African Journal of Emerging Issues

EFFECT OF FINANCIAL INNOVATION ON FINANCIAL INCLUSION IN MICRO FINANCE INSTITUTIONS IN GULU DISTRICT, UGANDA

William Wairegi Mwago — 2024-11-08

Purpose of the Study: The purpose of the study was to examine the impact of financial innovations on financial inclusion within microfinance institutions (MFIs) in Gulu District, Uganda, specifically focusing on the roles of agency banking, automated teller machines (ATMs), mobile financial services, and digital payments.

Methodology: The study employed an explanatory research design with a multiple regression model. The sample consisted of 85 respondents from registered microfinance institutions in Gulu District, representing managers, technical staff, and agents. Data were collected using structured questionnaires and analysed through both descriptive and inferential statistics, including Pearson correlation and multiple regression analysis. Reliability was validated through Cronbach's Alpha and various diagnostic tests including Variance Inflation Factor, Breusch-Pagan, and Durbin-Watson tests.

Findings: The study established that agency banking and mobile financial services significantly enhanced financial inclusion by extending access points and reducing barriers for rural communities, with positive correlation coefficients of 0.30 (p = 0.01) and 0.28 (p < 0.01) respectively. However, ATMs showed limited effectiveness with only a marginal improvement (β = 0.15, p = 0.04) in financial inclusion, primarily due to operational limitations and high costs in rural settings. Digital payment services demonstrated mixed results, improving transaction convenience but facing adoption challenges due to cost constraints.

Conclusion: The study concludes that financial innovations, particularly agency banking and mobile financial services, play a pivotal role in advancing financial inclusion in Gulu District. These innovations effectively address critical barriers such as physical access and affordability, thus extending services to rural populations. However, the limited impact of ATMs and cost-related challenges in digital payment services highlight areas requiring strategic intervention for improved effectiveness in rural contexts.

Recommendations: The study recommends that financial institutions should prioritize the expansion of agency banking and mobile financial services in rural areas, supported by comprehensive training programs and robust security measures. Additionally, stakeholders should develop cost-effective solutions for digital payment services, implement targeted financial literacy programs, and establish regulatory frameworks that promote innovation while ensuring consumer protection. It is also recommended to establish a coordinated approach to financial inclusion initiatives through centralized monitoring systems and regular stakeholder engagement.

Keywords: Financial innovation, financial inclusion, micro finance institutions, Uganda

DISPUTE RESOLUTION MECHANISMS, TRUST AND VALUE ADDED TAX COMPLIANCE AMONG TAX AGENTS IN NAIROBI COUNTY, KENYA

Nancy Ndung’u — 2024-11-11

The main purpose of the study was to determine the moderating effect of trust on the relationship between tax dispute resolution mechanisms and tax compliance among tax agents in Nairobi County, Kenya. The study was anchored on the Theory of Optimal Taxation, theory of conflict of management, unified theory of acceptance and use, and the social interest theory. The study adopted explanatory research design. The study targeted 321 agents in Nairobi County while the sample size was 178 respondents. In this study, 178 out of 134 distributed questionnaires were completed and returned correctly, achieving a 75% response rate. The study used primary data, which was collected through questionnaires. A hierarchical regression model was used to test the hypotheses. Findings showed that negotiation, internal reviews and alternative dispute resolution had significant positive effect on VAT compliance. Further, results showed a significant moderating role of trust on the relationship between the three dispute resolution mechanisms and VAT compliance. Thus, the study concluded that negotiation, internal reviews and alternative dispute resolution are key tax dispute resolution mechanisms that improve VAT tax compliance. The study recommends that tax collection institutions like KRA implement comprehensive training to enhance tax agents' negotiation skills and allocate resources for continuous professional development. It is also crucial to establish robust internal review procedures for thorough VAT compliance assessments. Strengthening alternative dispute resolution mechanisms with clear guidelines and expanding mediation and arbitration services is essential, ensuring tax agents are well-informed. Future research should explore the regulatory framework's impact on VAT compliance to improve tax administration further.

Keywords: Trust, VAT, Compliance, Negotiation, Internal Reviews, Alternative Dispute Resolution, Tax, Dispute Resolution Mechanisms

SENSORY APPEAL ATTRIBUTES AND CONSUMER ACCEPTANCE OF PASTA FROM BLENDED FINGER MILLET FLOUR IN RESTAURANTS IN NAIROBI, KENYA

Kathleen Lydiah Malesi — 2024-11-11

Abstract

The main purpose of this paper was to investigate the influence of sensory appeal attributes on the acceptability of pasta made from blended finger millet flour, guided by the principles of Consumer Perception Theory. To assess consumer acceptance, data were collected from 356 respondents selected purposively from a target population of 15,840 customers across eight restaurants in Nairobi. Questionnaires were utilized to gather information, and the data were subsequently analyzed using multiple linear regression techniques. The analysis demonstrated that the sensory attributes of finger millet flour pasta (FMFP), including taste, aroma, texture, and visual appeal, accounted for 40.6% of the variation in pasta acceptability. The results indicated that these specific sensory characteristics significantly influenced consumer acceptance. Therefore, the study concludes that these findings underscore the critical role sensory appeal plays in shaping consumer preferences for FMFP. Moreover, the study has significant policy implications, highlighting the need for strategies that promote the incorporation of sensory enhancements in food product development to boost consumer acceptance and foster market growth.

Keywords: Sensory Appeal Attributes, Acceptability, Pasta, Finger Millet Flour

IMPACT OF NETWORK QUALITY ON CUSTOMER RETENTION; CASE STUDY OF SELECTED UNIVERSITIES IN KENYA, A CUSTOMER RELATIONSHIP MANAGEMENT APPROACH

Kennedy Ntabo Otiso — 2024-11-13

Purpose: This study aimed to investigate the impact of network quality on customer retention among mobile phone users in Kenya’s public universities, using Customer Relationship Management (CRM) as the primary lens.

Methodology: A descriptive and explanatory research design was adopted. Data were collected through a structured questionnaire distributed to a sample of 222 respondents. Descriptive and inferential statistics, including multiple regression analysis, were employed, with customer satisfaction examined as a potential mediator.

Results: The study revealed that customer satisfaction plays a significant role in predicting customer retention. Further, customer satisfaction was found to partially mediate the relationship between CRM practices and customer retention, emphasizing the importance of customer satisfaction in sustaining customer loyalty.

Conclusion: The study concludes that enhancing customer satisfaction through effective CRM practices is essential for improving customer retention in Kenya’s mobile service sector.

Recommendation: Mobile service providers should prioritize CRM strategies that directly boost customer satisfaction to foster long-term customer loyalty.

Keywords: Network Quality, Customer Retention, Customer Satisfaction, Customer Relationship Management (CRM), Mobile Service

CAREER DEVELOPMENT PRACTICES AND EMPLOYEE PERFORMANCE IN FOOD PROCESSING COMPANIES IN NAIROBI COUNTY, KENYA

Lilian M. Kieti — 2024-11-13

The food processing industry plays a crucial role within the agricultural sector by acting as a link between primary production and ultimate consumption. The industry enhances the value of agricultural commodities and provides employment possibilities for individuals in Kenya. The industry has faced several challenges in management of their employees due to issues related to career progression within the companies specifically the opportunities for growth and development. The primary aim of this research was to evaluate the effect of career development practices on employees’ performance in these firms. The study focused on how three-career development practices employee maintenance, continuous learning and promotions can contribute to influence employees’ performance within the firms. The research anchored on two theories; the Needs-Based Theory and the Goal-Setting Theory. The research design used in this study was descriptive. The sample consisted of 55 food-processing enterprises located in Nairobi County. Two managers were selected from each the target firms, with a sample size of 110 respondents. Questionnaires were the tools used to collect data and analysis of the data used Statistical Package for Social Sciences (SPSS). The study used a regression model to determine the influence of career development practices on employee performance. The results of the study revealed that there is a positive and statistically significant correlation between career development practices and employee performance in the firms. The study recommends that more emphasize should be towards diversifying approaches used to attract and retain employees. Secondly, growing a culture of continuous learning by providing opportunities to the employees needs requires more focus. Thirdly, promotion on merit should be encouraged to improve transparency and accountability among employees that would improve overall performance of the employee in the firms.

Key words: Career, Development, Practices, Retention, Performance

E-RECRUITMENT SYSTEMS AND EMPLOYEE PERFORMANCE IN MEDIUM-SIZED MANUFACTURING FIRMS IN NAIROBI COUNTY, KENYA

B.W Gichuru — 2024-11-13

HRIS (Human Resource Information Systems) are digital platforms designed to manage employee data, payroll, and recruitment, focusing on enhancing employee performance through data-driven insights. The study examined the relationship between HRIS and employee performance in medium-sized manufacturing firms in Nairobi County, Kenya, addressing e-recruitment systems. Using a descriptive design, data was collected from 132 employees across 5 manufacturing firms through structured questionnaires distributed to HR, production, finance, and IT departments. The findings indicate significant HRIS impact on employee performance, with e-recruitment systems showing the influence (β = 0.625, p < 0.05). The study recommends prioritizing e-recruitment system implementation and investing in HRIS training. Future research should explore long-term effects on employee retention and conduct cross-industry comparative studies to identify best practices.

Key words: Human Resource Information Systems, Employee Performance, E-recruitment systems, E-training systems, Performance Management Systems, Employee Self-Service Systems

INFLUENCE OF RECRUTMENT AND SELECTION ON ORGANIZATIONAL PERFORMANCE IN EDUCATION BASED STATE CORPORATIONS IN KENYA

Henry Kambagha Juma — 2024-11-15

The importance of talent management in Education Based State Corporations in Kenya is ensuring that the corporations are future oriented and that means that they have to have competent skills in place for them to be able to grow and perform in the future that is increasingly competitive and unpredictable, but not to wait for future challenges before attempting to solve them through deliberate talent management programmes. The specific objective of this study was to establish the influence of recruitment and selection on organizational performance in Education Based State Corporations in Kenya. The target population comprised of Senior Managers of the four selected education-based State Corporations; this group was chosen because talent management and organizational performance decisions are made at these levels. The study population was 180 respondents. The respondents were the Departmental and Divisional Heads, and Human Resource Managers in the Education Based State Corporations. For data analysis, descriptive and inferential statistics were used. The SPSS Version 27 software was used for data analysis. Descriptive survey was used as the research design. Data was presented in the form of figures, charts and tables. A self-administered questionnaire was used as the main method of collecting data. The findings revealed that R squared was 0.616 and an adjusted R squared of 0.606 showing that recruitment and selection explained 61.6% of the variations in organizational performance. The regression coefficient results revealed that recruitment and selection had a positive and significant influence on organizational performance in education based state corporations in Kenya (β =.308, p=.000<.05). The study found that leadership practices had a moderating effect on the relationship between recruitment and selection.

ANALYSIS OF PUBLIC POLICY IMPLEMENTATION ON THE PERFORMANCE OF HEALTHCARE DEVOLUTION IN HOMA BAY COUNTY, KENYA

Mary Mwangi — 2024-11-20

Purpose of Study: The purpose of the study was to examine the public policy implementation on the performance of healthcare devolution in Homa Bay County, Kenya with specific objectives to assess the effect of bureaucratic practices, citizen engagement approaches, health care infrastructure and funding and expenditure on the performance of healthcare devolution in Homa Bay County, Kenya.

Problem Statement: Despite ongoing efforts by the government and non-governmental organizations, Kenya's health infrastructure remains underdeveloped, prompting economists and public policy experts to explore ways to improve service delivery and enhance the quality of life. Devolution has emerged as a key strategy for achieving these goals, directly influencing people's quality of life and extending its effects beyond mere service provision. However, county governments often prioritize economic efficiency over effective service delivery.

Methodology: The research targeted public health professionals, including nurses and administrators from county and sub-county hospitals across nine constituencies. The researcher Employed descriptive survey design, the study used both qualitative and quantitative methods to gather data from 162 respondents, including hospital managers, clinical officers, nurses, and health record officers. The analysis involved descriptive statistics, such as frequencies and percentages, alongside inferential statistics, including Pearson correlation and multiple regression analysis.

Result: Findings indicate relationships among healthcare devolution, citizen engagement, bureaucratic practices, funding, and infrastructure. Notably, a moderate positive correlation exists between healthcare devolution and citizen engagement (r = .504, p = .000), suggested that increased devolution fosters community involvement. Additionally, significant correlations between funding and health infrastructure (r = .420, p = 0.000) highlight the importance of adequate financial resources for quality service delivery.

Recommendation: Streamlining bureaucratic processes, enhancing citizen engagement, improving financial oversight, and investing in healthcare infrastructure to ensure responsive and effective service delivery in Homa Bay County.

Keywords: Policy Implementation, Devolution, Bureaucratic Practices, Healthcare Infrastructure and Citizen Engagement Approaches