INFLUENCE OF CASH MANAGEMENT PRACTICES ON FINANCIAL PERFORMANCE OF AGRIBUSINESS ENTERPRISES IN KENYA
Gitau Beth Njeri
School of Agriculture, Natural Resources and Environmental Studies, Rongo University College, Kenya
Nyangweso Gaster
School of Agriculture, Natural Resources and Environmental Studies, Rongo University College, Kenya
Mwencha Nyasimi
Faculty of Agriculture and Natural Resources, Kisii University, Kenya
Onchangwa Gilbert A.
School of Business and Public Management, Mount Kenya University, Kenya
ABSTRACT
The study was aimed at evaluating the impact of Cash Management Practices on Financial Performance of agribusiness enterprises in Kenya. The objective of the study was to assess the impact of Cash Management Practices on Financial Performance of registered Farming groups’ operations. Agriculture and by extension agribusiness is the mainstay of the Kenyan economy contributing immensely in its economic growth and development. Financial management within the sector is thus imperative. Out of a target population of two hundred (200) farmers from eight (8) registered farming groups, one thirty two (132) individuals were selected by use of cluster and purposive sampling techniques. A structured questionnaire was administered to the respondents to enable primary data collection. Data were analyzed using descriptive statistics and Likert- average weighted scale evaluation. Information from the study shall be useful on the farmers who are keen on prudent financial management as a springboard for agribusiness growth and profitability. It will similarly inform the Ministry of Agriculture, Financial Institutions and Independent researchers on relevant policy formulation and implementation. The findings of the study revealed that the groups lacked adequate knowledge on judicious management of their financial resources. Recommendations from the study was that the groups should be taught on the need for borrowing funds in agri-enterprises, investment strategies and how to mitigate the inherent and inevitable risk-prone agribusiness challenges. The saving culture ought to be inculcated in them in addition to adopting a diversification approach to farming to reap its inherent benefits. The study concluded that the groups have not utilized Cash Management Practices effectively.
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