CASH MANAGEMENT PRACTICES AND FINANCIAL PERFORMANCE OF TEA PROCESSING FACTORIES IN MOUNT KENYA REGION, KENYA
CASH MANAGEMENT PRACTICES AND FINANCIAL PERFORMANCE OF TEA PROCESSING FACTORIES IN MOUNT KENYA REGION, KENYA
Njore Wainana Joseph - Student, the Department of Accounts and Finance, School of Business, Economics and Tourism, Kenyatta University, Kenya
Fredrick W. S. Ndede (PhD) - Senior Lecturer, the Department of Accounts and Finance, School of Business, Economics and Tourism, Kenyatta University, Kenya
ABSTRACT
The study objective was to determine the effect of cash management practices on financial performance of Tea processing factories in Mount Kenya Region. The study was anchored on Cash Conversion Theory. The target population included 35 tea processing factories situated in the Mount Kenya region, with Managers of the manufacturing units and accountants in charge of the factories selected as the respondents, totaling 70 participants. Primary data was collected using a five-point Likert scale questionnaire, and the analysis utilized quantitative techniques. Robust cash management practices, such as budgeting and monitoring bank balances, correlate positively with financial performance, emphasizing the need for continued efforts to optimize financial outcomes within the industry. The study concluded that cash management practices significantly affects financial performance of Tea processing factories in Mount Kenya Region. The study recommended that the Tea factories need to optimize cash management practices to ensure financial discipline and sustained growth. Regular monitoring of financial performance indicators and fostering a culture of financial literacy among employees are crucial for enhancing financial health and competitiveness in the sector.
