EFFECT OF AVERAGE ACCOUNT PAYABLES ON PROFITABILITY OF PRIVATE SECURITY FIRMS IN KISUMU COUNTY, KENYA

Forfattere

  • Jackline Nyawira Mwangi MBA Candidate, Department of Accounting and Finance, Maseno University, Maseno, Kenya
  • Simon Oluoch Ondiwa Lecturer, Dr., Department of Accounting and Finance, Maseno University, Maseno, Kenya

DOI:

https://doi.org/10.46827/ejefr.v10i2.2184

Nøgleord:

working capital management practices, average accounts payable, private security firms, profitability

Resumé

In today's dynamic business environment, efficient account payable management is a critical factor in sustaining and enhancing profitability while mitigating risk and maximizing firm value. Although firms strive to align their strategies with growth objectives and annual profitability targets, inadequate liquidity can hinder their ability to generate returns for shareholders. Therefore, effective account payable management practices are essential. Despite the significance of this topic, there remains a gap in understanding the impact of account payable management on the profitability of private security firms, particularly in emerging economies like Kenya. This study examines the effect of account payable management on profitability of private security firms in Kisumu County, Kenya, from 2019 to 2023. Specifically, the study assesses the impact of average accounts payable on the profitability of these firms. A correlational research design was adopted, targeting private security firms registered with the Private Security Regulatory Authority in Kisumu County. The study relied on secondary data obtained from financial statements, with Return on Assets (ROA) serving as the profitability measure. Findings indicate that average accounts payable significantly influence the profitability of private security firms in Kisumu County (β =9.301, p=0.006). Results imply that account payable for private security firms in Kenya should be well managed for the firms to improve their profitability. These results provide valuable insights for private security firm managers, scholars, and policymakers, including government and stakeholders, in shaping financial management strategies.  

 

JEL: G31, L84, M41

Forfatterbiografier

  • Jackline Nyawira Mwangi, MBA Candidate, Department of Accounting and Finance, Maseno University, Maseno, Kenya

    Jackline Nyawira Mwangi is an MBA graduate from Maseno University, Kenya, with a specialization in Finance. She holds a bachelor’s degree in commerce and has a growing interest in financial management, corporate governance, and SME performance in emerging economies. Her current research interests include working capital management, profitability analysis, and financial strategy for service-based industries. She has actively participated in and presented abstracts in various conferences and workshops focused on financial inclusion and enterprise growth in Sub-Saharan Africa.

    ORCID: https://orcid.org/0009-0009-7190-1117    

  • Simon Oluoch Ondiwa, Lecturer, Dr., Department of Accounting and Finance, Maseno University, Maseno, Kenya

    Dr. Ondiwa Simon Oluoch is an MSME consultant, and he is currently working with Grass Roots Business Funds. He is a SIYB certified trainer by International Labor Organization (ILO). Previously, he worked as an adjunct lecturer in the School of Business and Economics at Maseno University in Kenya. He holds a PhD in Business Administration, a Finance Major, an MBA, a Finance Major and a Bachelor of Business Administration Finance. His research interest is the operations of financial institutions and markets.

    ORCID: https://orcid.org/0000-0002-0521-5321  

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Publiceret

2026-04-01

Nummer

Årg. 10 Nr. 2 (2026)

Sektion

Articles