Doctor of Philosophy (PhD) Theses and Dissertations

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MAU MAU PRISONERS CONTRIBUTION TO THE CONVERSION OF DESOLATE MWEA INTO KENYA’S LARGEST RICE PRODUCTION SETTLEMENT SCHEME 1952 -2018
(KARATINA UNIVERSITY, 2024-09) CHIERA, PETER MAINA
In the 1950s in Kenya a nationalist uprising against colonial rule erupted in Kenya. The Mau Mau prisoners were detained in detention camps spread in the whole country. In Mwea detention camps hardcore prisoners provided labour in the rice fields started by British colonialists in Kirinyaga County. After release from detention camps some of the Mau Mau prisoners became tenants in Mwea Irrigation Scheme. The purpose of this study was to examine the role played by the Mau Mau detainees in Mwea to the growth of the rice irrigation scheme. The objectives of the study were: to examine the British colonial land policies that led to the establishment of Mwea Irrigation Scheme, to analyze how Mau Mau prisoners labour transformed Mwea Rice Irrigation Scheme and finally to assess how settlement of Mau Mau prisoners in Mwea Rice Irrigation transformed their social economic status. The study was informed by the political theory of decolonization and post-colonialism advanced by Margaret Kohn and Keally MacBride. The theory holds that understanding of colonialism and decolonization can help to understand contemporary politics. The study used historical research design which employs document analysis and validated with oral interviews from participants. The design is appropriate to establish facts in order to arrive at conclusions concerning past events. The sample population comprised of thirty nine key informants. The study used interview guides as research instrument to generate qualitative data. Information was taped and later transcribed. The study used snowballing and purposive sampling techniques to collect information. Data was analyzed qualitatively. The study demonstrated that Mau Mau prisoners detained in Mwea prison camps contributed to the establishment of Mwea rice irrigation scheme. The prisoners constructed water canals, furrows, residential houses, and growing of rice. It is noted from the study that some of the prisoners were rejected after rehabilitation by their own people. They were taken back to Mwea and became tenants, thus contributing to the growth of Maurice Irrigation Scheme. The study recommends that policy makers initiated programs to address some of the challenges facing ex-Mau Mau prisoners and other farmers in Mwea Irrigation Scheme. The study findings will contribute to Mau Mau historiography.
BEHAVIOUR CHANGE COMMUNICATION INTERVENTIONS AND ROAD SAFETY AMONGST BODA-BODA MOTORCYCLISTS IN KENYAN CITIES
(KARATINA UNIVERSITY, 2024-09) NTHOKI, BARBARA; WANJUKI
Behavior change communication (BCC) interventions have been used globally to address challenges in several sectors. The successful use of interventions has been reported in the transport sector, education, health agricultural sectors amongst others. These interventions have also targeted road safety challenges among road users. Road safety has become a major concern, with over 1.3 million people losing their lives worldwide annually and over 4,000 in Kenya. Human behavior on the road causes 90 percent of deaths and injuries among road users, with Boda-boda motorcyclists contributing 58 percent of all road accidents in Kenya. Against this backdrop, this study sought to establish the influence of behavior change communication interventions on road safety among Boda-boda motorcyclists in Kenyan cities. The specific objectives of this study were to establish the influence of media campaigns on road safety among Boda-boda motorcyclists in Kenyan cities; establish the influence of participatory communication on road safety; to determine the influence of traffic visual communication on road safety; to determine the influence of information, education, and communication on road safety among Boda-boda motorcyclists. In addition, this study sought to determine the moderating influence of attitude on the relationship between behavior change communication and road safety among Boda-boda motorcyclists in Kenyan cities. The study was anchored on the Social Cognitive Theory, Safety Culture Theory, and Uses and Gratification Theory. The study used a pragmatic philosophical paradigm with a convergent parallel design of mixed-method research. The Yamane (1967) formula was employed to determine the target population of 399 Boda-boda motorcyclists from four cities in Kenya—Nairobi, Mombasa, Kisumu, and Nakuru—leading to a final sample of 387 respondents. Stratified sampling and simple random sampling were used to draw the sample. Interviews were conducted with nine key informants, purposively sampled from each city, drawn from the NTSA office, the Boda-boda association, and senior traffic police officers. A pilot study was carried out in Machakos to test the data collection instruments. Quantitative data was collected from the motorcyclists by use of semi-structured questionnaires, while qualitative data was gathered through key informant interviews. Descriptive and inferential statistics was used to analyze the quantitative data, while qualitative data was analyzed thematically. Findings were presented using narratives and graphics. The findings indicate that there was a positive relationship between behavior change communication and road safety. The results for each objective were as follows: mass media showed R² = 0.504, p-value = 0.000 < 0.05; participatory communication, R² = 0.609, p-value = 0.000 < 0.05; information, education, and communication, R² = 0.586, p-value = 0.000 < 0.05; and traffic visual communication, R² = 0.608, p-value = 0.000 < 0.05. Attitude as a moderator demonstrated R² = 0.801, p-value = 0.000 < 0.05, indicating a significant impact on predicting road safety and showing a potential synergistic effect between the two factors. In conclusion, behavior change communication interventions aimed at Boda-boda motorcyclists significantly contribute to road safety. The study also contributes to academic discourse by highlighting the need for integrating BCC theories into practical applications in road safety initiatives. The study recommends the need for innovative multifaceted communication interventions to enhance safety and promote responsible behavior among Boda-boda motorcyclists in Kenyan cities. The findings will aid road safety stakeholders in crafting BCC interventions that elicit positive behavior among motorcyclists.
EMPLOYEE WELLNESS PROGRAMMES, CREDIBLE LEADERSHIP AND SERVICE DELIVERY IN FAITH BASED HOSPITALS IN NAIROBI METROPOLITAN, KENYA
(KARATINA UNIVERSITY, 2024-09) WAIRIMU, BEATRICE KARANJA
Despite the essential role of faith-based hospitals in provision of quality health services, they continuously face challenges, including workforce-related issues such as poor working conditions such as working for longer hours, seeing more than 8 patients in a day, high rates of absenteeism, lack of critical services, depression and other mental illness as well as drug and substance abuse. These occurrences affect service delivery. The main objective of the study was to investigate the influence of employee wellness programmes on service delivery in faith-based hospitals in Nairobi metropolitan. Specific objectives were; to assess the influence of employees’ emotional wellness programmes, intellectual wellness programmes, occupational wellness programmes and employee physical wellness programmes on service delivery in faith-based hospitals in Nairobi metropolitan and examine the moderating role of credible leadership on the influence of employee wellness programmes on service delivery in faith-based hospitals in Nairobi metropolitan. The study adopted descriptive survey and correlational research designs. The study targeted 1154 employees in the faith-based hospitals in Nairobi metropolitan. The study used stratified random sampling to select the respondents. The study sample size was 297 respondents. The study obtained primary data using a questionnaire. The descriptive and inferential statistics was used to analyse data. Descriptive statistics included frequencies, mean, standard deviation and percentage. Correlational analysis was used to determine the relationship between the independent and dependent variables. The study also carried out a regression analysis to determine the level of association of the study variables. Results were presented in graphs and tables. The study established that there was moderate emphasis on employee’s emotional wellness programmes among the faith-based hospitals in Nairobi metropolitan area, there were employee’s intellectual wellness programmes, there was agreement among the respondents on the adoption of employee’s occupational wellness programmes and that there existed employees’ physical wellness programmes in the faith-based hospitals in Nairobi metropolitan. The study further established that hospital leadership demonstrated moderate credibility. Correlation analysis results showed that a significant weak positive correlation existed between service delivery and employee’s emotional wellness programmes (r=0.324), while a significant moderate positive correlation existed between service delivery and intellectual wellness programmes (r=0.519), occupational wellness programmes (r=0.666) and physical wellness programmes (r=0.539). The study determined that emotional wellness programmes had a significant influence on service delivery (R2= 0.101; β=0.324; P=0.000), intellectual wellness programmes had a significant influence on service delivery (R2= 0.267; β=0.519; P=0.000), occupational wellness programmes had a significant influence on service delivery (R2= 0.442; β=0.666; P=0.000), physical wellness programmes had a significant influence on service delivery (R2= 0.288; β=0.539; P=0.000). The study also established that credible leadership had a significant moderating influence on the relationship between employee wellness programmes and service delivery. The study thus concluded that employee wellness programmes had a significant influence on service delivery. The study further concluded that credible leadership had a significant moderating influence on the relationship between employee wellness programmes and service delivery. The study recommends that the management of hospitals should ensure that there are employee wellness programmes for emotional, intellectual, occupational and physical wellness. The study results would be relevant to the management of faith-based hospitals, the government of Kenya, particularly the ministry of Health, and county governments because it would enlighten them when developing policies aimed at improving the quality of health care and working environment for their healthcare workers.
MEDIA COVERAGE, CONTENT FRAMING AND AUDIENCE PERCEPTION OF WILDLIFE CONSERVATION DISCOURSE IN KENYA
(2023-10) MBURU, JINARO PAUL
A THESIS SUBMITTED TO THE SCHOOL OF BUSINESS IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE CONFERMENT OF THE DEGREE OF DOCTOR OF PHILOSOPHY IN COMMUNICATION STUDIES OF KARATINA UNIVERSITY
MEDIA COVERAGE, CONTENT FRAMING AND AUDIENCE PERCEPTION OF WILDLIFE CONSERVATION DISCOURSE IN KENYA
(Karatina University, 2023-10) MBURU, JINARO PAUL
Audience perception of wildlife conservation discourse in Kenya has been negative as evidenced in the results of conservation efforts. The general objective of the study was: to investigate the influence of media coverage, content framing and audience perception of wildlife conservation discourse in Kenya. The specific objectives were to: examine the influence of the choice of media channel on audience perception; evaluate the timing of media messages on audience perception; investigate the effects of frequency of media messages on audience perception; assess the combined influence of choice of media channel, timing of media messages, and frequency of media messages on perception; and to investigate the moderating influence of content framing on the relationship between media coverage and audience perception of wildlife conservation discourse in Kenya. The study was anchored on framing and semantic meaning theories using a pragmatism philosophical paradigm. It employed a convergent parallel mixed methods design, combining quantitative and qualitative data for a comprehensive analysis. The target population consisted of 297 individuals, with a sample size of 133. Purposive sampling techniques were used to select 6 environmental journalists, a census identified 12 park managers, and through simple random sampling, 115 human-wildlife conflict resolution committee members joined the sample. Data collection tools comprised of interview guide for media practitioners and park managers, Focus Group Discussions guide targeting human-wildlife conflict resolution committee officials and a questionnaire administered to the other committee members. Qualitative data was thematically analyzed and presented in narrative form, while quantitative data underwent descriptive and inferential statistical analysis, with findings presented through linear texts and graphics. The study findings showed that there was lack of effective communication channels for wildlife conservation initiatives, which led to community resistance and jeopardize conservation efforts. The relationship between media channel choice and audience perception showed an R-squared value of 0.656, indicating that media channels explain 65.6% of the variation in perception. Timing of media messages had an R-squared value of 0.779, explaining 77.9% of perception variation. Frequency of messages had an R-squared value of 0.856, explaining 85.6% of variation. In each case, the calculated F-values were significantly greater than the critical F-values. Content framing was found to moderate the relationship between media coverage and perception, with a significant ANOVA result (F = 240.355; p-Value<0.05). This emphasizes the need for strategic communication approaches in wildlife conservation. The study concluded that when framing wildlife conservation messages, the target audiences were not satisfied with the manner in which these messages were communicated. The study findings will assist media practitioners in formulating guidelines for media coverage and content framing of wildlife conservation discourse. The study therefore recommended that practitioners should use correct media channels and effective content framing strategies in order to change audience perception of wildlife conservation.
STRATEGIC ENTREPRENEURSHIP, LEAN-GREEN PRACTICES AND PERFORMANCE OF MEDIUM HOTELS IN KENYAN CITIES
(Karatina University, 2023-11) NGUNGA, JOSEPH KARIMI
Strategic entrepreneurship has been associated with adopting technologies, products, and administrative innovations which culminate in better firm performance. The current rapidly changing and highly competitive market has put companies under great pressure to adopt sustainable practices, in terms of keeping a healthy balance among economic, environmental, and social performances. Studies done in the hotel industry have not addressed the contribution of strategic entrepreneurship on performance and competitiveness. The general objective of this study was to determine the influence of strategic entrepreneurship on performance among medium hotel enterprises in Kenyan cities. Specifically, the study examined the influence of entrepreneurial mindset on performance, established the influence of innovations on performance, analyzed the influence of capital mobilization on performance, examined the effect of networks on performance, and established the moderating influence of lean-green practices on the relationship between strategic entrepreneurship and performance of medium hotel enterprises in Kenyan cities. The study was anchored on Schumpeterian Innovations Theory, Natural Resource Based-View Theory, and Dynamic Capabilities Theory. The study adopted the pragmatic research philosophy and employed a mixed-method research design. The study population was 534 managers of medium sized hotel enterprises in Mombasa, Kisumu, and Nairobi. The sample size was determined using the Yamane (1967) sampling formula, resulting in a sample of 229 respondents. A proportionate stratified sampling technique was applied to get a representative sample of each city. Primary data was collected using a semi-structured questionnaire. A pilot study was carried out in Nanyuki and Embu towns among medium hotel enterprises to test the reliability and accuracy of the research instruments. Construct validity was determined by calculating average variances extracted (AVEs) for each construct, then reliability using Cronbach’s Alpha internal consistency index. The Statistical Package for Social Sciences (SPSS) was used as the main software for data analysis. The data was analyzed using descriptive and inferential statistics. Pearson’s correlation and regression models were used to analyze quantitative data while qualitative data was analyzed using content analysis. The hypothesis testing used structural equation modeling. The hierarchical multiple moderated regression model was used to measure the strength of the relationship between strategic entrepreneurship , lean-green practices and performance of medium hotels in Kenyan cities. From the joint effect model the results established that strategic entrepreneurship had the most significant influence on performance of medium hotels in Kenyan cities (Regression coefficient .751, p = .000) followed by lean-green practices (Regression coefficient .417, p = .000), and positively and significantly moderate the relationship between strategic entrepreneurship and performance (Regression coefficient .937, p = .017) with R2 change 1 percent additional variance. The study concluded that lean-green practices positively moderate the relationship between strategic entrepreneurship and performance of medium hotels. Based on the findings, the study recommends enhancement of designing, implementing, and utilizing strategic entrepreneurship with lean-green practices in medium hotels production matrix. The findings are beneficial to the management and stakeholders in the hotel industry and academia.
INTEGRATION OF INFORMATION COMMUNICATION TECHNOLOGY IN MANAGING TECHNICAL TRAINING INSTITUTIONS IN NAIROBI AND NYERI COUNTIES, KENYA
(Karatina University, 2023-11) GATEMBU, RICHARD MWANGI
Information and Communication Technology (ICT) is acknowledged as a key driver for the worldwide economy, particularly in the progressively digitized era of the 21st century. Educational institutions can no longer effectively prepare students to function competently in the global economy without properly integrating ICT into their curriculum. The purpose of this study was to assess the level of integration of ICT in Technical Training Institutions (TTIs) in Nairobi and Nyeri Counties in Kenya. The study was guided by the following objectives: to evaluate the level of integration of ICT in performing administrative functions in Technical Training Institutions in Nyeri and Nairobi Counties, to examine the level of integration of ICT in conducting financial management, to assess the level of integration of ICT in instructional processes and to examine the level of ICT integration in assessment practices in Technical Training Institutions in Nyeri and Nairobi Counties, Kenya. The study was guided by the Adaptive Structuration Theory and Technical Pedagogical Content Knowledge (TPACK) model. The research design utilized in this study was a mixed methods design. The target population consisted of 1026 respondents. The sample size was 310 respondents, who included; 290 lecturers, 10 bursars and 10 principals from the 10 TTIs in the counties of Nairobi and Nyeri. The lecturers were selected using stratified random sampling, whereas the bursars and principals were selected using purposive sampling. Questionnaires and interview schedules were used to collect data. Reliability was tested using Cronbach alpha coefficient. The questionnaire's reliability was calculated and yielded a Cronbach's alpha (α) of 0.903 in the measurement of ICT integration while validity was ascertained through factor analysis. Quantitative data was analyzed using both the descriptive and inferential statistics with the aid of the Statistical Package for Social Sciences (SPSS) version 24.1. The qualitative data was analyzed in terms of the themes expressed by the respondents. Results of the study revealed a statistically significant difference in the level of ICT integration in administrative functions (t=0.077, p=0.000), financial management (t=0.072, p=0.000), instructional processes (t=0.0731, p=0.000) and assessment practices (t=0.0724, p=0.000) in TTIs in Nyeri and Nairobi Counties. This highlights the varying levels of ICT integration in TTIs in Nyeri and Nairobi Counties. The null hypothesis was hence rejected. The study recommends the need for the government to strengthen its ICT policy to facilitate enhanced resource allocation by both the government and respective institutions, aiming to further deepen the integration of ICTs in TTIs in Kenya.
MEDIATING ROLE OF ENTREPRENEURIAL LEADERSHIP ON SENIOR TEAM ATTRIBUTES AND ORGANIZATIONAL AMBIDEXTERITY OF COFFEE MARKETING COOPERATIVE SOCIETIES IN KENYA.
(Karatina University, 2023-11) KIURA, HESBON MBUTHIA
Entrepreneurial leadership is crucial for cooperative organizations as it involves taking risks, driving growth as it encourages creativity and innovation. Ambidexterity refers to the ability of an organization to both exploit and explore implying to deliver efficiency, control, and incremental improvements, while embracing flexibility, autonomy, and experimentation. Organizational ambidexterity has the ability of firms to pursue and synchronize exploratory and exploitative innovation simultaneously it not only helps firms overcome structural inertia that results from a focus on exploitation, but also refrain firms from accelerating exploration without deriving benefits from these activities.Coffee has been an important cash crop in Kenya’s agricultural sector. It is one of the greatest foreign exchange earners of the country and a main source of employment in rural areas, providing food security and income for the rural areas. This success has been achieved through coffee cooperative societies management that process and market coffee for the farmers. In recent years, there has been a decline in coffee production in Kenya. The decline of coffee export earnings has been attributed to inefficient and ineffectiveness of coffee marketing cooperative societies management operations and therefore the need to refocus their approach. The general objective of this study was to examine how entrepreneurial leadership mediates the relationship between senior team attributes and organizational ambidexterity among coffee marketing cooperative societies in Kenya. The specific objectives of the study were; to determine how shared vision influence organizational ambidexterity, to establish whether social integration affect organizational ambidexterity and to find out how contingency rewards influence organizational ambidexterity of coffee marketing cooperative societies in Kenya. The study also established the mediating role of entrepreneurial leadership between senior team attributes and organizational ambidexterity for coffee cooperative societies in Kenya. This study was anchored on two major theories which were Collective Entrepreneurship Theory and Path Goal Theory of Leadership and supported by other theories mentioned in the study. The study used cross-sectional survey design. The target population was coffee marketing cooperative societies registered in Kenya as at 31st December 2019. The study target population was 436 managers from coffee marketing cooperative societies while the sample size of this study was 242 managers. Primary data was obtained by the use of as elf-administered semi-structured questionnaire. A pilot study was done to check the reliability and validity of the research instrument. Data analysis was done using descriptive and inferential statistics. The formulated hypotheses were tested using Baron and Kenny’s approach to validate the relationships between the study variables. Statistical Package for Social Sciences (SPSS) version 23 was used to assist in analysis and findings were presented using cross-tabulations, charts and path models. The study found that entrepreneurial leadership partially mediates the relationship between senior team attributes and organization ambidexterity (R2 change from 11.1% to 16.6%). This study concludes that entrepreneurial leadership is a critical approach for coffee marketing cooperative societies in Kenya. The findings of the study will help managers to maximize their efficiency and achieve their strategic goals during their operations especially when they want to internationalize. The findings of this study will be of interest to coffee marketing cooperative society’s board of directors, government officials, academia, financial institutions and agropreneurs.
EVALUATION OF THE EFFECTS OF CONSERVATION AGRICULTURE ON SOIL PROPERTIES IN LAIKIPIA COUNTY, KENYA
(Karatina University, 2023-11) KINYUMU, DANIEL MWANGANGI
Conservation agriculture (CA), defined by three principles of; minimum soil disturbance, use of cover crop and crop rotation/diversification was introduced in Laikipia as alternative to conventional farming (CF) systems, to improve soil properties and resilience to climate change and soil degradation. The study investigated practice of CA by farmers and carried out in-situ and laboratory analysis of soil moisture, bulk density, texture, soil nitrogen, phosphorus, exchangeable cations and microbial diversity. The study area was purposively selected to include areas where CA had historically been practised. A population of 2,000 farmers registered as practising CA were interviewed. For the collection of soil samples, 332 farmers were sampled based on; (i) farmers who received training on CA curriculum (ii) farmers who were actively practising all the three principles of CA (minimum soil disturbance, crop rotation and soil cover); and (iii) farmers who were practising CA alongside conventional farming. Thirty (30) farmers were sampled according population in each through proportionate stratified random sampling. 270 composite soil samples were collected from 3x3 m plots at a depth of 0-20 cm (rooting zone) of annual crops, from 30 farms, during 2019 and 2020 cropping seasons. Soil sampling for analysis soil bulk density, moisture) while soil sampling for the analysis of chemical and microbial properties was done using core ring sampler of 5cm diameter and 10cm height and metallic soil augers of 5cm diameter, respectively. The analysis of soil physical and chemical properties were done according to protocols in soil and plant analysis and national agricultural research laboratories (NARL) manuals. The analysis of microbial diversity was done according to functional gene analysis pipeline (www.mrdnalab.com). Findings describing significance differences in soil properties between farming systems were done using one-way analysis of variance (ANOVA) at (p ≤ 0.05), followed by post-hoc family-wise comparisons of means between experimental plots. Tukey’s honest significance difference (HSD) tested mean separation when analysis showed statistically significant differences (p < 0.05). The DNA from environmental samples was extracted using PureLinkTM Microbiome DNA Purification Kit (Thermo Fisher Scientific). Amplicon generation and sequencing was done using the next generation (NGS) Illumina’s MiSeq technology platform (bTEFAP)®. All statistical analyses were performed using IBM SPSS ver 22, R-program and MS-Excel for Windows. Findings of CA farming practices indicated that 67% of farmers employed all the three principles of conservation agriculture (crop cover/residue + crop rotation + no tillage). Majority (62%) of farmers were largely subsistence farmers, growing mainly; maize (Zea mays L.) and beans (Phaseolus vulgaris L.). Silt clay loam (SCL) was the most abundant at 60%, while 67.47% of farmers employed all the 3 principles of CA. Farms adopting CA had the highest soil bulk density at 1.78 ±0.04 g/cm3. Soil moisture levels in farms declined significantly from ‘25” to “75” days after seeding (DAS) under different farming systems. Soil carbon was significantly higher in farms adopting CA, which is postulated to be due to the high use of organic biomass on soil. The study found important rhizospheric bacteria and fungi that affects soil properties. The findings can be used for developing a holistic soil improvement strategy for improving soil properties and enhancing farmer resilience to climate change effects in rain-fed farming systems in Laikipia.
CAPITAL STRUCTURE, BANK SIZE AND FINANCIAL PERFORMANCE OF LOWER TIER COMMERCIAL BANKS IN KENYA
(Karatina University, 2023-11) KINYUA, PATRICK KARUKI
The banking sector is recognized as the most visible source of finance and key to global trade and economic growth. Banking institutions play a notable role in building both domestic and global economies by ensuring credit is available to finance businesses and households. However, the performance of banking sector from global, regional and local perspective has been deteriorating with small banks being affected the most. The phenomenon has been linked to the manner banks of different sizes finances their operations (capital structure), but remains debatable among scholars. It is argued that a properly designed capital structure defines the manner in which a bank seeks funds from various sources to finance its operations without risking high costs of capital that may jeopardize its performance. In Kenya, the capital structure has been in the center of operational performance of commercial banks in Kenya. The Kenyan banking sector is categorized into three tiers, tier I, II and III based on bank size. However, the profitability of the tier II and III have been declining resulting to an enquiry to whether, the size of the bank has any influence on capital structure and performance of the banks. This study therefore sought to determine the moderating influence of bank size on the relationship between capital structure and profitability of lower tier commercial banks in Kenya. The specific objectives of the study were to assess the influence of internal equity capital; the influence of short term debt capital; the influence of external equity capital and the influence of long term equity capital on profitability of lower tier commercial banks in Kenya. Appropriate null hypotheses were developed for each objective. This study was anchored in pecking order theory, Modigliani and Miller Capital Structure Theory, trade-off theory of capital structure, the net income approach, Dynamic Trade-off Theory and Agency Cost Theory. Pragmatism research philosophy was adopted where the study concurrently employed descriptive and explanatory research design. The study population was 37 commercial banks in Tier II and III in Kenya that were fully operational from 2016 to 2020 and a census of all the 37 banks was conducted. The main data of study was secondary data; whereby primary data was also collected for triangulation purposes. The validity of the secondary data was enhanced by collecting data from audited and certified sources while the reliability of the questionnaire was ascertained through use of Cronbach Alpha coefficient. Data analysis involved descriptive and inferential statistics. Descriptive statistics entailed percentages, means, standard deviations, minimums, maximums, Skewness and Kurtosis. The inferential statistics comprised of multilevel mixed model analysis and hierarchical multiple linear models. A range of model and data diagnostic tests were conducted before estimating the study’s regression models and included the Mixed ANOVA, utocorrelation, normality tests, heteroscedasticity tests, multicollinearity tests and stationarity tests. The results were presented using tables and figures. The study found that internal equity had a positive and significant effect on net profit margin of lower tier commercial banks (β=.429, p=.000<0.05) but bank size did not moderate the effect of internal equity on net profit margin of lower tier commercial banks in Kenya (β=.148, p=600>0.05). External equity had a positive and significant effect on net profit margin of lower tier commercial banks (β=.229, p=.036<0.05). Bank size positively and significantly moderates the relationship between external equity and performance of lower tier banks in Kenya (β=2.350, p =.000<0.05) and has an enhancing effect on external equity. Long term debt had a negative and significant effect on the financial performance of lower tier commercial banks (β=-.966, p=.029<0.05). Bank size moderates the effect of long term debt on financial performance of lower tier commercial banks in Kenya (β= .695, p-value=.024<0.05) and has an antagonistic effect on long term debt capital. Nonetheless, short term debt had a positive but insignificant effect on the financial performance of lower tier commercial banks (β=.067, p=.625>0.05). Bank size moderated the effect of short term debt on financial performance of lower tier commercial banks (β=.127, p=.019<0.05) with strengthening effect. Thus, the study concludes that bank size moderates the effect of external equity, short term debt and long term debt on financial performance of lower tier commercial banks but does not moderate the effect of internal equity on financial performance of lower tier commercial banks. The study recommends that lower tier commercial banks need to encourage xxii its shareholders to re-invest back their earnings rather than consuming them as dividends as internal equity is affordable and readily available when the bank is in urgent financial need. The study further recommends that a bank should keenly evaluate when to use external equity funding though external equity funding may be costlier. Lower tier commercial banks may also employ long term sources like equity shares, debentures, preference shares and public deposits as they are usually less prone to short term shocks as it is secured by formally established contractual terms. In addition, lower tier commercial banks may also need to diversify their product and service portfolio to expand their aggregate asset base and competitiveness in the market so that they can withstand financial and market shocks. The study offers great value to the management of lower commercial banks and other players in the sector. The regulators including the CBK may get insightful information that would assist in formulation of policy on ideal financing structures for lower tier commercial banks. The study also provides a worthy benchmark to future research work on capital structure and profitability of small and medium sized commercial banks

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