SOLVENCY MANAGEMENT AND FINANCIAL SUSTAINABILITY OF LARGE-SCALE RETAIL SUPERMARKETS IN KENYA

JEFFAH, KENNETH KALONZI

dc.contributor.author	JEFFAH, KENNETH KALONZI
dc.date.accessioned	2026-03-13T12:20:43Z
dc.date.available	2026-03-13T12:20:43Z
dc.date.issued	2025-10-29
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dc.identifier.uri	http://erepository.kafuco.ac.ke/123456789/301
dc.description.abstract	Solvency management remains a pivotal driver of operational continuity, profitability, and asset efficiency within the retail ecosystem. Despite established solvency frameworks, large-scale retail supermarkets in Kenya continue to face financial sustainability challenges, often resulting in operational restructuring and downsizing. This study examined the effect of solvency management on the financial sustainability of largescale retail supermarkets in Kenya. Specifically, it analyzed the impact of capital adequacy, financial leverage, asset management, and liquidity management on financial sustainability. Grounded in the Resource-Based View, Modern Portfolio, and Cash Management theories, the study adopted a cross-sectional design targeting nine leading retail supermarkets. A census approach was utilized, leveraging secondary data from audited financial statements. Analytical methods included descriptive statistics—mean, minimum, maximum, and standard deviation—and inferential analysis using correlation and random effects regression models. The Hausman test guided the model selection process, confirming the suitability of the random effects model. Empirical findings revealed that capital adequacy (β = 0.2834, p = 0.001), asset management (β = 0.2513, p < 0.001), and liquidity management (β = 0.4103, p < 0.001) exerted positive and significant effects on financial sustainability. Conversely, financial leverage demonstrated a negative and significant influence (β = -0.3244, p < 0.001). These outcomes confirm that effective solvency management substantially enhances the financial sustainability of large-scale supermarkets. The study concludes that maintaining solvency discipline is imperative for sustainable retail operations. It recommends that management consistently optimize capital-to-asset ratios, institute prudent debt ceilings to mitigate leverage risk, and enhance fixed asset utilization efficiency. By embedding these financial resilience strategies, largescale supermarkets can reinforce long-term sustainability and competitive advantage within Kenya’s evolving retail landscape.	en_US
dc.language.iso	en_US	en_US
dc.title	SOLVENCY MANAGEMENT AND FINANCIAL SUSTAINABILITY OF LARGE-SCALE RETAIL SUPERMARKETS IN KENYA	en_US
dc.type	Thesis	en_US