... pages DECLARATION 3 CHAPTER ONE 3 1.0 Introduction 3 1.1 Background 3 1.2 Statement of the problem 3 1.3 Research objectives 3 1.4 Research questions 3 1.5 Importance of the study 3 CHAPTER TWO: Literature review 3 2.0 Introduction 3 2.1 Literature review Error! Bookmark not defined. 2.2 Chapter summary 3 CHAPTER THREE: Research methodology 3 3.0 Introduction 3 3.1 Research Design 3 3.2 Population and sample 3 3.3 Data Collection Methods 3 3.4 Data Analysis 3 REFERENCES 3 APPENDIX ONE: Questionnaires Error! Bookmark not defined. APPENDIX TWO: List of Kenyan Banks in the study 3 CHAPTER ONE 1.0 Introduction Credit rating has been defined in different ways: Admin (2008) defines it as the degree of credit worthiness assigned to an individual based on the credit history and financial status. Credit rating also assesses the credit worthiness of a country and corporation. It helps lenders or investors to know if the subject will be able to pay back a loan and can also be used to adjust the insurance premium, to determine employment eligibility. There are different ways in which the financial institutions can get information about an individual who wants a loan which include application form which gives information on an individual’s salary, family size, reasons for loan and also past dealings with the bank, the credit references agency files helps the bank to obtain information such as the court...
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...as NHIF is a Kenyan government state owned corporation that is charged with a mandate of providing health cover or insurance to Kenyans. Notably, the agency covers individuals aged 18 years and over. The main reason why this corporation was set up was to ensure the availability of accessible, sustainable, affordable and quality health care. This agency however has an exception in that its members must have a minimum of 1000 Kenya shillings per month. History The NHIF saw its establishment in the year 1966. It came up as a department under the ministry of Health by a parliamentary act. Benefits of NHIF to Kenyans It helps in providing admission to members in hospitals by catering for the services rendered as the hospital only makes claims to the Fund for the reimbursement of the services rendered. The Fund also provides patient cover for the member, the declared spouse at the time of registration and the children therein. NHIF also provides comprehensive medical cover in majority of over 400 accredited Government facilities, Mission health providers and some private health providers across the country. Besides the aforementioned, NHIF also strives to provide in-patient services in private and high cost hospitals on a co-payment arrangement. The corporation also provides comprehensive maternity and CS (Caesarian) package in government hospitals, majority of mission and some private hospitals countrywide. The body has also made it possible for the Kenyan citizens to enjoy...
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...GULF AFRICAN BANK LIMITED ABOUT THE BANK: it is a commercial bank in Kenya, the largest community in the East African community. I t has been licensed by the central bank of Kenya and the national banking regulator. In the year 2005 the bank was first thought of by a group of motivated Kenyans who envisioned establishing and Islamic bank as an alternative to conventional banking in the country by the Persian gulf and individuals and Kenya. The banks began banking operations in 2008, after they had received their license and were now legal. TYPE OF BUSINESS: The bank is an international business. They make commercial transactions that occur across borders, they exchange currencies with other countries and sell their products overseas, it also has branches in other parts of Africa. This makes it both international for selling its products overseas and multinational for being in different parts of Africa. Their head office here in Kenya is situated in the capital Nairobi. Although that is not the only branch in Kenya, it also branches in Lamu, Garrisa, Bondeni, Eastleigh, Malindi, Westlands and many other places. SECTOR OF ECONOMY- This institution is a bank that only sells and does not manufacture. They are in the same sector of economy as: Barclays bank | | Diamond Trust Bank | | Equity Bank | | Family Bank | | EcoBank Kenya | | PURPOSE OF BUSINESS: They are a financial institution which is involved in the borrowing and lending of money. They help...
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... ii ACKNOWLEDGEMENT I wish to thank the almighty God who has sustained me throughout this project I would also wish to thank my supervisor Mr. Geoffrey Kinyua for his valuable patience and assistance in accomplishing this project I would also wish to thank the technical staff of K.C B jogoo road branch for their help and cooperation iii ABSTRACT With reference to K.C.B this research is carried out to investigate the challenges facing the banking industry in Kenya. The specific objectives are; to investigate whether theft cases in banks are a major problem, to establish if ATM card skimming is a problem to the banking industry in Kenya, to determine if high interest rates are affecting the banking industry in Kenya negatively, to find out if mobile money transfer services are becoming a competition to banks in Kenya. The sample design was stratified random sampling so as to obtain data...
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...entrenched, which means that they are difficult to amend or abolish. Some constitutions contain certain clauses which prevent them being changed at all. A good example would be the German ‘eternity clause’. Others prevent the changing or amending of parts of the constitution during times of conflict, or before a certain time period. An un-entrenched constitution does not recognize the constitutional law as different or supreme and thus constitutions can be modified as easily as statutory laws. The procedure for modifying a constitution is often called amending. Amending an entrenched constitution needs numerous procedures than modification of a statue. Sometimes, this is because the constitution is considered supreme law. Article 2(1) of the Kenyan Constitution of 2010, states that the Constitution is the supreme law of the republic and binds all persons and all state organs at both levels of the government. Regardless of whether constitutional modifications require more complex procedures, all states with an entrenched constitution recognize the difference between constitutional law and ordinary statutory law. Procedures for ratification of constitutional amendments vary across states. In a federal system of government, the approval of a majority of state/provincial legislatures...
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...UNIVERSITY OF NAIROBI INSTITUTE OF DIPLOMACY AND INTERNATIONAL STUDIES Implications of Global International Monetary Policy Decision on Economic Systems in East Africa: A Case Study of Kenya NAME: LILLIAN WACHIRA REG NO: R50/63875/2010 Supervisor: Dr. Gerrishon Ikiara A Research Proposal submitted in partial fulfillment of the Degree of Masters of Arts in International Studies (MA IS) DECLARATION I declare that this research proposal is my original work and has not been presented for a degree in any other university. NAME: LILLIAN WACHIRA REG. NO: R50/63875/2010 Sign: ………………………………… Date: ……………………… This research proposal has been submitted for examination with my approval as university supervisor SUPERVISOR: Sign: ……………………………… Date: …………………………. DEDICATION I dedicate my project to my lovely mother Beatrice, my brothers Edwin and Eric whose prayers words of encouragement and push for tenacity ring in my ears. ACKNOWLEDGEMENT I would like to express my sincere gratitude to my supervisor Dr. Gerrsihon Ikiara for the continuous support and guidance while carrying out my project, for his patience, motivation and immense knowledge. I would also like to thank the participants in my survey, who have willingly shared their precious time during the process of interviewing. I...
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...1.1.2 History 2 1.2 Geographic scope - Areas of operation 3 1.3 Product/market scope 3 1.4 Source of competitive advantage 9 1.5 Significant changes and reasons for this 10 1.6 Growth patters- past strategies, present stategies 10 1.7 Performance record 18 1.8 Challenges facing KCB Group 22 References 22 1.1 INTRODUCTION 1.1.2 History The KCB Group is a significant institution in Kenya's banking and financial sector with an asset base of over KShs 170 billion. The history of KCB dates back to 1896 when its predecessor, the National Bank of India opened an outlet in Mombasa. Eight years later in 1904, the Bank extended its operations to Nairobi, which had become the Headquarters of the expanding railway line to Uganda. The next major change in the Bank’s history came in 1958. Grind lays Bank merged with the National Bank of India to form the National and Grind lays Bank (KCB, 2008). Upon independence the Government of Kenya acquired 60% shareholding in National & Grind lays Bank in an effort to bring banking closer to the majority of Kenyans. In 1970, the Government acquired 100% of the shares to take full control of the largest commercial bank in Kenya. National and Grind lays Bank was renamed Kenya Commercial Bank (KCB, 2008). In 1972, Savings & Loan (K) Ltd was acquired to specialize in mortgage finance. In 1997, another subsidiary, Kenya Commercial Bank (Tanzania) Limited was incorporated in Dar-salaam, Tanzania to provide banking services...
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...EGERTON UNIVERSITY TOWN CAMPUS FACULTY OF COMMERCE DEPARTMENT OF ACCOUNTING, FINANCE & MANAGEMENT SCIENCE NAME: OCHIENG JARED OPONDO REG NO: C12/60275/09 GROUP: A FACULTY: COMMERCE COURSE: BCOM 330; Financial Institutions and markets TASK: TERM PAPER TITLE: COMMERCIAL BANKING IN KENYA PRESENTED TO: MRS. BOSIRE MARY PRESENTED ON: 19TH October 2011 ABSTRACT: This term paper analyses the commercial banking system in Kenya. In particular it focuses on the history of commercial banks from a general perspective then narrows down to Kenya’s context. It looks at the importance of commercial banks in Kenya, the roles/functions of commercial banks. It then focuses on the regulations that govern the commercial banks. Lastly it looks at the contribution of commercial banks to Kenya’s economy. TABLE OF CONTENTS Abstract 2 Table of contents 3 Introduction 4 The history and development of commercial banks 5 Importance of commercial banks 9 Roles of commercial banks 10 Regulations of commercial banks 13 Contribution of commercial banks to Kenya’s economy 14 Emerging trends in banking 17 Summary 18 References 18 INTRODUCTION A commercial bank is a type of financial intermediary and a type of bank. It raises funds by collecting deposits from businesses and consumers via checkable deposits, savings deposits, and time deposits. It makes loans to businesses and consumers. It also buys corporate bonds and government bonds. Its primary liabilities are deposits...
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...Vision 2030 will be completed after this and other consultations. Kenya Vision 2030 THE CONTEXT OF KENYA VISION 2030 Kenya Vision 2030 is the new country’s development blueprint covering the period 2008 to 2030. It aims at making Kenya a newly industrializing, “middle income country providing high quality life for all its citizens by the year 2030”. The Vision has been developed through an all-inclusive stakeholder consultative process, involving Kenyans from all parts of the country. The vision is based on three “pillars” namely; the economic pillar, the social pillar and the political pillar. This vision’s programme plan comes after the successful implementation of the Economic Recovery Strategy for Wealth and Employment Creation (ERS) which has seen the country’s economy back on the path to rapid growth since 2002, when GDP grew at 0.6% rising to 6.1% in 2006. The relationships between the pillars can be seen in Exhibit One below. The economic pillar aims at providing prosperity of all Kenyans through an economic development programme aimed at achieving an average Gross Domestic Product (GDP) growth rate of 10 % per annum the next 25 years. The social pillar seeks to build “a just and cohesive society with social equity in a clean and secure environment”. The political pillar aims at realising a democratic political system founded on issue-based politics that...
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...material written or published by other people except where due reference is made and author duly acknowledged. Student Name: ______________________ Sign: __________________________ Registration Number: ________________ Date: ___________________ I do hereby confirm that I have examined the master’s dissertation of: Kenneth Miriti Nyaga And have certified that all revisions that the dissertation panel and examiners recommended have been adequately addressed. Signed _______________________________ Date ___________________ Dr. Okonga-Wabuyabo, Brigitte M. Dissertation Supervisor ii ABSTRACT Since the launch of mobile money services in Kenya in 2007, the number of subscriptions has grown to approximately 48% of entire the Kenyan population. This overwhelming uptake has been attributed to the affordability and accessibility of the service, especially among low income earners. The main challenges of mobile money technology include; the requirement of cash tellers or agents at convenient locations to allow easy access to cash when needed, the rising number of fraudulent cases through the service and the lack of interest earned on money deposited in mobile money services frameworks. Mobile phone operators seem to be doing their best to address these challenges. Amidst these challenges it is useful to know...
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...amounts; this made it logical to take logs because the regression was to seek a linear relationship. From the results it can be concluded that bond rates and inflation had a negative influence on Mortgage rates in Kenya for the period under study. CBR rate and Household income depicted a positive influence on the same. This led to the conclusion from the study that CBR rate and Household income had direct influence on the mortgage rate than inflation and bond rates; other variables like loan to value ratio and density of banks should be included in the model like in the Carlo 2010 Euro system regressions. Key words: Mortgage Rates, CBR rate, Bond Rate, Inflation, Household Income 1.0 INTRODUCTION The Kenya mortgage finance history dates back to 1980s and 1990s where there were 20 housing...
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...An Evaluation of Micro-Finance Programmes in Kenya as Supported through the Dutch Co-Financing Programme With a focus on KWFT Otto Hospes Muli Musinga Milcah Ong’ayo November 2002 Study commissioned by: Steering Committee for the Evaluation of the Netherlands’ Co-financing Programme 3 Contents List of contributors List of abbreviations Acknowledgements 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 2 Introduction Background and objectives Legitimization and overall objective of Dutch CFAs to support micro-finance programmes Partners of Dutch CFAs operating in the micro-finance market of Kenya Central questions Organization and methodology Process implementation and limitations of the study Structure of the report A brief description of micro-finance in Kenya and agencies as supported by Dutch CFAs Micro-finance in Kenya 2.1.1 The emergence of micro-finance as an industry 2.1.2 Types of micro-finance agencies in Kenya 2.1.3 Service delivery approaches 2.1.3.1 Savings services 2.1.3.2 Loan products 2.1.4 Outreach 2.1.4.1 Banks 2.1.4.2 NGO-MFAs 2.1.4.3 Savings and Credit Co-operatives (SACCOs) 2.1.4.4 ROSCAs and ASCRAs A profile of micro-finance agencies and schemes as supported by Dutch CFAs 2.2.1 General profile 2.2.2 Specific profiles 2.2.2.1 K-REP Development Agency (KDA) 2.2.2.2 Kenya Women Finance Trust (KWFT) 2.2.2.3 Jitegemea Credit Scheme (JCS) 2.2.2.4 PRIDE Africa – Sunlink Some conclusions 7 9 11 13 13 15 16 17 17 18 19 21 21 21 23 25 26 28 28 31 33 35 35 36 36...
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...CARE Kenya Providing New Opportunities Through Empowering Individuals and Communities CARE International is a non-political, non-religious global network of humanitarian organizations with a goal to reduce poverty. It was founded in 1946 with a mission to help individuals and families living in the poorest communities in the world get out of poverty. According to Tom Ewart (2005), CARE also helps to promote innovative solutions and lasting change by strengthening capacity for self-help, providing economic opportunities, and delivering relief in emergencies to more than 45 million people every year. Some of the countries that CARE operates projects in are Indonesia, Jamaica, and Zimbabwe. According to Ewart’s 2005 case study, in 2003 CARE’s budget was $1.08 million. Most money came from federal governments, multilateral institutions such as the World Bank, the United Nations, and the International Fund for Agriculture and Developments (IFAD). One of the countries in Africa that CARE has managed to develop their project in is Kenya. CARE Kenya is one of CARE International’s branches in Africa managing developments and humanitarian organizations. The largest goal of CARE Kenya is to reduce poverty at a household level and to provide relief in emergencies. In 2004, CARE Kenya employed about 300 people and had a budget of nearly $1.04 million (Ewart, 2005). Currently, CARE Kenya carries out significant initiatives in Health and HIV/AIDS, water and environmental sanitation...
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...FACES OF INDEBTNESS 1) KENYA Kenyan borrowers promptly repay their loans despite the stiff interest rates and high inflation, presenting a lower default risk investment environment for banks compared to other parts of the world. The low default risk for banks has however not translated to lower interest rates for customers despite the credit referencing system taking effect. The credit risk is measured in terms of gross non-performing advances as a percentage of the total gross advances. A survey by audit firm RSM Ashvir, based on banks 2012 financial reports showed only 4.6 per cent of loans by banks in 2011 ended up as non-performing advances. The banking industry disbursed Sh1, 335 billion, out of which only Sh61.4 million was defaulted. The risk has consistently decreased from 7.9 per cent in 2009 to 6.3 per cent in 2010. With the increase in interest rates and inflation rate, non-performing advances were expected to go higher, but it is not the case. This shows that the risk in the Kenyan market is low Interest rates spiked in December 2011 after the Central bank increased its key lending rate to a high of 18 per cent to curb the inflation rate which had peaked at 19.72 per cent in November that year. Though both the Central Bank Rate and inflation rate have dropped to 9.5 per cent and 4.11 per cent, banks are still lending at an average of 17.84 per cent. Microfinance institutions in Kenya have suffered significant loan repayment default resulting into subsequently...
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...1 Innovation in Africa: A View from the Peaks and Hilltops of a Spiky Continent* By David A. Wernick, Florida International University College of Business *From the forthcoming book Innovation in Emerging Markets, edited by J. Haar and R. Ernst (Palgrave, 2016). Please do not circulate or quote without consent of author. ABSTRACT: There is growing interest among scholars and practitioners in African innovation. Some contend that the continent's recent economic boom is largely a homegrown phenomenon, driven primarily by indigenous entrepreneurs developing local content for continental consumers. But is this true? To what extent is Africa's impressive economic performance in recent years the result of internal dynamics and which actors and institutions are most responsible? This chapter examines the state of innovation across the African continent, with a particular focus on sub-Saharan Africa. The authors identify key facilitators of innovation in the private, public, and non-profit sectors, as well as obstacles to the continent’s continuing innovation-led economic expansion. I. Introduction In a widely read 2005 article in the Atlantic Monthly, author Richard Florida argued that with respect to innovation, the world is anything but flat. Given the way that creative talent, technical expertise, and financial capital tend to cluster in a handful of hubs or “peaks” around the world – places such as New York, San Francisco, London, Berlin, and Tokyo – the world’s...
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