School of Business

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Taxation and SME's sector growth
(Society for Business Research Promotion, 2007) Nganga, Irura; Mwangi, J. Macharia
The influence of ethnicity on leisure pursuits and tourism behaviour of Somali immigrants in Leeuwarden, Netherlands
(2010-05-30) Mbuthia, Susan W.; Maingi, Shem W.
This study is based on the premise that there are fundamental differences in tourism behaviour of immigrants in Europe, such that, there are certain ethnic and cultural determinants to travel preferences, choice and behaviour. Previous studies in Europe reveal certain socio-economic constraints that face ethnic minorities in Europe. This study sought to identify these ethnic determinants/ constraints of travel behaviour amongst Somali immigrants in the Netherlands. A field survey was conducted through the use of structured interviews. The interviews were conducted to twenty nine adults living in the city of Leeuwarden, Netherlands. The respondents were college students and other adults from twenty one years and above, specifically of Somali decent. The results indicated that there were in deed ethnic differences in leisure and tourism behaviour of Somali immigrants to the Netherlands. The Bantu Somalis were more liberal and would adapt more than the other Somalis when they come into contact with other cultures. Travel preferences of these respondents were based on their personal values; personal liking; family ties and the level of interest of places to travel. Racialized expressions and social encounters played a pivotal role in the way the Somalis living in the Netherlands chose to travel and engage in their daily and leisure activities. These individuals were more or less influenced by other cultural contexts, therefore having significantly different preferences in leisure pursuits and travel behaviour. Majority of the findings confirmed that there were ethnic constraints and determinants to leisure and tourism behaviour of Somali immigrants in Leeuwarden, Netherlands. This work has demonstrated that there were indeed constraints experienced by immigrants and especially those of Somali ethnicity, and close attention to the experiences of other Netherlands immigrants such as those from Caribbean or Middle East should be researched on. This would help develop a broader analysis of immigrants’ forms and ways of travel and their experiences.
Collective efficiency and its effects on infrastructure planning and development for small manufacturing enterprises in Kenya
(International Journal of Business and Public Management, 2011-03) Ng'ang'a, S.I; Onyango, G.M.; Kerre, B.W.
This paper explores the extent of use of collective efficiency among the wood enterprises in Kenya and its effect on the infrastructure planning and development. Small manufacturing enterprises are known to contribute to economic dynamism, entrepreneurship and industrial development in less developed countries. However, they are handicapped by lack of capacity to accumulate capital, develop infra- structure and acquire technologies necessary for competing in a liberalized global market individually. Data was obtained from 284 wood enterprises owner/managers selected through multistage sampling in western Kenya and by use of questionnaires, observation checklists and documentary analysis. Data analysis by regression shows that infrastructure development is affected linearly by collective efforts. The paper recommends that industrial infrastructure planning in Kenya should be informed by the Collective efficiency, Networking, Systems approach and Constructivism paradigms so as to anchor the small manufacturing enterprises in the industrialization process. The paper also recommends that a Jua Kali development authority should be established to address the needs of the small manufacturing enterprises sector borrowing from the export processing zones authority model.
The logarithmic relationship between collective efficiency and technology development in wood enterprises in Kenya
(Journal of Geography and Regional Planning, 2011-03) Ng'ang'a, S.I; Onyango, G.M.; Kerre, B.W.
Small Manufacturing Enterprises (SMEs) contribute to economic dynamism, entrepreneurship and have potentials to contribute to sustainable industrial development in less developed countries (LDCs). They are however handicapped since they lack the capacity to develop infrastructure and acquire technologies that give them a competitive advantage in the global market. This paper explores collective efficiency as a paradigm that could inform technology development in LDCs to enhance SMEs growth. Data was obtained from wood based enterprises owner/managers (284) who were sampled from three districts Kericho, Nakuru and Uasin Gishu all in the Rift valley province of Kenya using multistage sampling strategy. Data was collected by use of questionnaires, observation and documentary analysis. Using regression analysis the study found the relationship between collective efficiency and technology development in wood based enterprises to be logarithmic. This revealed that the rate of change in technology development is higher with higher levels of joint actions up to a certain maximum point when further joint actions do not benefit the wood based enterprise. These findings demonstrate the need for a paradigm shift in the support of SMEs sector in order to sustain industrial development. The use of collective efficiency paradigm in the planning and development of infrastructure that anchors technology development for the SMEs is recommended.
Assessment of Farmers’ Adaptation to the Effects of Climate Change in Kenya: the Case of Kyuso District
(Journal of Economics and Sustainable Development, 2012) Ng’ang’a, S. I; Ndambiri, H. K; Ritho, C; Mbogoh, S.G; Muiruri, E. J; Nyangweso, P.M; Kipsat, M. J; Ogada, J. O; Omboto, P. I; Kefa, C; Kubowon, P. C; Cherotwo, F. H
The study was carried out to assess how farmers in Kyuso District have adapted to the effects of climate change. Survey data was collected from 246 farmers from six locations that were sampled out through a multistage and simple random sampling procedure. The probit regression model was fitted into the data in order to assess factors influencing farmers’ adaptation to the effects of climate change. The analysis revealed that 85% of the farmers had adapted in various ways to the effects of climate change. In this regard, the age of the farmer, gender, education, farming experience, farm income, access to climate information, household size, local agro-ecology, distance to input/output market, access to credit, access to water for irrigation, precipitation and temperature were found to have significant influence on the probability of farmers to adapt to climate change. The study suggests that more policy efforts should thus be geared towards helping all the farmers in the district to adapt to climate change.
DETERMINANTS OF ECONOMIC GROWTH IN SUB-SAHARAN AFRICA: A Panel Data Approach
(International Journal of Economics and Management Sciences, 2012) Ndambiri, H.K; Ritho, C.; Ng'ang'a, S.I; Kubowon, P.C.; Mairura, F.C.; Nyangweso, P.M.; Muiruri, E.M.; Cherotwo, F.H.
Based on a panel data of 19 Sub Saharan countries for the years 1982-2000, this study explores the determinants of economic growth in the region. Given that economic growth is essentially seen as a dynamic phenomenon, the study employs the Generalized Method of Moments (GMM) to account for the factors that influence the growth of economies in the region. The study results indicate that physical capital formation, a vibrant export sector and human capital formation significantly contribute to the economic growth among sub- Saharan countries. However, government expenditure, nominal discount rate and foreign aid significantly lead to negative economic growth. As found out in the study, it is recommended that relevant policies be formulated to promote those sectors that enhance economic growth in the region
Socio-Economic and Institutional Constraints to Accessing Credit among Smallholder Farmers in Nyandarua District, Kenya
(research gate, 2012) Kefa, C.; Ng’ang’a, S. I.; Ogada, J. O; Omboto, P. I.; Kubowon, P. C.; Cherotwo, F. H.; Ritho, C.; Ndambiri, H. K.; Kipsat, M. J; Nyangweso, P. M.; Muiruri, E. J.
Amongst the challenges faced by smallholder farmers in production is inaccessibility to credit. This study sought to identify household socio-economic and institutional constraints influencing access to credit among smallholder farmers in Nyandarua District. The study used a Logit model. Both quantitative and qualitative data were acquired from primary and secondary sources. Primary data was collected using questionnaires through a survey design. A sample of 164 smallholder farmers was selected using stratified, multi-stage random sampling techniques. Data was analyzed using descriptive statistics and maximum likelihood method using Statistical Package for Social Sciences (SPSS). The study established that socio-economic constraints such as age, gender, household size, farm income, collateral and awareness are critical determinants of access to credit. The study also established that institutional requirements such as costs involved in operating / maintaining bank accounts, loan requirements and transaction costs involved in the credit process influenced access to credit. The study concludes that household socio-economic characteristics and institutional requirements influence access to credit. Key recommendations made include the need by government to deal with bureaucracies involved in land registration to benefit majority of smallholder farmers who remain insecure in the land they use without proof of ownership and also to make easier the registration of lease certificates for those who do not own land and use land on leasehold tenure system. Financial institutions should also put in place less stringent credit requirements and reduce credit costs especially interest rates to make credit more affordable.
4. Measuring efficiency and benchmarking classified two-five star hotels in Nairobi and Mombasa, Kenya
(KENYATTA UNIVERSITY, 2012-04) Mburugu, Keren; Muchai, Diana Mukwate; Gesage, , Methuselah B.
The Government of Kenya recognizes the role played by hotels and restaurants in terms of wealth creation, contribution to Gross Domestic Product (GDP) and its multiplier effect that acts as a stimulus to the growth of other sectors such as transport, entertainment, agriculture, trade and industry. There are a limited number of detailed studies into performance measurement practices in the hospitality industry in particular. Most of the previous studies in the hotel industry have used traditional financial ratio analysis such as return on equity or return on assets. Few studies have used Data Envelopment Analysis (DEA) for the hotel sector. The purpose of this study was to measure the relative efficiency of the hotels in Nairobi and the Coast region· using Data Envelopment Analysis. The objectives of this study were; to measure the efficiency level of 2-5 hotels, to profile the hotels based on their performance, to analyze their efficiency distribution and to identify the determinants of efficiency differences. The study was a longitudinal survey in which data are collected for each variable for two or more distinct periods; 2007, 2008 and 2009 being three such distinct periods. The study was carried out in Nairobi and Mombasa and was limited to two-five star hotels. The study sample consisted of 36 hotels. Data for 2007 to 2009 collected through interviews. The results revealed many hotels were in private independent ownership particularly in the three star rating. International chains owned most of the five star hotels. The hotels generated most of their revenue from room sales. There was a general decline in revenue from rooms in 2008 attributed to the post election violence. Technical inefficiencies of the hotels were mainly due to the pure technical inefficiencies rather than the scale inefficiencies. These hotels were ineffective in converting inputs to outputs. The results further revealed that four and five star hotels had declining efficiency scores from 2007 to 2009. In 2007 22 % of the hotels were operating under decreasing returns to scale while 8.3% operated under increasing returns to scale. In 2008, 19.4% of the hotels operated under increasing returns to scale while 13.8% operated under the decreasing returns to scale. In 2009 33% of the hotels operated under the increasing returns to scale whereas 19.4% operated under increasing returns to scale. There were no significant differences in the efficiency scores for two and three star hotels as one set and four and five star hotels as a second set. There were equally no significant differences in the efficiency scores for the hotels found in Nairobi and Mombasa and also between chain and independent owned hotels. Generally, there was no significant difference in the efficiency scores between the different hotel sizes. The main determinant of efficiency was the location of the hotels. The study recommends that the hotel managers address their hotel's internal weaknesses in their day to day hotel operations if they are to be more efficient. One of the conclusions of this study is that all the hotels studied had declining efficiency scores from 2007 to 2009. A policy implication for the managers of the inefficient hotels is that they should borrow the best practices of their efficient peers if they have to raise their hotel's performance. Another policy implication for investors is that one can invest confidently in Nairobi since the efficiency of the hotels in this region is likely to be higher compared to those in Mombasa.
Factors Affecting Provision of Service Quality in the Public Health Sector: A Case of Kenyatta National Hospital
(International Journal of Humanities and Social Science, 2012-07) Dr. Wanjau, Kenneth N.; Muiruri, Beth Wangari; Ayodo, Eunice
Purpose – This paper seeks to explore the factors affecting provision of service quality in the public health sector in Kenya, focusing on employee capability, technology, communication and financial resources. The paper reviews existing literature and experiences on public health service provision and quality management. Design/methodology/approach – The paper reports on empirical evidence drawn from a case study of Kenyatta National Hospital – the largest referral hospital in Eastern & Central Africa. A total of one hundred and three respondents, comprising; sixteen doctors, thirty two nurses, twenty nine clinical officers, fourteen laboratory technologists and twelve pharmacists. Data was collected using closed and open ended questionnaires. Findings: Low employee’s capacity led to a decrease in provision of service quality public health sector by factor of 0.981 with while Inadequate Technology adoption in provision of health service led to a decrease in provision of service quality by a factor of 0.917. The Ineffective communication channels affected delivery service quality in public health sector by a factor of 0.768 while insufficient financial resources resulted to decrease in provision of health service quality by factor of 0.671. This implied that low employees capacity, low technology adoption, ineffective communication channels and insufficient fund affect delivery of service quality to patients in public health sector affecting health service quality perceptions, patient satisfaction and loyalty. Practical Implications – In the paper the implications for policy include: comprehensive healthcare policy,addressing the plight of the worker, the working environment, the resources to enable the healthcare personnel perform effectively, and emotional intelligence management of the workforce. Originality/value- The paper shows that the respondents in this study were various professionals in the healthcare provision, covering the comprehensive process of healthcare provision from diagnosis to treatment.The approach to study the largest referral hospital in Eastern and Central Africa region and data collected is indicative of special case of Kenyatta National hospital and may be entirely different from other public health institutions within the Eastern and Central Africa region.
Infrastructure and Technology Planning and Development for Sustainable Industrial Growth: Lessons from Wood Enterprises in Kenya
(International Journal of Business and Social Science, 2012-08) Ng'ang'a, S.I
This paper interrogates industrial development in Kenya. It presents a discourse in support of modernizing local technologies and focusing on small manufacturing enterprises (Jua Kali) to anchor sustainable industrial development in Less Developed Countries. The trend in production and performance in Wood Industry in Kenya is used to demonstrate that relying on modern technology brought in by foreign Direct Investment does not always lead to sustainable development. The paper is informed by a longitudinal survey of the performance of manufacturing and Wood Industries in Kenya.
Emerging Trends Shaping Contemporary Business Strategy
(Prime Journals, 2012-09-18) Gakure, Roselyn; Keraro, Victor; Okari, Headmound; Kiambati, Kellen
This study constitutes a theoretical review of existing literature relevant to the subject. The study examines and briefly discusses salient issues in conventional business strategy formulation and execution. It identifies and lays significant emphasis on the key emerging trends that have shaped contemporary business strategy formulation and execution. The key trends identified and discussed are; the inclusion of the bottom of pyramid staff and lower level managers, role of technology, outsourcing, alliances, consolidations and networks, globalization, environmental impacts, emphasis on decisions rather than structures, work-life balance, culture, strategic architecture, facilities management, diversification and knowledge management.
Income Distribution and Livelihood Analysis among Horticulture Farming Households in Nyeri District, Kenya
(International Journal of Business and Social Science, 2012-10) Ndambiri, H.K; Okello, J.J; Ng'ang'a, S.I; Ritho, C.; Minyacha, S.O.; Omboro, P.I; Kubowon, P.C.
The objective of this study was to analyze the distribution of income and livelihood strategies among the horticulture farming households in Nyeri District, Kenya through the estimation of the Gini Coefficient. The study used secondary data obtained from a National Household Survey carried out in 2007 by Tegemeo Institute of Agricultural Policy and Development. The estimated Gini coefficients indicated that there is variability in the distribution of incomes among the households in totality and across different farm enterprises. Income from non- farm activities had the highest Gini value of 0.6804. This implies that the distribution of income from non-farm enterprises was more inconsistent across households compared to other farm enterprises that had lower Gini values. This among other reasons explains why households in Nyeri District have varied livelihood strategies leading to varied livelihood outcomes. It is suggested that to improve the distribution of income and standards of living of the households, better interventions such as education targeting the most vulnerable or the marginal household groups needs to be put in place so as to enhance household earnings. In addition, the creation of an “equal opportunity” policy for the people is suggested so that vulnerable people in the society like women, the old, the disabled and children among others can be given a priority.
TRANSFER PRICING: Goals and Methods among Unlisted Companies in Kenya
(2013) Muchina, Stephen
An Assessment of Management Commitment to Application of Green Practices in 4 – 5 Star Hotels in Mombasa, Kenya
(2013) Mungai, Margaret Mungai; Irungu, Robert Irungu
Small and Medium Size Manufacturing Enterprises Growth and Work Ethics in Kenya
(Developing Country Studies, 2013) Tarus, D.K.; Ng'ang'a, S.I
Developing countries are facing a formidable unemployment challenge due to a combined effect of slow economic growth and rapid increase in population. In Kenya, Economic Recovery Strategy (ERS) estimates that 500,000 jobs would be created annually with 88% of these generated by small and medium size enterprises. Yet, the attrition level is alarming. It has been shown that for every 100 new enterprises started in a year, 60 percent close down within the first year, and those that survive the first year, 40% are likely to close in the second year (Kenya 1998; 1999). The question that begs answers is, why so? One untested theory has been unfair competition and unethical behavior of the small and medium enterprises. This leads to low confidence, and trust and difficulties in sustaining customers as well as establishing long lasting networks. This study explores the extent to which SME’s embrace business work ethic. It seeks to answer questions as to how much the growth of SMEs is affected by work ethics or lack of it. The study employed expost facto survey design among small manufacturing enterprises in Eldoret Municipality with respondents sampled through proportionate random sampling in clusters based on geographical location. This paper measures the perception of the entrepreneurs on the relative importance of ethical practices and social responsibility in business. It goes further to highlight core competencies that can be leveraged to prepare small and medium size manufacturing enterprises engage in ethical practices.
The Implications of Collaborative Industrial Attachments for Kenya Vision 2030 Development Programmes
(African Journal of Education and Technology, 2013) MUTHONI, David Mutahi; MUCHEMI, Allan Kuria; MUTAHI, Irene Wairimu; GUNGA, Samson Okuro; ORIGA, Japheth O.
The purpose of this study is to establish the influence of industrial attachment on instructors’ and students’ competence in creative innovations for improved industrial output. The study also attempted to determine the influence of TSIA activities on the quality of students’ industrial output in Kenya. The study found that TSIA plays an important role in establishing the link with social-industrial partners, relating teaching and learning processes to the latest development in the industries, providing opportunities for working with most current echnology, machinery, equipment, tools and systems, contributing to product and industrial processes through creative innovations, involvement of industrial staff in students’ competence development, reducing cost of recruitment and hence improving industrial savings. The study conclude that if collaborative industrial attachment between instructors and students is adopted and strictly followed, there is the possibility of an improved students' competence in creative innovations leading to globally competitive industrial out-put. The study recommend the involvement of industrial and social partners in standardized assessment of collaborative supervised industrial attachment for students and academic staff
The Influence of External Stakeholders and Expansion Strategies on the Relationship between Organisational Resources and Firm Performance
(2013) Mahasi, John; Awino, Z. B.; Pokhariyal, G. P.; Ombaka, Beatrice
For decades, the field of strategic management has focused on the determination of drivers of performance and the causes of variation in performance within and between firms. The frameworks so far identified such as resources, external stakeholders and expansion strategies provide partial explanations to performance. This paper seeks to investigate the drivers and causes of variation in performance from a resource based perspective while considering the joint influence of external stakeholders and expansion strategies. According to the resource based theory, resources are central to a host of organisational actions and outcomes. Resources determine a firm’s response capabilities and response strategies, growth and expansion strategies and can ultimately be leveraged to secure superior performance. Stakeholder theorists have argued that paying attention to and satisfying stakeholder needs is essential to organisational success. However, the influence of stakeholders on firm performance has seldom been articulated. The effect of expansion strategies such as diversification and internationalization on performance has been investigated. The literature review done and the conceptual model developed establish the moderating effect of external stakeholders and the intervening role of expansion strategies on the relationship between resources and performance. The findings will provide useful insights to managers on factors affecting performance and the manner in which they affect performance. This will help refocus strategic effort towards improved performance of the institutions and contribute to the steadily growing knowledge on the drivers of firm performance and causes of variation in firm performance and could possibly guide future research.
Constructivism and the Likert Scale on the Perception of Teaching/Learning Creativity at the University Level
(Journal of Sociological Research, 2013-01) Ng'ang'a, S.I; Otii, L.
This paper interrogates the constructivists learning environment, the constructivists learning activities and the use of the likert scale in assessing the effectiveness of teaching/learning creativity at the university level. The rapid growth in demand of university education, the rapid expansion and proliferation of both public and private universities and university colleges and the privately sponsored student programs necessitates that we continuously monitor and evaluate their performance and the creative abilities bestowed upon graduates as they join the labor market. The paper is informed by a case of a postgraduate student who sought to investigate and analyze from the students perspective, the input factors into a university system through a transformation process that leads to graduates who are expected to have creative capabilities and fit into the ever changing society. The thesis examination process was faced by challenges that lead to the program taking six years instead of the prescribed two, yet he is still the lucky one, the most of his class mates are not that lucky. The authors relate the experience they shared as student and supervisor in the process. The paper concludes that there is a problem in the constructivist learning environment created-the faculty, facilities and programs and also dissatisfaction in the methodologies employed and the role played by the facilitators. It is therefore recommended that the universities should re-examine the environment, the transformation process and the outputs to ensure that graduates meet the dynamic needs of a global society.
Strategic HRM's role in strategic planning implementation by the high education training institutions in Kenya
(International Journal of Human Resource and Procurement, 2013-01) Gichuhi, David; Ragui, Mary
In the turbulent environment facing organizations, strategic human resource management (SHRM) is looked upon as the savior to the strategy implementation. Human resource or human capital is recognized as a major factor for organization's success (Armstrong, 2008). An organization with all the other resources minus effective human resource can accomplish very little of its objectives if any. From O'Regan & Ghobadian (2004), strategic planning is necessary for organizational purpose, realistic goals and objectives, consistency with the organization's mission, communication, priorities, productivity corrective action, consensus, efficiency, effectiveness and teamwork. These reasons create urgency for implementation of the strategic plans for an organization's success. For strategic planning implementation to be achieved, there is need for a 'fit' between the SHRM and the organization's strategy calling for tighter SHRM strategies. This paper is work-in-progress research with main objective being identification of the factors hindering strategy implementation in the higher education institutions (HEIs) in Kenya and corrective action that can be taken to address them. The study will adopt an exploratory approach using a descriptive survey design, which will ensure ease in understanding the insight and ideas about the problem. The main instruments for data collection will be a semi-structured questionnaire and face-to-face standardized interview. Multiple regression analysis will be carried out to establish relationships of the independent variables to the dependent and enable modeling of the factors hindering strategic planning implementation in the higher education institutions (HEIs) in Kenya.
TRANSFORMING WOMEN LIVELIHOODS BY DAIRY FARMING AND MICROFINANCE IN BUNYALA, WESTERN KENYA
(Journal of Studies in Accounts and Economics, 2013-01) Omillo, F.O.; Ng'ang'a, S.I; Bennett, H.
This paper is about microfinance viewed as a social change “tool kit” and its consequent effects on livelihoods of women of Bunyala, especially those involved in small-scale diary farming. The study investigated microfinance strategies, effects and challenges encountered by the farmers. Census techniques were applied in collecting primary data on all 93 dairy farmers in Bunyala District. The main instruments of data collection were questionnaires and document analysis. Data was obtained from dairy farmers, key respondents from the government, civil society organizations and microfinance institutions in Budalang‟i. The data collected was coded and keyed into computer using Statistical Package for Social Scientist (SPSS) computer program. It was further analyzed and organized in tables, pie and bar charts for easy interpretation. Gender preferences in accessing microfinance services were not there and collateral was the biggest challenge in accessing microcredit. In conclusion microfinance was an important toolkit in providing social change and improving the livelihoods. The study suggests that women in Bunyala be empowered through trainings especially on saving methods so as to use microfinance optimally