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EFFECT OF COOPETITION ON GROWTH OF INSURANCE FIRMS IN KENYA

Lilian Wangui Nguyo - College of Human Resource Development, Jomo Kenyatta University of Agriculture and Technology, Kenya

Dr. Enos Anene (PhD) - College of Human Resource Development, Jomo Kenyatta University of Agriculture and Technology, Kenya

ABSTRACT

The insurance firms in Kenya have for a long time struggled with growth because of the low and yet declining insurance penetration rate. The sector has been characterized by cutthroat competition through price under cutting, leading to underwriting losses. Insurance firms continually struggle with claims settlement causing increased insurance apathy in the country, hence the poor penetration rates. These firms therefore need to explore other avenues from which their growth can be optimized. One of the strategies being employed by firms in more developed economies is co-opetition, which is a hybrid behavior of collaboration and competition within an industry or sector. The general objective of this study was to assess the effect of co-opetition on growth of insurance firms in Kenya. Specifically, the study sought to establish the effect of information sharing on the growth of insurance firms in Kenya, determine the effect of collaboration on research and development on the growth of insurance firms in Kenya, establish the effect of co-insurance on the growth of insurance firms in Kenya and examine the effect of cooperative pricing on the growth of insurance firms in Kenya. This research was based on the resource-based view theory, game theory, transaction cost theory and the social exchange theory to explain the relationship between the study variables. The study made use of both primary and secondary data. The primary data was collected using a structured questionnaire. An exploratory research design was adopted. The target population included all the 57 insurance firms operating in Kenya as of December 2022. A census was conducted on all the 57 insurance firms. The unit of observation were the heads of the finance, operations and business development departments in each of the 57 insurance companies giving a total of 171 respondents. Collected data was analyzed descriptively by use of means and standard deviation and inferentially by use of correlation and regression analyses using SPSS version 27. Data was presented in form of frequency tables. The regression analysis revealed significant relationships between the independent variables and the growth of insurance firms in Kenya. Information sharing (Beta = 0.238, p < 0.05), collaboration on R&D (Beta = 0.425, p < 0.05), co-insurance (Beta = 0.231, p < 0.05), and cooperative pricing (Beta = 0.695, p < 0.05) all exhibited positive and statistically significant effects on firm growth. The study concludes that a strategic emphasis on cooperative practices, including robust information sharing, collaborative R&D, co-insurance arrangements, and cooperative pricing, positively influences the growth trajectories of insurance firms in the Kenyan market. The study recommends the need to foster a culture of openness for information sharing, promoting industry-wide collaboration on research and development initiatives, exploring innovative co-insurance models, and advocating for fair and transparent cooperative pricing strategies. Further research could explore the impact of regulatory frameworks on the effectiveness of co-opetition strategies in the insurance sector, investigating how compliance requirements shape collaborative practices.


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PROJECT COST PLANNING AND PERFORMANCE OF HOUSING PROJECTS IN KENYA

Charles Muiruri Wanjau - Jomo Kenyatta University of Agriculture and Technology, Kenya

Prof. Gregory Nasimiyu Namusonge - Jomo Kenyatta University of Agriculture and Technology, Kenya

Dr. Benard Lango - Jomo Kenyatta University of Agriculture and Technology, Kenya

ABSTRACT

This study sought to determine the influence of project cost planning on the performance of housing projects in Kenya. This study adopted a descriptive research design. The target population was 675 building construction stakeholders; Project Managers, Engineers, Architects, contractors, and site supervisors drawn from 135 housing projects within Nairobi Metropolitan. The study made use of primary and secondary data. Structured questionnaires and Interviews were used to collect both quantitative and qualitative data. Pilot testing was done to test the validity and reliability of the research instrument. The Data was analyzed using the Statistical Package for Social Sciences (SPSS); descriptive statistics mainly percentages, frequencies, means & standard deviations and inferential statistics mainly the regression analysis. The descriptive results showed that project cost planning influenced the performance of housing projects in Kenya. The study concluded that, project cost planning is important in the performance of housing projects in Kenya. This is because cost planning allows accurate budget estimation, informed decision making, efficient resource allocation, cost control, risk management, and effective stakeholder management. By having a well-planned cost structure, construction of housing projects can be executed within budget, avoid financial risks, and achieve desired outcomes. The study recommended that Policy on cost management should be adopted which encourages the use of standardized cost management tools and require regular cost reporting to monitor and manage project expenditures. These guidelines are for effective cost estimation, budgeting, and control for housing projects.


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PUBLIC PARTICIPATION AND ITS EFFECT ON SELECTION AND EXECUTION OF PROJECTS: A CASE OF SIAYA COUNTY

Omiti Gedrick John - Student, Master of Public Policy and Administration, Kenyatta University, Kenya

Edna Moi - Professor, Department of Public Policy and Administration, Kenyatta University, Kenya

ABSTRACT

The public participation in project selection and implementation is a varied activity that entails the contribution and involvement of numerous stakeholders. The sustainability and viability of projects depend on how well they are carried out. The research aimed is to explore the effect of public participation in selection and execution of projects in Siaya County, Kenya. The study objectives were; to assess how public participation in project identification affect selection and execution of projects, to access the procedures used in public invitation on selection and execution of projects and to establish the ladder of public participation on selection and execution of projects in Siaya County, Kenya. Stakeholder theory and Arnstein's Theory of Public Participation served as the study's guiding theories. A descriptive research design was utilized for this study. The Siaya County residents who are the subject of the study are locals. The sample size was determined using the Fisher formula. To choose the 384 participants for the study, random sampling techniques were used. To gather information, questionnaires and interview schedules were employed. With the aid of SPSS version 26, the data was examined. Tables showing frequency distributions were used to depict the analyzed data. The study findings revealed that project identification, procedures used in invitation and ladder of public participation significantly impacted the selection and execution of projects. The results show that public participation throughout project processes fosters a sense of community ownership and support. It contributes to the identification and mitigation of concerns, promoting effective conflict resolution and consensus building. The engagement of diverse stakeholders, guided by the ladder of public participation, ensures that projects are designed with a holistic understanding of the community's needs, values, and aspirations. The study concludes that public participation plays a pivotal role in shaping the selection and execution of projects, influencing outcomes at various stages from project identification to implementation. The effectiveness of public participation is closely tied to the procedures used in invitation and the ladder of public participation applied throughout the process. Project identification, the initial phase of project development, benefits significantly from public involvement. The study recommends that the project team should invite community members to share their thoughts on various projects in order to facilitate community participation and guarantee a smooth project identification phase. The project team should involve community members in all planning activities, such as work sequencing, work scheduling, budgeting, staffing, and obtaining approvals from government agencies, in order to maximize participation in the planning phase and successfully complete the projects.


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DETERMINANTS OF PERFOMANCE OF GEOTHERMAL ENERGY PROJECTS IN KENYA: A CASE OF MENENGAI GEOTHERMAL PROJECT IN NAKURU COUNTY

Stanley Ngugi Thuo - University of Nairobi, Kenya

Dr. John Mbugua - University of Nairobi, Kenya

ABSTRACT

Infrastructural development is a key aspect for economic growth and has been on focus by the Kenyan Government. There has been a lot of investment on development of geothermal energy mainly being one of the major sources of electricity in Kenya owing most to the unreliability of diesel operated generators and hydro power sources of energy. In lieu of this the Government formed Geothermal Development Company (GDC) to fast track development of geothermal resources in the country. There has been inefficiency in carrying out performance of geothermal energy projects, how capital costs, shortage of local geothermal energy expertise, infrastructure development, existing legal policies and regulatory framework on the exploitation of geothermal power in Kenya. The purpose of this study was to identify determinants of performance of geothermal energy projects in Kenya. The study specifically focused on effect of capital costs, technical expertise, infrastructural development and legal and regulatory framework on performance of geothermal energy projects in Kenya. This study employed cross- sectional survey research method. The study targeted 1130 respondents comprising of supervisory staff members of GDC; purposive sampling was used in selection of respondents. Questionnaires were used for data collection, after obtaining data from the field and coding, Statistical Package for Social Sciences (SPSS software) was used to analyze the information that was presented in terms of findings and recommendations. This study was carried through a descriptive survey design combining both qualitative and quantitative research strategies. The study population consisted; Top level managers, Middle level managers and Lower level managers. The study sought to establish to what extent capital cost determines performance of geothermal power in Kenya. Additionally, the study established how Geothermal Energy Experts determines the performance of geothermal energy projects in Kenya. The study also established to a very great extent, how Legal and Regulatory Framework determines performance of geothermal energy projects in Kenya. From the findings, infrastructural Development determines the performance of geothermal energy projects in Kenya. The study found that the projects costs for covering staff employees and project managers have increased to cost of the projects; drilling fuel costs are too high for the company; and the cost of purchasing the geothermal equipment affects the performance of the geothermal projects. Further, the study found that the project managers are recruited based on the expertise they have on geothermal projects and technical expertise is required to maintain the adopted technology. The study also found that the organization has proper infrastructural knowhow to handle geothermal projects. The study also found that there is efficient adherence to various rules and laws governing implementation of geothermal projects. The study concluded that capital costs had the greatest effect on the performance of geothermal energy projects, followed by infrastructural development then legal and regulatory framework while technical expertise had the least effect to the performance of geothermal energy projects. The study recommends that funds used for corporate social responsibility, and the procurement costs should be minimized, and the funds diverted to capital intensive areas. This would enhance the recovery of the financial investment from the revenues generated from the systems. In addition, to avoid delays in supply and provision of services, the study recommended for improved infrastructure for easy access to drilling sites, evacuation of steam to power plant.


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FIRM FINANCIAL CHARACTERISTICS AND DIVIDEND PAYOUT OF LISTED INSURANCE COMPANIES IN NAIROBI SECURITIES EXCHANGE

Risper Kemunto Mogire - Jomo Kenyatta University of Agriculture and Technology (JKUAT), Kenya

Prof. Willy Mwangi Muturi - Jomo Kenyatta University of Agriculture and Technology (JKUAT), Kenya

ABSTRACT

Firm characteristics are known by ensuring security of financial assets and liquidity dealings. All firms are mostly propelled by profit generation in their day-to-day operations. The amount generated can be used for debt servicing, acquire new tangible and non-tangible assets, finance working capital needs or be distributed to ordinary shareholders. There are competing issues amongst management as they strive to share the proceeds to the ordinary shareholders. Hence, the link of firm financial characteristics and dividend payout was explored. Specifically, the influence of leverage, liquidity, profitability and firm size on dividend payout was evaluated. The study was based on Modigliani and Miller hypothesis, agency theory. The data was retrieved from annual financial statements from 2011 to 2020. Univariate and multivariate statistics were applied for data analysis. Thus, listed insurance companies are undertaking investments in businesses that are maximizing shareholders wealth. Listed insurance companies are known by positive growth in firm size signals maximization of shareholders wealth. The study recommended that with positive significant effect of liquidity on dividend payout of listed insurance companies, there is need for examination of working capital management by respective listed firms to optimize value contribution. With positive significant effect of profitability on dividend payout indicated that, listed insurance companies are undertaking business opportunities which are yielding positive returns for all stakeholders. Hence, there is need for listed insurance firms to deploy investment strategies that not only maximizes shareholders wealth but also enhances odds of organization sustainability. Thus, there is need for listed insurance companies to pursue investment opportunities.


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