204 Records out of 22207 Records

Strategy evaluation and control at Ushuru Savings and Credit Cooperative Society Limited

Author: Juma, Joseph Hamisi

Awarding University: University of Nairobi, Kenya

Level : MBA

Year: 2012

Holding Libraries: University of Nairobi Jomo Kenyatta Memorial Library ;

Subject Terms: Strategic management/Ushuru Savings and Credit Cooperative Society Limited/Savings and credit cooperative societies ;

Abstract:

The business world is in the process of a global transformation. Mergers, acquisitions, outsourcing and downsizing are becoming common word everywhere. International boundaries are fading in importance as businesses take on a more global perspective (Stevens, 2000). Strategic management takes a panoramic view of this changing business terrain and attempts to show how large and small firms can be more effective and efficient not only in today's world but tomorrow as well. Strategic management is the set of managerial decisions and action that determines the way for the long-range performance of the company. It includes environmental scanning, strategy formulation, strategy evaluation and control, evaluation and control. The objectives of the study were to establish strategy evaluation and control practices at Ushuru Sacco and determine the factors that influence strategy evaluation and control practices at Ushuru Sacco. The research was conducted through a case study method. A sample of six persons from the top and middle management was interviewed in order to gain an insight into what response strategies that this level of management applied in order to deal with the changing the strategic evaluation and control system. Content analysis technique was used to analyze the data. The study found that to ensure compliance with the strategy can go a long way in helping the Sacco gain a competitive edge, help in defining the business of the Sacco and also help in achieving right direction. The study finally concludes that initiatives are taken by management in creating and sustaining a climate within the Sacco that motivates employees in their implementation role with managers paying as much attention to planning the implementation of their strategies as they give to formulating them. Since this study adopted the interview method as the primary data collection method, the researcher suggests that a study be carried out using other methods of primary and secondary data collection to see whether there will be difference in the results.

Application of credit default swaps to commercial banks

Author: Ikamari, Cynthia Amai

Awarding University: University of Nairobi, Kenya

Level : MSc

Year: 2012

Holding Libraries: University of Nairobi Jomo Kenyatta Memorial Library ;

Subject Terms: Credit management/Default/Bad debts/Swap arrangements/Commercial banks/Banking industry ;

Abstract:

Commercial banks contribute significantly to the growth of a nation's economy. The profitability of commercial banks is largely attributed to the interest charged on loans they advance to their customers. If these loans are defaulted, banks face the risk of collapsing and the entire economy will be threatened. Banks use credit derivatives to protect themselves against credit risk arising from loan defaulters. Loan defaulting has been and continues to be a cause of financial distress in the banking sector . both locally as well as globally. More efficient approaches of managing credit risk need to be looked into. In this study, the application of credit default swaps as a credit risk management tool in the banking sector is looked at. Credit default swaps are shown to effectively transfer risk from commercial banks to insurance companies. Data relating to loan facilities sought by individual companies was collected from a local commercial bank. Additional data relating to treasury and corporate bonds was collected from the Nairobi Stock Exchange. Data was analyzed using the Hull-White Model of credit default swap valuation. The study shows that commercial banks are able to manage their credit risk efficiently using credit default swaps. From the data analysis, the results show that by paying a premium 0 f 513 basis points per year for a credit default swap contract, a potential loss of up to Kshs. 17,291,275.61 is avoided. This shows that by using credit derivatives, the profitability ofa commercial bank is increased as large sums of money that would otherwise have been lost to loan defaulters is put into other income generating activities.

The effect of lending interest rates on the financial performance of savings and credit cooperative societies in Kenya

Author: Jonah, O George

Awarding University: University of Nairobi, Kenya

Level : MBA

Year: 2012

Holding Libraries: University of Nairobi Jomo Kenyatta Memorial Library ;

Subject Terms: Lending/Interest rates/Financial performance/Savings and credit cooperative societies ;

Abstract:

The SACCO subsector is part of the massive Kenyan co-operative movement comprising of both financial and non-financial cooperatives. SACCOs have played an important role in the development of the Kenyan economy which has led to the uplifting of the standards of living for the people. Through their SACCOs members are able to access quality edusation and medicare, funds for enterprise development, home purchase or construction and many other financial benefits through loans at reduced lending rates. The critical role of SAC COs in the country's economy at large has been recognized under vision 2030 for mobilization of savings and investments. Due to the rapid growth, the government committed itself to establish SACCO legislation, implement international financial performance standards and supervising SACCOs aimed at providing incentives for improvement of SACCO management and performance. In light of this, the study sought to establish the effect of the lending interest rates on the financial performance of SACCOs in Kenya. The study used a causal research design which relied on control factors. The study used secondary sources of data from published audited annual reports of accounts for the selected SACCOs. The performance of the SACCOs was analyzed using the net interest income, the net operating income and the return on equity. The SACCO performance for five years was compared against the annual average commercial lending rates as set by the Central Bank of Kenya. Data collected was presented using tables and figures and graphs. The data was analysed in Microsoft Excel 2007 version. The study confirmed that the financial performance of SACCOs is not affected by the changes in the commercial lending interest rates as set by the Central Bank. This is because the realized Net Interest Income (NIl), Net Operating Income (NOI as well as Return on Equity (ROI) for the sampled SACCOS did not increase or decrease with an increase or decrease of the lending interest rates.

Factors affecting women entrepreneurs' financial performance in Kenya : a case of Ngara market

Author: Gitari, Caroline Gatakaa

Awarding University: University of Nairobi, Kenya

Level : MBA

Year: 2012

Holding Libraries: University of Nairobi Jomo Kenyatta Memorial Library ;

Subject Terms: Women entrepreneurs ; Nairobi ; Credit ; Loan security ; Interest rates ;

Abstract:

The design of this research was descriptive survey research. The researcher targeted a population of 200 but sample 150 was obtained. A descriptive survey research seeks to obtain information that describes existing phenomena by asking individuals about their perceptions, attitude, behaviour or values. The data collected was analyzed using inferential statistics. After the data collection, the researcher was pre-processed the data to eliminate unwanted and unusable data which could have been contradictory or ambiguous, developed a coding scheme by creating codes and scales from the responses which then be summarized and analysed using Statistical Package of Social Science (SPSS). From the findings of the study most women entrepreneurs in the CBD Nairobi are of , youthful ages between 26-35 which is the most productive and energetic age group, in this age brackets is when most of the women entrepreneurs start businesses. At this point they have raised some capital from other sources. Another findings is the accessing of credit particularly for starting an enterprise is one of the major constraints affecting women entrepreneurs. Provision of soft loans is the major factor that hinders the women entrepreneurs in running the businesses effectively. They are either illiterate on how to access this financial aid, . Also lack of tangible security is another major blow to the women entrepreneurs in order to have access to any financial aid by the financial institutions who also charge high interest rates hence repayment and running the business at the same time becomes hard. The study recommends that the financial institutions should set some simple ways of accessing the fmancial facilities for the women entrepreneurs and give them at reasonable rate to enable them to repay with ease. The body of women entrepreneurs should carry out major seminars to educate the women on the major issues in running a business to success. They should also advice the women when it is necessary to take loan facility and how to go about it.

Micro-crediting for low income earners

Author: Gitonga, Barbara Daisy

Awarding University: University of Nairobi, Kenya

Level : MSc

Year: 2012

Holding Libraries: University of Nairobi Jomo Kenyatta Memorial Library ;

Subject Terms: Microfinance ; Credit ; Low income groups ;

Abstract:

ABSTRACT NOT AVAILABLE

The effects of access to finance on micro and small enterprises investment growth in Ongata Rongai township

Author: Gitau, Peter Macharia

Awarding University: University of Nairobi, Kenya

Level : MBA

Year: 2012

Holding Libraries: University of Nairobi Jomo Kenyatta Memorial Library ;

Subject Terms: Ongata Rongai ; Kenya ; Small business ; Credit ; Economic growth ; Literacy ; Security ;

Abstract:

MSEs play an important economic role in many countries. In Kenya, for example the MSEs sector contribution to GDP has increased from 14% in 1993 to about 20% in 2007 (Mbugua, 2010). Despite these contribution, MSEs face constraints like competition, access to finance, security, regulation and literacy that hinder them from growing into large enterprises. The objective of this study singled out access to finance as a constraint and sought to establish the effects of access to finance by MSEs in Ongata Rongai Township on their growth in investments. The study employed a descriptive design. The study used Secondary and Primary data where secondary data was sourced from reviewing MSEs existing records while a survey method was used to collect primary data to supplemented the existing information where a pre-designed questionnaire was used. Stratified random sampling was employed to collect data from 50 MSES where the data was analyzed descriptively and presented through figures, tables and percentages. A sample of 50 MSEs was selected from 25 forms of businesses in Rongai using Stratified random sampling technique. The collected data was analyzed using descriptive statistics and multiple regression analysis and presented through figures, tables and percentages. The findings indicated the following: MSEs face the following challenges; competition among themselves and from large firms, lack of access to finance, insecurity, regulation and human resources literacy among others. There was increase in assets when credit facility was first engaged and investment in assets grew with continued access to finance thus a positive relationship between access to finance and investment growth. On comparison to other constraints of MSEs investment growth, Access to Finance was ranked second after competition while the empirical results revealed that financial access, had the largest significance with an alpha of 0.358 followed by security with an alpha of 0.324, then came regulation at 0.253. The least but significant of the four variables was literacy with an alpha of 0.152. This shows that financial access remains a major determinant of MSEs investment growth. From the findings, the following conclusions can be drawn: First, financial access, Regulation, Security, Literacy, competition and other factors like transportation, high rent, and debt collection are all constraints that bar investment growth of MSEs. Secondly, in order of average contribution per MSEs, competition tops the list followed by financial access, security, regulation, and literacy levels in that order. Therefore access to finance plays a big part in determining the level of MSEs investment growth.

The influence of aid agencies in financial controls in Nairobi County

Author: Githinji, Godfrey Githuki

Awarding University: University of Nairobi, Kenya

Level : MBA

Year: 2012

Holding Libraries: University of Nairobi Jomo Kenyatta Memorial Library ;

Subject Terms: Nairobi County ; Financial performance ; Access to credit ; Economic growth ;

Abstract:

Financial control can directly contribute to poverty reduction in developing countries in a number of ways. First, by addressing the causes of financial market failures such as information asymmetry and the high fixed cost of lending to small borrowers, financial control can improve the opportunities for the poor to access formal finance (Jalilian and Kirkpatrick.Cfhll ). Second, a sound financial system enables the poor to access financial services, particularly credit and insurance-risk services, thereby strengthening the productive assets of the poor, enhancing their productivity and increasing the potential for achieving sustainable livelihoods (World Bank, 2001; Jalilian and Kirkpatrick, 2001). This study was motivated by the need to establish the impact of the Aid agencies on the financial control in Nairobi County. The study adopted a descriptive research design. The pilot study was first done to ensure validity and reliability of the results and findings. The data was collected using questionnaires from the Aid agencies respondents in Nairobi County. The collected data was first checked for completeness and edited to increase the accuracy and produce reliable findings. It was then coded and analyzed using descriptive statistics such as mean and standard deviation. The study findings indicate that, Aid agencies influence the financial control in Nairobi County substantially. The Aid agencies improve the financial systems of the Nairobi County by providing social development funds, lending funds for development and offering loans for development to the investors. The Aid agencies should be involved in financial system so as to improve the economy, minimize the prevalence of fraud cases and ensure monetarypolicies are well implemented in the country. The findings of this study will form a basis for policy formulation on monitoring and evaluation of management of financial aids from aid agencies in Kenya. From the study findings, most of the Aid agencies are not involved in maintenance of the finance records. This study recommends that training and campaigns should be done by the Aid agencies to ensure that the staff are well trained on how to maintain and keep finance records updated.

The relationship between credit information sharing and economic growth in Kenya

Author: Gettee, Jerry Anderson

Awarding University: University of Nairobi, Kenya

Level : MBA

Year: 2012

Holding Libraries: University of Nairobi Jomo Kenyatta Memorial Library ;

Subject Terms: Credit ; Information sharing ; Economic growth ; Credit bureaus ; Nonperforming loans ; Commercial banks ;

Abstract:

This study set out to establish the relationship B'etween Credit Information Sharing and Economic Growth in Kenya. In Kenya there exist two licensed Credit Reference Bureaus that facilitate Sharing of information. The type of information shared for clients are both negative and positive; however it is not clear on the efficacy of these two bodies in fulfilling their goal. This study thus set out to explore the problem of Economic Growth in Kenya due to asymmetric sharing of information on clients' specifically, on defaulted loans, totals arrears and total loan exposures. Theories predict that information sharing among lenders attenuates adverse selection and moral hazard and can therefore increase lending and reduce default rates. Limits to information-sharing on the financial history of borrowers exist mainly because of credit institutions fear of competition. Poor loan quality has its roots in the informational challenges which afflict financial markets developing economies are the worst affect. The study used causal relationship design while the population constituted registered and operational commercial banks as at 31 st December 2004 licensed to carry out banking business under the Banking Act Cap 488 Part II sec(4)(5). The research study utilized both secondary and descriptive analysis. Quantitative data on non-performing loans for the commercial banks extracted from annual reports, respondents, the 43 Commercial banks, the Central Bank of Kenya, Kenya Institute of bankers Association Offices and the two Credit Reference Bureaus in both electronic form-from the websites of the respondents and a physical visit to the respondents to request relevant information. This analysis was done with the Statistical Package for Social Sciences (SPSS) Computer Software for analysis of responses and a report on the finding was written. The study concludes that, sharing of clients' information among Commercial banks and individuals helps reduce the level of non-performing loans advanced by Commercial banks.

Credit risk management strategies, organizational factors and performance of micro finance institutions in Kenya

Author: Goko, Tabby W

Awarding University: University of Nairobi, Kenya

Level : MBA

Year: 2012

Holding Libraries: University of Nairobi Jomo Kenyatta Memorial Library ;

Subject Terms: Credit risk ; Credit management ; Microfinance institutions ;

Abstract:

The study was on the credit risk management strategies, organizational factors and performance of micro finance institutions in Kenya. The study was anchored on the asymmemc information theory which brings about problems of moral hazard and adverse selection. As a result, risk management is increasingly becoming an important indicator of success of financial institutions. The study had two objectives; first, the effect of credit risk management strategies on performance of MFIs and secondly, to determine the effect of organizational factors on the relationship between credit risk management strategies and 1-1FI performance. Credit risk management strategies were operationalized as borrower screening and monitoring, long-term customer relationship, credit rationing and loan product diversification. Performance was measured in terms of volume of loans, number of loanees, volume of delinquent loans and ratio of non-performing loans to performing loans. Organizational factors were age, size and management structure of MFIs.The study adopted a descriptive crosssectional correlation survey design. The target population of the study was all the 33 MFls registered with Association of micro finance institutions in Kenya (AMFI) with the target respondents being the credit Iloan officers. The study analysed data through descriptively as well as through zero order correlation, first order partial correlation and multiple regression Factor analysis was employed to determine underlying factors for credit risk management strategies, management structure and performance. The study found out that there is a significant negative correlation between borrower screening and monitoring and volume of delinquent loans (P-value=O.OOl). The portion of performance that does not depend on the credit risk management strategies was also significant (P-value=O.03). In addition, the organizational factors significantly moderate the relationship. However, the direction and magnitude of moderation varies. The study recommends that MFls keen on improving performance should aim at enhancing borrower screening and monitoring and size as well as adopt inflexible structure. The policy implication of the study is that policies to enhance borrower screening and monitoring should be incorporated into the processes and system design of MFIs. Suggestions for further research are also given.

Credit evaluation model using Naive Bayes Classifier : a case of a Kenya commercial bank

Author: Choge, Josphat Kipchumba

Awarding University: University of Nairobi, Kenya

Level : MSc

Year: 2012

Holding Libraries: University of Nairobi Jomo Kenyatta Memorial Library ;

Subject Terms: Nalve Bayes Classifier ; Commercial banks ; Credit ratings ;

Abstract:

With the increasing demand for credit facilities for the purpose of development, more and more financial institutions are being established to cater for the need. Acquiring these facilities from the institutions sometimes prove slow and inefficient due to the model adopted for credit evaluation. Reliance on traditional methods for instance, a checklist of bank rules, conventional statistical methods and personal judgment in evaluating credit worthiness makes the process slow and such judgments could be biased. Effective models are required to help mitigate these day-to-day challenges. This study examines the relevance of Nalve Bayes Classifier as an enabling tool in credit decision that cal) automatically evaluate credit applications based on customer's biographic, demographic and behavioural characteristics. Data used is obtained from one of the commercial banks in Kenya. Feature selection is performed on the data in order to eliminate redundant and less relevant variables. A model using Nalve Bayes Classifier algorithm is developed and its classification performance evaluated. Results show that Naive Bayes Classifier can be used as a credit decision tool that can speed up and improve efficiency of the process. It also shows that using significant variables improves the model's classification performance. The classification accuracy obtained indicates that the classifier has ability to correctly classify credit applications thereby identifying 'bad' credit applications at an early stage hence reducing loss of revenue. Implementation of such model in Kenyan commercial banks can be helpful for the decision making process.