Journal Articles

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How Accountants Perceive and Construe the Intention to Disclose Social Responsibility Information: A Study of Kenyan Companies
(European Journal of Business and Management, 2017) Wachira, David Muturi; Jankowicz, Devi
This study which was exploratory in nature was aimed at examining the perception, constructs and intentions of accountants to disclose social responsibility information. Disclosure indices were used to determine the current Corporate Social Disclosures (CSD) practices of listed companies in Kenya and to classify companies as high disclosure companies and low disclosure companies, while repertory grid technique was used determine how accountants perceive and construe intention to disclose CSD. Interviews were conducted with accountants from both high disclosure and low disclosure companies. The repertory grid data were analysed in two stages: individual cases analysis and cross-cases analysis. The individual case were analysed using the principal component analysis. For the cross-cases analysis, content analysis was used to categorize constructs based on their expressed meaning. It was found that the reputation of the company is the main motivation for high disclosure companies to disclose social responsibility information and institutional factors were the main motivation for low disclosure companies. It is recommended that regulation and standardisation of CSD can make it more useful for decision-making by various stakeholders.
The impact of corporate diversification on firm value in Kenya
(African Journal of Business Management, 2017-06) Manyuru Anthony , Wachira Muturia nd Amata Evans
This study investigates the impact of corporate diversification on the value of firms listed at the Nairobi Securities Exchange (NSE). Panel regression techniques were used as the estimation methods. The overall findings of the study where somewhat mixed. The study finds that industrial diversification reduces firm value, but geographical diversification does not have a significant impact on firm value. When examining each industry individually, the study established that industrial diversification enhanced firm value in the agricultural industry but did not significantly influence firm value in the other industries.
The Effect Of Innovation On Service Delivery In The Public Sector In Kenya
(International Journal of Business Strategies, 2016) Wambugu Doris , Wachira Muturi and Mwamba Dorcas
Purpose: The purpose of this study was to assess the effect of innovation on service delivery. Methodology: The study adopted descriptive research design. The study adopted a descriptive analysis by use of descriptive statistics such as mean and frequencies. The target population in this study was 280 employees working in Nairobi GPO. A mixed sampling technique was adopted. The sample size of this study was 65 employees of Nairobi GPO Huduma Centres and 5 members of the public. This study used primary data. Data was collected using questionnaires. Results: These findings imply that products/service innovations carried out at Huduma centers have contributed immensely on performance of the centers in Kenya. The findings indicated that the respondents rated technology innovations to have major positive effects on increasing the number of people served, reducing time of service delivery, increasing accountability and transparency and finally improving public understanding of government activities. These findings imply that Huduma center innovations faced lack of adequate resources during implementations. Unique contribution to theory, practice and policy: The study recommends that Huduma should involve their staff more in the innovation in order to have better service delivery. The study also recommends that Huduma centers should encourage their customers to give their feedback on services and products innovation at the centers for further development. The study also recommends that Huduma centers directors should encourage the employees to come up with new ways to better service delivery. Huduma centers should also address the issue of lack of adequate and sufficient finance since it poses a major challenge to development of innovations at the centers
The Effects Of Reward Systems On Employee Satisfaction: A Case Study Of Kenya Forestry Research Institute (KEFRI)
(The Strategic Journal Of Business and Change Management, 2016-08) Gitamo Sarah Moraa, Mageto Peter, Koyier Thomas and Wachira Muturi
Reward systems are categorized in various forms as pay or salary, recognition and appreciation, empowerment and autonomy, and fringe benefits. Rewards need to be competitive enough in relation to compensating workers for their labour. By integrating the theories of motivation, this study assessed the effect of reward systems on employee satisfaction at the Kenya Forestry Research Institute (KEFRI). This research was based on the assumption that application of reward systems influences the behaviour and attitude of employees at Research Institutions in general and for this case KEFRI. One of the major problems facing research institutions in Kenya is the inadequate or lack of application of the reward systems, which leads to employee dissatisfaction. Labour productivity is greatly enhanced through appropriate application of reward systems. This situation provides the basis to assess the existing reward systems employed at KEFRI as a means of improving employee satisfaction and hence labours productivity. The study targeted a population of 554 employees drawn from three of KEFRI’s three Research Centres namely: KEFRI Headquarters, Muguga and Karura Regional Research Centres. The study sample was 111 employees across all cadres. A fully structured self-administered questionnaire and an interview guide were the standard data collection instruments for the respondents. The data was analyzed using descriptive and inferential statistics. In particular, frequencies, tabulation and chi-square were used as descriptive statistics. The study revealed that 84% of the respondents were aware of the existing types of reward systems while 16% were not aware, a factor mainly attributed to failure to read the KEFRI human resource manual, attend staff meetings and ignorance on the fact that awards seem to have improved significantly in the current year as compared with the last three years. It also revealed that through rewarding employees equitably, the organization’s performance had been enhanced and employee commitment to the organization was more assured. The study also revealed that the application of reward systems influenced the level of satisfaction of employees at KEFRI.
The Founders’ Syndromes, Challenges And Solutions
(Researchjournali’s Journal of Entrepreneurship, 2016-07) Muriithi, Samuel and Wachira, Muturi
Founders are remarkably innovative and creative persons driven by desire to fill critical needs in the society. The needs are addressed through creating organisations that produce goods and services that meet customer needs while at the same time fulfil founders’ dream and mission of being successful. Determined to succeed, most founders shape their organisations around their personality and beliefs, making the organisations to be synonymous with their philosophies and practices. Many founders exercise paternalistic, autocratic and overzealous leadership, making it difficult for other stakeholders to get a grip of the organisations, a behavioural pattern termed as “the founders’ syndrome.” The main characteristics of the founders’ syndrome include being self-drive, achievement oriented, resistant to change, sole-decision making and retaining the status quos. Conflict arises from those interested in seeing the organisations transit from the founders to other successor. To deal with founders’ syndrome and ensure smooth operations and smooth leadership transition, this paper provides several recommendations mong them developing strong all-inclusive leadership; building employees’ capacity to attain desired competence; practicing professionalism; establishing workable structures and succession planning mechanisms. Lastly, the organisations must be guided by relevant strategies that aid in attaining strategic positioning and competitive edge.
Strategic Resources, A Driver of Perfomance in Small and Medium Manufacturing Enterprises in Kenya
(International Journal of Business and Economic Sciences Applied Research, 2021-08) Murimi Muturi Moses, Ombaka Beatrice Elesani & Muchiri Joseph
This study sought to establish the effect of strategic resources on performance of small and medium manufacturing enterprises. Specifically, the study sought to identify how financial resources, human resources, physical resources and intellectual capital affect performance of small and medium manufacturing enterprises in Kenya. Methodology: Positivism research philosophy was utilised. Cross-sectional descriptive survey as well as explanatory study design were used in the study. The target population for the study was 350 Kenyan SMEs in the manufacturing sector. A sample of 183 firms was selected using stratified random sampling. One respondent from each firm was selected being the managing director. Data was collected using a semi-structured questionnaire. Diagnostic tests for multicollinearity and normality were conducted before data analysis. The research questionnaire was tested for content validity and reliability after. Data was analysed using inferential and descriptive statistics. Data collected was analysed using SPSS V23. Finding: The study found that strategic resources have a significant influence on significant influence on performance of manufacturing SMEs in Kenya. Specifically, financial, human and physical resources all positively and significantly influenced the performance of Kenyan SMEs while intellectual resources as no effect on performance. The study therefore concluded that financial resources have a positive and significant influence on performance of manufacturing SMEs in Kenya, human resource was found to be significant in predicting performance. Physical resources have a significant influence on performance of manufacturing SMEs in Kenya while intellectual capital has no significant influence on performance of manufacturing SMEs in Kenya. Study Implication: The study recommended that Management of manufacturing SMEs should ensure that there are enough financial resources to meet their daily transactions and ensure that they are able to acquire the relevant strategic resources for efficient running of their firms; have adequate, committed and well-skilled personnel with the required expertise; should invest significantly in physical resources in order to maximise the performance of these firms; carry our cost benefit analysis before committing their resources to protect their intellectual capital in form of patents. Value of the Study: The study showcases the influence of strategic resources on performance of manufacturing SMEs in Kenya.
Strategies Employed In The Cleaning Industry In An Effort To Attain Sustainable Competitive Advantage
(International Journal of Economics, Commerce and Management, 2016-10) Muriithi Samuel Muiruri, Omolo Judith A. and Wachira Muturi
The service industry worldwide has seen tremendous growth and is one of the fastest growing sectors both in the developed and developing economies. The growth is attributed to growing demand of clean atmosphere both at the workplace and domestic. Similarly, the demand for good health, safe and cleaner environment has made service businesses to start both in small and large magnitude. To successfully attain competitive advantage and boost growth, cleaning service businesses require the right strategies to be put in place. This paper examined strategies used by the cleaning industry in Kenya by focusing on a leading business in the country. The study targeted 112 managers from the target business and used a census sampling method. A questionnaire was used to collect primary data while a documentary analysis was done to collect secondary data. A pre-testing of the questionnaire was also conducted in order to validate the research instrument content. The findings from the study found that certain competitive strategies, namely professional and efficient service delivery, specialised quality services, cost effectiveness and niching were used to gain competitive advantage while product development, different marketing approaches, innovation and customer relationship managers where used to boost company’s growth. The use of these strategies ensured increased profit margin, customer satisfaction, brand position and sustainable growth. It is hoped that this study contributes significantly to the Kenyan cleaning industry both to new entrants and existing companies in terms of strategies to employ in order to excel in the industry.
Financial Distress in Commercial and Services Companies Listed at Nairobi Securities Exchange, Kenya
(European Journal of Business and Management, 2016) Kihooto Elijah, Omagwa Job, Wachira Muturi and Emojong Ronald
The study sought to assess financial distress amongst commercial and services companies listed at the Nairobi Securities Exchange, Kenya with an objective of determining whether the companies in this sector were prone to bankruptcy. The study utilized secondary data collected from the Nairobi Securities Exchange over a five year period (year 2009 to year 2013). Using Altman’s Z score model, the study findings indicate that the companies’ Z scores (on average) lay between -1.88 to 3.5. This is an indication that the companies are relatively not in danger of bankruptcy. In view of this findings, the study concludes tha. in addition, the study recommends that….
Managing market risk for financial performance: experience from micro finance institution in Kenya
(Emerald Publishing Limited, 2021) Kahihu Peter Karugu , Wachira David Muturi and Muathe Stephen Makau
Purpose – The purpose of this study was to investigate on managing market risk and financial performance, experience from microfinance institutions (MFIs) in Kenya. Design/methodology/approach – This study used positivism philosophy and used explanatory nonexperimental research designs. The targeted population was all the 13 registered deposit-taking MFIs in Kenya and a census approach was used. The study used secondary data which was collected and analyzed from microfinance Institutions annual audited financial reports for the period between 2014 to 2018. This study was anchored on two theories, namely, resource-based value theory and extreme value theory. Findings – The results indicated that interest rate and financial leverage risk had a positive significant effect on the financial performance of MFIs in Kenya. Foreign exchange risk was found to have a negative significant effect on the financial performance of MFIs. However, inflation rate risk was found to have no significant effect on the financial performance of MFIs. Research limitations/implications – This study recommended that the chief executive officers of MFIs should use the mechanism of identifying market risk variables, especially Interest rate, financial leverage and foreign exchange risks to enable them to put the necessary measures to mitigate those risks and enhance the financial performance of MFIs in Kenya. Originality/value – This study is unique as it touches the microfinance industry which has a steady fast growth in assisting accessibility of financial services to small and medium enterprises. Most of the previous study concentrated on other industry in the financial sector.
Market Risks, Firms’ Size and Financial Performance: Reality or Illusion in Microfinance Institutions in Kenya
(International Journal of Economics and Finance, 2020) Karugu Kahihu Peter, Muturi Wachira D. & Muathe Stephen M. A.
The purpose of the study was to investigate on Market risk, Firms’ size and financial performance, Reality or illusion in microfinance institution. The study employed positivism philosophy and used explanatory non– experimental research designs. The targeted population was all the thirteen registered Deposit Taking microfinance institutions in Kenya and census approach was used. The study used secondary data which was collected from MFIs annual audited financial reports for the period between 2014 and 2018 using data collection instruments. The study was anchored on two theories namely Dynamic Capabilities theory and Modern Portfolio Theory. Diagnostic tests were applied to test on multicollinearity, autocorrelation, heteroscedasticity, normality test, and stationarity. Panel data multiple regression analysis was used to analyze the collected data and the results presented using figures and tables. The results indicated that firm’s size has a significant moderating effect on the relationship between market risk and financial performance of microfinance institutions. The study recommended that the CEOs of microfinance Institution should employ mechanism of identifying the optimal firm size that organization needs to operate in to achieve better financial performance.
Microfinance in Africa: Interest Rate, Financial Leverage, and Financial Performance: Experience and Lessons in Kenya
(Journal of Applied Economics and Business, 2021-06) Karugu Kahihu Peter , Muturi Wachira D. and Muathe Stephen M.A.
The purpose of the study was to investigate microfinance in Africa, the interplay of interest rate, financial leverage and financial performance, experiences, and lessons from microfinance institutions in Kenya. The study employed positivism philosophy as the research philosophy and used explanatory research designs. The targeted population was all the thirteen registered Deposit Taking microfinance institutions in Kenya. The sampling method that was used was the census approach and used secondary data from MFI’s (Microfinance Institutions) published accounts for the period between 2014-2018. The study was anchored on 3 theories: Resource-Based theory, Dynamic Capability Theory, and International Fisher Effect theories. Various diagnostic tests were applied to ensure we had a suitable empirical model. Data analysis was carried out using both descriptive and inferential statistics using panel data multiple regression analysis. The study results indicated that interest rates and financial leverage have a positive effect on the financial performance of microfinance institutions. The MFIs owners and managers should put in place risk management measures such as risk identifications to prevent the MFIs from the effect of interest rate and financial leverage as they affect their financial performance.
Moderating Effect of Gearing Ratio on the Relationship between Loyalty Programs and Financial Performance of Selected Firms in Service Industry in Kenya
(Stratford Peer Reviewed Journals and Book Publishing, 2019-08) Kiarie John, Kirori Gabriel N. & Wachira David
The purpose of the study was to determine the moderating effect of gearing ratio on the relationship between loyalty programs and financial performance of selected firms in service industry in Kenya. The study employed explanatory research design which is non-experimental in nature. The target population was three (3) telecommunication firms (Safaricom, Airtel and Telkom Kenya), 49 supermarkets and 46 Five Star hotels. Since the population of telecommunication firms was small, the study used the census survey method. Purposive sampling was used to select 5 big Supermarkets and 16 Five Star hotels. Panel data analysis was used to link the relationship between the variables. Similarly, One-Way ANOVA was used to find out if the financial performance of the three service industries were different. Diagnostic tests which included normality tests, multicollinearity tests, panel unit root tests and fixed and random effect were carried out. The results further showed that gearing ratio have a negative and significant relationship with financial performance of service industry. The regression results revealed that gearing ratio improved the strength of the relationship between loyalty program and Financial Performance of the Selected Firms in Service Industry in Kenya. Since long term debt provides tax shield for the company, there is every tendency for the company to continue to grow debts, the effect of accumulating unnecessary debts should form regular policy discuss by the management and the directors, hence there should be high-powered committees of the managements and the board to review the debt portfolio from time to time. These committees should be firm on investment/divestment of any debt capital to ensure that the company stays afloat all the time without the fear of any litigation for not meeting up with all present and previous obligations.
Public Policy and Sustainability: A Public Policy on Waste Management
(European Journal of Business and Management, 2017) Wachira, Muturi
According to the United Nations Human Settlements Programme, solid waste management is one of the indicators used to assess the quality of life. Many countries have formulated a policy on solid waste management. This is because solid waste management has become very crucial in the development of countries due to the increased pollution through the solid waste. Countries perform well in the solid waste management are seen to be serious in their sustainability efforts. This article reviews public policy in relation to solid waste management
Effects of Credit Card Incentives on Consumer Borrowing In Kenya: A Case of Commercial Banks in Kenya
(International Journal of Academic Research in Economics and Management Sciences, 2017) Mwende Joyce , Wachira Muturi and Amata Evans
Financial institutions have mainly relied on incentive programs as their main strategic driver to increase electronic payments, such as through use of credit cards. Credit cards have been globally acclaimed for their benefits that range from their ability to ensure tax-compliance, security, instant cash and their ability to facilitate settlement of cross-border transactions. However, there exists a great challenge of credit card usage, such as ease of accumulation of debts and high interest charges. The purpose of this study was to determine the effect of credit card incentives on consumer borrowing in Kenya. The study employed a descriptive study approach using a sample size of 18 commercial banks offering credit card services. Selfadministered questionnaires were used to collect information. Credit card incentives were found to be a major contributor to credit card uptake. The study also found that most banks used incentives such as rewards for repeated use, low interest rates, traveling awards and benefits to influence the spending behavior of their clients. The study found credit card also affected spending behavior. It is concluded that credit card incentives can be effectively used by banks to increase use of credit cards. It is recommended that financial institutions should educated their customers on how to use their credit cards so that they do not fall into a debt trap.
Effects of Loyalty Programs on Financial Performance: The Moderating Role of Company Size
(African Multidisciplinary Journal of Research, 2019) Kiarie John , Kirori Gabriel and Wachira David
The purpose of this study was to develop an original framework to explore the direct effect of Loyalty programs on a firm’s financial performance and to discuss the moderating role of company size. The study applies two original concepts - Loyalty programs and company size to develop an integral model that enhances the firm’s financial performance. Secondary data was extracted from financial statements. Explanatory research design which was non-experimental in nature was employed to analyze the effect of company size on financial performance of selected service industry firms. Panel data analysis was used to link the relationship between the Loyalty programs, company size and financial performance. Findings indicated that company size moderates the relationship between loyalty programs and Financial Performance of the selected firms in the service industry in Kenya.
Factors Influencing Strategy Implementation in the Tourism Industry: A Study of Maasai Mara National Park in Kenya
(European Journal of Business and Management, 2016) Imbali Tom , Muturi Willy and Abuga Mogwambo Vitalis
Many organizational failures occur due to inadequate implementation of strategy; that 66% of corporate strategy is never implemented creating strategy-to-performance gap than the gap in the formulation-to-implementation process. The ability to implement a strategy lies on firm’s ability to overcome obstacles through formula-toprocess implementation. The purpose of this study was to o evaluate the factors influencing strategy implementation in the tourism sector in Kenya particularly Maasai Mara national park. The objectives of the study were to examine the influence of change management on strategy implementation, to determine the influence of organizational culture on strategy implementation, to establish the influence of leadership on strategy implementation and to assess the influence of performance contracting on strategy implementation in the tourism industry in Kenya. This study adopted a case study design. The study target population was 132 respondents selected by census sampling technique. A questionnaire was used for data collection. Data collected was analyzed using descriptive and inferential statistics. Descriptive statistics involved working out the percentages and frequencies and preparation of frequency tables. The findings of this study showed that constructs observed during change management activities to establish their influence on strategy implementation in the tourism sector found that organization pre-positioning as construct of change management influenced strategy implementation to a moderate extent, planning of implementation focus and support and consolidation were more influential on strategy implementation; values held by top management; strength of organizational culture relating to the degree of consistency of beliefs, values assumptions and practices in the sector was the most influential to strategy implementation; provision of leadership direction to implement strategies, persuading to seek goal setting for strategy implementation as elements of leadership were more influential on strategy implementation; clear planning and implementation correlation as a determinant for performance contracting was more influential to strategy implementation; finally the results leadership and change management factors were key factors influencing strategy implementation in the tourism sector particularly in national parks in Kenya. The study recommends that management and Kenya tourism board should use leadership and change management approaches to improve on strategy implementation in the sector.
Strategic Resources, a Driver of Performance in Small and Medium Manufacturing Enterprises in Kenya
(International Journal of Business and Economic Sciences Applied Research, 2021) Muturi Moses Murimi, Ombaka Beatrice Elesani and Muchiri Joseph
Purpose: This study sought to establish the effect of strategic resources on performance of small and medium manufacturing enterprises. Specifically, the study sought to identify how financial resources, human resources, physical resources and intellectual capital affect performance of small and medium manufacturing enterprises in Kenya. Methodology: Positivism research philosophy was utilised. Cross-sectional descriptive survey as well as explanatory study design were used in the study. The target population for the study was 350 Kenyan SMEs in the manufacturing sector. A sample of 183 firms was selected using stratified random sampling. One respondent from each firm was selected being the managing director. Data was collected using a semi-structured questionnaire. Diagnostic tests for multicollinearity and normality were conducted before data analysis. The research questionnaire was tested for content validity and reliability after. Data was analysed using inferential and descriptive statistics. Data collected was analysed using SPSS V23. Finding: The study found that strategic resources have a significant influence on significant influence on performance of manufacturing SMEs in Kenya. Specifically, financial, human and physical resources all positively and significantly influenced the performance of Kenyan SMEs while intellectual resources as no effect on performance. The study therefore concluded that financial resources have a positive and significant influence on performance of manufacturing SMEs in Kenya, human resource was found to be significant in predicting performance. Physical resources have a significant influence on performance of manufacturing SMEs in Kenya while intellectual capital has no significant influence on performance of manufacturing SMEs in Kenya. Study Implication: The study recommended that Management of manufacturing SMEs should ensure that there are enough financial resources to meet their daily transactions and ensure that they are able to acquire the relevant strategic resources for efficient running of their firms; have adequate, committed and well-skilled personnel with the required expertise; should invest significantly in physical resources in order to maximise the performance of these firms; carry our cost benefit analysis before committing their resources to protect their intellectual capital in form of patents. Value of the Study: The study showcases the influence of strategic resources on performance of manufacturing SMEs in Kenya
Effects of Dividend Announcements on Stock Prices at Nairobi Securities Exchange
(Research Journal of Finance and Accounting, 2016) Maringa, Elijah And Wachira, Muturi
The paper discusses the concept of efficient market hypothesis at Nairobi Securities Exchange. The research was carried out to investigate the effects of dividend announcements on stock prices at NSE in semi-strong form. Secondary data was collected and analysed from Nairobi Securities Exchange. It was concluded that Nairobi Securities Exchange is not efficient in semi-strong form
From Mud and Stick-Walled Houses to Corrugated Iron Sheet Houses: A New Strategy for Preventing Human-Vector Contact in Marigat Sub-County; a Leishmaniasis-Endemic Area in Kenya
(Annals of Clinical Cytology and Pathology, 2017) Ngure Peter K., Nzau Anastasia M., Waithima Abraham K., Kiarie Martha W., Bowen Michael K., Ingonga Johnstone M., and Ngumbi Philip M.
Objective: The objective of this study was to assess if improved housing would result in reduced sand fly-human contact which in turn would be assumed to result in reduced chances of leishmaniasis transmission. The transmission of leishmaniasis is heavily influenced by socio-economic factors and this is the main reason why it has been described as the disease of the poor. Methods: This studied compared the sand fly densities in targeted houses before and after improvement. The houses to be improved were selected based on indoor sand fly density, construction materials and economic status of the household. These houses were upgraded to two-roomed corrugated iron sheet houses. Sand fly densities were determined using CDC light traps in the mud and stick-walled grass-thatched houses before moving the occupants to houses made of corrugated iron sheets. 146 houses were used, selected from 670 in the 4 villages. Findings: There were significant differences (p< 0.05) in sand fly densities between the mud, stick-walled houses and the corrugated iron sheet houses; the improved houses had fewer sand flies. The average density of sand flies in stick-walled houses ranged from 32 to 13 compared to 4 to 1 in corrugated iron sheet houses. Conclusion: The improved housing reduces the density of sand flies indoors; in turn reducing the vector–human contact hence reducing the chances of infective bites. This strategy is long lasting and has additional benefits to residents.
Determinants of Corporate Social Disclosures in Kenya: A Longitudinal Study of Firms Listed on the Nairobi Securities Exchange
(European Scientific Journal, 2017-04) Wachira, Muturi
This study which was exploratory in nature aimed to examine the extent to which firms listed on the Nairobi Securities Exchange disclosure social responsibility information and also to determine company and corporate governance variables that influence the Corporate Social Disclosures (CSD) practice in Kenya. Data on the disclosure index and company characteristics were obtained from the annual reports of the respective companies. A relationship between the disclosure index and the various company characteristics was determined. It was found that size, profitability, liquidity, industry in which a company operates have a positive influence on the level of CSD. In addition, a company that a dispersed ownership disclosed more information than a company with concentrated ownership. Gearing and country of origin were found to have no influence on the level of CSD

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