CASH MANAGEMENT PRACTICES AND OPERATIONAL PERFORMANCE OF PUBLIC UNIVERSITIES IN KENYA
Abstract
The purpose of this study was to establish the effect cash management practices on the operational performance of public universities in Kenya. The study specifically looked at the effect of accounts payable management, accounts receivable management, inventory management, and short-term borrowing on operational performance of public universities in Kenya. The study adopted the transaction cost theory, agency theory, economic order quantity model and pecking order theory. This study used a descriptive survey research design. Population of the study was 100 employees comprising of university heads of finance departments, accountants, and registrars. The study used census survey. A pilot study was conducted to test for validity and reliability of the research instruments. Content validity was used as validity test while reliability was tested using Cronbach’s alpha coefficient. Descriptive statistics including mean, percentages and frequencies was used while inferential statistics that is multiple regression model and product moment correlation was used to make inferences of the population using data drawn from the population. The study results revealed that there was a significant relationship between accounts payable management and operational performance of public universities (β=0.182, p≤0.05); there was a significant relationship between accounts receivable management and operational performance of public universities (β=0.272, p≤0.05); there was a significant relationship between inventory management and operational performance of public universities (β=0.229, p≤0.05) and that there was a significant relationship between short-term borrowing and operational performance of public universities (β=0.216, p≤0.05). The study is important as it lead to effective cash management which increase employment and economic growth. The investors, government, employees and the researchers benefits from this research because it gives insight on investment planning practices used in achieving the cash flow management of public universities.
Key Words: accounts payable, accounts receivable, inventory management, short-term borrowing
CITATION: Kilel, G. K., & Miroga, J. (2025). Cash management practices and operational performance of public universities in Kenya. The Strategic Journal of Business & Change Management, 12 (2), 1207 – 1227. http://dx.doi.org/10.61426/sjbcm.v12i2.3266
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DOI: http://dx.doi.org/10.61426/sjbcm.v12i2.3266
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