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Working Capital Management in Times of Crisis in Kenya: Strategies for Resilience

Author

Listed:
  • Rodgers Kazungu Safari

    (Postgraduate Student, Technical University of Mombasa)

  • Getrude Majalla Mwanyefa

    (Postgraduate Student, Technical University of Mombasa)

Abstract

This study examines the role of working capital management in sustaining businesses, specifically during times of crisis like economic downturns or pandemics such as COVID-19. The study emphasizes the need for proactive strategies that can effectively manage uncertainties, preserve liquidity, and ensure business continuity despite disruptions in sales, supply chains, and credit risks. Drawing on a comprehensive literature review, the study highlights the importance of organizational resilience and proactive approaches to working capital management in addressing challenges during crises. Additionally, the paper thoroughly examines strategies including cash management, inventory management, and accounts receivable management, emphasizing the importance of thorough assessment, proactive planning, and strategic decision-making. In summary, the study underscores the importance of efficient working capital management as a key factor in enabling companies to successfully overcome crises and emerge stronger and more resilient.

Suggested Citation

  • Rodgers Kazungu Safari & Getrude Majalla Mwanyefa, 2024. "Working Capital Management in Times of Crisis in Kenya: Strategies for Resilience," East African Finance Journal, East African Finance Journal, vol. 3(2).
    • Handle: RePEc:cwk:eafjke:2024-10
    DOI: 10.59413/eafj/v3.i2.4
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    References listed on IDEAS

    as
    1. Arjen Boin & Michel J. G. van Eeten, 2013. "The Resilient Organization," Public Management Review, Taylor & Francis Journals, vol. 15(3), pages 429-445, March.
    2. Conz, Elisa & Lamb, Peter William & De Massis, Alfredo, 2020. "Practicing resilience in family firms: An investigation through phenomenography," Journal of Family Business Strategy, Elsevier, vol. 11(2).
    3. Frankline Chasha Sogomi & Mary Kavele Patrick & Charles Guandaru Kamau, 2024. "Exploring the Relationship between Working Capital Management, Liquidity, and Financial Performance within the Context of Kenyan SME’s," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 4(2).
    4. Duncan Odhiambo Ogutu, 2022. "Working Capital Management Practices and Financial Performance in Kenya," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 1(2).
    5. Stephanie Duchek, 2020. "Organizational resilience: a capability-based conceptualization," Business Research, Springer;German Academic Association for Business Research, vol. 13(1), pages 215-246, April.
    6. Francois Brochet & Maria Loumioti & George Serafeim, 2015. "Speaking of the short-term: disclosure horizon and managerial myopia," Review of Accounting Studies, Springer, vol. 20(3), pages 1122-1163, September.
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    Cited by:

    1. Annrita Esther Nasimiyu, 2024. "Cashflow Management Practices and Financial Performance of Small and Medium Business Enterprises in Kenya," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 4(3).

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