Influence of Interest Rate Capping on Performance of New Motor Vehicle Firm, Isuzu East Africa Limited
Abstract
The primary aim and objective of this study was to investigate and determine the
influence of interest capping rate on the performance of new motor vehicle firms
focusing on Isuzu East Africa Ltd. The study adopted case study design and data
collection included both secondary and primary data methods. The researcher used
face to face interview in collecting the primary data. The target population of the
study included the top management of Isuzu East Africa such as the Managing
Director, the Financial Director, the Sales Director, Production Director and the
Distribution Manager. The interview questions were closely related to the objective
and aim of the study and the data analysis in the study was done through the use of
content analysis. This was done with the aim of obtaining systematic qualitative indepth
description of the study variables. The study concluded that interest rate
capping negatively influence the performance of Isuzu East Africa Limited. This is
because since the introduction of the new interest capping rates, the firm has
experience high decline in sales volume as well as decline in revenue generation. The
study recommends the need for Isuzu East Africa to consider and appeal the interest
rate capping by suggesting relevant policies and programs to various stakeholders.
The study also recommends that Isuzu East Africa top management should use other
financing options including internal financing to attract their customers rather than
dependence on financial institutions for financing their customers. The study also
recommends that further research should also be undertaken to investigate, analyze
and provide the effect of interest rate capping policies or rules on borrowing
operations and other inflation and foreign exchange activities or rates within the East
African region.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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