COHRED

Strategic Management Practices and Performance of Savings and Credit Cooperatives in Nairobi City County, Kenya

2026-09-29T09:17:02Z

Strategic Management Practices and Performance of Savings and Credit Cooperatives in Nairobi City County, Kenya Mburu, Esther Wangui This paper has discussed the effects of strategic management practice on the performance of the Savings and Credit Cooperative Societies (SACCOs) that are based in Nairobi City County, Kenya. The particular dimensions of strategic management explored included strategic intent, strategy formulation, strategy implementation, and strategic control. The analysis was pegged on the Resource-Based View, Strategic Management Theory, Contingency Theory, and the Balanced Scorecard model. The research design used was descriptive and 30 mature SACCOs that were at least three years old were identified out of a population of 176 licensed SACCOs in Nairobi City County. The methodology used was census and structured questionnaires were used to collect the data by administering them to 210 senior and operational managers, where 164 valid responses were obtained indicating a response rate of 78.1. Pilot testing was done to determine the reliability of the instruments and Cronbach alpha of the individual constructs were found to be 0.69-0.73 and the reliability of the questionnaire as a whole was found to be 0.86. Descriptive statistics, Pearson correlation, and multiple regression were used to analyse quantitative data, and qualitative data based on open-ended questions were analysed by thematic analysis. The results showed that the strategic intent, strategy formulation, strategy implementation, and strategic control played a positive and significant role in SACCO performance. Correlation analysis showed that all strategic practices had strong positive correlation with performance (r = 0.68 to 0.76, p < 0.01). The regression analysis of individual practices revealed that each strategic practice is a predictor of performance, and strategy implementation has the greatest variance (R 2 = 0.578). The four strategic practices were found to explain 67.6 percent of the variance of performance (R 2 = 0.676, F (4, 159) = 83.52, p < 0.001). Strategy implementation (= 0.40), strategic intent (= 0.28), strategy formulation (= 0.13), and strategic controls (= 0.11) were the strongest predictors, which validated that strategic management practices are important determinants of the performance of SACCOs in Nairobi City County. The research findings conclude that strategic management practice is an important determinant of SACCO performance. It advises SACCO management to improve strategy implementation mechanisms, improve strategic control systems, improve stakeholder involvement in strategy formulation, and frequently communicate strategic intent to all members and staff. Master of Science in Strategic Management

Loan Portfolio Structure and Financial Performance of Microfinance Institutions in Kenya

2026-09-29T09:05:44Z

Loan Portfolio Structure and Financial Performance of Microfinance Institutions in Kenya Chege, Emmah Wanjiru The financial performance of microfinance institutions is vital to their sustainability and to their ability to promote financial inclusion among low-income groups. Despite their important role in Kenya, many microfinance institutions still face financial challenges that threaten their long-term stability. This study examined how the structure of loan portfolio structure affects the financial performance of microfinance institutions in Kenya. Specifically, it focused on four components: loan portfolio size, diversification, quality, and maturity structure. Guided by theories of financial intermediation and portfolio management, which highlight the importance of efficient resource allocation and management for improving institutional performance, the study employed a quantitative research design using panel data from Kenyan microfinance institutions. Secondary data were collected from the published financial statements of 14 institutions over a 10-year period, yielding 140 observations. Data analysis involved panel-data regression techniques, including pooled ordinary least squares, random-effects, and fixed-effects models. Diagnostic tests, such as the Breusch-Pagan Lagrangean Multiplier test and the Hausman test, were used to select the best-fit model, with results indicating that the fixed-effects model was most appropriate for analyzing the relationships among the variables. The findings indicated that the structure of loan portfolio significantly impacts the financial performance of microfinance institutions in Kenya. All four components, loan portfolio size, diversification, quality, and maturity structure, had positive and statistically significant effects on Return on Assets. Among these, loan portfolio quality had the strongest impact, underscoring that maintaining a high-quality loan portfolio with low non-performing loans is key to increasing profitability. Portfolio diversification also contributed positively by reducing credit risk and stabilizing income, while larger loan portfolios increased interest income and profitability. Proper loan maturity structures improved repayment performance and liquidity management within these institutions. Based on these results, the study concludes that an effective loan portfolio structure is crucial for enhancing the financial performance and sustainability of microfinance institutions in Kenya. It recommends that these institutions strategically expand and diversify their loan portfolios across sectors, strengthen credit risk management to maintain high portfolio quality, and adopt suitable loan maturity structures aligned with borrowers’ repayment capacities. These actions are expected to boost profitability, reduce credit risk, and strengthen the financial stability of microfinance institutions in Kenya. Master of Science in Finance and Accounting

Portfolio Diversification and Firm Value of Investment Companies Listed at the Nairobi Securities Exchange

2025-12-01T10:21:02Z

Portfolio Diversification and Firm Value of Investment Companies Listed at the Nairobi Securities Exchange Kamuru, Joan Wangechi The effective management of firms is dependent on how well investment decisions are made to enhance the value of firms. As such the research sought to investigate how portfolio diversification affects firm value of investment firms listed at the Nairobi Securities Exchange. Variables used to measure portfolio diversification were bonds, equity securities, and real estate investments, whereas firm value was the dependent variable and firm size, the moderating variable. The modern portfolio theory, resource-based view and the agency theory provided the theoretical framework on which the study was based. Both a longitudinal study technique and a quantitative research design were used. From 2013 to 2022, financial information from five investment companies—Centum Investment Co Plc, Home Afrika Ltd, Kurwitu Ventures Ltd, Olympia Capital Holdings Ltd, and Trans-Century Plc—listed on the Nairobi Securities Exchange (NSE) was used. Normality, homoscedasticity, auto-correlation, multicollinearity, stationarity, and linearity were the diagnostic tests that were performed. These diagnostic tests were designed to ensure the robustness of the panel data model. Excel 2016 was used to enter the data, which was then exported to STATA version 14 for analysis. The variables of interest's mean, mode, median, variance, standard deviation, kurtosis, skewness, minimum, and maximum were all included in descriptive statistics. All of the independent factors, including the moderating variable, showed a positive association with the dependent variable, according to the correlation matrix analysis. A panel regression model with fixed effects was used. The impact of investing in bonds and equity securities on firm value was negligible. Firm value was significantly impacted by real estate investments, suggesting that a unit rise in the value of real estate assets resulted in a unit increase in company value. It was discovered that firm size had a considerable impact; in other words, there was an inverse relationship between firm size and firm value, meaning that for every unit increase in firm size, the firm value decreased by -1.2877 units. The findings therefore led to different conclusions regarding the study variables. Bonds investments’ insignificant effect on firm value implied that investment firms should be cautious when investing in bonds due to interest rates and maturity sensitivity. Other assets classes are more ideal than equity securities investments, if investments firms want to improve their firm’s value. Real estate had significant effect on firm value, and therefore investment companies in Kenya can maximize their firms’ value through successful real estate investments. Nonetheless, large firms should be cautious as firm size weakens any positive relationship between portfolio diversification and firm value. Several recommendations were made. Investment companies should adopt investment strategies that are geared towards investment in real estate assets. Investors and investment companies should consider interest volatility and the maturity period of bonds when investing in bonds. The study’s limitations included need to apply caution and high precision as secondary data used which is prone to errors of commission and omission. The study also used data from 2020 and 2021, periods when there was the Coronavirus pandemic, which ultimately affected investment operations. Future research should focus on capturing data from all investment firm in Kenya, to enhance generalizability of data. Both primary and secondary data should be used in future studies to ensure that all relevant data is collected and analyze. Keywords; Investment Companies, Bonds, Real Estate, Equity Securities, Bonds, Firm Value, Firm Size Master of Science in Finance and Accounting

Green Supply Chain Management Practices and Performance of Beverage Manufacturing Industry in Kenya

2025-12-01T10:12:09Z

Green Supply Chain Management Practices and Performance of Beverage Manufacturing Industry in Kenya Bett, Monicah Jelimo The purpose of this study was to establish the influence of GSCM practices on the performance of beverage manufacturing industry in Kenya. Green supply chain management practices have been an increasing interest in the green aspects of purchasing and supplier relations as a business issue. GSCM practices have attracted a growing and compelling interest among beverage manufacturing industry in Kenya due to pressure from different stakeholders including government regulators such as KEBS, NEMA; local and foreign clients; competitors; neighboring communities; NGOs; media; investors, and employees. The motivations for GSCM practices are wide-ranging and heterogeneous. They include the desire to reduce the risk of environmental hazards in the supply chain, fear of adverse publicity of non-compliance with associated government penalties, contribution towards sustainability and to demonstrate an image of an environmentally responsible corporate. Although green issues are globally viewed as the pedal for economic, social, and environmental reasons, they have not been fully incorporated into supply chains in developing countries. Other reports are based on case studies and therefore, their findings cannot be used to make general conclusions about GSCM practices and beverage manufacturing industry performance. This research problem was studied through the use of a descriptive research design. The specific objectives of the study were; to establish the influence of internal environmental management, green purchasing, eco-design, and reverse logistics on the performance of beverage manufacturing industry in Kenya. The study target population was the beverage manufacturing industry in Kenya focused on the 181 beverage companies registered under KAM 2020 directory where a sample of 64 companies was identified. Questionnaires were the major instrument for data collection. Data analysis was conducted using descriptive and inferential statistics. The study found that internal environmental management, green purchasing, eco-design and environmentally-oriented reverse logistics and performance of beverage manufacturing industry are positively and significant related. The study concluded that internal environmental management and performance of beverage manufacturing industry are positively and significant related. To enhance firms’ performance, it is imperative for manufacturing firms to invest heavily in internal environmental management with respect to green supply chain management practices. The study concluded that an increase in the practice of green manufacturing system, purchasing energy saving equipment’s by the company, purchasing products that have been stamped by reliable eco-labels, cooperating with suppliers to ensure standard packaging and allowing products back from consumers positively influences the performance of beverage firms. The study concluded that improved performance was attributed to eco-design practices such as: production processes designed to reduce wastes and ensure water conservations; enhancing full capacity utilization; reduction of hazardous wastes during the production process; product eco-design and; cleaner production techniques. The study recommends that full commitment of top management should be understood, communicated, implemented and maintained at all levels in the organization in order to improve organization process efficiency. The government through the ministry of environment recently banned use of polythene bags across the country. It is therefore recommended that the beverage processing firms back this initiative by reducing polythene usage in their packaging and other supply chain processes. The manufacturing firms ought to show their commitment towards having a greener environment by putting measures that encourage environmentally oriented reverse logistics. Master of Science in Procurement and Logistics