Influence Of Cash Management Practices On Financial Performance Of Agribusiness Projects: A Case Of Youth Empowerment In Sustainable Agriculture Project, Trans Nzoia County, Kenya

Abstract

The study seeks to investigate Cash Management Practices influence on the financial performance of Agribusiness projects in Trans Nzoia County Kenya. Efficient cash management involves the determination of the optimal cash to hold by considering the trade-off between the opportunity cost of holding too much cash and the trading cost of holding too little. Good cash management can have a major impact on overall working capital management. The study will be guided by the following objectives: To establish the influence of sound cash management system on financial performance of agribusiness projects in Kenya, to determine budgeting influence on financial performance of agribusiness projects in Kenya, to establish cash control procedures influence on financial performance of agribusiness projects in Kenya and to examine the influence of recording cash receipts and payments on financial performance of agribusiness projects in Kenya. The study will adopt descriptive research design, therefore it will seek to find out and collect facts regarding cash management practices influence on financial performance. Data will be collected from both primary and secondary sources. Primary data will be collected through use of questionnaires. Data will be analysed with Statistical Package for Social Scientists (SPSS) version 21.0. Inferential statistics will be used to analyse the data collected. Inferential statistics utilized include regression analysis. Presentation of data was done using frequency, mean and standard deviation tables that showed a graphical easy to interpret analysis of the data acquired from the research instruments. From the findings, most of the respondents strongly agreed that knowledge of how to use ERP effectively affects the financial performance of agribusiness projects, agribusiness project budgets’ require frequent auditing and reviews for sound implementation, that a good number of the respondents, 35(41%), were of the opinion that recording of payments and receipts does contribute to the positive financial performance of the agribusiness project. The study concluded that financial control procedures should be made clear and adhered to by both management and project staff involved in the agribusiness project; this should be emphasized amount of money involved or personnel notwithstanding. It is fundamentally important for cash control procedures to be made as a policy and reinforced; also, skilled managers should not be the only ones handling receipts and payments of the agribusiness project.