MST-SCHOOL OF BUSINESS AND ECONOMICS

SOLVENCY MANAGEMENT AND FINANCIAL SUSTAINABILITY OF LARGE-SCALE RETAIL SUPERMARKETS IN KENYA

2026-03-13T12:20:43Z

SOLVENCY MANAGEMENT AND FINANCIAL SUSTAINABILITY OF LARGE-SCALE RETAIL SUPERMARKETS IN KENYA JEFFAH, KENNETH KALONZI Solvency management remains a pivotal driver of operational continuity, profitability, and asset efficiency within the retail ecosystem. Despite established solvency frameworks, large-scale retail supermarkets in Kenya continue to face financial sustainability challenges, often resulting in operational restructuring and downsizing. This study examined the effect of solvency management on the financial sustainability of largescale retail supermarkets in Kenya. Specifically, it analyzed the impact of capital adequacy, financial leverage, asset management, and liquidity management on financial sustainability. Grounded in the Resource-Based View, Modern Portfolio, and Cash Management theories, the study adopted a cross-sectional design targeting nine leading retail supermarkets. A census approach was utilized, leveraging secondary data from audited financial statements. Analytical methods included descriptive statistics—mean, minimum, maximum, and standard deviation—and inferential analysis using correlation and random effects regression models. The Hausman test guided the model selection process, confirming the suitability of the random effects model. Empirical findings revealed that capital adequacy (β = 0.2834, p = 0.001), asset management (β = 0.2513, p < 0.001), and liquidity management (β = 0.4103, p < 0.001) exerted positive and significant effects on financial sustainability. Conversely, financial leverage demonstrated a negative and significant influence (β = -0.3244, p < 0.001). These outcomes confirm that effective solvency management substantially enhances the financial sustainability of large-scale supermarkets. The study concludes that maintaining solvency discipline is imperative for sustainable retail operations. It recommends that management consistently optimize capital-to-asset ratios, institute prudent debt ceilings to mitigate leverage risk, and enhance fixed asset utilization efficiency. By embedding these financial resilience strategies, largescale supermarkets can reinforce long-term sustainability and competitive advantage within Kenya’s evolving retail landscape.

RISK MANAGEMENT STRATEGIES AND ORGANIZATIONAL PERFORMANCE OF CLASSIFIED HOTELS IN NAIROBI CITY COUNTY, KENYA

2026-03-13T12:13:32Z

RISK MANAGEMENT STRATEGIES AND ORGANIZATIONAL PERFORMANCE OF CLASSIFIED HOTELS IN NAIROBI CITY COUNTY, KENYA MAYAVI, LINET SHIJEDI Risk is an immanent characteristic of all economic processes. The hotel industry in Kenya faces multiple risks and every vacant or cancelled room affects the performance of a hotel. Because of this susceptibility, there is need for hotel managers to adopt effective strategies to manage the consequences. This study determined the effect of risk management strategies on performance of classified hotels in Nairobi City County in Kenya. The specific objectives of study were: to determine the effect of risk avoidance strategies on performance of classified hotels in Nairobi City County, to evaluate the effect of risk reduction strategies on performance of classified hotels in Nairobi City County, to assess the effect of risk retention strategies on performance of classified hotels in Nairobi City County, and; to evaluate the effects of transfer management strategies on performance of classified hotels in Nairobi City County. The study was based on the resource based theory, prospect and modern portfolio theories. The study adopted a cross-sectional research design. The target population comprised of 50 classified hotels operating in Nairobi City County and as classified as at the year, 2023. The study employed a census sampling method. Both primary and secondary data were used. Primary data was collected using structured questionnaires. Secondary data was obtained through document analysis from official records obtained from the hotel. The study used both descriptive and inferential statistics. Pilot study was conducted in Kisumu's 10 classified hotels since these establishments face significant challenges with low return on investments. The study results indicated that risk management strategies explains 62.7% of variations on organizational performance of classified hotels in Nairobi City County. The regression results of the study: indicated that risk avoidance strategies had a positive and statistically significant effect on organizational performance of classified hotels. This is supported by regression coefficient of 0.558 and p-value 0.001. Risk reduction strategies was found to have a positive and statistically significant effect on organizational performance of classified hotels. This is supported by regression coefficient of 0.687 and p-value 0.021. Risk retention strategies was found to have a positive and statistically significant effect on organizational performance of classified hotels. This is supported by regression coefficient of 0.792 and p-value 0.001. Finally, risk transfer strategies were found to have a positive and statistically significant effect on organizational performance of classified hotels. This is supported by regression coefficient of 0.459 and p-value 0.000. The study, is geared towards equipping classified hotel’s management on choice of risk management strategies. The study may also inform the development of effective risk frameworks to enable hotels identify and mitigate potential risks before they escalate into larger problems. The study makes appropriate contribution to the hospitality industry by proposing the best suited risk management strategies on performance in hotels in Kenya, regionally and globally. Further, the study serves as a reference for future researchers and scholars in strategic management.

SUPPLIER RELATIONSHIP MANAGEMENT PRACTICES AND PROCUREMENT PERFORMANCE OF PRIVATE SUGAR PROCESSING FIRMS IN KENYA

2025-02-13T07:51:50Z

SUPPLIER RELATIONSHIP MANAGEMENT PRACTICES AND PROCUREMENT PERFORMANCE OF PRIVATE SUGAR PROCESSING FIRMS IN KENYA IMBUHILA, CELESTINE OKANGA In today’s world, procurement performance in private sugar firms is one of the emerging issue of concern. Sugar firms are still hurtling down on cost even when the effects are detrimental to the product’s quality. In some scenarios, the quality dimension gets altered to save cost, and the management holds high optimism hoping the quality risk does not get discovered. The main objective of the study was to establish the effect of supplier relationship management practices on procurement performance of private sugar firms in Kenya. The specific objectives of the study were; to determine the effect of information sharing on procurement performance, to examine the effect of supplier training on procurement performance, to determine the effect of contact management on procurement performance and to establish the effect of strategic alliance on procurement performance of private sugar processing firms in Kenya. The study was guided by; information theory, the Principal Agent theory and stakeholders’ theory. Positivism research philosophy was used. The study adopted descriptive research design. The target population of the study was 50 respondents from ten private sugar manufacturing firms in Kenya. The study employed census sampling. Questionnaires were used to collect primary data. Data was analyzed using descriptive and inferential statistics that involved multiple linear regressions. Results with an R2  0.629 showed that information sharing, supplier training, contract management and strategic alliance explained 62.9% of variations in the procurement performance of private sugar firms in Kenya. Regression coefficients of 0.046, 0.176, 0.217 and 0.354 for information sharing, supplier training, contract management and strategic alliance respectively indicated that embracing supplier management practices improved procurement performance. Therefore, the study recommends embracing of supplier management practices for private sugar firms for the sake of improving procurement performance. The study findings may helpful to management of sugar firms, government and other stakeholders in understanding the best practices to adopt in order to realize excellent supplier relationship that will in turn enhance performance. Further, the study adds to the existing body of knowledge by establishing effect of supplier relationship management practices on procurement performance from the perspective of sugar firms.

INFLUENCE OF INVENTORY MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE OF SUGAR MANUFACTURING FIRMS IN KENYA

2025-02-13T07:44:55Z

INFLUENCE OF INVENTORY MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE OF SUGAR MANUFACTURING FIRMS IN KENYA MIKHAGO, EMILY In today’s world of intense competition managing inventory efficiently has become an important operational weapon for products and service firms wishing to survive the competitive pressures. Many of Kenya's sugar producing companies have been operating poorly, and others have suffered significant losses that have caused some sugar companies to fail. Some sugar businesses have capacity issues and inadequate inventory, which prevents them from timely cane collection from farmers. The main aim of this study was to establish the effect of inventory management practices on organizational performance of sugar manufacturing firms in Kenya. The specific objectives were; to analyze the effect of economic order quantity adoption on organizational performance of sugar manufacturing firms in Kenya, to assess the effect of Just in Time production technique on organizational performance of sugar manufacturing firms in Kenya, to establish the effect of ABC analysis on organizational performance of sugar manufacturing firms in Kenya and to evaluate the effect of vendor managed inventory practice on organizational performance of sugar manufacturing firms in Kenya. The study was guided by lean manufacturing theory, Economic order theory and theory of constraints. This study was anchored on pragmatism philosophy and correlational research design. The target population for this study was 144 respondents consisting of; procurement managers, stores managers, chief engineers, dry production managers, field supervisors, volume supervisors, finance managers, marketing managers and factory managers. The study used simple random sampling to select 108 respondents. Primary data was collected through the use of questionnaires while secondary data were collected from financial statements. Expert analysis and factor analysis were used to assess the construct validity of the questionnaire. Reliability of primary data was measured using Cronbach alpha. Descriptive statistic such as frequencies and percentages were generated. Inferential statistics consisted of multiple regression and Pearson correlation coefficient. Results were presented in form of tables’ charts and graphs. The results show that economic order quantity adoption, just in time production technique, ABC analysis and vendor managed inventory had a positive and significant effect on organizational performance with a regression coefficient of 0.988, 1.406, 1.668 and 1.539 respectively. Inventory management practices causes 61.6% variation in organizational performance. The results will help managers of sugar firms to come up with regulations that enhance cost reductions and improve organizational efficiency. The study would also act as a source of reference material for future researchers on inventory management practices. The study concluded that economic order quantity adoption, just in time production technique, ABC analysis and vendor managed inventory had a positive and significant effect on organizational performance. The study recommended that sugar firms should train procurement officers who will be able to adopt economic order quantity effectively. The management of sugar firms should ensure that their firms maximize the utilization of its capacity.