The financial performance and sustainability of microfinance institutions during the current financial crisis: The case of Amhara Credit and Saving Institution (ACSI) in Ethiopia
Tilahun Aemiro, Dereje Mekonnen
Abstract
The purpose of this study is to assess the financial performance of Ethiopian MFIs during the current financial crisis with particular reference to Amhara Credit and Saving Institution (ACSI), the largest MFI in the country. The global financial crisis has been spreading quickly in emerging markets, but little is known about its impact on the microfinance sector. It is in this vacuum that this study is being carried out especially within Ethiopia. The study employed a descriptive research design. The data is quantitative and obtained from the MIX market website. For data analysis, descriptive statistics such as percentages and graph are used. The result of the study indicates that there was a negative shift in the performance indicators particularly in the year 2009. The gross loan portfolio has declined by 15.73% in the year 2009. As a result a decline in ROA and ROE had occurred due to lost financial revenue. The portfolio at risk rose during 2008 and 2009 indicating deterioration of portfolio quality. The number of active borrowers (outreach) declined in the year 2009 by 4.37%. However, there was an increase in number of staff members by 5.48% in the same year. Thus, the firm’s productivity was poor during 2009.
The impact of credit risk management on the financial performance of Banks in Kenya for the period 2000 – 2006
Danson Musyoki, Adano Salad Kadubo
Abstract
The objective of study was to assess various parameters pertinent to credit risk management as it affects banks’ financial performance. Such parameters covered in the study were; default rate, bad debts costs and cost per loan asset. Financial reports of 10 banks was used to analyze profit ability ratio for seven years (2000-2006) comparing the profitability ratio to default rate, cost of debt collection an cost per loan asset which was presented in descriptive, regression and correlation was used to analyze the data. The study revealed that all these parameters have an inverse impact on banks’ financial performance, however the default rate is the most predictor of bank financial performance vis-à-vis the other indicators of credit risk management. The recommendation is to advice banks to design and formulate strategies that will not only minimize the exposure of the banks to credit risk but will enhance profitability and competitiveness of the banks.
Factors influencing the influx of counterfeit medicines in Kenya: A survey of pharmaceutical importing small and medium enterprises within Nairobi
Kenneth Wanjau, Muli Muthiani
Abstract
The proliferation of counterfeit medicines is one of the most pressing issues facing pharmaceutical SMEs in Kenya. As a result of counterfeiting, the SMEs lose revenues and profits, jobs are lost and customers are forced to pay higher prices for genuine products due to financial losses. Counterfeiting has received little attention in research in spite of its development, scope and consequences on firms, on governments and on brands. The study adopted descriptive survey research design. The study used both qualitative and quantitative techniques in analyzing data. Factor analysis, correlation analysis
and regression analysis were used to determine the relationship between the independent variables. The study found out from a response rate of 80.3%, legislation, popularity of a brand, pricing strategy and various perceived risks had influence on the influx of counterfeit medicines. The components identified as important in regard to legislation were weak enforcement of the anti-counterfeit law and ambiguity of the definition of counterfeit. Further, the degree of popularity of a brand was found to influence the willingness to purchase counterfeit products.Consumers were found to buy counterfeit medicine over genuine ones if there existed a price advantage. It was also found out that consumers take into consideration the influence of various perceived risks in the decision making process to purchase counterfeits.
An investigation into competitive intelligence practices and their effect on profitability of firms in the banking industry: A case of Equity Bank
Hildah Wambui Mugo, Kenneth Wanjau, Eunice M. A. Ayodo
Abstract
The process of collecting, storing and analyzing information about the competitive arena results in the actionable output of intelligence ascertained by the needs prescribed by an organization. The relevance of monitoring, understanding and responding to competitors has long been recognized as a significant aspect of marketing activity, yet analysis of the competitive environment seems often to be subordinated as greater emphasis is placed on understanding customers and consumers. This study sought to investigate competitive intelligence practices of banks in Kenya with a specific focus on Equity bank. Study about forex trading and find how to trade in kenya by visiting this site.The study employed a case study design. The target population of this study was staff working at Equity Bank in Nairobi including top management, middle level management and low level management, of 60 was selected for the study. The stud used a questionnaire to collect primary data. The data was analyzed using both qualitative and quantitative techniques. The study found that for greater profitability of banks in Kenya, the competitive intelligence practices that should be applied are mainly product differentiation strategies, market intelligence, technology intelligence and strategic alliance. All these strategic intelligence practices lead to greater profitability and also reduction in costs for the bank, with technology intelligence being the highest contributor.
Impact of employee commitment on retention in state financial corporations in Kenya
Lucania Vincent Maluti, Tobias O. Warentho, John O. Shiundu
Abstract
The economic downturn being experienced the world over has created a hostile labour market and the need to cut down on operating costs and thus compelling organizations to invest in committed employees. Since committed employees strive to achieve organizational ideals in circumstances that are sometimes extremely extra-ordinary, it seems to give firms an assurance that such employees are unlikely to be lost to their competitors. In consideration of the above, the objective of this paper is to explore the various employee commitment initiatives as exercised by both employees in relation to the impact they have on employee retention in state corporations in Kenya in the last 5 years (2005 – 2010). A questionnaire was used to collect data. Pearson’s correlation coefficient was used to measure the relationship between variables whereas simple regression coefficient was used to test the hypotheses at a significance level of 0.05. The results indicated that there was no significant impact of employee commitment on employee retention.
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