Business Administration

Effect of working capital management strategies on financial performance of Kisumu Water and Sanitation Company

Wed, 01 Jan 2025 00:00:00 GMT

Effect of working capital management strategies on financial performance of Kisumu Water and Sanitation Company AKINYI, Everline Odhiambo Working capital management is a critical driver of a firm’s liquidity, profitability, and long-term financial stability. While past studies have examined its application in manufacturing and small and medium-sized enterprises, Kenya’s public water utilities have received comparatively little research attention despite their vital role in delivering essential services. Kisumu Water and Sanitation Company Ltd (KIWASCO) has long faced operational challenges, including an estimated annual loss of more than 20,000 cubic meters of water each year, valued at approximately Ksh. 350 million. The company also struggles with rising inventory levels, persistently high non-revenue water, and missed revenue targets. This study set out to investigate the effect of working capital management strategies on the financial performance of KIWASCO. The specific objectives were to assess the impact of cash management, accounts receivable management, and inventory control on financial performance. The study was guided by the Operating Cycle Theory, which argues that efficient management of cash, receivables, and inventory shortens the operating cycle, thereby improving liquidity and profitability A correlational research design was used, targeting all 48 employees in the finance and accounting departments through a census approach. Data was collected using structured questionnaires, and a pilot test confirmed reliability with a Cronbach’s Alpha coefficient of 0. 789. Data analysis was performed using SPSS version 24, employing both descriptive and inferential statistical techniques. The results were presented using percentages, graphs, charts, and tables. Specifically, the analysis included descriptive statistics, correlation analysis, and regression modeling, all derived from the study’s empirical findings. Findings showed that most respondents agreed that cash management, accounts receivable management, and inventory control directly affect financial performance. Regression analysis revealed significant positive effects for cash management (β = 0.487, t = 3.568, p < 0.05), accounts receivable management (β = 0.557, t = 4.296, p < 0.05), and inventory management (β = 0.665, t = 5.706, p < 0.05). The overall model confirmed that these strategies were statistically significant in explaining financial performance, with results leading to the rejection of all null hypotheses. Findings of the overall model revealed the following: Cash management had significant effect on financial performance (ß = 0.005, t = 0.030, p = 0.003); accounts receivable management had significant effect on financial performance (ß = 0.258, t = 1.591, p = 0.023); and inventory management had significant effect on financial performance (β = 0.514, t-value = 3.429, p=0.001) of Kisumu Water and Sanitation Company Limited. The study concludes that strengthening cash flow practices, improving receivables collection, and adopting robust inventory controls are essential to enhancing financial performance in public utilities. These findings address a critical research gap in Kenya’s water sector and provide practical guidance for managers, policymakers, and scholars working to improve efficiency and sustainability in similar organizations. Master's Project

Effect of community-based microfinance services in financial empowerment of small-scale women traders in Kisumu west sub-county, Kenya

Wed, 01 Jan 2025 00:00:00 GMT

Effect of community-based microfinance services in financial empowerment of small-scale women traders in Kisumu west sub-county, Kenya ADHIAMBO, Phosa Omondi Kenya’s microfinance outreach continues to grow steadily, playing a vital role in the 15% share that Sub-Saharan Africa contributes to global microfinance. Among its most transformative impacts is the empowerment of women: over 80% of women engaged in microfinance programs report increased financial independence. These women are twice as likely to start or expand a small business, and many experience greater autonomy in both family and community decision-making—marking microfinance not just as a financial tool, but as a catalyst for social change. Previous studies have focused on formal microfinance institutions, overlooking community-based models that play a critical role at the grassroots. This study examined the effect of community-based microfinance services on the financial empowerment of small-scale women traders in Kisumu West Sub-County, Kenya. Kisumu West Sub-County was selected due to its high poverty levels, limited formal financial access, and the strong dependence of women traders on informal financial systems like savings groups and rotating credit schemes—making it an ideal setting to assess the impact of community-based microfinance on financial empowerment. Specifically, the study assessed the effect of access to credit, financial literacy, and effect savings on financial empowerment of small-scale traders in Kisumu west sub-county. The study was anchored on the Empowerment Theory and further guided by financial inclusion and financial literacy theories. The target population was 484 small-scale women traders benefiting from community-based microfinance initiatives. A descriptive research design was adopted, with a sample of 400 respondents selected through simple random sampling. Data was collected using structured questionnaires, tested for validity and reliability, and analyzed using both descriptive statistics-frequencies, percentages, means, standard deviations and inferential analyses-correlation, linear regression, and multiple regression with SPSS. Findings revealed that community-based microfinance significantly contributes to women’s financial empowerment. Access to credit was positively associated with improved financial outcomes (β = 0.101, p < 0.05), financial literacy had a strong impact (β = 0.305, p < 0.05), and savings mobilization demonstrated the greatest effect (β = 0.399, p < 0.05). Collectively, these factors enabled women to increase household income, expand their businesses, and strengthen decision-making power both economically and socially. The study concludes that community-based microfinance is a vital avenue for empowering women traders in Kisumu West Sub-County. It recommends strengthening loan management to reduce defaults, enhancing financial literacy training, and adopting digital savings mechanisms to improve accountability. Policymakers and development actors should leverage community-based models as complementary frameworks to formal microfinance institutions in addressing poverty and promoting gender equity. Master's Project

Influence of work life balance practices on performance of women employees at tier one commercial banks in Nairobi Kenya

Wed, 01 Jan 2025 00:00:00 GMT

Influence of work life balance practices on performance of women employees at tier one commercial banks in Nairobi Kenya WANJIRU, Caroline MUTURI Achieving work-life balance is especially important for women, as they often juggle multiple roles and responsibilities in both the workplace and the home. Balancing work and family responsibilities can be particularly challenging for women, especially those with caregiving duties for children, elderly parents, or other family members. The general objective of the study was to establish the influence of work-life balance practices on women employee performance at Tier one commercial banks in Nairobi, Kenya. The specific objectives of the study were to establish the influence of flexible work arrangements, implementation of leave and time-off policies, child care support and telecommuting on women employee performance at Tier 1 commercial banks in Nairobi, Kenya. The study deliberately focused on women employees in the human resource departments of Tier 1 commercial banks because women experience distinct work-life balance challenges compared to men, making their perspectives critical for this investigation. The study was guided Work-Family Border theory, Component theory, Spillover theory and Role theory. A correlational research design was used for the above study. The target population of this study constituted of 338 women employees in the human resource department in the Tier 1 commercial banks. The study used 30% of the target population to get the sample size of 101 respondents. Stratified random sampling was employed to get a representative sample. The questionnaire was used for collection of data that had closed ended questions. A pilot test of 12 respondents was selected from Family Bank for pre-testing to enhance reliability and validity of instruments. All the constructs had a Cronbach’s Alpha coefficient of 0.7 and above and thus were deemed to be reliable. The questionnaire was proofread to verify that there were no typographical or form problems to enhance validity. To analyze the data Statistical Package for Social Sciences Version 25 was used. A combination of descriptive and inferential statistical methods was employed to analyze the data. The study employed inferential statistics, including correlation analysis, multiple regressions and F-statistics, with data presented in tabular form. Findings revealed that flexible work arrangements had a moderate and significant positive relationship with employee performance (r = 0.430, p < 0.000) and significantly predicted performance in the regression model (β = 0.102, p < 0.027). Implementation of leave and time-off policies showed a moderate and significant correlation with employee performance (r = 0.507, p < 0.000) and were the strongest predictor in regression (β = 0.184, p < 0.002). Child care support demonstrated a weak but significant correlation (r = 0.240, p = 0.021) and a modest predictive effect in regression (β = 0.12, p = 0.012). Telecommuting exhibited a moderate and significant correlation (r = 0.448, p = 0.000) and significantly predicted employee performance (β = 0.166, p = 0.011). R2 was 0.408, meaning that approximately 40.8% of the variability in employee performance was explained by the independent variables. These results indicate that flexible work practices, implementation of leave and time-off policies and telecommuting positively influence women employee performance, while child care support need improvement. The study recommends that commercial banks enhance part-time work arrangements, maintain and expand leave support, improve child care provisions and monitor telecommuting challenges to optimize employee satisfaction and productivity. Master's Thesis

Effect of electronic revenue collection on financial performance of county government of Siaya

Thu, 13 Nov 2025 00:00:00 GMT

Effect of electronic revenue collection on financial performance of county government of Siaya ONDURU, Percila Achien’g Revenue collection among the devolved units has drawn interest from around the world. Some developing African nations like Ghana introduced devolved governments with collection of own source revenue as part of their functions. East African nations, such as Rwanda, saw establishment of local governments and own source revenue collection as an urgent and necessary corrective action in response to their economic challenges. In Kenya, County Governments were established in 2013 with Article 209 of the Constitution of Kenya (2010) providing for collection of own source revenue by the county governments. The County Government of Siaya utilized manual revenue collection systems until 2015 when the POS gadgets, ECR and Mobile payment system were introduced in the 2015/2016 F/Y. County Fiscal Strategy Papers show that during the 2013/2014, 2014/2015 and 2015/2016 F/Y, the County Government recorded negative deviations of -34, -52% and -41% in Own Source Revenue respectively. In 2017/2018, 2018/2019, 2019/2020, and 2020/2021, the County Government of Siaya also had negative deviations in Own Source Revenue of -53%, -42%, -56%, and -19% respectively. F/Y 2021/2022 recorded a positive deviation of 0.21%. Inadequate and inefficient electronic revenue collection system has been cited as the major contributor to the continued underperformance in collection of revenue. Despite the county having a partially automated system of revenue collection, it must be noted that the revenue collected has remained significantly low over the past five years. This means that the systems may be inadequately utilized thus the need to carry out an assessment with a view of increasing the revenue collection and financial performance. Research findings on effect of use of automated revenue collection on financial performance showed inconsistent results. Against this backdrop, the purpose of the study was to establish the effect of electronic revenue collection on financial performance of County Government of Siaya. Specifically, the study was to determine the effect of Point of Sale machine on financial performance of County Government of Siaya, establish the effect of Electronic Cash Register system on financial performance of County Government of Siaya and asses the effect of Mobile Payment System on financial performance of County Government of Siaya. Two theories supported the study, Expediency Theory of Taxation and Technology Acceptance Model Theory. The correlation research design was used during the study and targeted 98 personnel under the department of finance in the County Government of Siaya. Taro Yamane formula was employed to select a sample of 79 respondents. The study used primary data which was collected using questionnaire. A pilot study of eight (8) respondents was administered in Siaya County where the analysis revealed an alpha value of 0.81, above Cronbach‟s alpha coefficient of 0.7, therefore the instruments were reliable. The 8 respondents did not form part of the sample size hence 71 respondents were used for the study. Validity was determined by applying expert judgment. The data collected was analysed using multiple regression and Pearson product moment correlation to establish the relationship between the independent and dependent variables. The findings showed that the use of point of sale machines had the strongest positive impact on financial performance (β=.886, p=.000), followed by the use of electronic cash registers with a beta value of β=.197, p=.000 then the use of mobile payment systems (β=.093, p=.000). The findings further revealed that there existed a significant and strong positive correlation between the use of point of sale machines (r=.995, p=.000), implying that point of sale machines significantly affected financial performance. The electronic cash registers had (r=.899, p=.000), implying that electronic cash registers significantly affected financial performance. The mobile payment systems recorded (r= .861, p=.000) and financial performance, implying that mobile payment systems significantly affected financial performance. The study concluded that the use of electronic revenue collection positively and significantly influences the financial performance of County Government of Siaya. Master's Project

Effect of strategic flexibility on performance of sugar companies in western region, Kenya

Mon, 01 Jan 2024 00:00:00 GMT

Effect of strategic flexibility on performance of sugar companies in western region, Kenya JEPKORIR, Carren This study delves into how strategic flexibility influences the performance of state-owned sugar companies in Kenya's Western region. Strategic flexibility is crucial for organizations to navigate market uncertainties effectively, allowing them to adapt to changing consumer preferences and competitive landscapes. Despite extensive research on its benefits, its application within Kenya's state-owned sugar firms remains largely unexplored. These firms encounter challenges like political influence, high production costs, and inefficiencies, hindering their ability to meet consumer needs efficiently. The study aims to bridge this gap by examining how strategic flexibility can enhance the performance of these firms amidst their challenges. Employing a multi-faceted approach, the research focuses on production, marketing, and supply chain flexibility and their effects on performance. It encompasses several key state-owned sugar companies in the Western region over a four-month period. The findings aim to provide valuable insights for stakeholders, including policymakers and industry managers, to devise strategies for improving sector performance. The study contributes to the broader understanding of how internal strategic adjustments can mitigate external challenges, thus enhancing the efficiency and competitiveness of state-owned enterprises in the sugar industry. It also sets the stage for future academic inquiries into strategic flexibility's role in similar industrial contexts. The literature review, grounded in the Dynamic Capabilities Theory (DCT), explores how firms can adapt, innovate, and realign resources to secure competitive advantages in dynamic markets. While empirical studies highlight the positive effects of strategic flexibility across various sectors, its specific applications in the sugar industry remain underexplored. Using a descriptive correlational research design, the study examines the relationship between strategic flexibility and performance in state-owned sugar factories in Kenya. Data collected from 94 respondents reveal significant positive relationships between production, marketing, and supply chain flexibility and organizational performance. The regression analysis showed the relationship between performance and the production flexibility was significant, F (1, 61) = 257.064, p = 0.000. Also, both marketing flexibility (B = 0.335, p = 0.14) and supply chain flexibility (B = 0.447, p = 0.000) significantly influenced the performance of the organizations in the market. Recommendations include enhancing production capacity, adopting market-responsive strategies, and strengthening supply chain resilience. Limitations of the study include reliance on questionnaires and a focus solely on public companies. Future research avenues could explore qualitative aspects, compare public and private sector performance, and investigate the role of data-driven decision-making in strategic flexibility. Master's Project

Analysing the organizational culture on performance of small and medium enterprises in Kisumu county, Kenya.

Mon, 01 Jan 2024 00:00:00 GMT

Analysing the organizational culture on performance of small and medium enterprises in Kisumu county, Kenya. GOGAH, Elijah Ouso Small and medium-sized enterprises (SMEs), which make up 95% of firms and employ 60% of the labor force, are crucial to the Asia-Pacific region, according to the 1989 founding of the Asia-Pacific Economic Cooperation (APEC). Since SMEs account for 90% of all enterprises globally—in both developed and developing countries—they are a major contributor to the expansion of the global economy. SME presence is noteworthy in Kenya, where they account for 98% of all enterprises, according to the Central Bank of Kenya (CBK)'s 2017 National Economic Survey. These businesses generate up to 3% of the country's GDP and 30% of all yearly job possibilities. SMEs play a significant role in Kisumu County, contributing more than 60% of the county's GDP and 70% of jobs. Nevertheless, a 2020 assessment from the Kenya National Bureau of Statistics (KNBS) indicates that three out of every five Kenyan enterprises are at risk of failing within the next four to five years, notwithstanding their economic significance. Remarkably, there is still little study on the relationship between organizational culture and SME performance, especially when it comes to SMEs in Kisumu County. Previous studies have primarily focused on aspects like strategic leadership, resource allocation, and organizational structures, with minimal consideration for factors such as clan culture, market culture, and gender dynamics within the context of SMEs in Kisumu County. While there is some existing literature discussing these relationships, scientific exploration and research specific to SMEs in Kisumu County have been scarce. Thus, insufficient study has been done explicitly examining the effects of organizational culture on the performance of small and medium-sized enterprises (SMEs) in Kisumu County, despite the fact that SMEs have made a substantial contribution to Kenya's economic growth and development. By examining the impact of organizational culture on the performance of SMEs in Kisumu County, this study seeks to close this gap. One of the specific goals of the study was to examine market, adhocracy, and clan cultures using the Organizational Culture theory as a guide. In order to meet its goals, the study focused on 1,000 SMEs in Kisumu County, including both owners and employees. 285 managers and owners of SMEs made up the study's sample. Both closed- and open-ended questions were included in the questionnaires used for data collection. To ensure the reliability of the questionnaire, a pilot study involving approximately 28 SMEs (10% of the total study sample size), including both owners and staff members, was conducted, and the Cronbach alpha (α) test indicated a high reliability score of 0.852 for the study instrument. The study's findings, as determined by the Pearson Correlation coefficient, revealed that all the variables were significantly positively correlated. Specifically, clan culture had a strong positive influence on SME performance, as evidenced by an unstandardized coefficient of 1.597 and a standardized coefficient (Beta) of 0.868. Adhocracy culture also had a moderate positive influence, with an unstandardized coefficient of 0.605 and a Beta of 0.422. Market culture had a relatively weaker positive influence, with an unstandardized coefficient of 0.146 and a Beta of 0.1325. Importantly, all of these influences were statistically significant with p-values below 0.05. In conclusion, this study highlights the critical role of organizational culture in the performance of SMEs in Kisumu County. SMEs see increases in performance when they adopt and uphold elements of the organizational culture, such as the market, adhocracy, and clan cultures. According to the report, Kisumu's SMEs should constantly assess their performance, keep up with industry developments and trends, and effectively compete with other businesses. Enhancing SME performance also requires investing in research and experimentation, encouraging creativity and innovation, and adopting new ideas. Master's Project

Contribution of micro credit loans on loan portfolio quality of deposit taking saccos in Kenya

Mon, 01 Jan 2024 00:00:00 GMT

Contribution of micro credit loans on loan portfolio quality of deposit taking saccos in Kenya AKOTH, Caroline Okuku Savings and Credit Cooperatives were invented in German to promote savings and curb the exorbitant interest rates that was being charged to the indebted rural poor. Despite this nobble idea, micro credit loans portfolio performance has been declining. In Africa, SACCOs are facing challenges associated with asset quality. In Kenya, SACCOs equally face similar challenges that SACCOs are facing at global, continental and regional levels despite their importance in the Kenyan economy where they contribute at least 5.75% of the GDP. However, the Deposit Taking SACCOs have continued to record a lower Portfolio at Risk at 8.40% in 2022 compared to 13.80% for Commercial Banking Institutions and 31.78% for Microfinance banks in the same period. Even though the percentages of Portfolio at Risk in deposit taking saccos are the lowest in the financial sector, the figures of the loans written off are significant at 15.27, 19.38, 24.19, 34.05 and 36.95 billion from year 2018 to year 2022 respectively. Loan portfolio quality, the parameter that gives perspective of the overall loan performance, has experienced a deteriorating trend over the last decade. Portfolio at risk which measures loan quality also show a poor trend of 6.3%, 6.15%, 8.39%, 8.86% and 8.4% for the years 2018-2022 respectively. Existing literature commonly cover general DT Saccos portfolio, but with limited attention to Microcredit loan, as credit product accessed by over 76% of borrowers in Kenya. It is not known to what extent the microcredit loans are contributing to the recorded portfolio at risk of DT SACCOs in Kenya. This study hence sought to establish contribution of microcredit loans on loan portfolio quality of deposit taking Saccos in Kenya. Specifically, the study sought to determine the effect of micro credit loan lending terms on portfolio quality of deposit taking SACCOs in Kenya, establish the effect of member quality on portfolio quality in deposit taking SACCOs in Kenya, determine effect of credit risk management on micro credit loans portfolio quality in deposit taking SACCOs in Kenya and to evaluate the effect of management of information on microcredit loans portfolio quality in deposit taking SACCOs in Kenya. This study is anchored portfolio theory, credit risk theory balance score card theory and Information asymmetry theory. The study adopted a descriptive and correlational research design with a target population of 84 licensed Saccos using a purposive sampling technique consisting of identified DT Saccos which have micro credit loan as product. Respondents were one credit Managers in each DT Sacco. Primary data were collected using structured questionnaires. Response rate was 74%. Validity was assessed through expert opinion; reliability was ensured by doing pilot test in 10 Deposit Taking Saccos followed by a Cronbach’s test of 70% threshold. Findings revealed that micro credit loan lending terms, member quality, credit risk and information management positively and significantly influence portfolio quality of DT SACCOs in Kenya (p =0.000<0.05) and R2= 71.6%, 31.9%, 50.9% and 69.3% respectively. This imply that the four variables under consideration affects portfolio quality. The study concludes that DT SACCOs should consider favourable loan lending terms, proper background check to ensure members are of good quality at recruitment, continuous credit risk analysis and monitoring and a keen information management on microcredit loan products to ensure low delinquencies. The study recommends that a separate credit policy should be made specifically for microcredit loans. Master's Project

Effects of Covid 19 response policies on strategic government deliveries in agriculture and food security sector in Kenya: A case of Kisumu county

Mon, 01 Jan 2024 00:00:00 GMT

Effects of Covid 19 response policies on strategic government deliveries in agriculture and food security sector in Kenya: A case of Kisumu county TANUI, Joel The performance of the Strategic Government Deliveries (SGDs) in Kenya has demonstrated inconsistent progression over the period 2012 to 2021.Strategic Government Deliveries being a portfolio of interventions consisting of infrastructural improvement, improved farmer institutions and farmer groups, enhanced financial assistance, land conversion functions and use of technology. Strategic Government Deliveries (SGD) in Agriculture are broad policy guided outcomes and practices that target optimization of agricultural potential in terms of its production, processing, distribution and economic value addition for all levels of agricultural practice. Covid-19 pandemic attack of human existence and the socio-economic operating environment in diverse proportions, created production, distribution and value chain challenges, which have been difficult to recover from even in a post pandemic period. The international and Kenya’s response to the devastation through regulations and policy instruments for control and mitigation have had non-standardized implementation, hence may not lend similar effect to all the sectors of the economy. The fact that the agricultural sector contributes 51 percent to the total GDP; 26% directly and around 25% indirectly, 60 percent of employed and 65 percent of Kenya’s total exports, and is dominated by small scale farmers; who produce 78 percent of the total agricultural production when compared with large scale producers, it becomes important to examine the effect/contribution of COVID‐19 Response Policies on Strategic Government Deliveries in the Agriculture and Food Security Sector in Kenya. Specifically, the study sought to; establish the extent of COVID 19 response policies’ effect on volume agricultural food production in Kisumu County; determine the effect of COVID 19 response policies on agro food prices in Kisumu County; analyze the effect of COVID 19 response policies on agricultural food access in Kisumu County. The study area was Kisumu county having a target population of 106,557 (47% to total) of farmer households. It constitutes 224 food producers, 15 Agro support staff, 55 processors, 135 distributors and 750 consumers. Purposive sampling was used to select 1179 respondents. The study adopted a correlational research design. The study was guided by systems theory. Primary data, consisting of demographic characteristics, agro food access and quality and secondary data, consisting of agro food prices and volume was used for the study. Data was quantitatively analysed using correlational method, to generate the magnitude of effect of the response policies on strategic government deliveries in the Agriculture and Food Security Sector. The results revealed that that implementation and enforcement of Covid-19 Response policies (Travel Ban Implementation, Curfew Implementation, Closure of Hotels, Restaurants and Public Places and Trans-Country Border Closure), explains 60.5% variation of Agro Food Product Volume (R2=0.605); 46.5% variation in Agro Food Product Prices (R2=0.465) and 60.0% variation in Agro Food Product access (R2=0.600). Therefore, it is concluded that implementation and enforcement of Covid-19 Response policies adversely affected the food situation in Kisumu County; hence the need for structured mitigation that cushions Agro Food Product Volume, Prices and Access. The study recommends operationalisation of controlled and selected enforcement of Covid-19 and any other pandemic Response policies (Travel Ban Implementation, Curfew Implementation, Closure of Hotels, Restaurants and Public Places and Trans-Country Border Closure) to create food supply corridor. Master's Project

Work life balance and employee performance in hotels in Kisumu City

Mon, 01 Jan 2024 00:00:00 GMT

Work life balance and employee performance in hotels in Kisumu City ODHIAMBO, A. Maurine Globally, it has been unanimously accepted that work-life balance results in satisfied workers so that employees do not consider work as an affliction to them. Hence, work-life balance is a modern phenomenon that cannot be ignored by organizations. This has been largely attributed to by contemporary workers who value flexible working hours, increased urbanization, growth in human resource policies, and cut throat inter-company competition. Report shows that the hospitality industry in Kenya contributed up to 6.8% of the GDP by Quarter 1 of 2022. Besides, research work in Kenya has mostly been focused on other sectors though not in the hotel industry. Additionally, various studies on the linkage between work life balance and employee performance have yielded conflicting results. Moreover, the status of the work life balance research in Kenya, that is the conceptualization and operationalization are to a greater extent borrowed from the western literature which may not empirically be applicable in the Kenyan context which creates a gap for the present study. The main objective of this study was to establish the effect of work life balance on employee performance in hotels in Kisumu City, Kenya. The specific objectives were to; determine the effect of flexible working hours on employees’ performance, establish the impact of leave entitlement on employees’ performance, and investigate the impact of stress management at work on employees’ performance. This study was anchored on constraint and signaling theory. The study adopted a correlational research design. Data collected was sorted, classified, and coded, then tabulated and also presented using tables and charts. The questionnaire was the main instrument for collecting primary data. Regression analysis was used to determine the cause-effect analysis while correlation analysis measured the strength of association between the study variables. The study is an invaluable tool for human resource managers in sourcing ways of increasing employee productivity. The study is also of help to government ministerial agencies in coming up with sound labour policies that shall not only safeguard employees’ health but shall also make sure there is improved productivity at the workplace. Results shows that a significant high correlation exists between employee performance and flexible working hours (p=0.683, α<0.05, α=0.0000). Besides, flexible working hours is the best predictor of employee performance with B=0.381. Moreover, a significant moderate correlation exist between leave entitlement and employee performance (p=0.464, α <0.01, α =0.004). Though leave entitlement moderately predicts employee performance with B= 0.357. The study as well evidences that a significant moderate correlation exists between stress management and employee performance (p=0.577, α<0.01, α=0.000) and that stress management does not highly predict employee performance among hotel workers with B=0.012. The study concludes that the independent variables (flexible working hours, leave entitlement, and stress management) predict dependent variable (employee performance) up to 63%, that is R2=0.632. This study also concludes that based on constraint theory, the main constrain in the hotel set up could be flexible work designs. That is, the human resource managers in the hotel set up should therefore consider implementing flexible work patterns. Moreover, in regard to signaling theory, hotel managements should always put in place attractive policies which will appeal and keep employees to work toward hotel specific and general objectives. Additionally, it is concluded that the findings in the western countries on factors affecting employee performance really applies to the hotel set ups in developing countries like Kenya. It is recommended that other sub variables of work life balance that were not considered in this study to be considered by other scholars in future studies on this topic to aid explicate the unsolved 37% of factors affecting employee performance in the hotel setup. Master's Project

Relationship between auditing practices and financial performance of star rated hotels in Kisumu, Kenya

Mon, 01 Jan 2024 00:00:00 GMT

Relationship between auditing practices and financial performance of star rated hotels in Kisumu, Kenya KIMEU, Elizabeth Auditing practices aim to minimize financial losses and pilferage through misstatement of financial records in a firm. The hotel industry has proved to be very competitive globally, with worrying declining trends being witnessed in some areas within Kenya. During 2019 – 2021, hotel enterprises in Kisumu County of Kenya have been facing annual declines in revenue of over 23%, more than national rate of 12%. During the same period, more than 20% of hotel firms which had been operating in the area (Kisumu) for the last 10 years closed down due to low revenue.Whereas increased competition, oversupply and security advisories have been documented to be factors affecting hotel industry, the contribution of auditing practices in enhancing financial management has been overlooked. Prior studies have focused on fraud detection, internal control mechanisms and segregation of duties among firms. The purpose of this study was to analyze the relationship between auditing practices and organizational performance among star rated hotels in Kisumu City, Kenya. The specific objectives were to assess the relationship between internal control monitoring and financial performance, establish the relationship between compliance with authorization monitoring and financial performance and determine the relationship between independence of the auditor and financial performance. The study was guided by agency and stewardship theories. A correlational research design was employed. The study target population was 144 sectional heads from 9 star rated hotels whereby,14 respondents were used for piloting and excluded for final data collection exercise. All the remaining 130 respondents were used as the sample size of study. Primary data was collected using structured questionnaires. Reliability of questionnaire was tested through Cronbach’s’s alpha using data gathered from pilot study, and a reliability coefficient of 0.81, 0.74, and 0.73 obtained respectively for internal control monitoring, compliance with authorization and approval, and independence of the auditor. Validity was enhanced through consultation with experts from accounting and finance department during questionnaire construction. Data was analyzed using descriptive and inferential statistics. The findings showed that 76.7% of the changes in finanancial performance is attributed to the auditing practices investigated by the study (R2 =0.767). The study additionally established internal control monitoring (β=0.936); compliance with authorization and compliance (β=1.188), and independence of the auditor (β=0.088) are significant predictors {F (1, 119) =105.295, P<0.05} of financial performance among the star rated hotels. This implies that unit improvements in these practices stand to cause significant improvement in financial performance in the hotels. The study concludes that while internal control monitoring and independence of the auditor influence financial performance of star rated hotels differently, compliance with authorization & approval procedures has universal influence on financial performance of the enterprises. It is recommended that star rated hotels should benchmark for best internal control practices in the sector, while more working autonomy should be accorded the auditor so as to enhance independence oversight of business activities. Further researcher should be done to investigate how benchmarking-based internal control practices influence financial performance of star rated hotels in the study area. Master's Project