Economic Factors Affecting Consumer Purchasing Decisions in the Kenya Motor Industry

This study aimed at establishing the economic factors affecting consumer purchasing decisions in the Kenya motor industry The independent research variables were motor vehicle cost, consumer income level and consumer credit access. The dependent variable was consumer purchasing behavior. The main research question was whether economic factors affect the consumer purchasing decisions in the Kenya motor industry. Using descriptive research design, correlational analysis and primary data that was centered on a target population of 92,157 buyers of the 107,499 cars that got new registration numbers in Kenya in the year 2021, the study adopted a sample size of 398 respondents as derived from the Solvin’s formula through whom the questionnaires were distributed. The study findings reveal concluded a statistically significant strong negative relationship between motor vehicle cost on consumer purchasing decisions. The study also concludes that both consumer income and credit access has a statistically significant positive relationship on consumer purchasing decision. Keywords: economic factors, consumer purchase decisions, motor industry in Kenya DOI: 10.7176/JESD/15-2-03 Publication date: January 31st 202

The Traditional Theoretical View of Preference Theory

This paper reviews the State preference theory from a traditional perspective. It explains the model under which the state preference theory and gives rigorous explanations of the assumptions and their normative explanations.  The paper goes further to reflect its focus on the state preference framework and also explains the aspects of state prices and their relation to aggregate wealth. The paper gives a technical view of risk neutral valuation in relation to state preference theorem, insights that allows for transforming of the state prices into a common discount factor known as risk neutral probabilities. The paper looks touches on a few criticisms and finally concludes that the model provides an elegant and general framework for the analysis of financial markets and yields a pricing rule for securities. The state preference theory is remarkably acknowledged for providing useful addition knowledge to a financial economist’s toolkit and with a basic understanding of financial markets and prices that forms the bread and butter of financial management candidature. Key words:State Preference, State Prices, risk neutral, valuatio

Role of Credit Reference Bureau On Financial Intermediation: Evidence from The Commercial Banks in Kenya

This study discusses the role of the Credit Reference Bureau on financial intermediation among the commercial banks in Kenya. The study uses a descriptive survey research design. The study population consists of all the 45 commercial banks licensed by the central bank of Kenya under the banking act as at 31st May 2019. The study adopts a census population approach to study all the banks. The study uses secondary data collected from annual supervision reports of CBK, and the respective bank's audited accounts relate to the total loans, total non-performing loans, and interest earned on investments. Also, the credit reports done annually by reference bureaus were used to obtain data for the period between 2010 and 2018. Quantitative data collect was analyzed using the latest SPSS software, version 22.0. The study applies both descriptive and inferential statistics. Results generated are then presented in tables and explanations given in prose. Inferential statistics included the Pearson correlation analysis and Correlational relationships among the number of loans offered defaulted loans and the interest earnings on loans by commercial banks bank in Kenya. Linear regression analysis was conducted to establish the significance of the variables. ANOVA was used to test the relationship between independent variables and dependent variable. The Chi-Square test was also performed. Both the mean of the study and the mean before the introduction of CRB were used to check if there is a statistical difference between the means. The study establishes that credit reference bureau checks have a role in the financial intermediation (non-performing loans) in commercial banks in Kenya. Further, the study found that non-performing loans have a negative correlation with credit reference bureau checks. It can, therefore, be concluded that a relationship exists between credit reference bureau information and the level of financial intermediation as shown through non-performing loans in Kenya commercial banks

Key Drivers of Public Sector Audit Effectiveness in Kenya and Lessons for Developing Economies

This study explores the key factors influencing the effectiveness of public sector audits (PSA) within Kenya's national government and affiliated entities. Focusing on the role of institutional corporate governance, professional and technical competence, resource availability, and internal control processes, this research analyzes data from the Office of the Auditor General's 2021/2022 audit reports. Using a descriptive design and content analysis, 43 financial statements were examined to assess how these determinants impact audit outcomes. Findings indicate that professional and technical competence has the most significant positive impact on PSA effectiveness, followed by strong corporate governance and robust internal controls. Interestingly, resource availability showed a negative correlation, suggesting that merely increasing resources without strategic allocation may not enhance audit performance. These insights highlight the need for targeted training and improved governance structures to strengthen Kenya's audit capabilities and enhance public accountability. Keywords: Audit, Auditee, Financial Management, Financial management systems, corporate governance, Competence. DOI: 10.7176/RJFA/15-10-02 Publication date: November 30th 202

Challenges Facing Micro and Small Enterprises in Accessing Credit Facilities in Kangemi Harambee Market in Nairobi City County, Kenya

Micro and Small (MSEs) play an important economic role in many countries. In Kenya, for example the MSE sector contributes over 50 per cent of new jobs created but despite their significance. The purpose of this study was to determine the challenges facing Micro and Small Enterprises in accessing credit facilities in Kangemi Harambee Market in Nairobi City County, Kenya. The study used descriptive research design. The study targeted a sample of 241 from a target population of 656 MSEs located in Kangemi Harambee market. Stratified random sampling was utilized in selecting the respondents for the study. Primary data was collected from the study respondents using questionnaires which wereself-administered and others researcher administered. Data was analyzed descriptively and presented through figures, tables, percentages, bar charts, arithmetic means, standard deviations, pie charts and tabulation to show differences in frequencies. Statistical Package for Social Sciences (SPSS) version 21.0 was used to aid in coding, entry and analysis of quantitative data obtained from the closed ended questions. The study revealed that the key challenges hindering micro and small enterprises from accessing credit facilities to be high cost of repayment, strict collateral requirements, unwillingness of people to act as guarantors, high credit facilities’ processing fees and short repayment period. Therefore it is recommended that financial institutions set more flexible, affordable and attractive requirements in financing micro and small enterprises

Cognitive Campaign Biases, Political Decisions and Consequences

The main purpose of this review study was to examine the relationship between cognitive campaign biases, political decisions and consequences. Relevant information to complete the research was obtained through a desk top research technique was adopted whereby available secondary data relating to the concept of cognitive campaign biases, political decisions and consequences was analyzed. Important information from available secondary sources including published academic documents, reports as well as other available materials online or in libraries was critically analyzed. The review study determined that cognitive campaign biases have a substantial role in determining the political choices that individuals make. In addition, it was determined that cognitive campaign biases exist primarily in the concept of framing which is the social construction of political or social movements with a positive or negative representation. The review study recommends that cognitive campaign biases should be restricted as they tend to indoctrinate people mind causing them to vote in unwise manner and thereby bringing suffering to themselves and the society at large. Keywords: Cognitive Campaign, Political Decisions, Cognitive Biases DOI: 10.7176/PPAR/13-6-05 Publication date:October 30th 202

Impact Investing and Sustainable Livelihoods of Dairy Farmers at Githunguri Sub County, Kiambu County in Kenya

The study sought to establish the effect of impact investing on sustainable livelihoods of dairy farmers operating in Kenya. The study focused on impact investing practices comprising of microfinance products, contract farming and environmental conservation practices. A descriptive research design was adopted in the study. The target population comprised of 22,644 farmers distributed in the 5 Wards of Githunguri Sub County in Kiambu County, Kenya. Yamane Sampling formula was utilized in deriving a sample of 398 respondents where stratified random sampling technique was adopted to randomly select the sample in the 5 wards. Quantitative data was utilized in the study and was collected through a structured questionnaire. Both descriptive and inferential statistics were employed in analyzing the gathered data. SPSS software was utilized in generating the statistics. The analysis results established that microfinance products and contract farming bear positive and significant effects on sustainable livelihoods of dairy farmers operating in Githunguri Sub County, Kiambu County. Environmental conservation practices were found to have a positive but insignificant effect on sustainable livelihoods of dairy farmers. Keywords: Microfinance Products, Contract Farming, Environmental Conservation Practices DOI: 10.7176/RJFA/14-16-03 Publication date:August 31st 2023

Effect of Bank Specific Factors on Default Risk among Commercial Banks in Kenya

Risk of defaulting has been on the rise globally with nonperforming loans of commercial banks increasing for the last decade. Similar trends are seen locally with commercial banks recording an increase in non-performing loans. The central bank of Kenya supervision annual report indicated that the ratio of non-performing loans to gross loans has tremendously increased. These figures reveal a deteriorating trend in default risk which is not healthy to the performance of the commercial banks and the overall financial adequacy of the economy and therefore provides the impetus for conducting this study. The study therefore sought to determine bank specific factors that influence default risk among commercial banks in Kenya. A descriptive survey design was adopted. The study targeted all the 40 operational commercial banks in Kenya by the year 2018. The study used secondary data extracted from the annual financial reports of the CBK from the year 2013 to the year 2018. The study found that credit growth and interest on loans had a positive and significant effect on default risk among commercial banks in Kenya. However, management efficiency had a negative and insignificant effect on default risk among commercial banks in Kenya. In addition, inflation partially moderated the relationship between bank specific factors and default risk among commercial banks in Kenya. The study concluded that high amount of credit borrowed in a bank led to high non-performing loans. In addition, high interest rates charged by commercial banks causes increase in the non-performing loans. The study recommended that banks should minimize their lending interest rates. This will enable the borrowers to be able to pay the borrowed loan and thus minimize the default risk. Banks should further ensure that their assets and earning are well managed so as to minimize their loan risk. Keywords: Management efficiency, interest rates, credit growth, inflation, default ris