Willy Muturi

Jomo Kenyatta University of Agriculture and Technology, Economics, Faculty Member

Followers

190

Following

Co-authors

Public Views

Interests

Uploads

Papers by Willy Muturi

Moderating Effect of Ownership Structure on the Relationship between Working Capital Management Decisions and Financial Performance of Tea Firms in Kenya

International journal of finance, Oct 2, 2022

The general objective of this research study was to examine the moderating effect of ownership st... more The general objective of this research study was to examine the moderating effect of ownership structure on the relationship between working capital management decisions and financial performance of tea firms in Kenya. Expansive research studies are available on the strategies employed by tea firms to boost their financial performances. However, Very minimal of these research studies are geared towards the contribution of working capital management decisions employed by these companies within the tea sector in Kenya. The study employed a correlational research design. The data was collected was collected from the audited financial statements of all the multinationals and KTDA managed tea firms in Kericho, Bomet and Nandi counties of Kenya. The data was analyzed by employing both descriptive and inferential statistics. Findings: This research study revealed that there exists a moderating effect of ownership structure on the relationship between working capital management decisions and financial performance of tea firms in Kenya. The research study recommended that the KTDA managed tea firms should be advised to adopt the strategies employed by multinational tea firms in order to boost and improve their financial performance. Tea firms are strongly cautioned against increasing accounts receivables period, accounts payables payment period and inventory conversion period because this would minimize their financial performance in the long-run.

Download

Effect of Investment Decisions on Financial Performance of Deposit-Taking Savings and Credit Cooperative Societies in Nairobi County, Kenya

Strategic Journal of Business & Change Management, Oct 14, 2019

The General objective of this research was to assess the effect of investment decisions on financ... more The General objective of this research was to assess the effect of investment decisions on financial performance of microfinance firms in Kenya. The specific objectives of this project was to establish the effect of expansion decision and research and development decision on financial performance of microfinance firms in Kenya. The population was composed of all the registered 14 microfinance institutions in Kenya. Correlation and multiple regressions were employed as the analytical tools. The study was driven by the absence of laborious studies that address the dynamics of the financial performance in microfinance institutions in Kenya. The research was also motivated by the mixed results that various previous researchers got for the same types of the variables. The study also will help other researchers as a source of reference and as a stepping stone for those who want to make further study on the area afterwards. It will also contribute to the understanding and stabilization of the financial sector of the economy and the society as a whole. It will also give all stakeholders in the sector an opportunity to gain deep knowledge about the relationship of investment factors and financial performance of microfinance institutions in Kenya. The study found that expansion decision and investments in research and development had positive and a statistically significant effect on performance of microfinance banks. The study recommends that there should be development of policies around the activities of microfinance institutions to ensure that there is continuous renewal decision, replacement decision, expansion decision and research and development. There should also be an establishment of good microfinance institutions structures that will ensure that the activities of various microfinance institutions are focused towards expansion decision research and development. The study recommends that both the management and other interested players ensure that expansion decision, research and development are aligned with the long term goals of these institutions.

Download

Effect of interest rates and capital adequacy on financial distress in deposit taking savings and credit cooperative organizations in Kenya

International Journal of Academic Research and Development, Mar 1, 2019

Role of community participation on primary education service delivery in Puntland State-Somalia

International Journal of Advanced Research and Development, Dec 1, 2016

Effect of Profitability on Capital Structure Choice for Commercial Banks Operating in Kenya

Strategic Journal of Business & Change Management, Apr 16, 2019

The purpose of the study was to explore the effect of profitability on capital structure choice f... more The purpose of the study was to explore the effect of profitability on capital structure choice for commercial banks operating in kenya. A correlational research design was used to measure the relationship between the firm profitability and the capital structure choice. The study used secondary data over the period 2004-2013 from 39 commercial banks’ annual financial reports filed with the Central Bank of Kenya. The data was analysed using Statistical Package for Social Sciences (SPSS) using multiple linear regression models to test the relationship between the firm profitability and the capital structure choice (debt-equity ratio). The study found that firm profitability had significant effect on the capital structure choice and exhibited a negative and linear correlation with capital structure choice. The study further found that there was a significant moderating effect of ownership on the capital structure choice. The study recommended that future studies could extend these findings by seeking to; establish the effects of interest rate capping on credit access among commercial banks in Kenya, determine the role of financial supermarket model on the bank profitability in Kenya and explore the impact of mergers and acquisitions on the performance of commercial banks in Kenya. Keywords: Capital Structure, Weighted Average Cost of Capital, Profitability CITATION: Kimoro, J. N., Muturi, W., & Gekara, M. (2019). Effect of profitability on capital structure choice for commercial banks operating in Kenya. The Strategic Journal of Business & Change Management, 6 (2), 323 – 332.

Does Financing Policy Decision Influence Firm Performance a Kenyan Perspective

The relationship between financing policy and firm performance in Kenya needs to be studied. Ther... more The relationship between financing policy and firm performance in Kenya needs to be studied. There is need to establish finance management decision influences the corporate performance of listed companies in Kenya. Using correlation research design, the study sought to investigate the relationship between financing policy and firm performance among listed companies in 2009 to 2013. Specifically the study sought to establish the relationship between leverage and firm performance among listed companies in NSE. To determine the relationship between working capital policy and firm performance among listed companies in NSE. To find out the relationship between dividend policy and firm performance among listed companies in NSE. To establish the relationship between investment policy and firm performance among listed companies in NSE. The target population of this study was all the 64 listed companies in Kenya. The study was based on secondary data which was collected from the published annual reports for listed companies spanning five years (2009)(2010)(2011)(2012)(2013). Both Microsoft excel and E views 8 will be used to analyse the data. Descriptive statistics such as mean, median and standard deviation will be used to summarize the data. Inferential statistics such correlation analysis will be used to test the strength of the relationship between financing policies and firm performance while regression analysis will be used to test the nature of the relationship between financing policies and firm performance.

Download

Influence of Firm Financial Characteristics on Leverage of Non-Financial Listed Companies in Nairobi Securities Exchanges

Zenodo (CERN European Organization for Nuclear Research), May 31, 2019

Listed and non-listed institutions are always in need of finances geared towards enhancing their ... more Listed and non-listed institutions are always in need of finances geared towards enhancing their firm performance which has a pivotal role in the relationship they will enjoy internally and externally. The ability of an organization to invest borrowed capital on projects with a higher return on investment has a significant impact on shareholders wealth maximization. Panel regression modelling revealed the positive influence of firm size and profitability and inverse influence of tangibility and growth opportunities on the leverage of listed nonfinancial companies in Nairobi securities exchanges.

Download

Relationship Between Information Asymmetry and Access to Finance by small and Medium Enterprises in Kenya

International Journal of Advanced Research in Management and Social Sciences, 2016

Information asymmetry occurs where one party of an enterprise has more or better information than... more Information asymmetry occurs where one party of an enterprise has more or better information than the other. The primary objective is to remove asymmetric information. It is argued that information asymmetry can be removed by a high quality audit. This study examined the differences between the enterprises audited by Big Four audit companies that were employed for measuring the quality of audit and the enterprises not put into such audit in terms of information asymmetry variables. The enterprises audited by four big audit companies, which were argued to make a high quality audit, were compared with other enterprises in terms of 6 variables used in the measurement of information asymmetry. The study was conducted on manufacturing industry enterprises traded at Istanbul Stock Exchange (Note 1). The variables of the independence of the board of directors, market value/book value, and Tobin Q were found to be statistically different in two separate enterprise groups. However, the study yielded results contrary to those reported in the literature.

Download

Relationship between internal factors and customer satisfaction in the health sector: A case of national hospital insurance fund

Customer satisfaction is a measure of how products and services supplied by a company meet or sur... more Customer satisfaction is a measure of how products and services supplied by a company meet or surpass customer expectation. It focuses on measuring customer perception of how well the organization delivers on the critical success factors and dimension of the business. This study sought to establish relationship between internal factors and customer satisfaction in the health sector in Kenya focusing on National Hospital Insurance Fund. Specifically the study sought to establish the relationship between corporate governance, customer relationship management, information management and employee empowerment on customer satisfaction at NHIF. The study targeted a sample of 384 respondents who were drawn from the customers of NHIF. A selfadministered questionnaire was used to gather primary data. The questionnaire was based on a five point likert scale. This study used simple random sampling to reach the target respondents. Statistical Package for Social Sciences (SPSS) was used to produce frequencies, descriptive results while STATA was used to produce inferential statistics which were used to derive conclusions and generalizations regarding the subject of study. Regression results indicate that corporate governance has no significance on customer satisfaction while employee empowerment, CRM and information management have significance in explaining customer satisfaction. The latter implies that an increase in either would result in an increase in customer satisfaction. Recommendations from the study were aligned to NHIF management in that they should be more transparent in their transactions by frequently announcing changes or improvements in their structures, they should improve CRM through trainings and workshops for their staff, it was recommended that they should keep tabs on the latest technologies to keep in pace with the ever changing technological needs and also come up with initiatives that would empower their employees such as fostering open communication, rewarding improvement, require accountability and defining roles.

Factors Influencing Effective Implementation of Rural Electrification Program in Uganda: A Case of West Nile Region

Strategic Journal of Business & Change Management, Nov 10, 2015

Determinants of Gross Domestic Savings in Kenya (1970-2013)

were significant determinants of gross domestic savings whereas real interest rates (RIR) was not... more were significant determinants of gross domestic savings whereas real interest rates (RIR) was not a significant determinant of gross domestic savings. The overall findings of the study underlined the importance of adopting a strict monetary policy to maintain money supply within manageable levels and ensure stable and low inflation rates which would help improve real incomes and would also cause development in the financial sector and hence improve gross domestic savings in the economy. Further, the government should formulate policies to stimulate growth in GDP.

Download

Econometric Data Analysis Affecting Performance of Supply Chain Systems in the Petroleum Industries in Kenya

Industrial Engineering Letters, 2015

The purpose of this paper was to do econometric data analysis on performance of supply chain syst... more The purpose of this paper was to do econometric data analysis on performance of supply chain systems in the petroleum industries in Kenya. Specifically, the objectives of the study were to establish whether there is any effect from; level of skills, information and communication technology and tendering systems and the moderating factor have an effect on supply chain systems performance. The study was conducted using a survey design. The total population of all oil companies in the 73 was covered by the study. Several studies were carried to validate the final findings. Finally, this statistics concluded that there is need to do econometric data analysis to validate the effect of supply chain systems on performance by doing proper forecasting from the up streams to the down streams towards achieving a competitive edge in the business markets such as the petroleum industry. The econometric analysis focused on the these areas; Information functions in order to inform management, support decision making and to identify problem areas; Steering function in order to set targets and give directions to desired outcomes; Controlling function in order to supervise process execution.

Download

Effect of Working Capital Management Practices on Financial Performance of Retail Firms in Garowe, Puntland State of Somalia

Research Journal of Finance and Accounting, 2018

This study adapts a cross sectional survey method to establish the effect of working capital mana... more This study adapts a cross sectional survey method to establish the effect of working capital management practices on the performance of retail firms in Puntland State of Somalia with specific reference to retail firms located in Garowe, the Headquarters of the Puntland State of Somalia. It covers a five-year period 2012-2015. It relies on four theories namely agency theory, and corporate governance theory to help explain how the financial management practices affect financial performance. A descriptive research design is used in the study. The target population of the study are 61 medium to large scale retail firms located in Garowe as at June 2017. Accordingly, purposive sampling based on the firms that prepare financial accounts is used to study a sample of 53 retail firms determined based on Slovin's formula. Both descriptive and inferential statistics are used in the evaluation. Descriptive findings show that retail firms in Puntland State of Somalia generally have a poor financial performance as indicated by a low mean return on assets. The performance however varies widely across the firms as indicated by a very high coefficient of variation. Inferential statistics indicate that the null hypothesis that working capital management practices have no effect on financial performance is rejected as it is found to have a positive effect on financial performance. The study covered only retail firms in Puntland State hence it is recommended that a similar study be carried out not only for other types of firms like financial institutions, but also adapts a wider geographical scope to cover the whole of Somalia.

Download

Influence of Liquidity on Financial Performance of Insurance Companies in Kenya

Journal of Agricultural Science and Technology, Nov 5, 2021

Money Supply, Inflation Rate, Exchange Rate and Growth of Domestic Private Investment in Kenya

International Journal of Sciences: Basic and Applied Research, Jul 27, 2021

The objective of the study was to evaluate the effect of selected macroeconomic variables on the ... more The objective of the study was to evaluate the effect of selected macroeconomic variables on the growth of the domestic private investment. The study used a time series quarterly data spanning 1997 t0 2018. Autoregressive Distributed Lag (ARDL) model was adopted to examine if changes in select macroeconomic variables determine the growth of domestic private investment in Kenya. These selected macroeconomic variables are; central bank rate, the repo rate, t-bill rate, money supply, exchange rate, and inflation. The bound cointegration testing procedure revealed the existence of a long-run cointegration. The long-run cointegrating model estimated shows that private domestic investment varies significantly and negatively with the central bank rate and the commercial lending rate as well. However, an increase in the money supply increases the level of investment. Another significant observation is that moderate inflation is critical in increasing the level of investment. These results point to one critical revelation; monetary policy conduct is essential in driving private domestic investment. An error correction model shows that 62% of deviation from the cointegration path is corrected with a quarter.

Download

Effects of Financial Risk on Profitability of Commercial Banks Listed in the Nairobi Securities Exchange

Profitable and strong banking system promotes broader financial stability and increases the econo... more Profitable and strong banking system promotes broader financial stability and increases the economy's resilience to adverse macroeconomic shocks. The very nature of the banking business is so sensitive because more than 85% of their liability is deposits from depositors. The current challenges' facing the financial services industry includes customer retention, financial risk, legal and compliance risk, strategic risk, technological risk and stiff competition from MFIs, mortgage firms and SACCOs. The problem facing Kenyan banking sector focused in this study is the effect of financial risk on the profitability. This study therefore seeks to fill the existing research gap by conducting study to establish the effects of financial risk on profitability of commercial banks listed in the Nairobi Securities Exchange. The study used quantitative research design. Time Series Cross Sectional (TSCS) data was used to establish the effects of financial risk on profitability of commercial banks listed in the Nairobi Securities Exchange. Panel data estimation technique was adopted because it takes care of heterogeneity associated with individual banks by allowing for individual specific variables. The target population of this study comprised of all the 11 commercial banks in Kenya that are listed in the Nairobi Securities Exchange. The study employed secondary data that was extracted from audited financial statements and annual reports of listed commercial banks over the 10-year period, 2007 to 2016. This data was collected through a data collection form. Data was obtained for the last ten years (2007 to 2016).The secondary data was quantitative in nature (continuous data). The collected quantitative data was edited and coded and entered into a Stata version 14 for analysis. Both descriptive and inferential statistics was used to analyses the quantitative data. In descriptive statistics, the study used frequency distributions, mean, standard deviation and percentages. The time series analysis tests that were performed on the model include correlation analysis, normality test, Heteroscedasticity Test, Autocorrelation, Linearity test, Stationarity and Unit Root Test and Co-integration test. The study established that there was a strong correlation between profitability and credit risk; this strong relationship was found to be statistically significant. The study found that an increase in market risk would lead to decrease in profitability. The study revealed there was strong correlation between profitability and market risk. The study found that an increase in credit risk would lead to decrease in profitability. The study found that increase in liquidity risk would lead to decrease in profitability. The study also found that liquidity risk was statistically significant in affecting profitability of commercial banks. The study revealed that an increase in operational risk would lead to decrease in profitability. The study further revealed that there was statistically significant in affecting profitability of commercial banks. The study recommends there is need for the management of commercial bank to control their credit risk, through non-performing loan level as it was revealed that credit risk negatively affect the financial performance of commercial banks in Kenya. The management of commercial banks in Kenya should hedge against market risk as it was found that market risk negatively affect the profitability of commercial bank in Kenya.

Download

Transformational Leadership Style and Public Participation in the County Governments in Kenya

Global Journal of Management and Business Research, Feb 24, 2021

The purpose of this study was to determine the influence of transformational leadership style on ... more The purpose of this study was to determine the influence of transformational leadership style on public participation in the county governments in Kenya. Methodology: The study adopted both descriptive and explanatory research designs. The study population comprised citizens who are registered voters in all the 47 counties in Kenya. A two stage sampling technique was used to select 8 counties and a sample of 400 respondents to participate in the study. A pilot test was conducted to detect and correct weaknesses in design and instrumentation. Of the 400 respondents, 296 completed the questionnaires properly giving a response rate of 74%. Cronbach's alpha was used to test for internal reliability of the survey items used in the study. Descriptive statistics, Pearson's correlations and regression analysis were used for data analysis.

Download

The Influence of Commercial Banks’ Technological Innovation Lending Strategy on the Growth of Smes in Kenya

Journal of business and strategic management, Feb 6, 2017

The purpose of the study was to establish the influence of commercial banks' technological innova... more The purpose of the study was to establish the influence of commercial banks' technological innovation lending strategy on the growth of MSEs in Kenya. Methodology: The researcher used purposive sampling to select respondents. The sample size was comprised of 352 respondents. The study used questionnaires to collect data from the field. Both quantitative and qualitative data gathered was coded and analyzed using Statistical Package for Social Sciences (SPSS) computer software. Descriptive statistics was used to analyze the data in frequency distributions and percentages which were presented in tables and figures. Inferential statistics were used to analyze qualitative data. Results: The study found out that commercial banks' technology and innovation have a positive and significant effect on MSEs growth (r=0.505, p=0.023).

Download

Effect of Railway Network Inefficiencies on Business Operations of Tata Chemicals Magadi, Mombasa in Kenya

International journal of business strategies, Oct 11, 2016

The purpose of this study was to investigate the effect of railway network inefficiencies on busi... more The purpose of this study was to investigate the effect of railway network inefficiencies on business operations of Tata chemicals Magadi, Mombasa in Kenya. Methodology: This study adopted a descriptive survey design. The target population of this study was the 450 employees of TATA Chemical Magadi Ltd. The study used a sample of 135 employees. The study employed stratified random sampling to identify the 135 respondents. The strata were those of top management, middle management/supervisors and non-managerial employees. Primary data was used to gather information by use of questionnaires. Information was sorted, coded and input into the statistical package for social sciences (SPSS 20) for production of descriptive and inferential statistics. Results: Results on the analysis of variance showed that the overall model was statistically significant and that the independent variables were good predictors of performance. This was supported by an F statistic of 71.69 and the reported p value (0.000) which was less than the conventional probability of 0.05significance level. Descriptive results indicated that inefficiencies of Kenya Railway Corporation greatly affect production targets, customer satisfaction, sales targets and equipment utilization in Tata chemicals Magadi Ltd which in turn affects the performance of the company. Unique contribution to theory, practice and policy: The government should allocate additional annual budget to the Kenya Railways Corporation to provide efficient means of transporting freight between cities and towns. Additionally, management of Tata Chemicals Magadi Ltd should exercise stronger leadership to enhance long term planning and disaster management to avoid loss to customers and manage its efficiency.

Download

Determinants of House Price by Real Estate Agencies in Eldoret Municipality, Kenya

Strategic Journal of Business & Change Management, Nov 8, 2019

Real estate pricing deals with the valuation of real estate and all the standard methods of deter... more Real estate pricing deals with the valuation of real estate and all the standard methods of determining the price of fixed assets apply. House prices are limited and determined by various factors. The purpose of this study was to assess the determinants of house prices of real estate agencies in Eldoret municipality in Kenya. The study was guided by three objectives; to establish the effect of location on house prices, to establish the effect of demand on house prices and to establish the influence of cost of production on house price. To achieve the objective of the study a descriptive research design was adopted. The target population was 30 respondents of real estate agencies in Eldoret Municipality. Both primary and secondary source of data were utilized. Inferential and descriptive statistics were used to analyze the data and the results were interpreted and presented using percentages and frequency distribution. Regression analysis was used to establish the extent to determinants influence house prices. The study found out that location has a positive influence on house prices, demand has a positive influence on house prices and real cost of production has a positive influence on house prices. Based on the findings, the study recommended that the government should regulate real estate sector by putting proper measures to tame insanity in the market to prevent price shock of houses in future, when developers/investors are buying land for development they should consider location access to social amenities, infrastructure to avoid losses in their investment portfolio. The study also recommended that real estate developers should consider the composition of the population so that they can produce houses targeting their client’s need. Key Words: House Locations, House Demand, Cost of Production, Real Estate value CITATION: Nyambane, O. M., & Muturi, W. (2019). Determinants of house price by real estate agencies in Eldoret Municipality, Kenya . The Strategic Journal of Business & Change Management, 6 (4), 1185– 1200

Willy Muturi

Uploads

Papers by Willy Muturi

Log In