Browsing by Author "Abdillahi, Umulkher Ali"

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Board characteristics and financial performance of listed manufacturing and allied firms in Kenya
(KIBU, 2018-06-12) Manini, Muganda Munir; Abdillahi, Umulkher Ali
The manufacturing sector in Kenya contributes significantly to the economic development of both developing and developed economies. The government in in its Big 4agenda seeks to raise the share of manufacturing sector from nine to 15 per cent of the gross domestic product (GDP) and create1.3 million manufacturing jobs by 2022. However, the percentage contribution of manufacturing sector to the gross domestic product and merchandise exports has stagnated. Further, the financial performance of the Kenyan manufacturing sector has been depreciating. The weak performance is attributed to low investments due to weak corporate governance practices in Kenya. The main objective of the study was to examine the influence of board characteristics on the financial performance of listed manufacturing and allied firms in Kenya. Specifically the study sought to examine the influence of board size, board diversity and board independence on financial performance of listed manufacturing and allied firms in Kenya. The study was based on the Stakeholders theory. In order to meet the objectives of this study an explanatory research design was employed utilizing a quantitative approach. The target population of the study comprised the ten listed manufacturing and allied companies on the Nairobi Securities Exchange. Through purposive sampling, seven listed manufacturing and allied firms were selected for the study. Audited annual reports for the ten year period from 2008 to 2017 were used. Data reliability was ensured by use of audited reports. Documentary evidence was employed by collecting the relevant information from the annual reports by use of a document schedule. The panel data fixed effect estimation model was applied for the data analysis. The collected data was analyzed using descriptive statistics and classical linear regression modeling. At 5% significance level the fixed effect result indicated board characteristics constructs namely board size, board diversity and board independence had a significant effect on the financial performance of listed manufacturing and allied firms in Kenya. The study recommends that listed manufacturing firms should enhance theirboard size, board diversity and board independence as the study found a significant relationship between board characteristics and financial performance. The results of the study have significant managerial and theoretical implications. Keywords: Board Characteristics, Corporate Governance manufacturing and allied firms, Big 4 Agenda, Kenya
Effect of Business Financing on the Performance of Small and Medium Enterprises in Lurambi Sub-County, Kenya
(European Journal of Business and Management, 2016-05-13) Manini, Muganda Munir; Abdillahi, Umulkher Ali; Wanyonyi, Kadian Wanyama; Simiyu, John
The purpose of this study was to examine the effect of sources of business financing on the financial performance of Small and Medium enterprises in Lurambi Sub-County. Specifically, the study sought to examine the effect of commercial loan-financing on the financial performance of Small and medium enterprises; to assess the effect of retained earnings financing on the financial performance of Small and medium enterprises and to establish the effect of trade credit financing on the financial performance of Small and medium enterprises in Lurambi Sub-County. Descriptive survey was used. The population of interest comprised of 450 small and medium enterprises in Lurambi Sub-County. Stratified random sampling was used to select 88 small and medium enterprises. The survey instrument used was questionnaires which were administered to owners and managers. Analysis of data was done using descriptive and inferential statistics. The study established that sources of business financing affected financial performance of small and medium enterprises significantly; commercial loan financing affected financial performance significantly; retained earnings financing affected financial performance significantly; trade credit financing affected financial performance of small and medium enterprises significantly. The study recommends that small and medium enterprises should make use of commercial loan financing, retained earnings financing and trade credit financing for them to realize higher levels of financial performance. The Government of Kenya should encourage lenders to share the financing risks with the government in order to reduce the cost of financing.
Effect of business financing on the performance of small and medium enterprises in Lurambi sub-county, Kenya
(European Journal of Business and Management, 2016) Manini, Muganda Munir; Abdillahi, Umulkher Ali; Wanyama, Kadian W.; Simiyu, John
The purpose of this study was to examine the effect of sources of business financing on the financial performance of Small and Medium enterprises in Lurambi Sub-County. Specifically, the study sought to examine the effect of commercial loan-financing on the financial performance of Small and medium enterprises; to assess the effect of retained earnings financing on the financial performance of Small and medium enterprises and to establish the effect of trade credit financing on the financial performance of Small and medium enterprises in Lurambi Sub-County. Descriptive survey was used. The population of interest comprised of 450 small and medium enterprises in Lurambi Sub-County. Stratified random sampling was used to select 88 small and medium enterprises. The survey instrument used was questionnaires which were administered to owners and managers. Analysis of data was done using descriptive and inferential statistics. The study established that sources of business financing affected financial performance of small and medium enterprises significantly; commercial loan financing affected financial performance significantly; retained earnings financing affected financial performance significantly; trade credit financing affected financial performance of small and medium enterprises significantly. The study recommends that small and medium enterprises should make use of commercial loan financing, retained earnings financing and trade credit financing for them to realize higher levels of financial performance. The Government of Kenya should encourage lenders to share the financing risks with the government in order to reduce the cost of financing.
Moderating Influence of Organization Ambidexterity on the Link Between Strategic Planning and Organization Performance in the County Government of Turkana, Kenya
(Journal of International Business, Innovation and Strategic Management, 2022-05-19) Mogoi, Job Masenge; Wanyama, Kadian Wanyonyi; Abdillahi, Umulkher Ali
Counties in Kenya have realized significant changes in organizational performance over the last decade as they defined strategic planning processes on setting long-term corporate objectives. The main objective of this research was to examine the moderating influence of organization ambidexterity on organizational performance of the County Government of Turkana, Kenya. The research was based on three theories; Pearce and Robinson's Resource View Theory, the stakeholder theory and the open system theory. A stratified random sampling was used to attain a sample size of 400 from a target population of 2830 employees. The study used a case study research design. Questionnaires collected data and the validity coefficient index was 0.82 with a Cronbach’s alpha value of 0.893 after testing and retesting. Pilot study involved 25 County government of Turkana employees. The Statistical Package for Social Sciences (SPSS) version 26 computer application was used to compute both descriptive and inferential statistics. Introduction of organizational ambidexterity to strategic planning resulted to a positive change in the correlation coefficient from R=0.723 to R=0.770. The R-square shifted positively from R2=0.522 to R2=0.593 and adjusted R-square from R2=0.518 to R2=0.589. The interaction of organization ambidexterity with strategic planning was (𝛽1=0.375 p≤0.05) which significantly affected organizational performance. The study recommended that organization ambidexterity had a statistically significant moderating effect on the relationship between strategic planning and organizational performance in County Government of Turkana. Organization ambidexterity would help the County Government of Turkana to create transparency among team members, higher level of engagement and sense of responsibility. County employees in various sectors are expected to appreciate strategic planning in rating their level of service. The findings would be useful when an organization is establishing strategic plans. Individuals can learn, grow in areas where they are weak, and explore knowledge that can be applied to their strategic initiatives.
Nexus between illicit financial flows and economic development
(KIBU, 2018-06-12) Abdillahi, Umulkher Ali; Manini, Muganda Munir
The international movement of money illegally or illicitly generated in developing countries has become a major issue in the development agenda. Reducing illicit financial flows (IFFs) is now a component of Goal 16 of the 2015 Sustainable Development Goals, as well as a staple of declarations from the G7 and G20.Kenya has been losing an average of Sh40 billion every year through illicit financial flows since 2011 as both government, local firms and multinationals engage in fraudulent schemes to avoid tax payments. Combined, this is an increase from Sh160 billion recorded in five years to 2011, an indication that illicit trade is gaining momentum in the country at the time the state is struggling to meet its revenue targets revised to Sh1.64 trillion. The purpose of this research is to explore the nexus between gross domestic product and illicit financial flows in Kenya. Specifically, the paper sought to discuss illicit financial flows in greater detail to strengthen our appreciation of the phenomenon and clarify some key concepts associated with it including an understanding of the linkages between gross domestic product and illicit financial flows. The findings showed that the reform agenda forillicit financial flows IFFs has four major components: reporting of profits; listing of beneficial ownership of assets; automatic exchange of tax information and anti-money laundering (AML) provisions. Though supported by the Kenyan government and with a potentially effective enforcement mechanism (blocking non-complying countries from access to the international banking system), AML rules have been consistently poorly implemented. This reflects the poor alignment of incentives and institutions, both private and public where many major international banks have paid large fines for systematically flouting the rule. The IFF reform agenda needs to more carefully assess those governance problems in order to be effective. Countermeasures include institution building strategies, international cooperation and information exchange, and fiscal transparency. Development practitioners need to understand the nature of the problem of illicit financial flows as an obstacle to development, and be aware of interventions that can reduce such flows.