IMPACT : International Journal of Research in Business Management

19-30

Authors: KEITH KOMEN KIPTIS & DANIEL WANYOIKE

As a result of globalization and competition, many financial institutions are sharing resources in their business conduct in order to gain competitive advantage. One such sharing occurs through bancassurance where banks and insurance organizations partner to enhance their operational capability and to ward off competition. The current study therefore sought to establish the influence of bancassurance on financial performance of commercial Banks in Nakuru Town, Kenya. The study used a descriptive design employing quantitative approaches. The target population of study was all 180 finance-related employees of the eight banks offering bancassurance in Nakuru Town. Primary data was collected using a close-ended questionnaire while secondary data was sourced from the Central Bank of Kenya using financial statements for a period between 2010 and 2014. The Statistical Package for Social Sciences Version 21 was used to analyze the data and the results obtained were presented using tables. The study established that at 5% significance level management quality, asset quality and capital adequacy all had positive influence on financial performance with management quality having the most significant influence. Further, the study established that liquidity had a negative and insignificant influence on financial performance of banks (p = 0.076). The study recommends bank management should come up with optimal regulatory policies on capital adequacy, asset quality and liquidity that would not compromise the banks financial performance. Similarly, the banks should recruit the best management talent available and compensate them adequately as they are the people who determine its operation through decisions, ensure the bank's smooth business, handles risks and exercises control and ultimately determine the earnings the bank

43-54

Authors: ANTONY KOOME KIRAI & JOSPHAT KWASIRA

Developing countries in one way or another have reformed their public procurement regulations. The reforms have not been limited to regulations only, included public procurement process, methods, procurement organizational structure, and the workforce. It has been attracting great attention from practitioners, academicians and researchers due to poor performance resulting from non-adherence to proper processes and procedures. Public procurement as a function of government includes decisions about the services that will be delivered to local authorities and the communities they serve (Hughes, 2005). It is utilized not only to secure goods and services required by public sector organizations for their missions and to support services provided to taxpayers, but it is also used to implement national policies and to achieve social and other objectives (Thai, 2005). Many national and international instruments have been concerned with building an effective procurement system. In this context, particular procurement issues, such as the implementation of secondary policies, the review mechanism to address complaints, provisions on electronic procurement or rules governing privately financed projects, have received an in-depth examination (De Castro, 2006). Mahmood (2010) noted that public procurement represents 18.42% of the world gross domestic product. In developing countries, public procurement is increasingly recognized as essential in service delivery (Basheka & Bisangabasaija, 2010), and it accounts for a high proportion of total expenditure. For example, public procurement accounts for 60% in Kenya (Akech, 2005), 58% in Angola, 40% in Malawi and 70% of Uganda’s public spending Basheka and Bisangabasaija (2010). This is very high when compared with a global average of 12-20 % (Frøystad et al., 2010). Due to the colossal amount of money involved in government procurement and the fact that such money comes from the public, there is need for accountability and transparency (Hui et al., 2011). The success of any given organization will depend on the strategic management of all its key sections. Procurement enhances efficiency and competitiveness among other benefits, but to realize these benefits, it is imperative to look at the strategic factors that affect the performance of the procurement function. It is against this background that the study sought to fill the existing knowledge gap.

67-78

Authors: ELIZABETH WANJIKU & ALEX NJIRU

Microfinance plays a major role in many gender and development strategies because of its direct relationship to both poverty alleviation and to the empowerment of women. In Kenya and elsewhere, microfinance institutions have been on the rise with microfinance having been portrayed as a way to reach poor people in the development process, meet the UN Millennium Development Goals, and as a new innovative strategy for alleviating poverty. Studies on microfinance services and women empowerment in Kenya remain scanty with global empirical evidence providing contradicting information. The study sought to find out the effect of microfinance services on women empowerment in Olkalou Constituency, Kenya. A descriptive research design was used for this study. The target population comprised of women who had been using microfinance services in the constituency. Data was collected using closed-ended questionnaires which yielded quantitative data. The sample size in this study was 120 women chosen at random where 30 respondents were allocated to each of the microfinance institutions. The collected data was analyzed using SPSS Version 21 and the findings presented in tables. The study found that microfinance services have positive and significant effect on women empowerment in Kenya. The study established that microfinance services provided financial access which provided women with start-up and working capital, training, savings leading to women engagement in income generating activities and hence positive outcome on empowerment and women role in society and decision making. There was a strong positive significant correlation between income generation and Women economic empowerment (r=0.704, p<0.05) and financial literacy and Women economic empowerment(r=0.777, p<0.05). Credit access had an insignificant effect on economic empowerment. The study recommends that MFIs to enhance women training mostly in rural areas to enhance their skills on viable and sustainable investment ventures. Further, the government should formulate and review the existing policies on microfinance and financial empowerment to women in Kenya to incorporate the emerging issues due to volatility of the banking industry and the changes in the needs of the poor.

89-94

Authors: CH. SHANKAR & K. RAMULU

In the present global scenario the concept of risk has became a focal point for those who are thinking and acting in markets. The market may be Financial, Commodity, and Currency etc. The market crises and volatility in the past four decades conformed that the centrality and importance of risk and its analysis. The present paper explains the concept of risk and the two dimensions of risk like subjective risk and probabilistic risk and explains the concept of uncertainty

101-108

Authors: ENOS KABU

This study examines the presence of risk society through decisions that happened and formulated in relation to fishery business and forests management practices in Indonesia. Since sustainability of fishery business and rainforests also depend on strategic decisions made by local government; this study focuses on how the strategic decisions are shaped and formulated by identifying and examining the information used to formulate strategic decisions, and describing the nature and effectiveness of communication among the decision making agencies at the meso level, and with local people. This study was designed fundamentally based on a case-study approach that examines the meso levels of decision makers and local people at the micro level. Data were collected using in-depth interview and then analized using qualitative discourse analysis. This study shows that information based-economy was widely used and considered in formulating strategic directions and decisions. To better address the sustainability issues and risks under the risk society context, relevant information concerning related-risks, a two-way communication and cooperation among decision making agencies need to be established in reformulating strategic decisions that impact on the sustainable fishery business and continued existence of rainforests.

117-128

Authors: HILARY KIPKORIR MWAITA & JOSPHAT KWASIRA

This study sought to investigate determinants of strategic social security initiatives among employees of Nakuru County Government, Kenya. This study conceptualized that there are various determinants of the use of social security initiatives in Kenya. The independent variables guiding this study were financial literacy, literacy on social security and, governance of security schemes. The study adopted a descriptive research design and targeted 60 employees of Nakuru County Government and 30 pension officials of National Social Security Fund, Nakuru offices. The study sample was 80 respondents who were sampled using proportionate stratified sampling technique. Data was collected using a questionnaire and analyzed using Statistical Package for the Social Sciences Version 21. The study revealed that financial literacy is high among employees of Nakuru County. Most of the existent financial knowledge started being acquired at young age and increased with time. As a result, use of strategic social initiatives was high. On its part, social security literacy was average. However, effort had been made to promote such literacy in Kenya. As result, most of the respondents knew the importance of social security initiatives. However such knowledge was not sufficient since some employees were not aware how some social security funds operated. As a result, some of the respondents often made investment mistakes. Lastly, it was evident that governance did not affect adherence to social security schemes significantly. The study recommends that there should be effort to continue offering financial education which should be engrained in school curriculum since financial literacy is garnered over time. Employees should also endeavour to pursue trainings that would enhance their capacity to make informed investment decisions so as to avoid mistakes. There should be regular effort to promote social security literacy in Kenya. Regular review of social security legislation and policies should also be undertaken so as to ensure that governance of such schemes is effective.