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Purpose: MFIs are subject to financial risks, just like all other financial institutions. This is intimately tied to their primary businesses of managing credit and accepting deposits. Therefore, risk management is crucial for MFIs in order to maximize their return on investment. The current study sought to establish the effect of financial risk management practices on financial performance of microfinance institutions in Kiambu County, Kenya. The study focused on establishing the effect of liquidity risk management practices, operational risk management practices, credit risk management practices, and market risk management practices on financial performance of microfinance institutions in Kiambu County, Kenya. The theories anchoring the study comprised of Risk Management Theory, Extreme Value Theory, Credit Risk Theory, and Capital Market Theory. Methodology: A descriptive survey research design was adopted in the study. The target population comprised of 31registered microfinance institutions operating in Kiambu County. The unit of observation comprised of Risk and Compliance Manager, Finance Manager, Operations Manager, Credit Manager, and Business Development Manager from each of the microfinance institution making a total of 155 respondents. A census approach was adopted in the study where all the registered microfinance institutions were involved in the study. Both primary and secondary data was employed in the study where 5-point Likert scale questionnaires were employed to gather primary data while a secondary data collection sheet was utilized to gather secondary data. Both descriptive and inferential statistics were used to analyze the collected data. The statistics were generated by help of Statistical Package for Social Scientist and MS Excel. Findings: The results of the analysis revealed that Liquidity Risk Management Practices, Operational Risk Management Practices, Credit Risk Management Practices, and Market Risk Management Practices positively and significantly affects financial performances of microfinance institutions in Kiambu County, Kenya as shown by beta values of 0.401, 0.309, 0.497 and 0.351 and significant values of 0.000. 0.001, 0.000 and 0.006 respectively. Unique contribution to theory, practice and policy: The results implies that when each of the independent variable is increased with one unit, financial performance of the microfinance institutions increases with the respective beta value of the independent variable. The results led to conclusions that liquidity risk management practices, operational risk management practices, credit risk management practices, and market risk management practices bears appositive and significant effect on financial performance of microfinance institutions in Kiambu County. The study provided recommendations to the management of the microfinance institutions to enhance their practices in areas of liquidity risk management, operational risk management, credit risk management, and market risk management to improve financial performance to a positive and significant level.

Purpose: To what extend does firm size moderates’ relationship between manufacturing firms’ financial performance and financial uncertainty indicators. This was necessitated below expectation performance of manufacturing firms in Kenya. They are expected to employ 30% of Kenya population, contribute to Gross domestic product up to 10% and attract at least 10% of large investor. This has not been possible in the last 12 years. Design/Methodology/Approach: The study adapted descriptive design. Study was done in Kenya for manufacturing firms registered under Kenya Association of Manufacturers (KAM) for period between 2009 to 2020. Total population was 856 with a sample size of 90 firms chosen using stratified and them random sampling. Indicators were Return on Equity, trade credit uncertainty, Liquidity uncertainty, Leverage uncertainty, operational cost uncertainty and Logarithm of total asset’ Findings: Firm size moderates relationship between financial uncertainty indicators and financial performance of manufacturing firms in Kenya. Firm size negatively and significantly affected performance. Though moderation was not significant, but it strengthened relationship between variables. Implications/Originality/Value: Firm size should be monitored since it significantly affected financial performance of manufacturing firms in Kenya. Firm assets should not be financed by leverage since it had significant negative relationship with financial performance.

The Objective of this study is to find out the effect of capital flows on economic growth in Kenya, With Three specific objectives; To investigate the effect of foreign direct investment on economic growth in Kenya, to find out the effect of foreign portfolio investment on economic growth in Kenya, and to determine the effect of diaspora remittances on economic growth in Kenya. Quarterly data from 2002 to 2017 was used in the study, and Descriptive research design and inferential research design were used to analysis the data. Descriptively, mean and standard deviation were used and Inferentially the Auto regressive distribution Lag technique using the STATA software Version 15. Diagnostic tests were conducted on the data; Normality test using Jarque Bera test supported by the skewness and Kurtosis results; Unit root was tested using the Augmented Dickey Fuller Test .The Auto Regressive Distributed Lag regression short run results show that, foreign direct investment had an positive and insignificant effect on gross domestic product, whereas foreign portfolio investment had a positive and statistically significant short run effect on gross domestic product at 1% level of significance and diaspora remittances had a positive and very significant effect of gross domestic product at 5% level of significance. The Error Correction Model regression results showed that in the long run, Foreign Direct Investment, Foreign Portfolio Investment, and Diaspora Remittances had a positive and very significant effect on the economic growth at 1% level of significance.

The growth of the economy is a concern to many because it has an influence on the progress of a country and its citizens. It is expected that an economy with a highly advanced digital money system should also experience high economic growth. However, statistics indicate that the economic growth rate in Kenya has been fluctuating and has failed to grow consistently despite numerous policy interventions. This study sought to establish the influence of digital money on Economic Growth in Kenya. The study incorporated a descriptive research technique and a time series approach to analyse the relationship between digital money and economic growth using Kenyan quarterly data from 2011 to 2020. Four variables were used as proxies to measure digital money: - the value of mobile money transactions, the value of cards money transactions, the value of internet banking (EFTs) transactions and agency banking. The findings revealed that all relationships that were tested were positive and significant each with p-Value that was less than 0.05. Further analysis showed F-Calculated (1, 38; α=0.05) was 32.909 (card transactions), 247.029 (EFT transactions), 297.118 (mobile transfer), and 571.417 (active agents). Therefore, the study recommended that there is need for an intensified campaign to sensitize the public on the importance of digital money owing to their flexibility and improved security as compared to carrying physical cash especially in the wake of the COVID-19 pandemic. To the policy makers, the findings suggest that there is need to solidify and enforce strong digital/ICT policy that promotes cashless payments.

While airline profitability has remained a challenge over several years, the weakest performance identified by IATA reports was from airlines in Africa and Latin America. The main objective of this study was to determine the effect of leverage, liquidity, and asset tangibility on firm profitability of flag carriers in Africa. Stratified random sampling technique adopted reduced the working population of 23 firms to 4 firms namely Kenya Airways, Ethiopian Airways, Air Mauritius and South African Airways. Data was collected from each airline’s website over a thirteen-year period between 2005–2017. The findings were that leverage had a significant effect that was either positive or negative depending on whether debt is financed by equity or by assets implying that airline managers should endeavour to target cost-efficient sources of capital. Liquidity and asset tangibility were observed to have no significant effect and had little to no explanatory power on financial performance in the selected African airlines. The study recommends implementing a collaborative effort using a tri-partite debt covenant between airline managers, lenders of capital and government. African governments and local lenders should step in to support their Flag carriers by reducing the gaps and costs associated with acquisition of debt and other sources of capital. Airline managers on their part should manage resources efficiently and be held accountable with periodic audits to ensure they are invested in sustainable levels of their airline’s profitability.

The objective of this study was to establish the effects of bank specific factors on stock returns of listed commercial banks in Kenya, with four specific objectives; to determine the effect of capital adequacy on stock returns of listed commercial banks in Kenya, to determine the effect of asset quality on stock returns of listed commercial banks in Kenya, to determine the effect of earnings ability on stock returns of listed commercial banks in Kenya and to determine the effect of liquidity on stock returns of listed commercial banks in Kenya. The Kenyan banking sector instability within the stock market has been of great concern as depicted by continuous fluctuations in the stock prices of listed banks. Studies undertaken in other stock markets displayed mixed findings and much concentration has been on the United States, Turkey and Indonesian stock markets. Hence, a study providing a Kenyan perspective on the link between banks’ internal environment and stock returns of listed banks was crucial. The study was based on market portfolio theory, efficiency structure hypothesis and the buffer capital theory. The research targeted all the 11 listed commercial banks at the Nairobi Securities Exchange. Quarterly data was collected for the period 2010-2019. A pooled panel regression model was used in the estimation of the significance of the impact of the variables. Findings of the research established that capital adequacy and earnings had a significant effect on stock returns. The study recommends that commercial banks should improve their capital base and expand their asset quality through better loan management.

The objective of this study was to establish the effects of dividend announcement to current market prices at the Nairobi Securities Exchange, with four specific objectives; to determine the information content of dividend announcements, to determine the extent to which prices converge to new values after dividend announcements on a sector by sector basis, to establish the market reaction to announced information and also to establish whether investors can secure excess returns by acting on announced information. A 66 days event timeline was employed from 2005 to 2015 on daily closing stock prices. A sample of 179 dividend announcements from 22 listed companies in 8 sectors were drawn and analysed using an OLS Market Model. Findings of the research conclude that; dividend announcements do have an impact on stock prices for the Agricultural, Banking, Commercial, Construction, Manufacturing and Telecomm Sectors and not for the Energy Sector, Insurance Sector and the Nairobi Securities Exchange Market. It takes more than five days for prices to adjust to their correct values and this makes it possible for market players to profit from the inefficiency by earning abnormal returns. We conclude that the Nairobi Securities Exchange is not semi-strong form efficient.

Foreign exchange is one of the macroeconomic variables which affect the financial performance of firms. Fluctuations in the foreign exchange rate have an effect on the operating cashflows, investment decisions, profits, sales and a firm’s market value. Foreign exchange rate level is determined by various factors which include the balance of payment, terms of trade, inflation and government borrowing. Given the importance of multinational firms to the economy of Kenya, it is crucial to determine the effect of determinants of foreign exchange on their performance. The objective of the study was to determine the effect foreign exchange determinants on the financial performance of multinational companies in Kenya. The independent variables included balance of payment, government debt, terms of trade and inflation. Measurement of financial performance was done using return on equity and return on assets. The study was anchored by the balance of payments theory, Keynesian theory of public debt, theory of international trade and the quantity theory of money. The study sampled four multinational companies operating in the nation of Kenya. The period covered by the study was 2002-2017. Data collected for the study was from both the central bank publications and financial statements of multinational companies. Study data was evaluated using panel data. The fixed effects model was used for the study. The study established that the balance of payments had a negative as well as statistically significant impact on return on assets. The study also established that government debt had a positive and significant effect on return on assets. Terms of trade and inflation were found to have positive but statistically insignificant effects on return on assets. The balance of payment and inflation had a negative and statistically significant effect on the return on equity. The terms of trade was found to have a positive but statistically insignificant effect on the return on equity. Government debt had a positive and statistically significant effect on return on equity.