Housing taxation is a critical revenue source for local governments to finance urban services and infrastructure, yet compliance remains a persistent challenge across sub-Saharan Africa. This study aimed to determine the effect of service digitalization on housing tax compliance among landlords in Agoe, Lome City, Togo. The study drew on the Ability to Pay Theory and the Diffusion of Innovation Theory. The study used an explanatory research design, and primary data were collected using a structured questionnaire. The target population was 2,061 property owners in Agoe, Lome City, Togo, and the sample size was 335 respondents. Of the 335 questionnaires, the response rate was 86%, indicating that 288 respondents fully completed and submitted their responses. The primary data were collected using closed-ended questionnaires. The data were collected through a structured questionnaire. The data were analyzed using descriptive statistics and linear regression. The study found that digitalization of service had a positive and significant effect on housing tax compliance (β = 0.101, p = 0.005). The study found a positive effect of digitalization of service on housing tax compliance; the Government of Togo should invest in expanding digital tax platforms by ensuring accessibility and integrating user-friendly interfaces that reduce administrative burdens. Future research should also examine how property owners’ income levels affect housing tax compliance.
Environmental sustainability is increasingly viewed as a key priority for organizations striving to align economic growth with ecological responsibility. As digital technology continues to evolve rapidly, financial technology (FinTech) has emerged as a significant enabler of efficient financial services, improved information transparency, and optimized resource allocation. However, limited research has explored the organizational mechanisms through which FinTech adoption (FA) enhances environmental performance (ENP). To fill this gap, the present research investigates the impact of FA on ENP by exploring the mediating effects of green dynamic capability (GDC) and green innovation (GI). A conceptual framework integrating these constructs is developed and empirically tested using a hybrid analytical approach. Specifically, Partial Least Squares Structural Equation Modeling (PLS-SEM) is employed to evaluate the hypothesized relationships and mediating effects among the constructs. Subsequently, Artificial Neural Network (ANN) analysis is applied to assess the predictive strength and relative importance of the significant determinants identified in the PLS-SEM stage. FA exerts both direct and indirect positive effects on ENP, with GDC and GI acting as mediating pathways. Furthermore, ANN analysis shows that GDC exerts the strongest influence on ENP, followed by GI and FA. By integrating PLS-SEM and ANN, this research offers a more in-depth analytical perspective than single-method approaches and provides deeper insights into how FA facilitates organizational environmental sustainability.
Deposit taking savings and credit co-operative societies (DT-SACCOs) in Kenya are central to financial inclusion, managing assets exceeding Kshs 900 billion and serving millions of members. Despite growing investment portfolios, their financial performance measured by return on assets has remained volatile, fluctuating from 2.45% in 2016 to a sharp decline of 1.59% in 2021, before recovering to 2.61% in 2022 and declining again to 2.48% in 2023. One investment dimension that has attracted limited empirical attention in the SACCO context is investment in shares. This study assessed the influence of investment in shares on financial performance of deposit taking SACCOs in Kenya. The study was guided by Modern Portfolio Theory and Shiftability Theory. A positivist research philosophy and longitudinal research design were adopted, targeting all 182 SASRA-regulated DT-SACCOs in Kenya over the period 2015 to 2024. Secondary panel data were sourced from SASRA annual reports and audited financial statements. Data analysis employed descriptive statistics, correlation analysis, panel unit root tests, and random effects regression. The findings revealed that investment in shares (D_IS) had a positive but statistically insignificant effect on financial performance (β = 0.0048, t = 0.0828, p = 0.9342). The study concludes that investment in shares does not significantly influence the financial performance of deposit taking SACCOs in Kenya, attributed to modest allocations to equity, irregular dividend income, market price volatility, and regulatory constraints on equity investment. The study recommends that DT-SACCO boards adopt cautious, evidence-based share investment policies with clear risk-return justifications and maximum allocation thresholds, while SASRA should issue clearer regulatory guidance on permissible equity limits. Keywords: Investment in Shares, Financial Performance, Deposit Taking SACCOs, Return on Assets, Kenya, Modern Portfolio Theory, Shiftability Theory.
The purpose of the study was to establish the relationship between corporate governance, proxied by the compensation package provided to members of the board of directors, and the financial performance of Micro Finance Institutions (MFIs) in Kenya for the period 2015 to 2022, during which the trend revealed inconsistencies, with a major decline in years between 2015 and 2022. The study employed a correlational research design within a quantitative framework. The target population comprised the 14 deposit-taking MFIs licensed by the Central Bank of Kenya during the study period. However, only 12 institutions had complete audited financial statements covering the entire period from 2015 to 2022. Therefore, all 12 eligible institutions were included in the analysis, while the remaining two were excluded because of incomplete data. Data were analysed using STATA statistical software. Regression results have indicated a significant negative relationship between corporate governance and financial performance (β = -15.497, p = 0.000). The null hypothesis was rejected, indicating that corporate governance has a statistically significant and negative effect on the financial performance of MFIs in Kenya. Specifically, a one-unit increase in board remuneration was associated with a 15.497-unit decline in Return on Assets, suggesting that excessive director compensation reduces rather than enhances financial performance in this context. This may be attributed to the persistent losses experienced by Kenyan deposit-taking MFIs during much of the study period, where higher board remuneration increased governance costs and consumed financial resources that could otherwise have been invested in lending operations, technological innovation, branch expansion, risk management systems, staff development, and customer acquisition. The adjusted coefficient of determination (Adjusted R² = 0.308739) indicated that board remuneration explained approximately 30.87% of the variation in financial performance among the sampled MFIs. The study concludes that board remuneration constitutes an important corporate governance variable in explaining financial performance among deposit-taking MFIs in Kenya. The study recommends that MFI management should review board remuneration structures to ensure that directors' compensation is aligned with institutional financial performance and long-term sustainability, since excessive board remuneration was found to have a significant negative effect on financial performance.
The purpose of the study was to evaluate the moderating effect of financial gearing on the relationship between corporate governance, ownership structure, and financial performance of MFIs in Kenya. This study adopted a correlational research design within a quantitative framework. This study adopted a correlational research design within a quantitative framework. The study employed a census approach. The target population comprised the 14 deposit-taking MFIs licensed by the Central Bank of Kenya during the study period. However, only 12 institutions had complete audited financial statements covering the entire period from 2015 to 2022. Therefore, all 12 eligible institutions were included in the analysis, while the remaining two were excluded because of incomplete data. Data were analysed using STATA statistical software. Financial gearing positively moderates the relationship between corporate governance and financial performance of MFIs in Kenya (BR × FG: β = 31.34900, p = 0.0280). The coefficient of the interaction term between foreign representation and financial gearing (FR × FG) was positive and statistically significant (β = 2.111630, p = 0.0212). This implies that financial gearing significantly moderates the relationship between ownership structure and financial performance of MFIs in Kenya. The interaction term between board remuneration and financial gearing (BR×FG) yielded a negative and statistically significant coefficient (β = -0.125696, p = 0.0011). This finding indicates that financial gearing significantly moderates the relationship between corporate governance and financial performance among MFIs in Kenya. The study concludes that financial gearing significantly moderates the relationship between corporate governance, ownership structure, and financial performance. This means that an MFI's different levels of debt will significantly affect how governance structures impact the firm’s profitability. Similarly, different levels of debt affect the impact of ownership structure on the firm's profitability.
Small to Medium Enterprise (SMMEs) are today’s reality, as most of the population work for them; they are also tomorrow’s future, because they have great potential to contribute to the structural transformation and diversification of the economy. This study sought to investigate strategies to overcome the obstacles faced by SMEs in Bulawayo by drawing insights from successful policies and practices implemented across Southern African countries. The primary objective of the study was to explore how Bulawayo's business ecosystem can be revitalized to stimulate SMME growth, enhance their contribution to economic development, and address pervasive socio-economic challenges. By examining case studies from neighboring Southern African countries, the research identified adaptable strategies that can foster a conducive environment for SMMEs in Bulawayo. The findings of the study reveal that SMME success in Southern African cities and provinces such as Gaborone, Gauteng, and Maseru is often underpinned by strong institutional support, streamlined regulatory processes, targeted financial interventions, and robust business development programs. Furthermore, partnerships between the public and private sectors emerge as a common thread in fostering sustainable growth. Applying these insights, the study identifies actionable recommendations for Bulawayo. From the study, if policymakers and stakeholders adopt a multi-faceted approach that prioritizes both systemic reform and localized solutions tailored to the city's unique challenges, it could position Bulawayo as a thriving hub for entrepreneurship and innovation in Zimbabwe. The research concludes that with strategic interventions, informed by regional successes, Bulawayo can enhance its economic resilience and drive inclusive growth.
Community conservancies play a vital role in biodiversity conservation, ecosystem protection, and improving community livelihoods in Kenya's arid and semi-arid lands. Despite their contribution, many conservancies continue to experience financial sustainability challenges arising from unstable revenue streams, rising operational costs, and dependence on external financing. Donor grant funding remains a major source of financial support for conservation programmes, wildlife protection, and community development; however, uncertainties in donor priorities and funding continuity threaten long-term sustainability. This study examined the effect of donor grant funding on the financial sustainability of community conservancies operating under the Northern Rangelands Trust in Kenya. The study was anchored on Resource Dependence Theory and adopted a positivist research philosophy, quantitative research approach, and descriptive correlational research design. A census of 180 respondents drawn from 45 community conservancies was conducted. Primary data were collected using structured questionnaires and analyzed using descriptive statistics, Pearson Product Moment Correlation, and simple linear regression in SPSS Version 25. The study achieved a response rate of 86.7%. The findings established a positive and statistically significant relationship between donor grant funding and financial sustainability (r = 0.681, p < 0.05). Regression analysis further revealed that donor grant funding significantly predicted financial sustainability (β = 0.624, Beta = 0.681, t = 12.140, p < 0.001), explaining 46.4% of the variation in financial sustainability (R² = 0.464). The study concluded that stable and predictable donor grant funding strengthens liquidity, operating-cost coverage, reserve adequacy, and reinvestment capacity among community conservancies. It recommends strengthening long-term donor partnerships, diversifying donor portfolios, improving grant management systems, and enhancing financial accountability to promote sustainable conservation financing.
Herding behaviour has increasingly attracted attention within behavioral finance due to its influence on investment decision-making and stock market outcomes. Unlike traditional finance theories that assume investors make rational decisions based on available information, behavioural finance suggests that investors frequently imitate the actions of other market participants, particularly under conditions of uncertainty. Such collective investment behaviour may distort price discovery, increase market volatility, and reduce market efficiency. This study examined the influence of herding behaviour on stock market performance at the Nairobi Securities Exchange, Kenya. The study was anchored on Behavioral Finance Theory and adopted a positivist research philosophy, quantitative research approach, and descriptive and correlational research designs. The target population comprised 68,500 retail investors trading through licensed investment banks and brokerage firms, from which a sample of 398 respondents was selected using simple random sampling. Primary data were collected using structured questionnaires that were subjected to validity and reliability testing before the main survey. Quantitative data were analysed using descriptive statistics, Pearson Product Moment Correlation, and simple linear regression analysis. The study achieved a response rate of 361. The findings established that herding behaviour exhibited a positive and statistically significant relationship with stock market performance. Regression analysis further demonstrated that herding behaviour significantly predicted stock market performance, leading to the rejection of the null hypothesis. The study concluded that herding behaviour significantly influences trading activity, price movements, market liquidity, and overall stock market performance at the Nairobi Securities Exchange. The study recommends strengthening investor education programs, improving market information dissemination, and enhancing financial literacy initiatives to encourage independent investment decision-making and improve market efficiency.
Savings and Credit Cooperative Societies (SACCOs) are central to Kenya's financial system through their contribution to savings mobilization, affordable credit provision, and expansion of financial inclusion. However, the increasing incidence of non-performing loans has continued to undermine their profitability, liquidity position, and long-term financial sustainability despite ongoing regulatory and supervisory reforms. Strengthening credit risk management has therefore become a strategic priority for enhancing loan portfolio quality and improving institutional performance. This study investigated the effect of credit risk management practices on the financial performance of Savings and Credit Cooperative Societies in Meru County, Kenya. The study was guided by Credit Risk Theory and employed a positivist research philosophy, quantitative research approach, and descriptive-correlational research design. The study targeted 186 management personnel from 50 SACCOs within Meru County, with all respondents included through a census approach. Primary data were collected using structured questionnaires whose validity and reliability were confirmed before the main data collection exercise. Data analysis involved descriptive statistics, Pearson Product Moment Correlation, and simple linear regression analysis. A total of 170 completed questionnaires were returned, representing a response rate of 91.4%. The results revealed a strong positive and statistically significant association between credit risk management practices and financial performance (r = 0.661, p < 0.05). Regression analysis further demonstrated that credit risk management practices significantly influenced financial performance (β = 0.661, p < 0.001), accounting for 43.7% of the observed variation in financial performance, leading to the rejection of the null hypothesis. The study concludes that strengthening borrower evaluation, credit appraisal procedures, loan monitoring, periodic portfolio reviews, and debt recovery processes substantially improves financial performance by reducing credit losses and maintaining healthier loan portfolios. The study recommends that SACCOs continuously strengthen their credit risk management frameworks, invest in staff training, adopt digital credit monitoring technologies, and regularly review lending policies to enhance financial sustainability and long-term institutional performance.
Financial performance has become a major concern within the hospitality industry because hotels operate in highly dynamic environments characterized by fluctuating customer demand, rising operational costs, liquidity constraints, and increasing competition. Effective cash flow forecasting has increasingly been recognized as an essential working capital management practice because it enables organizations to anticipate cash requirements, coordinate expenditures, minimize liquidity shortages, and improve financial planning. Despite its importance, many three- and four-star hotels continue to experience unstable financial performance arising from weak forecasting systems, delayed financial decisions, and inadequate cash management practices. This study examined the effect of cash flow forecasting practices on the financial performance of three- and four-star hotels in Meru County, Kenya. The study was anchored on Planning and Control Theory and adopted a positivist research philosophy, quantitative research approach, and correlational research design. The target population comprised 120 managerial and finance personnel drawn from eight classified three- and four-star hotels, and a census approach was adopted. Primary data were collected using structured questionnaires, while secondary financial information was obtained from hotel financial records. Data were analyzed using descriptive statistics, Pearson Product Moment Correlation, and simple linear regression analysis. The findings established that cash flow forecasting practices exhibited a positive and statistically significant relationship with financial performance. Regression analysis further demonstrated that cash flow forecasting practices significantly predicted financial performance (β = 0.684, p < 0.05), leading to the rejection of the null hypothesis. The study concluded that effective cash flow forecasting strengthens liquidity planning, improves expenditure coordination, enhances operational efficiency, and promotes sustainable financial performance. The study recommends that hotel management institutionalize structured cash flow forecasting systems, integrate forecasting into budgeting and financial decision-making processes, and adopt digital forecasting technologies to strengthen financial sustainability and organizational resilience.
Trade facilitation is the streamlining and harmonization of international trade procedures that impede the flow of goods, people, and vehicles across international borders, resulting in increased business costs, delays in goods clearance, and reduced commodity flows. One of the main tools for ensuring that trade facilitation is completely achieved across national borders is the One-Stop Border Post. The study, therefore, was to determine the effect of the electronic customs risk analysis system on trade facilitation among clearing and forwarding companies at Malaba Border Post, Kenya. The theory that guided the study was New Trade Theory (NTT and Risk Management Theory. The study used an explanatory research design. The target population was 1086 clearing and forwarding agents in Kenya, and a sample size of 292 respondents. Since 292 of the targeted 254 respondents fully completed and submitted their responses. Structured questionnaires were used to collect primary data, which were analyzed using descriptive and inferential statistics. The study found that the electronic customs risk analysis system had a significant and positive effect on trade facilitation (β = 0.480, p =0.000). Given the positive effect of the electronic customs risk analysis system on trade facilitation, the study recommends that government agencies, such as the Kenya Revenue Authority (KRA), develop policies that mandate and incentivize data sharing among government departments and private-sector stakeholders. This will enrich the risk engine's data pool, enabling more precise targeting of high-risk consignments and faster clearance for legitimate trade. Future studies should investigate how variables such as digital literacy impact facilitation of trade activities at border clearing and forwarding companies at Malaba Border Post, Kenya.
This study examined the effect of agency banking on the stability of commercial banks in Kenya, with a specific focus on the moderating role of asset quality. The rapid expansion of agency banking has enhanced financial inclusion and reduced operational costs, but its implications for bank stability remain unclear. The study was grounded in the Technology Acceptance Model and adopted a positivist philosophy and an explanatory research design. A census approach was employed, targeting all 39 licensed commercial banks in Kenya, using secondary panel data obtained from audited financial statements and Central Bank reports for the period 2017 to 2023. Descriptive statistics and panel regression analysis were used to analyze the data, while moderation effects were tested using interaction terms. The findings revealed that agency banking has a positive, statistically significant effect on the fragility index (β = 1.250, p < 0.05), indicating that higher levels of agency banking transactions are associated with greater bank vulnerability. Further results showed that asset quality significantly moderates this relationship, with a negative and significant interaction effect (β = -3.065, p < 0.05), implying that strong asset quality mitigates the destabilizing effects of agency banking. The study concludes that although agency banking enhances outreach and operational efficiency, it may expose banks to increased risks if not effectively managed. The study recommends strengthening credit risk management, enhancing oversight of agency banking operations, and improving regulatory frameworks to ensure that the expansion of agency banking supports financial stability.
Service delivery in Kenya’s county referral hospitals remains uneven despite ongoing reforms aimed at strengthening fiscal discipline and governance. Financial accountability practices, particularly transparency, compliance with financial regulations, and adherence to reporting standards, play a critical role in enhancing institutional performance. These practices are primarily underpinned by Agency Theory, which explains the need for oversight mechanisms to align the actions of hospital management (agents) with public and government expectations (principals), thereby preventing the misuse of resources and enhancing accountability. This perspective is reinforced by Institutional Theory, which emphasizes adherence to regulatory frameworks and norms, and Total Quality Management Theory, which links accountability processes to continuous improvement and service quality. This study examined the influence of financial accountability practices on service delivery in Level 5 county referral hospitals in Kenya, while also evaluating the moderating influence of leadership styles. A descriptive and quantitative research design was adopted. The target population comprised all 47 county referral hospitals, stratified across Kenya’s eight administrative regions. A sample of 148 respondents from hospital management teams was selected using stratified random sampling. Data were collected using structured questionnaires, and the questionnaires' validity and reliability were confirmed through pilot testing, expert review, and Cronbach’s alpha. Data analysis involved descriptive statistics, Pearson correlation, and multiple regression, complemented by diagnostic tests. Findings revealed that financial accountability practices significantly influence service delivery outcomes, with leadership styles strengthening this relationship. The study concluded that robust accountability frameworks, reinforced by effective leadership, are essential for enhancing service delivery quality in county referral hospitals.
This study aimed to assess the impact of integrating digital tax payment platforms on turnover tax compliance among small and medium-sized manufacturing enterprises (SMEs) in the West of Nairobi, Kenya. The implementation of digital payment services by the Kenya Revenue Authority (KRA), including e-Citizen, Mpesa, and bank transfers, is intended to make tax administration easier, less costly to comply with, and hence result in greater voluntary compliance among taxpayers. Nonetheless, even amid these reforms, SMEs' compliance with turnover tax has been inconsistent, casting doubt on whether digital integration can improve tax outcomes. Grounded on the Technology Acceptance Model (TAM) and Economic Deterrence Theory, the research adopted a descriptive design targeting 392 manufacturing SMEs registered under the turnover tax in the West of Nairobi. Random sampling, using the Yamane formula, was used to select 198 SMEs. Structured questionnaires were used as the primary instruments for collecting data. A total of 167 valid responses were analyzed using descriptive statistics, correlation analysis, and multiple regression techniques. The results showed a strong, positive, and statistically significant relationship between digital tax payment platform integration and turnover tax compliance. According to SMEs, the ease of payment, timely payment and filing, tax remittance accuracy, and record-keeping were improved by mobile payment methods. The regression results showed that digital platform integration was a significant determinant of variance in turnover tax compliance. The study finds that the effective integration of online tax payment systems is critical to increasing tax compliance among manufacturing SMEs. The study recommends that KRA intensify its efforts to enhance system reliability, interoperability, and taxpayer support to maximize the benefits of compliance.
The powerful influence of the digital age on daily life and human activities has created a state of "digital disruption". It means that the digital age inevitably changes the way the economy works, disrupting traditional business models. This, of course, requires adaptation to changes that are not always easy and painless but inevitably happen, whether we are dealing with agriculture, manufacturing, trade, banking, or service delivery. Therefore, this study aimed to examine the effect of real-time tax information on value-added tax compliance among medium enterprises in the Westlands Region- Parklands, Nairobi County, Kenya. The theory that guided the study was the Ability to Pay theory and the Technology Acceptance Model (TAM). The study used an explanatory research design. The target population comprised 241 Medium Enterprises Parklands in the Westlands region, Nairobi County, with a sample size of 151 respondents. The study achieved a high response rate of 86.1%, as 130 respondents correctly completed and submitted their questionnaires. Primary data was collected using closed-ended questionnaires. The statistics generated were descriptive and inferential, presented in tables and charts. The regression model found that Real-time tax information has a positive and significant influence on VAT compliance (β = 0.778, p = 0.000). The study recommends that the government invest in modernizing tax administration systems to ensure seamless and timely dissemination of tax-related updates. Policymakers should mandate the Kenya Revenue Authority (KRA) to implement real-time reporting platforms that provide taxpayers with instant access to regulatory changes, filing deadlines, and compliance requirements. Future research could explore the effects of deterrent measures on VAT compliance.
Listed manufacturing firms in Kenya play a critical role in driving economic growth, contributing approximately 18% to the country's Gross Domestic Product (GDP) and creating over 2.3 million jobs in both formal and informal sectors. However, these firms have faced challenges in consistently generating shareholder value over the past decade, raising concerns about their ability to sustain value creation. While shareholder value has increased among listed firms in general, the performance of listed manufacturing firms remains notably weak. Previous studies investigating shareholder value have produced inconsistent findings, leaving uncertainty about how financial structure influences shareholder value in these firms. This study addresses this gap by examining how short-term debt financing affect shareholder value among listed manufacturing firms in Kenya. Anchored on the Modigliani and Miller Theory and the Trade-off Theory, the research adopts a positivist philosophy and a causal research design. The target population included 21 listed manufacturing firms on the Nairobi Securities Exchange (NSE). Secondary panel data for the period 2012–2023 was extracted from published financial statements and analyzed using Stata software, employing both descriptive and inferential statistical techniques. The study found that short term debt had a positive and significant effect on shareholder value (β = 0.284519, p = 0.015 < 0.05), suggesting that efficient use of short term borrowing to support liquidity and operations enhances value. In view of the findings, the study recommends that managers and regulators should focus less on altering ownership structures and more on limiting costly long term borrowing, supporting working capital discipline, and deliberately growing and redeploying retained earnings to drive shareholder value. In addition, policymakers, especially the National Treasury, Capital Markets Authority, and Nairobi Securities Exchange, should consider formulating financial policies that encourage manufacturing firms to adopt balanced financing approaches. Keywords: Short-Term Debt Financing, Shareholder Value, Capital Structure, Manufacturing Firms, Nairobi Securities Exchange
This paper examines the relationship between corporate governance institutions and financial riskiness in Saudi Arabia oil and energy market, using a balanced sample of thirty companies followed across 2016-2024 (270 firm-years). The study examines the relationship between board size, independent (non-executive) director proportion, CEO duality, board gender diversity and quality of internal control systems with the measured financial risk. The secondary data were based on annual reports and exchange disclosures by the firms and a short structured questionnaire conducted on the senior managers and board members was used to develop an index of internal control quality. Some of the important control variables are firm size (log assets), firm age, leverage, and year dummies in order to appreciate macro trends. The analysis is methodologically divided into descriptive statistics, correlation diagnostics and panel regression. Random effects and fixed effects estimates, based on the Hausman test and model selection, were estimated and the robust (White-corrected) standard errors and a set of post-estimation diagnostics (VIF, Breusch-Pagan) were calculated to confirm the reliability of inferences. Conventional robustness tests used different risk measures and specification tests. Reproducible Python scripts were used to clean and plot data as the main econometric estimations were done in IBM SPSS v.26. The patterns of the empirical results are consistent. The quality of internal internal controls is found to have a negative and strong relationship with financial risk exposure among estimators, and this implies that an increase in audit functions, risk committee activity and formal control procedures prevents volatility and measurements based on default significantly. The lower measured risk is also linked to board size, especially when expansion is coupled with an increase in board competence and not with the number size. In contrast, CEO duality is positively associated with increased pooled estimates of risk, which indicates that combined CEO-chair positions can undermine oversight and opportunistic decision-making unless other governance controls are in place. These findings are strong to different specifications and resistant to various diagnostic tests. The implications of the policy and managerial issues are to focus on internal audit and risk management capacity, hire board directors who possess sectoral and risk-management skills instead of focusing on size alone, and revise governance models that concentrate executive authority. The research adds industry-specific data on one of the most strategically significant regional markets and provides viable advice to regulators, institutional investors and corporate boards in pursuit of greater financial resilience.
Taxation is a major revenue source for governments worldwide; therefore, tax authorities must continuously implement measures to ensure maximum revenue collection. Despite KRA's measures, Value Added Tax compliance has remained low, and therefore, KRA consistently fails to meet annual targets. The main objective of the study was to determine the effect of tax audits on Value-Added Tax (VAT) compliance among commercial property owners in Nairobi's Central Business District, Kenya. The study was guided by the following theories: the Ability-to-Pay Theory of Taxation and Economic Deterrence Theory. The study employed an explanatory research design, targeting a population of 9,785 commercial properties in the Central Business District of Nairobi, Kenya, and a sample of 384. The study used primary data collected via questionnaires administered using the drop-and-pick-later method. The data were analyzed using hierarchical moderated regression, with descriptive and inferential statistics generated. A linear regression model was used to establish the strength of the relationship between independent and dependent study variables. The study found that tax audit had a significant positive effect on Value Added Tax compliance (β = 0.471, p-value = 0.000). The study recommends that the Kenya Revenue Authority (KRA) should prioritize maintaining and communicating a credible audit presence. Policy should focus on strategically allocating audit resources to high-risk segments while publicly highlighting audit activities to reinforce the perception of detection risk among all commercial property owners. Future research should examine the effect of tax incentives, such as prompt-payment discounts or credits for specific investments, on VAT compliance.
Tax compliance among SMEs remains a challenge in developing countries like Kenya. Kenya Revenue Authority (KRA) has experienced significant revenue losses due to weak enforcement mechanisms, loopholes in tax policies, and widespread corruption, which allowed tax evasion and fraud to thrive. Tax enforcement mechanisms are one of the initiatives being implemented by KRA to address this problem. Hence, the study objective was to establish the effects of tax enforcement mechanisms on SMEs' tax compliance levels in Dagoreti North Sub-County. The research was founded on economic deterrence theory. An explanatory research design was employed. The population was 6174 owners of licensed SMES in Dagoreti North Sub-County. A sample of 141 SME owners in Dagoreti North Sub-County was selected using stratified sampling. Primary data was collected using questionnaires. Qualitative data were analyzed through thematic analysis. Quantitative data were analyzed through descriptive and inferential statistics. The study established that tax enforcement mechanisms (β = 0.667; p = 0.000) significantly affected tax compliance levels. The study concluded that tax enforcement mechanisms are a significant determinant of tax compliance level among SMEs in Dagoreti North Sub-County. This can be done by leveraging the emerging AI tools to reduce the need for extensive manpower. This will enhance compliance and revenue collection, and encourage SMEs to maintain accurate financial records and consistently uphold tax obligations.
Several listed businesses on the Nairobi Securities Exchange have been facing a variety of issues, including declining earnings, trading suspensions (7.6%), and/or complete delistings (10.6%). In 2023, shares of the apparel retailer Deacons East Africa, the sugar company Mumias Sugar Company, and the National Bank of Kenya were prohibited from trading. The purpose of this study was to examine the relationship between dividend policy and the profitability of companies traded on Kenya's Nairobi Securities Exchange. The primary objective of the research was to identify correlations among dividend payments, dividend yields, and the financial performance of NSE-listed companies. A total of 305 observations were derived from the data, which covered the five-year period from 2020 to 2024. Descriptive statistics, panel regression, and Pearson correlation were used to examine the data. The study found that dividend payouts, dividend payments, and dividend yields are positively and significantly correlated with profitability. Regression analysis also yielded similar findings: dividend payout (β=0.673, P=0.008), interim dividend payment (β=0.146, P=0.002), and dividend yield (β=0.163, P=0.000) were positively and significantly associated with profitability. Based on the study's findings, the study recommended that firms listed on the NSE strike a balance between retained earnings and dividend payouts to ensure sufficient reinvestment to sustain long-term profitability.
