This study sought to investigate the influence of interest rate determinants on the performance of commercial banks in Kenya. Interest rates are the major economic factors that influence the economic growth in an economy. They can be used to control inflation and to boost economic development. The interest rates determinants that were studied are Inflation Rates, discount rates, Exchange Rate and reserve requirement to determine the influence they have on performance of banks. The target population of the study was all 43 commercial banks operating in Kenya. The sample size was 26 commercial banks obtained from the population. The data analysis technique applied in this study was the multiple regression analysis. The results showed that discount rates, inflation rates and exchange rates had positive influence on performance of commercial banks while reserve requirement ratio had negative influence. The study concluded that higher levels of discount rates, inflation rates and exchange rates lead to higher performance in commercial banks in Kenya, higher levels of reserve requirement ratio result in lower bank performance in Kenya. The study recommends that the Central Bank of Kenya should set base reserve requirements that do not pressurize banks in their operations. This will help grow the banking industry in Kenya and hence develop the economy. Lastly, the study recommends that the commercial banks management should strategize on best way to set up discounts rates for their banks as this will go a long way dictating the borrowing and lending culture of the commercial banks in Kenya and in return enhance their performance.

This study investigated the effects of use of derivatives on financial performance of companies listed in the Nairobi Securities Exchange (NSE

Purpose: This paper examined the moderating influence of portfolio rebalancing on the relationship between asset allocation and financial performance of pension funds in Kenya. Methodology:  The study used a descriptive research design with data collection form used to gather secondary data. The target population for this study was 1,258 registered schemes as per RBA as of 31 December 2021. The sample consisted of 294 registered schemes. Secondary data was obtained from the Retirement Benefits Authority (RBA) for the study variables for the six-year period between 2016- 2021. The data was analyzed using multiple linear regression and subjected to diagnostic tests. Findings: The study findings revealed that portfolio rebalancing had a significant moderating influence on all the variables except guaranteed funds which was not significant. This is expected since return on guaranteed funds is fixed (minimum guarantee) and therefore, the return on investors’ funds will remain constant overtime even with portfolio rebalancing of the fund’s asset under management. The study findings resonate with policy discourses suggesting that active portfolio rebalancing may yield better returns to members through proactive management of portfolio risks. Unique Contributions to Theory, Practice and Policy: The study validates the modern portfolio theory whose premise is selection and construction of asset portfolios to maximize the portfolio expected return and the concurrently minimize the attendant risk. The study can help policy makers such as Retirement Benefits Authority (RBA) in Kenya review investment ceilings imposed on different asset classes which restrict the range of asset allocation strategies available to those charged with pension fund asset management responsibilities by establishing quantitative limits on investment, typically by asset class. The trustees and fund managers can use the study findings to ensure adoption of an optimal mix of different asset classes that can maximize member’s returns.

Purpose: This study is inspired by the need to investigate the contribution of quoted equity to financial performance of pension funds in Kenya Methodology:  The study used a descriptive research design with data collection form used to gather secondary data. The target population for this study was 1,258 registered schemes as per RBA as of 31 December 2021. The sample consisted of 294 registered schemes. Secondary data was obtained from the Retirement Benefits Authority (RBA) for the study variables for the six-year period between 2016- 2021. The data was subjected to diagnostic tests and analyzed using multiple linear regression method. Findings: Regression results on the influence of quoted equity on the performance of pension funds shows that the coefficient had a negative and significant impact on performance of firms, p value 0.000 which was smaller than 0.05 level of significance. This shows that quoted equity had a negative impact on the performance of firms. In addition, 16.6% of the variation in performance of firms is explained by quoted equity. The study findings echo policy discourses suggesting that quoted equity investments may be riskier and therefore need for increased risk premium to cushion investors against increased risks Unique Contributions to Theory, Practice and Policy: The study validates the modern portfolio theory whose premise is selection and construction of asset portfolios to maximize the portfolio expected return and the concurrently minimize the attendant risk. The study can help policy makers such as Retirement Benefits Authority (RBA) in Kenya review investment ceilings imposed on quoted equity The trustees and fund managers can use the study findings to determine proportion of quoted equity investments in the investment policy that is optimal given risk characteristic of quoted equity as an asset class.

Purpose: The purpose of this study was to investigate the effects of interest rate and money supply on the growth of mortgage financing among Commercial banks in Kenya. Materials and methods: The study adopted a descriptive research design. The population contained 35 loan lending commercial banks over a period between 1985 and 2019. Secondary data was used from desired financial statements available to the public of the singular commercial banks and other posted reports of financial institutions and establishments in conformity with the study. Time-series data were analyzed using STATA version 13 software, regression analysis and model specification tests. The hypothesis was tested using the multiple regression approach a significance level of 0.05 was used. Results: The study found that interest rate (coef= -0.0822, p= 0.007) and money supply (coef= 0.548, p= 0.00) have significant effects on the growth of mortgage financing among Kenyan commercial banks. Unique contribution to theory, practice and policy: Kenya's central bank should put in place mechanisms to guarantee that interest rates and money supply do not have adverse impacts on bank mortgage financing. The government should guarantee currency stability since currency fluctuations may have a negative impact on commercial bank mortgage borrowing. The classical theory is therefore relevant in our research since interest rates impact mortgages when capital demand increases. The quantity theory of money demand also holds that individuals want cash based on the transactions they need.