INVESTMENT IN GOVERNMENT SECURITIES AND STOCK RETURN OF INVESTMENT FIRMS LISTED AT NAIROBI SECURITIES EXCHANGE, KENYA
INVESTMENT IN GOVERNMENT SECURITIES AND STOCK RETURN OF INVESTMENT FIRMS LISTED AT NAIROBI SECURITIES EXCHANGE, KENYA
Mutua Franklin Muthangya - MBA Candidate, School of Business and Entrepreneurship, Jomo-Kenyatta University of Agriculture and Technology (JKUAT), Kenya
Dr. Hesbon N. Otinga, PhD (PhD, CPA) - Lecturer, School of Business and Entrepreneurship, Jomo-Kenyatta University of Agriculture and Technology (JKUAT), Kenya
Dr. Vincent Nyagilo (EBS K, PhD, CPA) - Lecturer, School of Business and Entrepreneurship, Jomo-Kenyatta University of Agriculture and Technology (JKUAT), Kenya
ABSTRACT
DECARBONIZING PUBLIC TRANSPORT: POLICY UPTAKE AND BARRIERS IN NAIROBI, KENYA
Performance of investment firms has been challenged by many emerging factors which are exacerbated by dynamic business environment. Many scholars have used firm related factors, both internal and external to evaluate contributing factor to investment firms’ performance with little regard to portfolio diversification approaches. Therefore, lack of adequate empirical evidence on the significant effect of investment portfolio on performance of investment firms listed at Nairobi Securities Exchange, Kenya. The specific objective was to determine the effect of investment in government securities on performance of investment firms listed at Nairobi Securities Exchange, Kenya. Q theory of investment informed the study. The study adopted descriptive survey design and used a secondary data collection sheet to collect secondary data. The study targeted investment firms listed at NSE where a census method was used to select all the respondents to participate in the study. This study covered a 10-year period from 2016 to 2025. The study used secondary data that was extracted from the websites of the respective listed firms. Descriptive statistics summarized data into meaningful forms while for variable relationships, inferential statistics was computed using STATA 15. All analyzed data was presented in form of tables and graphs. The study found that investment portfolio has a positive and significant effect on stock returns of investment firms listed at the Nairobi Securities Exchange, with the model explaining 70.04% of the variation in performance (R² = 0.7004). Government securities contribute through low-risk and stable income. It recommends that firms adopt optimal asset allocation strategies by balancing high-return assets with low-risk investments to achieve sustainable returns and minimize exposure to market volatility.
