Tag Archives: Kenya

The Influence of Financial Support Services on the Financial Performance of Women-Owned Enterprises in Eldoret, Kenya (Published)

Micro-credit services target low income clients who lack access to banking and related services. The study sought to establish the influence of micro-credit services on financial performance of women-owned enterprises in Eldoret. The financial performance measures were the net profit, current, inventory and times interest earned ratio. Based on the research, this paper discusses the influence of financial support services on the financial performance of women-owned enterprises which are funded through micro-credit. The study targeted a population of 1721 which constituted of women who owned enterprises and were registered with the county government of Uasin Gishu County. Study samples were drawn through purposive random sampling. A sample size of 313 was obtained using the Krejcie and Morgan formula. Questionnaires were used to collect data. Descriptive and inferential statistics were used to present and analyse the data obtained. Data was then presented in form of tables, and explanations provided. There results showed that there was no significant influence of financial support services on financial performance of women-owned enterprise (p=0.00). From the study, it was observed that the financial performance of the women-owned enterprises in Eldoret improved due to the increase in the net profit, current, inventory turnover and times interest earned ratio. The study concluded that multiple loan products and favourable loan terms helps boost the financial performance of women owned enterprise. The study recommended that microfinance institutions should restructure the collateral and interest requirements by the women entrepreneurs by using credit scoring and business history as alternatives to asset-based security. This paper underscores the need to carry out more research on factors affecting women-owned enterprise in other areas of similar socio-economic patterns to ascertain whether or not financial support services have had a positive impact on the financial performance of women-owned enterprises. Moreover, a study should be conducted on the influence of micro-finance lending on financial performance of women-owned enterprises in Eldoret town.

Keywords: Eldoret, Financial Performance, Financial Support Services, Influence, Kenya, Women-Owned Enterprises

The Influence of Capital Adequacy Ratio on the Financial Performance of Second-Tier Commercial Banks in Kenya (Published)

Performance of most mid-tier commercial banks in Kenya has been fluctuating over the past few years. Meanwhile, some of them continue to post impressive results as majority report losses and others merge in order to remain sustainable. This situation points to financial performance affecting the mid-tier commercial banks in Kenya. The government, through the Central Bank of Kenya, introduced prudential regulations aimed at bringing sanity in the banking industry. This move led to closure of Dubai Bank and Imperial Bank while Chase Bank went under statutory management awaiting new investors. From this, an investigation was done on how Central Bank regulations influenced financial performance of second-tier commercial banks in Kenya. Based on the study, this paper explores how capital adequacy ratio influences financial performance of commercial banks in Kenya. The study was purely quantitative research and, therefore, correlation research design and descriptive research designs were used. The study was conducted in 14 second tier commercial banks in Kenya. It collected financial data from 2013 to 2016, considering that the regulations came into effect in 2013 from CBK and commercial banks websites. The data was sourced from Central Bank of Kenya after getting permission and approval from National Commission for Science, Technology and Innovation (NACOSTI). Data collected was analysed using descriptive and inferential statistics. Multiple Regression Analysis was used to test the study research hypothesis. Findings were presented through tabulations and graphical illustrations. Computed correlation showed that capital adequacy ratio had significant strong positive relationship (p<0.05) with financial performance of mid-tier commercial banks. In conclusion, it was found that capital adequacy ratio is among the main predictors of mid-tier commercial banks’ financial performance. It was therefore recommended that CBK needs to regularly monitor commercial banks by ensuring that they publish their quarterly results to the public. The investment regulators in the country such as the Capital Markets Authority (CMA), Kenya Banker Association (KBA) and Central bank of Kenya can use these study findings to understand the bottom line impact of bank regulatory requirements and in understanding banks decision on to its customers.

Keywords: Capital Adequacy Ratio, Commercial Banks, Financial Performance, Influence, Kenya

The Relationship between Board Members’ Knowledge and Organizational Performance of Private Commercial Banks in Nairobi County, Kenya (Published)

Many organizations are striving to enhance their organization performance by creating and commercializing knowledge in a timely and cost-efficient manner. Given the intensifying competitive environment, the critical determinant of organizational success is the effectiveness of board of directors. The purpose of the study was to establish the relationship between board members’ characteristics and organizational performance, drawing empirical lessons from private commercial banks in Nairobi County, Kenya. Based on the study, this paper examines the relationship between board members’ knowledge and organizational performance. The study employed a correlation research design. It targeted 207 senior management staff drawn from 28 private commercial banks within Nairobi County. Stratified and random sampling technique was used to select a sample of 103 senior management staff, representing 50% of the target population. Primary data was collected using structured questionnaire while secondary data was collected using documentary guided. Content validity index was used to test validity of research instruments whilst Cronbach alpha method was applied to test reliability of the research instruments. Correlation analysis was used to determine the nature of the relationship between variables. The study found no significant correlation between board members’ knowledge and organization performance. The study therefore adds new knowledge to the existing body of literature since the extant literature suggests that board members’ knowledge has a positive influence on organization performance. There is however need for further studies on the same to establish if the study findings hold.

Keywords: Influence Board Members, Kenya, Knowledge, Nairobi County, Organizational Performance, Private Commercial Banks

Influence of Organizational Arrangement and System Complexity on Adoption of Integrated Financial Management Information System by Uasin Gishu County Government, Kenya (Published)

Over the past decade, developing many countries has increasingly embarked on efforts to computerize their government operations, beginning especially with the public financial management (PFM). Among the most common systems implemented is the integrated financial management information system (IFMIS). The system computerizes and automates key aspects of budget execution and accounting operations across institutions of government. The study investigated factors affecting the implementation of IFMIS in Uasin Gishu County Government. Based on the study, this paper explores the effect of organizational arrangement and system complexity on successful implementation of IFMIS in Uasin Gishu County. The study employed a correlation research design. Stratified random sampling method was used to select 170 respondents from a target population of 566 County’s employees who used IFMIS. Data was collected by means of a questionnaire and was analysed using descriptive and inferential statistics. The findings of this study revealed that organization arrangement (β=.51, P-.000) had a significant effect on implementation of IFMIS in Uasin Gishu County. However, system complexity (β=.01, P-.000) had no significance effect on implementation of IFMIS. Therefore, the study recommended that the Uasin Gishu County government should embrace change of management since it enhances many positive benefits to an employee’s life, including a better greater job satisfaction, more autonomy, increased energy, creativity, motivation and morale. As work becomes more sophisticated and more technology-dependent, the importance of virtual teams will increase rapidly.

Keywords: Adoption, IFMIS, Integrated Financial Management Information System, Kenya, Organizational Arrangement, System Complexity, Uasin Gishu

The Effect of Automated Car Park System on Revenue Collection in Busia County Government, Kenya (Published)

In the present-day competitive, fast-paced business landscape, getting the most out of available resources is not an option but a necessity. County governments are taking a highly proactive approach to systems modernization and operations in an effort to increase efficiency and effectiveness in their operations. The study sought to establish the effect of automated financial systems on revenue collection in Busia County Government. Based on the study, this paper examines the effects of automated car park system on revenue collection in Busia County Government. The study used the Meta Theory Model was used as the theoretical framework. The Theory posits that contingency factors, organizational factors and technological factors have an effect on the aspect of task performance. The study adopted ex post facto research design. The study targeted 140 employees who worked at the Busia County Government. The research used random sampling technique to identify respondents who participated in the study. The sample size was 103 respondents. Data was collected using a questionnaire and analysed using descriptive and inferential statistics (ANOVA, regression analysis and correlation). The study found that there was a statistically significant linear relationship between automated car park systems and revenue collection (p=0.000). The research recommended that Busia County should improve on automated financial systems. Automation of the revenue management process should be improved to enhance efficiency.

Keywords: Automated Car Park System, Busia County Government, Effects, Kenya, revenue collection

Relationship between Risk-Taking and Business Performance among Small and Medium Enterprises in Eldoret Town, Kenya (Published)

The measure of entrepreneurial activity in an organization is the level of creativity and innovation across all its operations. How intense the creative and innovative disposition is determined by the success of organizations as reflected in performance outcomes. The purpose of the study was to examine the relationship between entrepreneurial intensity and performance of small and medium enterprises in Eldoret town, Kenya. Informed by the study, this paper explores the influence of risk-taking on the performance of SMEs in Eldoret town. The study adopted an ex-post facto research design. It targeted all the SMEs in Eldoret town. Systematic sampling technique was adopted to select a sample of 100 SME owners/managers to be involved in the study. The collected data was analysed using both descriptive and inferential statistics. Descriptive statistics was presented in form of percentages, frequencies, pie charts and graphs. Pearson correlation was employed to test the hypotheses of the study. The study established that there is a strong positive correlation between risk-taking and business performance of SMEs in Eldoret town. Therefore, committing business resources to venture in uncertain and unfamiliar environments could result in increased returns and market share for the business.

Keywords: Business Performance, Eldoret Town, Kenya, Medium Enterprises, SMEs, Small, risk-taking

Assessment of Teacher Competence in Pedagogical Knowledge in the Implementation of Secondary School Curriculum in North Rift Region, Kenya (Published)

The purpose of this study was to investigate teachers’ competence in pedagogical knowledge in teaching in secondary schools in the north rift region of Kenya. The study used descriptive survey design and a mixed methods research. Simple random sampling and stratified sampling was used to select the sample.  Data instruments were structured and unstructured questionnaires, observation schedule and semi-structured interviews. Data was analyzed using descriptive statistics. The findings of the study revealed that a majority of teachers did not use learner centred methods for example demonstration, enquiry and discussion. It was concluded that a significant number of teachers were not competent in pedagogical knowledge for the implementation of the secondary school curriculum. The study recommended revision of teacher education curriculum and the recruitment of more teachers to relieve on workload to enable them prepare effectively for the implementation of the secondary school curriculum

Keywords: Curriculum, Education, Kenya, Pedagogy, Teacher Competence

The Influence of Innovativeness on the Performance of Small and Medium Enterprises in Eldoret Town, Kenya (Published)

The study investigated the influence of entrepreneurial intensity on performance of small and medium enterprises in Eldoret town, Kenya. Based on the study this paper examines how innovativeness influences the performance of SMEs in Eldoret town. The study adopted an ex-post facto research design. It targeted all the SMEs in Eldoret town. Systematic sampling technique was adopted to select a sample of 100 SME owners/managers to be involved in the study. The collected data was analysed using both descriptive and inferential statistics. Descriptive statistics was presented in form of percentages, frequencies, pie charts and graphs. Pearson correlation was employed to test the hypotheses of the study. The findings showed that innovativeness as a dimension of entrepreneurial intensity had strong positive correlation with the performance of SMEs in Eldoret town. Therefore, it was recommended that the government should play a role in offering short courses to induct the business owners and expose them to advanced techniques in innovation.

Keywords: Eldoret Town, Innovativeness, Kenya, Medium Enterprises, Performance, Small

Electronic Marketing Practices, Competitive Environment and Performance of Telecommunications Companies in Kenya (Published)

The objective of the study was to ascertain the effect of e-marketing practices on the performance of telecommunications companies in Kenya.  The population of the study was drawn from all telecommunications companies Kenya.  Primary and secondary data were used where a semi-structured questionnaire was used to collect primary data while secondary data was extracted from industry performance reports. Data was analyzed using descriptive statistics, factor analysis and regression analysis.  The findings showed statistically significant relationship between e-marketing practices and organizational performance.  Results of the moderating effect of competitive environment on the relationship were equally statistically significant.  The results imply that organizations that have adopted e-marketing practices have also been able to record better performance.  This relationship is however moderated by competitive environment meaning that while e-marketing practices contribute to organizational performance, the competitive environments within which they operate require that they develop mechanisms that enable scanning and adapting to competitive environment for competitiveness and better performance.  Failure to adapt to the competitive environment can result into organizational demise despite adopting appropriate marketing strategies including, e-marketing practices.

Keywords: Competitive Environment, E-Marketing Practices, Kenya, Organizational Performance, Telecommunications Companies

The Impact of Distribution Channel Differentiation on Organizational Performance: The Case of Sameer Africa Limited in Nairobi, Kenya (Published)

The study investigated the relationship between differentiation strategy and performance of Sameer Africa Ltd located in Nairobi, Kenya. Informed by the study this paper discusses the extent to which channel differentiation strategy adopted by Sameer Africa (K) Limited influenced the company’s performance. The study employed a correlational research design. The study targeted 112 employees of Sameer Africa (K) Limited comprising of senior management, HODs and junior staff and 90 dealers based in Nairobi. A sample of 134 respondents was selected by use of stratified and simple random sampling techniques. Primary data was collected through self-administered questionnaires. The quantitative data was analysed using descriptive statistics in the form of tables and inferential statistics in the form of Pearson correlation and regression analysis with significance level of 0.05 to test the hypothesis. From the findings of the study, majority of the respondents believed that Sameer Africa (K) Ltd could achieve competitive advantage through channel differentiation. This suggest that an increase in channel differentiation strategy such as use of market trends to determine most appropriate channel strategy, use of different channels with the aim of minimizing cost of distribution, selling some of the products and services through intermediary and complementary firms and applying different distribution channels so as to satisfy unique customer needs would result in an increase in performance through market share, revenue, sales and customer satisfaction. The study sought to provide an empirical evaluation of the relationship between differentiation strategy and organizational performance.

Keywords: Impact, Kenya, Organizational Performance, Sameer Africa Limited, Service Differentiation

The Impact of Outsourcing on the Growth of Hotels in Eldoret Town in Kenya (Published)

Hospitality Industry, which majorly consists of hotels and restaurant chains and related services, is one of the largest service industries in the world. Most countries in Africa have realized that the development of hospitality industries is also important for economic diversification. The study assessed the influence of strategic alliances on growth of hotel industry in Eldoret town, the headquarters of Uasin Gishu County in the North Rift region of Kenya. Based on the study this paper explores the effects of outsourcing on growth of hotel industry. The study adopted a descriptive survey research design with a target population of 220 in the hotel industry in Eldoret town. A sample of 112 respondents was drawn proportionately from four categories of hotels using stratified random sampling technique. A semi-structured questionnaire was administered to collect the required data. Data was analyzed using both descriptive and inferential statistical techniques with the aid of a computer software known as Statistical Package for Social Sciences (SPSS) version 20. Multiple regression analysis was used to analyze the data.  The study found that outsourcing had contributed to increased hotel sales, profits, product/service quality and reduction of costs. It was therefore recommended that hotel managers need to understand the benefits as well as the challenges that come with outsourcing. The findings of the study will be of benefit to hotels with limited resources and exposed to growth opportunities as they will be able to appreciate the role of outsourcing in leveraging on large firms’ resources for profitability, growth and expansion.

Keywords: Eldoret Town, Growth, Hotels, Kenya, Outsourcing

Assessment of the Factors Influencing Birth Preparedness and Complication Readiness among Pregnant Women: A Case of Selected Health Care Facilities in Eldoret, Kenya (Published)

Evitable mortality and morbidity remains a formidable challenge in many developing countries, Kenya among them. Countering this challenge due to birth complications then becomes a critical area of concern. The principle and practice of Birth Preparedness and Complication Readiness (BP/CR) in resource-poor settings have the potential of reducing maternal and neonatal morbidity and mortality rates. This paper aims to assess the factors that influence BP/CR among pregnant women attending Antenatal care in selected Health Care Facilities in Eldoret, Kenya. The current maternal mortality ratio is 488 maternal deaths per 100,000 live births (KDHS 2008-9). Most of these deaths occur due to the five leading causes: severe bleeding/hemorrhage (25%), infections (13%), unsafe abortions (13%), eclampsia (12%), obstructed labor (8%), other direct causes (8%), and indirect causes (20%). It is important to note that most of these deaths can be prevented by proper ANC attendances and ensuring the presence of a skilled birth attendant during delivery and/or in case of any complications (Omolo & Kizito, 2010).  The study used a descriptive cross sectional approach. Pregnant women seeking antenatal services in 3 health care facilities (Eldoret West Health Centre, Huruma and Uasin Gishu District Hospitals) formed the target population from which a sample size of 273 was obtained using fisher’s formula. Data collection was done using questionnaire and analyzed using the SPSS software. Results are presented in tables and narratives. Among the factors established to be the most predictors included maternal education, source of income, pregnancy planning and attendance of Antenatal Care. The study recommends emphasis of Antenatal care education on birth preparedness and complication readiness to improve access to skilled and emergency obstetric care.

Keywords: Antenatal Care, Birth Preparedness, Complication Readiness, Kenya

Profitability of Economic Stimulus Program (ESP) Fish Farming Adopters in Makueni County, Kenya (Published)

Fish farming in Kibwezi is a recent livelihood alternative that was propelled by government funding under the Economic Stimulus Programme (ESP) between 2009 and 2012.  This study evaluated the profitability and sustainability of fish farming in Kibwezi, Makueni County, Kenya using a sample size of 146 fish farmers. Fish production of finfish specifically Nile Tilapia (Oreochromisniloticus) and African Catfish (Clariasgariepinus) respectively were the species cultured. Twenty seven percent of farmers had an annual gross margin average of KES. 30,333.95 from a 300M2 fish pond with a gross margin ratio of 0.35. Net fish income was positive for 8.9 percent of farmers and averaged KES. 24,707.14. Farmers with a stocking density of 5fish/m2 and above serviced their total variable costs. Hatchery owners did better with 57.1 percent of them showing positive returns on both measures of gross margin and net fish income. Fingerlings, feeds and labour costs constituted 67% of total variable cost. Underweight of tilapia fish was a common problem among the sampled farmers. Adopters with the highest gross margins paid employees or committed themselves to pond management activities. Adopters made their own feeds. It is recommended that farmers be trained to make their own feeds

Keywords: Economic Stimulus Program (ESP), Kenya, Makueni County, Profitability, fish farming

Factors Influencing Adoption of E-Procurement in Kenya’s Public Sector (Published)

E-procurement system contributes significantly to national productivity growth through the removal of non-value added activities in procurement process. However, the adoption has been slow in Kenya and there is still a lack of studies assessing the impact of e-procurement. This study aims to explore the barriers of e-procurement adoption in Kenya and to understand e-procurement success, and why success has not been achieved using desktop research design. Insights that will be obtained from systematic evaluations regarding the barriers of e-procurement systems will help to develop an instrument to measure success; identify barriers to achieving success and establish a framework to promote success of e-procurement in the public sector in Kenya

Keywords: E-Procurement, Kenya, Procurement Process, Productivity, Public Sector

The Challenges of Learners with Diverse Linguistic Needs: Experiences of Teachers in Uasin Gishu County, Kenya (Published)

Teachers in Kenya undergo language-based training that exposes them to both the academic content and teaching methodology in order that they may be able to respond to the diverse linguistic needs of learners in the language classroom. The unquestioned guiding assumption is that such the training knowledge informs teachers’ classroom practices. This paper assesses the challenges experienced by language learners in classrooms as a result of the diversity of their linguistic abilities. The paper is based on a study that examined how teachers’ maxims influence the teaching of English language in classrooms with learners of diverse linguistic abilities. The study was conducted in Wareng District of Uasin Gishu County. Wareng has one hundred and twenty teachers of Standard Four level English. A descriptive survey was carried out in the selected area. The study used both simple random and stratified sampling procedures to identify the schools and teachers to participate in the study. Data was collected using questionnaire and interview schedule and analyzed by use of descriptive statistics and then presented by the use of pie charts, graphs and percentages. The study established that the language learners and teachers in Uasin Gishu County experience a number of challenges emanating from the diversity of their linguistic abilities and needs. These challenges include the feelings that they are not part of class; lack of experience to handle linguistic needs; large number of learners in language classroom; the strong influence of first language; inadequate time to address each learners’ needs, and language policy not being supportive. It was, therefore, recommended that there is need for funds to be provided for teachers to attend further training and seminars on specific language needs in language education. In addition, more time is needed for teaching language to enable teachers to respond to the needs of every individual student. Teachers also need to adopt diverse methods of learning language in order to cater for the diverse learning needs of students. The government also needs to address the challenge of excessive enrolment of students that is causing congestion of classrooms in primary schools in Kenya.

Keywords: Assessment, Challenges, Diverse Linguistic Needs, Kenya, Learners, Schools Uasin Gishu County

Effect of Knowledge Management on Firm Competitiveness: Testing the Mediating Role of Innovation in the Small and Medium Enterprises in Kenya (Published)

Knowledge and innovativeness are have been recognized as the main sources of competitive advantages in the economy. Small and medium-sized firms need to increase attention on knowledge management and innovativeness so as to be competitive. The study examined knowledge management, innovativeness and firm competitiveness. The study is conducted on the results based on 252 small and medium manufacturing enterprise managers in Nairobi, Kenya. The data obtained from the questionnaires were analyzed using the SPSS statistical packaged software. The study results showed that knowledge management processes influence innovativeness positively, innovativeness enhances firm competitiveness while innovativeness is a mediator between knowledge management and firm competitiveness. The study demonstrated that knowledge management and innovation should be integrated to enhance firm competitiveness. The viewpoint proposed is that knowledge management is an important element for small and medium enterprises in today’s dynamic and competitive environment.

Keywords: Firm Competitiveness, Innovativeness, Kenya, Knowledge Management, SMEs

An Assessment of the Overall Mortality of Low Birth Weight Neonates at the New Birth Units of the Moi Teaching and Referral Hospital in Eldoret, Kenya (Published)

Neonatal mortality is a leading health problem world over and more so in the developing countries. Neonatal mortality is a major contributor to infant mortality in the developing countries accounting for up to 50% of the infant mortality rate. This paper examined the overall mortality of low birth weight neonates at the new birth unit (NBU) at the Moi Teaching and Referral Hospital (MTRH) in Eldoret, Kenya. The study was carried out among 159 neonates with a birth weight of less than 2500 grams and admitted to the NBU of MTRH. From the study findings it was concluded that the mortality rate of low birth neonates at MTRH newborn unit is quite high. The mortality is much higher compared to the developed world and also in some other 3rd world countries. Measures to reduce the incidence of birth asphyxia need to be put in place. Blood cultures should be done as a routine whenever sepsis is suspected to give a guide on the choice of antibiotics.

Keywords: Kenya, Low Birth Weight Neonates, Moi Teaching, New Birth Unit, Overall Mortality, Referral Hospital

Analysis of the Volatility of the Electricity Costs in Kenya Using Autoregressive Integrated Moving Average Model (Published)

Electricity has proved to be a vital input to most developing economies. As the Kenyan government aims at transforming Kenya into a newly-industrialized and globally competitive, more energy is expected to be used in the commercial sector on the road to 2030. Therefore, modelling and forecasting of electricity costs in Kenya is of vital concern. In this study, the monthly costs of electricity using Autoregressive Integrated Moving Average models (ARIMA) were used so as to determine the most efficient and adequate model for analysing the volatility of the electricity cost in Kenya. Finally, the fitted ARIMA model was used to do an out-off-sample forecasting for electricity cost for September 2013 to August 2016. The forecasting values obtained indicated that the costs will rise initially but later adapt a decreasing trend. A better understanding of electricity cost trend in the small commercial sector will enhance the producers make informed decisions about their products as electricity is a major input in the sector. Also it will assist the government in making appropriate policy measures to maintain or even lowers the electricity cost.

Keywords: ARIMA, Electricity, Forecast, Kenya

Food Insecurity: Causes and Policy Framework in Strengthening Food Security in Kenya’s Agricultural Sector. (Published)

According to  United Nations Food Agriculture Organization and the United States of America  department of agriculture in the World Food Summit in 1996, Food security exists when all people at all times, have physical and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life. Food security is basic to the survival of any nation, be it at individual, family or national level. This therefore means that food security should have top priority since no meaningful development in economic, social or cultural sphere is possible without it. However in Kenya, with a population of more than 40 million people, about 10% is classified as food insecure according to United States of America Department of Agriculture – Food Security Analysis March 2009. This is growing at an annual rate of about 30%. Kenya is the largest import market for food and agriculture products in East Africa. Kenya imported about 725 million in agriculture products during 2009, up from 525 million in 2007 in an attempt to mitigate the crisis. This implies that the Government of Kenya should come up with policies that ensure people have access to enough food. This paper examines the role of policy framework in strengthening food security in Kenya.

Keywords: Agricultural Sector, Economic Development, Food Security, Kenya, Policy Framework

An Assessment of the Effect of Distribution Alliance on Growth of Hotels in Eldoret Town, Kenya (Published)

Strategic alliance enables firms to remain competitive and thus survive, grow and prosper. In order for enterprises to survive in a rapidly changing business environment, they are increasingly forming strategic alliances with other firms. This paper assesses the influence of distribution alliances on growth of hotel industry in Eldoret town. The paper is based on a study that sought to evaluate the influence of strategic alliances on the growth of the hotel industry in Eldoret town in North Rift region of Kenya. The study applied the Resource Dependency theory and the Resource Based theory and adopted a descriptive survey research design on a target population of 220 respondents involved in the hotel industry in Eldoret town. A sample of 112 respondents was drawn proportionately from four categories of hotels using stratified random sampling technique. A semi-structured questionnaire was administered to the respondents to collect the required data. Data was analyzed using both descriptive and inferential statistical techniques with the aid of the Statistical Package for Social Sciences (SPSS) version 20. Multiple regression analysis was also used to analyze the data. The study established that distribution alliance had increased the hotel sales, profits, product/service quality and reduction of costs. Further, strategic alliance had increased market share and enabled hotel businesses to gain competitive advantage. The study also established that the hotels have improved proximity to customers and faster and easier market penetration due to strategic alliance. Based on the research findings and conclusion in the study, it is recommended that hotels need to come up with governance structure that governs strategic alliance. This will help reduce problems encountered in strategic alliance.

Keywords: Distribution Alliance, Eldoret, Growth, Hotels, Kenya

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