (1970-2022) from World bank, Central Bank of Kenya (CBK), International Monetary Fund (IMF), Oil price data sourced from West Texas Intermediate (WTI) crude oil databases. Unit root tests are conducted on the data using the Augmented Dickey-Fuller (ADF) and Phillips Perron (PP) tests. Data analysis involved trend analysis, correlation analysis, and regression analysis using Structural Vector Autoregressive (SVAR) model. From the SVAR model, Forecast Error Variance Decomposition (FEVD) was conducted. Study concludes that an increase in global oil prices causes a contemporaneous short run influence on the domestic inflation rate in Kenya.The study recommends that Energy and Petroleum Regulatory Commission (EPRA) to institute measures that cushion the economy during oil price fluctuations.
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    Impact of Stock Market Development on Economic Growth in Kenya: A Systematic Review
    (International Journal of Recent Research in Commerce Economics and Management (IJRRCEM), 2023-03) Kithandi, Charles Katua; Moragwa, Christine; Mutunga, Antony
    This study aims to analyze the relationship between the stock market development and economic growth in Kenya This study uses a systematic review and analysis of relevant empirical reviews from previous studies. The study analyses data from five previous studies done in Kenya between the period 2017 -2021. The findings of the systematic review show that while an expanding stock market can cause economic growth to be impacted positively, this relationship is not straightforward and is affected by a variety of factors, including political stability, government policies, financial infrastructure, and the availability of credit and foreign investment. The study also identifies several challenges that have hindered stock market development in Kenya, including a shortage of liquidity, limited participation by domestic investors, weak corporate governance, and inadequate regulatory oversight. Based on these findings, the study provides evidence-based recommendations for policymakers to promote stock market development in Kenya and enhance its contribution to economic growth. These recommendations include improving the regulatory framework, enhancing transparency and disclosure requirements, increasing investor education and awareness, and strengthening corporate governance practices. The study concludes that stock market development has a significant positive effect on economic development in Kenya.