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Top Management Team Diversity and Service Delivery of Commercial Banks in Makueni County, Kenya
The delivery of high-quality banking services became gradually vital in today’s globalized environment, characterized by dynamic customer expectations, heightened competition, and regulatory reforms. Diversity in top management teams emerged as a imperative driver of performance, particularly in influencing service delivery through varied perspectives, skills, and decision-making styles. This study set out to see how the diversity at the top management level affects service delivery in commercial banks across Makueni County, Kenya. The focus was on four types of diversity: demographic, cognitive, experiential, and cultural. The research leaned on several theories Upper Echelons, Social Identity, Resource-Based View, and Institutional theory. Descriptive cross-sectional research design and census approach was adopted, including all 96 middle and top-level managers from the eight Makueni County based commercial banks, specifically Kenya Commercial Bank, Equity Bank, Cooperative Bank, Absa Bank, Family Bank, National Bank of Kenya, NCBA Bank, and Sidian Bank. Primary data was obtained via a semi-structured questionnaire containing open and closed ended questions. For the reliability and validity of the instrument, a pilot test was performed with 10% of the respondents from ten respondents in commercial banks in Machakos county. Descriptive statistics (means and standard deviations), thematic analysis for qualitative responses and inferential statistics encompassing correlation and multiple linear regression analysis were conducted for the data analysis. These techniques indicated if the association between diversity in upper management and service delivery was statistically significant, assessed the magnitude and direction of this correlation, and ascertained the predictive effect of each dimension in terms of service delivery. Using ethical principles and a research license obtained from NACOSTI, the study fulfilled its research protocol without any discrimination. Also, participants in the research had to consent before participation, which assured confidentiality and anonymity would be maintained. The regression estimates explained 77.8% of service delivery variation (R² = 0.778). The model was statistically significant (F = 69.927, p < 0.05). All four dimensions of top management team diversity had positive and significant effects on service delivery: demographic diversity (β = 0.710, p < 0.05), cognitive diversity (β = 0.222, p < 0.05), experiential diversity (β = 0.453, p < 0.05), and cultural diversity (β = 0.416, p < 0.05). The research concluded that leadership diversity is a strategic driver of improved customer satisfaction, responsiveness, and service consistency. It recommended that commercial banks institutionalize inclusive leadership policies, strengthen diversity-oriented recruitment and development strategies, and cultivate cultures that leverage varied perspectives to enhance sustainable service performance.
Top Management Team Diversity; Service Delivery; Commercial Banks; Demographic Diversity; Cognitive Diversity; Experiential Diversity; Cultural Diversity; Kenya.
Copyright (c) 2026 Valentine Kalondu Wambua, Dr. Linda Kimencu (Author) https://creativecommons.org/licenses/by/4.0
Post-Covid Retail Supply Chain Recovery Strategies and Performance of Large Supermarket Retailers in NairobiCounty; Kenya
The retail sector in Kenya has recently faced significant challenges, resulting in the closure of several large supermarket chains. Following the COVID-19 pandemic, many retailers began to re-establish operations, driving interest in understanding recovery mechanisms used to enhance performance. This study examined the relationship between post-COVID-19 supply chain recovery strategies and the performance of large supermarkets in Nairobi County. It was anchored on the Resource-Based Theory. The target population included 162 participants made up of operations and supply chain or procurement managers from 81 branches of Naivas, Carrefour, and Quickmart supermarkets. Primary data was collected using a structured questionnaire. Descriptive and inferential statistics were employed, and multiple linear regression analysis was used to assess the effects of supply chain disruption responses, adaptation strategies, digital transformation, and supplier collaboration on supermarket performance. Data analysis was conducted using SPSS and findings were presented in table form. The results showed that adaptation strategies (β = 0.491, p = 0.000), supplier collaboration (β = 0.341, p = 0.000), digital transformation (β = 0.309, p = 0.001), and supply chain disruption responses (β = 0.281, p = 0.002) all have a positive and statistically significant effect on performance. The study recommends that supermarkets reinforce adaptive capabilities, strengthen supplier partnerships, invest in digital supply chain tools, and establish proactive risk mitigation systems to improve operational efficiency, customer satisfaction, and resilience against future disruptions.
Post-Covid, Retail Supply Chain, Recovery Strategies, Performance, Large Supermarket Retailers, Nairobi County, Kenya
Copyright (c) 2026 Pamela Nyongesa (Author) https://creativecommons.org/licenses/by/4.0
Investor Perceptions and Tax Compliance of Manufacturing Small and Medium Enterprises in Kiambu County, Kenya
ABSTRACT Tax compliance among manufacturing small and medium enterprises (SMEs) is a critical component of fiscal sustainability and corporate governance, especially in counties experiencing rapid industrial growth. This study examined the effect of investor perceptions on tax compliance among manufacturing SMEs in Kiambu County, Kenya. Specifically, it assessed the influence of perceived fairness of the tax system, perceived transparency of the tax system, and perceived risk of non-compliance on the tax compliance behavior of these enterprises. The study was grounded on Deterrence Theory, Equity Theory, and Legitimacy Theory, providing a comprehensive framework for understanding how behavioral and governance factors interact in shaping compliance. A descriptive research design was adopted, targeting the 1,753 active manufacturing SMEs in Kiambu County, with finance managers, tax managers, compliance officers, and internal auditors serving as the units of observation. Using Fischer’s formula, a sample of 326 SMEs was selected through stratified and simple random sampling to ensure proportionate representation of the agro-processing, textiles, and light manufacturing sectors. Data were collected using a structured questionnaire comprising Likert-scale items aligned to the study variables; validity was ensured through expert review and reliability assessed using Cronbach’s alpha. A total of 243 questionnaires were returned, yielding a 74.5% response rate. Quantitative data were analyzed using descriptive and inferential statistics. The model summary indicated strong explanatory power (R = .875; R² = .766), and ANOVA confirmed overall model significance (F (3,239) = 260.879, p < .001). All predictors were positive and significant: perceived fairness (B = .292, β = .405, p < .001), perceived transparency (B = .324, β = .323, p < .001), and perceived risk (B = .403, β = .227, p < .001). The study concludes that fairness, transparency, and credible enforcement operate as complementary levers of tax compliance, with fairness exerting the largest standardized effect. It recommends uniform and proportionate application of tax rules to strengthen fairness, clearer and timelier communication to deepen transparency, and a balanced enforcement approach that combines risk-based audits with taxpayer support to sustain voluntary compliance among manufacturing SMEs.
Copyright (c) 2026 Sammy Martin Martins (Author) https://creativecommons.org/licenses/by/4.0
Effect of Succession Planning and Employee Performance of Civil Registration Services in Eastern Region, Kenya
The general objective of this study was to assess the effect of succession planning on employee performance of civil registration services in Eastern Kenya. Specifically, the study sought to establish the effect of career management on employee performance of civil registration services in Eastern Kenya, determine the effect of training and development on employee performance of civil registration services in Eastern Kenya, establish the effect of delivery appraisal on employee performance of civil registration services in Eastern Kenya and examine the effect of diversity management on employee performance of civil registration services in Eastern Kenya. This study was based on career development theory, social exchange theory, talent management theory, and resource-based view theory to explain the relationship between the study variables. The population for the study was the 212 employees of civil registration services in Eastern Kenya. Primary data was collected through structured questionnaires and was cleaned, coded and analyzed for descriptive and inferential statistics by use of means, standard deviation, correlation and regression analyses using SPSS version 27. The data was analyzed through descriptive, correlation and regression analyses. The study summarized that succession planning practices, when considered collectively, have a significant positive effect on employee performance in Civil Registration Services of Eastern Region, Kenya. The study concluded that succession planning, when approached holistically through career management, employee training, employee appraisal, and diversity management, has a significant positive influence on employee performance in Civil Registration Services of Eastern Region, Kenya. The study recommends that Civil Registration Services should adopt an integrated succession planning approach by simultaneously strengthening career management, employee training, employee appraisal, and diversity management.
: Succession planning, employee performance, career management, employee training, employee appraisal, diversity management, civil registration services
Copyright (c) 2026 Lydia Mwongera (Author) https://creativecommons.org/licenses/by/4.0
Commercial banks in Kenya continue to embrace digital transformation as a strategic response to competitive pressures, evolving customer needs, and the pursuit of operational excellence. Despite this shift, variations in organizational performance persist, signalling the need for empirical evidence on the effectiveness of digital transformation strategies. This study examined the influence of digital transformation strategies on the organizational performance of commercial banks in Kenya, focusing on four strategic dimensions: mobile banking, automated teller machines, agency banking and online banking. This research was based on technology acceptance model, diffusion of innovations theory, resource-based view theory, and agency theory to explain the relationship between the study variables. The population for the study were all the 39 commercial banks in Kenya. Since the population was relatively small, the study was a census. The study targeted 5 senior managers, namely the heads of strategy, operations, IT, finance, and marketing, from each commercial bank, resulting in a total of 195 respondents. Primary data was collected through structured questionnaires and was analyzed through descriptive and inferential statistics by use of means, standard deviation, correlation and regression analyses using SPSS version 27. Results showed that mobile banking had a significant positive impact, while Automated Teller Machines, though weaker, remained essential for service delivery. Agency banking emerged as the most influential predictor, strongly enhancing access and organizational performance. Online banking also showed a significant contribution, nearly matching agency banking, confirming its vital role in improving efficiency, competitiveness, and customer satisfaction. The study concludes that mobile banking enhances accessibility, efficiency, and financial inclusion, significantly improving bank performance. Automated Teller Machines positively influence service delivery and customer satisfaction, though with a weaker effect. Agency banking is the strongest determinant, driving expanded access and improved outcomes. Online banking also contributes meaningfully by boosting efficiency, lowering costs, and supporting innovative, customer-centered services. Bank management should prioritize continuous investment and innovation in mobile banking platforms to maximize their positive impact on performance. Offering competitive incentives to agents and diversifying services beyond cash deposits and withdrawals to other products such as loan applications, utility payments and insurance products, these can maximize the potential of agents. Bank management should modernize and optimize Automated Teller Machines services to complement other digital channels. The bank should also prioritize cybersecurity framework to guarantee security on the money transactions from hacking and fraud.
Digital transformation strategies, mobile banking, automated teller machines, agency banking, online banking, organizational performance, commercial banks, Kenya
Copyright (c) 2026 Betta Kombe Mangale, Richard Isaac Mwangangi, PhD , Peter Ngatia, PhD (Author) https://creativecommons.org/licenses/by/4.0
GOVERNANCE STRUCTURES AND REVENUE COLLECTION
Revenue collection is fundamental to the financial sustainability and service delivery of county governments. Despite Kenya’s devolution framework, many counties continue to experience significant disparities in revenue performance, underscoring governance challenges that limit optimal fiscal outcomes. Guided by agency theory and supported by public choice theory and institutional theory, this study examines the effect of governance structures—fiscal autonomy, transparency, accountability, and human resource capacity—on revenue collection across Kenya’s 47 county governments. A descriptive research design was applied, integrating both primary and secondary data. Primary data were gathered through structured questionnaires administered to county revenue officers, while secondary data on annual revenue collection and population size were obtained from official county financial reports. Using descriptive statistics, correlation analysis, and multiple regression, the study found that governance structures collectively explain 93.3% of the variation in revenue collection (R² = 0.933). Accountability emerged as the most influential factor (β = 0.675, p = 0.000), followed by human resource capacity (β = 0.428, p = 0.001), fiscal autonomy (β = 0.393, p = 0.005), and transparency (β = 0.278, p = 0.018). Population size showed no significant effect (β = 0.005, p = 0.917), indicating that demographic factors are less critical than governance mechanisms in determining revenue outcomes. These findings demonstrate that strong governance structures—particularly accountability frameworks, skilled personnel, and robust fiscal independence—are key to enhancing revenue collection among county governments.
Governance structures, fiscal autonomy, transparency
Copyright (c) 2026 sharon cheredi (Author); Herick Ondigo (Translator) https://creativecommons.org/licenses/by/4.0
Linking ESG Disclosure to Financial Performance: Evidence from Banking Firms Listed at the Nairobi Securities Exchange Plc, Kenya
The study examines whether environmental, social, and governance disclosure is associated with financial performance among banking firms listed at the Nairobi Securities Exchange. Using a causal research design and secondary panel data for 11 banks over 2019–2023, the analysis applied random-effects generalized least squares after confirming classical assumptions, stationarity, and model choice with diagnostic tests and the Hausman procedure. Results show that environmental reporting and social reporting each have a positive and statistically significant relationship with profitability measured by return on equity, while governance reporting is not significant. In the baseline random-effects model, environmental reporting and social reporting are both significant, but governance reporting is not; the model is jointly significant based on the Wald statistic. In a second model that introduces firm size and interaction terms, the overall explanatory power improves, and firm size remains significant while the social reporting coefficient strengthens. Collectively, the findings suggest that investments in environmental and social disclosure align with better financial outcomes in Kenya’s listed banking sector, whereas governance disclosure appears more legitimacy-oriented with limited short-run financial impact. The study recommends that banks deepen environmental and social transparency tied to core operations and that regulators continue standardizing ESG disclosure to enhance comparability and investor decision-making. Future research should extend the horizon and incorporate mixed methods to capture lagged and strategic effects of governance practices.
ESG disclosure; environmental reporting; social reporting; governance reporting; firm size; return on equity; Nairobi Securities Exchange Plc
Copyright (c) 2025 Mr. Shem Oyugi, Dr. Tobias Olweny, Dr. Douglas Rosana (Author) https://creativecommons.org/licenses/by/4.0
Tax Evasion Risks in Kenya: The Paradoxical Effects of Blockchain Technology
Tax evasion remains a critical challenge in Kenya, undermining government revenue and fiscal sustainability. Traditional tax systems often lack transparency and are prone to inefficiencies and fraud, creating avenues for non-compliance. Blockchain technology characterized by transparency, data security, decentralization, and smart contracts offers a promising solution to enhance tax administration. However, limited studies focus on blockchain’s application in Kenya’s tax system, particularly at the national level, creating a significant research gap. This study investigated the effect of blockchain technology on tax evasion risks in Kenya, focusing on four dimensions: transparency, data security, smart contracts, and decentralization. The study was anchored on the Technology Acceptance Model and the Diffusion of Innovation Theory, while Agency Theory complemented these by addressing accountability dynamics in tax administration. The study adopted a descriptive and explanatory research designs and targeted 318 employees drawn from the Intelligence Strategic Operations Department and the Strategy, Innovation & Risk Management Department of the Kenya Revenue Authority (KRA). A sample of 253 respondents were selected using stratified random sampling based on Yamane’s formula. Primary data was collected through structured questionnaires and analyzed using descriptive statistics and inferential techniques, including correlation and multiple regression analysis. Out of the 253 questionnaires distributed, 211 were returned, yielding a high response rate of 83.4 percent, which enhanced the reliability of the findings. The regression model produced an R Square of 0.776 and an adjusted R Square of 0.772, indicating that blockchain transparency, data security, smart contracts, and decentralization jointly explained 77.6 percent of the variation in tax evasion risks. ANOVA results showed that the overall model was statistically significant (F = 178.713, p < 0.001). Coefficient analysis revealed that all four blockchain dimensions had positive and significant effects on reducing tax evasion risks: data security (β = 0.361, p < 0.001), blockchain decentralization (β = 0.133, p = 0.001), blockchain technology transparency (β = 0.317, p < 0.001), and smart contracts (β = 0.200, p < 0.001). The study concludes that blockchain technology can substantially reduce tax evasion risks by enhancing transparency, strengthening data security, automating tax-related processes through smart contracts, and distributing control to prevent manipulation. Based on these insights, the study recommends that policymakers and tax authorities integrate blockchain technology into national tax systems to enhance transparency and build tamper-proof audit trails, strengthen data security standards and invest in cybersecurity infrastructure, enact legislation supporting the implementation and auditing of smart contracts, and encourage decentralized blockchain networks to reduce single points of failure and corruption.
Copyright (c) 2025 Davine Ndanu Mue, Dr. Irungu Macharia, Dr. Japheth Kogei (Author) https://creativecommons.org/licenses/by/4.0
Alternative Financing Models and Innovation Capacity of MSMEs in Kenya: A Post-COVID Analysis
Micro, Small, and Medium Enterprises (MSMEs) form the backbone of Kenya’s economy, yet their innovation capacity has historically been constrained by limited access to traditional financing mechanisms. The COVID-19 pandemic amplified these challenges, creating liquidity shocks and reduced lending, while simultaneously highlighting the need for adaptive financing strategies. This study examined the effect of alternative financing models on the innovation capacity of MSMEs in Kenya in the post-COVID period. Specifically, it explored the influence of digital credit platforms, crowdfunding, cooperative financing, venture capital, and green financing on product, process, and market innovation. A mixed-methods design was employed, drawing on panel data from 2014 to 2023 complemented by survey responses from 312 MSMEs across key urban centers. Panel regression results indicated that digital credit platforms and cooperative financing had the strongest positive effect on innovation, enabling MSMEs to invest in process improvements and product diversification. Crowdfunding and venture capital were also significant, though constrained by regulatory and awareness challenges, while green financing exhibited emerging potential particularly in manufacturing and service sectors pursuing sustainability. The study concludes that alternative financing models provide viable pathways for MSMEs to enhance their innovation capacity by reducing dependency on collateral-based lending, fostering flexibility, and facilitating resilience in dynamic environments. Based on these findings, it is recommended that policymakers strengthen the regulatory environment for crowdfunding and venture capital, while financial institutions scale up accessible digital credit solutions tailored for MSMEs. Cooperative societies should be incentivized to expand innovation-linked financing, and government should introduce tax incentives or guarantee schemes for green financing to encourage broader uptake. For MSMEs, adopting blended financing approaches that combine traditional and alternative sources is advised to ensure sustainable innovation capacity and competitiveness. Overall, the study demonstrates that alternative financing models are critical enablers of post-COVID recovery and long-term enterprise growth in Kenya, providing practical lessons for emerging markets facing similar challenges.
Alternative financing, MSMEs, innovation capacity, Kenya, post-COVID
Copyright (c) 2025 Mercy Nehema (Author) https://creativecommons.org/licenses/by/4.0
Private Equity Investments, Ownership Structure and Financial Performance Evidence from Investee Firms in Kenya
The interplay between private equity (PE) investments and firm ownership structure has significant implications for financial performance, particularly in emerging markets where capital constraints and governance challenges persist. This study examines how ownership structure moderates the relationship between private equity investments and the financial performance of investee firms in Kenya. Anchored on agency theory, trade-off theory, and finance-growth theory, the research disaggregates PE into venture capital, growth capital, and buyout capital, while ownership structure is measured as the proportion of shares held by the largest shareholder. The study utilized a descriptive research design and analyzed panel data from 144 private equity-backed firms over the period 2006 to 2021. Panel regression models with interaction terms were employed to capture the moderating effects. The findings reveal that while all forms of private equity have a positive and statistically significant effect on Return on Assets (ROA), the magnitude of this effect varies depending on ownership concentration. Specifically, firms with moderate ownership concentration benefited most from PE funding, suggesting an optimal balance between managerial control and investor oversight. These results underscore the importance of considering ownership dynamics when assessing the impact of private equity on firm performance. The study offers valuable insights for investors, policymakers, and managers seeking to optimize governance structures to fully harness the benefits of private equity financing.
Private equity, ownership structure, financial performance, venture capital, growth capital, buyout capital, Return on Assets
Private Equity Investments, Ownership Structure and Financial Performance: Evidence from Investee Firms in Kenya
Copyright (c) 2025 Ronald Ongoma Musundi, Herick Ondigo, Josiah Aduda (Author) https://creativecommons.org/licenses/by/4.0
Outreach of Non-Profit Organizations in Nairobi County, Kenya: The paradoxical effects of Financial Inclusion Strategies
ABSTRACT Non-profit organizations in Nairobi County play a vital role in delivering essential services to marginalized communities. However, limited outreach continues to hinder their effectiveness in serving underserved populations. This study examined the effect of financial inclusion strategies on the outreach of NPOs in Nairobi County, Kenya. Specifically, the study assessed the effect of mobile money solutions, community-based financial services, financial literacy programmes, and partnerships with local institutions on outreach. Anchored on the diffusion of innovation theory, social capital theory, agency theory, and resource dependency theory, the study employed a descriptive survey design targeting 1,388 registered NPOs in Nairobi County. A sample of 311 finance officers or their equivalents was selected using Yamane’s formula. Primary data was collected through structured questionnaires, and analysis was conducted using multiple linear regression. The findings revealed that all four financial inclusion strategies significantly and positively influenced outreach: mobile money solutions (β = 0.382, p < 0.05), community-based financial services (β = 0.211, p < 0.05), financial literacy programmes (β = 0.228, p < 0.05), and partnerships with local institutions (β = 0.702, p < 0.05). The model had a strong explanatory power (R² = 0.931), indicating that these strategies collectively account for 93.1% of the variance in outreach. The study concludes that leveraging digital technology, community engagement, financial education, and strategic collaborations significantly enhances the reach and impact of NPOs. It recommends that NPOs intensify mobile money usage, strengthen grassroots financial services, scale up literacy programmes, and deepen partnerships to expand their outreach and social impact.
Keywords: Financial inclusion strategies, mobile money solutions, community-based financial services, financial literacy programmes, partnerships, outreach, non-profit organizations
Copyright (c) 2025 Sharon Njue, Dr. Peter Omae Kabuka (Author) https://creativecommons.org/licenses/by/4.0
Board Characteristics and Tax Planning: Evidence from Manufacturing Firms Listed at the Nairobi Securities Exchange
Tax planning plays a critical role in enhancing the financial efficiency and regulatory compliance of listed manufacturing firms. In Kenya, where firms operate under dynamic tax legislation and increasing regulatory oversight, board characteristics have become an important determinant of effective tax planning. This study examined the influence of board characteristics—specifically board size, board age, board meeting frequency, and board education—on the tax planning practices of manufacturing firms listed at the Nairobi Securities Exchange (NSE). Anchored on stakeholder theory and resource-based theory, the study employed a descriptive research design and utilized secondary data drawn from financial statements and corporate governance reports of all eight NSE-listed manufacturing firms over the period 2019 to 2023. Tax planning was measured using the effective tax rate (ETR), while board attributes were captured using firm-level indicators. Data were analyzed using multiple regression analysis, with diagnostic tests conducted to ensure robustness. The findings revealed that board size, board age, and board education had a statistically significant influence on tax planning, while board meeting frequency had a weaker, marginal effect. The study concludes that board composition plays a pivotal role in shaping tax strategies and recommends that firms maintain optimal board sizes, appoint experienced and well-educated directors, and ensure board meetings incorporate strategic tax planning agendas. These insights offer practical implications for corporate governance reforms and tax policy development within the manufacturing sector in Kenya.
Copyright (c) 2025 Emily Boke Mwita, Moses Odhiambo Aluoch (Author) https://creativecommons.org/licenses/by/4.0
Credit Risk Management, Efficiency and Financial Performance: Evidence from Deposit-Taking Savings and Credit Cooperative Societies in Kenya.
This study examines the mediating role of efficiency in the relationship between credit risk management and financial performance of deposit-taking Savings and Credit Cooperative Societies (DT-SACCOs) in Kenya. While credit risk management practices such as risk identification, risk analysis and risk control are known to influence financial performance, the extent to which internal operational efficiency enhances or moderates this relationship remains unclear. Anchored on the Financial Intermediation Theory and supported by Modern Portfolio Theory, the study adopted a descriptive cross-sectional design and targeted all 176 licensed DT- saccos in Kenya. Primary data on credit risk management and efficiency were collected through structured questionnaires administered to credit risk managers, while return on assets (ROA) data was obtained from audited financial statements covering the period 2017-2022. The study employed hierarchical regression analysis to test mediation effect of efficiency. Results revealed that while credit risk management had a significant direct effect on financial performance, efficiency did not mediate the relationship significantly. The findings suggest that although SACCOs exhibit moderate efficiency levels, efficiency alone does not enhance the effects of credit risk management on performance. The study recommends strategic investments in process optimization, technology and capacity-building to improve operational efficiency and its contributions to financial outcomes.
Credit risk management, efficiency, financial performance, mediation, SACCOs, return on assets, operational effectiveness
Copyright (c) 2025 Research Beacon https://creativecommons.org/licenses/by/4.0
Financial Inclusion and Economic Empowerment of Women: Lessons from African Economies
Financial inclusion is a crucial concept that provides accessible and affordable financial services to marginalized populations, particularly women in Africa. It is increasingly recognized as a vital component of women's economic empowerment, enabling them to achieve greater economic independence and contribute to their communities. Access to financial services—such as savings accounts, credit, and insurance—allows women to invest in their businesses, manage risks, and enhance their overall quality of life. According to the World Bank, approximately 1.7 billion adults globally remain unbanked, with women disproportionately affected, making financial inclusion initiatives imperative for fostering economic equity. Key themes in the literature on financial inclusion for women include microfinance, mobile banking, and the implementation of gender-specific financial policies. Microfinance has been pivotal in offering tailored financial products to women, helping them overcome traditional barriers to accessing capital. Mobile banking, notably through platforms like M-Pesa, has revolutionized financial access, allowing women in remote areas to engage in financial transactions conveniently. This service has increased access to financial services for over 50% of women in rural areas, reducing geographical and logistical barriers. The literature reveals several critical findings and lessons regarding the effectiveness of financial inclusion initiatives. While microfinance has empowered many women by providing them with necessary funds, challenges such as high interest rates and loan repayment pressures persist, with 30% of women borrowers experiencing difficulties in repayment. Additionally, socio-cultural factors often limit women's financial decision-making autonomy, with studies indicating that 75% of women feel restricted in their financial choices due to societal pressures. Implementing gender-sensitive policies that address these barriers cannot be overstated. Overall, the synthesis of these findings emphasizes the need for integrated approaches that combine access to financial services with financial literacy training and community support. Such comprehensive strategies are essential for fostering genuine economic empowerment for women across Africa, ultimately contributing to sustainable development in the region.
Copyright (c) 2024 Research Beacon https://creativecommons.org/licenses/by/4.0
Blockchain technology and its potential to revolutionize financial services in Africa
This study explored the transformative potential of blockchain technology in enhancing financial services in Africa, particularly focusing on its ability to improve financial inclusion, increase transactional efficiencies, and address trust and transparency issues. Utilizing a qualitative research approach, data was collected through semi-structured interviews, focus group discussions, and document analysis involving key stakeholders, including blockchain developers, financial professionals, and regulators. The findings revealed that blockchain could significantly reduce transaction costs, enabling access to secure financial services for Africa’s large unbanked population. Stakeholders highlighted specific use cases, such as blockchain-based remittances and community lending, which could directly benefit underserved communities. However, several barriers to adoption were identified, including a lack of regulatory frameworks, resistance from traditional financial institutions, and low levels of technological literacy among potential users. The study emphasized the need for supportive government policies and educational initiatives to foster public understanding and confidence in blockchain technologies. It also suggested that public-private partnerships could be instrumental in bridging the gap between technological innovation and traditional financial systems. Overall, this research contributes to the growing body of literature on blockchain's role in financial services, providing insights that are relevant for policymakers, financial institutions, and technology developers in Africa. The findings suggested that while blockchain had the potential to revolutionize financial services, concerted efforts were necessary to address the existing challenges and realize its full benefits. Future research should focus on the long-term sustainability of blockchain technologies within African economies and their economic impacts across various sectors. This study underscored the importance of integrating blockchain into the financial ecosystem to enhance access, efficiency, and trust in financial services across the continent.
Financial sustainability of microfinance institutions in sub-Saharan Africa: challenges and solutions
This research explores the factors affecting the financial sustainability of Microfinance Institutions (MFIs) in Sub-Saharan Africa, focusing on both challenges and potential solutions. The main objectives were to examine the effects of access to capital, operational efficiency, regulatory constraints, and client repayment behaviors on the financial sustainability of these institutions. Qualitative data is gathered through interviews and focus group discussions with key stakeholders to gain deeper insights into the contextual challenges faced by MFIs. The study adopted a descriptive survey design, covering a population of 417 selected MFIs operating in 21 SSA countries during 2014-2023. The main objectives were to examine the effects of access to capital, operational efficiency, regulatory constraints, and client repayment behaviors on the financial sustainability of these institutions. Qualitative data was gathered through interviews and focus group discussions with key stakeholders to gain deeper insights into the contextual challenges faced by MFIs. The findings indicated that limited access to long-term capital and high operational costs are significant obstacles to financial sustainability. These challenges were compounded by stringent regulatory environments and client over-indebtedness, which increase default rates. The study suggests that the adoption of digital financial services and product diversification can enhance operational efficiency and broaden revenue streams. Additionally, capacity-building initiatives for staff and clients can improve loan repayment performance and overall management practices. Finally, the research advocates for regulatory reforms and targeted financial policies to ease access to capital and support the sustainable growth of MFIs in Sub-Saharan Africa. A multi-faceted approach combining financial innovation, capacity-building, and regulatory adjustments is recommended to address these challenges and promote long-term sustainability
Financial literacy as a driver of micro-enterprise growth: a case study of micro-enterprises in Nairobi City County
This study explores the relationship between financial literacy and micro-enterprise growth, specifically focusing on the impact of financial literacy on monthly revenue generation among micro-enterprises in Nairobi City County, Kenya. Using a sample of 100 micro-entrepreneurs, a quantitative analysis was conducted to assess the extent to which financial literacy influences business performance. The regression analysis revealed a strong positive correlation (R = 0.890) between financial literacy and monthly revenue, with financial literacy explaining 79.3% of the variance in revenue (R² = 0.793). The ANOVA results demonstrated that this relationship was statistically significant (F = 374.897, p < 0.001). Each one-point increase in the financial literacy score was associated with an average increase of 0.852 units in monthly revenue. These findings underscore the critical role of financial literacy in driving business success, suggesting that enhancing financial knowledge among micro-entrepreneurs could lead to substantial improvements in revenue performance. The study highlights the need for targeted financial education programs to support the growth and sustainability of micro-enterprises in Nairobi City County.