Herman Mong'are Dismas

FINANCIAL FACTORS INFLUENCING THE REVENUE PERFORMANCE OF MOTORCYCLE OPERATORS IN MASENO TOWN BY OTUMBA D. – ET AL ADM NO: BE/00212/016 A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF BACHELOR’S DEGREE IN BUSINESS ADMINISTRATION (ACCOUNTING OPTION) with IT SCHOOL OF BUSINESS AND ECONOMICS DEPARTMENT OF ACCOUNTING AND FINANCE MASENO UNIVERSITY @ 2020. i DECLARATION We declare that this is our original work and has not been previously presented and approved for any award of a degree in any other university. 1. OTUMBA DANIE BE/00212/016 -Signature………....Date……… 2. TONNY JUMA OCHIENG BE/00049/016 -Signature………....Date…… 3. HERMAN DISMAS MONGARE BE/00441/016 -Signature………....Date……… 4. OCHIENG LOREENE ATIENO BE/00125/016 -Signature………....Date…… 5. FRANK OTIENO BE/00147/016 -Signature………....Date…… 6. TOLOI K. JOSEPH BE/00081/016 -Signature………....Date….. 7. GERISHON KAMAU NJERI BE/00521/016 -Signature………....Date… 8. NYAGA JULIUS KIMANTHI BE/00010/016 - Signature………....Date…….. 9. MAMMOTH OURU OYARO BE/00341/016 - Signature………....Date…….. This Research Proposal has been submitted for examination with my approval as the group supervisor. Signature…………………………….Date………………….. DR. ROBERT B.K MULE MASENO UNIVERSITY. ii ABSTRACT Motorcycle transport which is widely known as Bodaboda has become a popular industry towards the provision of informal self-employment and income generation to many unemployed youths in the country. The main purpose of this study was to examine the financial factors influencing the revenue performance of motorcycle operators in Maseno town. The study was restricted to Maseno town as the area typically has a wealth of motorcycle operators. The objectives of the study were to determine how operating expenses affect the revenue performance of the motorcycle operators within Maseno town and how the level of investment affects the revenue performance of motorcycle operators in Maseno town. In order to comprehensively address the objectives of the study, data was sourced through the use of in-depth interview guides and questionnaires administered to respondents such as Chama/Sacco chairpersons and other selected motorcycle operators. The validity of research instruments was achieved through the analysis of responses from the piloting and expert judgment. The data was analyzed through drawing of tables, mean, standard deviation, tables and bar graphs. The study was involve gathering of opinions from motorcycle operators in Maseno town, Kisumu County that was used to generalize the results to other parts of the country with similar profile. This study adopted this design since it contributes towards minimizing biasness hence maximizing reliability of data. The study was to focus mainly on two theories i.e. the Game theory and System theory. Where the Game theory involves just two players in which one player can be made better off by making the other worse off, while the system theory was to help in identifying kinds of investments made by the motorcycle operators from the income they earn in daily basis The study revealed that most motorcyclists had embraced the culture of saving and investments. As a recommendation based on the study findings, the government should come up with strategies of sensitizing riders on the importance of belonging to Chamas/Saccos with the view of uplifting their socio-economic wellbeing. At the same time, the ministry of health should sensitize the riders on the available health insurance cover to assist them in times of medical emergencies. For a further area of study, this research covered how financial factors influence the revenue performance of the motorcycle operators, but it did not dwell so much on how these factors influence the social and cultural growth of the members. These gaps need to be filled by academic researchers. iii . ACRONYMS AND ABBREVIATIONS MAAK- Motorcycle Assemblers Association of Kenya NTSA- National Transport and Safety Authority SACCOs- Savings and Credit Cooperative Society AAK- Automobile Association of Kenya DTIIC- Department of Trade Industrialization Investment Cooperative YEDF-Youth Enterprise Development Fund NGOs- Non Governmental Organizations C-YES-Constituency Youth Enterprise Scheme NSSF- National Social Security Fund NHIF-National Hospital Insurance Fund OYOB- Own Your Bike YEOF-Youth Enterprise Development Fund MFIs- Micro-Finance Institutions iv OPERATIONAL DEFINITION OF TERMS Motorcycle operator- This is the person who rides a motorcycle for taxi. Revenue performance- This is a management system that measures revenue. Financial factors- Thisis a scorecard on the financial performance of a business, which draws information from various financial models such as revenue, expenses, capital and cost of goods. Chama- Aninformal cooperative society that is normally used to pool and invest savings by a group of people. Revenue-Total amount of money the business receives from its customers for its products and services. Operating expense-Costs a business incurs from its operations Income-Is the amount that remains after expenses and taxes are subtracted from the revenue. Maintenance cost-Value spent to keep an item in good condition. v Table of Contents DECLARATION .................................................................................................................................... ii ABSTRACT .......................................................................................................................................... iii ACRONYMS AND ABBREVIATIONS .............................................................................................. iv OPERATIONAL DEFINITION OF TERMS ........................................................................................ v CHAPTER ONE: .................................................................................................................................... 1 1.0 INTRODUCTION ............................................................................................................................ 1 1.1 Background of the study ................................................................................................................... 1 1.2 Statement of problem........................................................................................................................ 2 1.3 Objectives of the study. ................................................................................................................. 3 1.4 Research Questions........................................................................................................................... 3 1.5 Scope of the study.......................................................................................................................... 3 1.6 Justification of the study ................................................................................................................. 4 1.7 Conceptual framework................................................................................................................... 4 1.7.1: Operating expenses ....................................................................................................................... 6 1.7.2: level of investment........................................................................................................................ 6 CHAPTER TWO: ................................................................................................................................... 7 2.0 LITERATURE REVIEW ................................................................................................................. 7 2.1: Introduction ..................................................................................................................................... 7 2.2: Theoretical review ........................................................................................................................... 7 2.2.1: The Game Theory ......................................................................................................................... 7 2.2.2: The System Theory....................................................................................................................... 8 2.3: EMPIRICAL REVIEW ................................................................................................................... 9 -2.3.1: Maintenance cost ......................................................................................................................... 9 2.3.2: Level of investment .................................................................................................................... 10 2.3.2.1: Investment methods ................................................................................................................. 10 2.3.2.2: Loaning and credit facilities .................................................................................................... 11 CHAPTER THREE .............................................................................................................................. 14 RESEARCH METHODOLOGY ......................................................................................................... 14 3.2: Study area ...................................................................................................................................... 14 vi 3.3: Target population........................................................................................................................... 15 3.4: Sampling ........................................................................................................................................ 15 3.4.1: Sample size and sampling technique. ......................................................................................... 15 3.4.2: Key informants ........................................................................................................................... 16 3.5: Data collection ............................................................................................................................... 16 3.5.1: Sources of data............................................................................................................................ 16 3.5.2: Data collection procedures ......................................................................................................... 16 3.5.3: Instrument for data collection ..................................................................................................... 17 3.5.3.1 Questionnaires .......................................................................................................................... 17 3.6: Data presentation and analysis....................................................................................................... 17 3.7: Research ethics .............................................................................................................................. 17 CHAPTER FOUR ................................................................................................................................ 19 RESULTS AND DISCUSSION ........................................................................................................... 19 4.1 Introduction .................................................................................................................................... 19 4.1.1 Questionnaire return rate ....................................................................................................... 19 4.1.2 The demographic characteristics of the motorcycle operators..................................................... 19 4.2 Age distribution .............................................................................................................................. 20 4.3 Level of education .......................................................................................................................... 21 4.4 Stage of operation ........................................................................................................................... 21 CHAPTER FIVE .................................................................................................................................. 29 SUMMARY, CONCLUSION AND RECOMMENDATIONS ........................................................... 29 5.1.Introduction .................................................................................................................................... 29 5.1.1 Summay of findings ..................................................................................................................... 29 5.2 Conclusion ...................................................................................................................................... 30 5.3 Recommendations........................................................................................................................... 30 5.4Limitations of the study ................................................................................................................... 31 5.5 Suggestions for further studies ....................................................................................................... 31 REFERENCES ..................................................................................................................................... 32 APPENDIX .......................................................................................................................................... 34 QUESTIONNAIRE .............................................................................................................................. 34 vii CHAPTER ONE: 1.0 INTRODUCTION This chapter provides a background to the study carried out by the researcher. Essentially, such background detailed a brief history of the emergence and growth of motorcycle transport and the revenue performance of the motorcycles. 1.1 Background of the study Motorcycle transport commonly known as Bodaboda has grown over the years and it has become the most preferred means of transport in many regions in Kenya due to its reliability and efficiency to the customers. The figures released by the Motorcycle Assembly Association indicate that there are about 700,000 commercial motorcycles in Kenya. The rise in the industry has acted as a source of earning a living to the youth in Kenya and the economy. The rapid increase in the number of motorcycles has been due to low acquiring costs and inadequacy of income of individuals as compared to acquiring other means of transport. Globally the growth in the use of the other means of transport such as motorcycle for transport services has also helped dispel one of the universally held illusions; such as fare controls in the public bus market are often justified to support affordability for a vast majority of low income populations. (Gamberini 2015) The Bodaboda transport sector is one of the biggest drivers of the economy with the motorcyclists generating sh.218 billion in revenue and it is said that they make average revenue of sh.1000 in a day. (The standard) The growth of motorcycles transport as a mode in most parts of Sub-Saharan Africa is largely driven by the need to access remote areas with ease due to their flexibility. Torres (2014). Identified the main reasons for the rapid growth of the motorcycles as means of urban transport in Nigeria and other countries as the inadequacy and ineffectiveness of the other means of 1 transportation such as the taxis and bus, train and ferry in very few towns. Further the other modes have been unable to provide door to door services, more so that there are no defined bus stops and specific transport routes to the interior parts. In addition, he identified that the state of roads in underdeveloped countries played a key role; larger proportions of the urban roads will be in not tarmacked, while most of those that will be tarmacked are in poor condition. This situation invariably made it difficult for the motorcyclists to link several routes and access to many active areas; motorcycle operators could easily maneuver the bad roads to deliver their services. The motorcycle transport sector is therefore an important component of both rural and urban development and growth programs and enabling achievement of the Millennium Development goals in those areas. (World Bank 2017) Kumar (2016) asserts that a decline in organized public transport systems has encouraged rapid growth in other means of public transport, initially provided by minibuses, tax and vans, and more recently by the motorcycles. He further says that unlike the South and East Asian cities, ‘the ownership and use of motorcycles as a personalized vehicle is very small in Sub-Saharan cities`. Over the last decade there has a significant increase in the use of motorcycles as a mode of public transport, this is as noted by Porter (2014) in the paper on transport services and their impact on rising income growth in rural sub-Saharan African countries. 1.2 Statement of problem The revenue performance of motorcycle operators has emerged as one of the major concern due to the significant increase number of motorcycles. It is due to the fact that motorcycles are easy to acquire, operate, repair and also provide excellent transportation solution as compared to other means of transport in the industry. Motorcycle transport has become a popular means of transport and new business opportunity for the residents Maseno town. According to motorcycle assemblers’ association in Kenya (MAAK), there are about 700000 commercial motorcycles with each making at least Ksh. 1000 on a normal day, necessitating the study to establish the financial factors influencing revenue performance of the motorcyclists in Maseno town. However, motorcycle transport is affected by financial factors which influence their revenue performance, one of the financial factor is operating expenses which entails maintenance cost, cost 2 of fuel and other costs that they incur. Motorcycle operators also invest their income in organization they form themselves. 1.3 Objectives of the study. The general objective of the study were to assess how financial factors influence the revenue performance of motorcycle operators in Maseno town. The specific objective of the study included: 1. Determine the influence of operating expenses on revenue performance of motorcycle operators in Maseno town 2. Establish the level of investment and its contribution to the revenue performance of motorcycle operators in Maseno town. 1.4 Research Questions ● How does operating expenses affect the revenue performance of the motorcycle operators within Maseno town? ● How does the level of investment affect the revenue performance of motorcycle operators in Maseno town? 1.5 Scope of the study This study focused on the determinants of the revenue performance of motorcycle transport business by more importantly considering motorcycle transport enterprise awareness and the operations of riders. This study was conducted within Maseno town and its main respondents were motorcycle transport riders. Conducting a study in this area proved efficient due to the availability and popularity of motorcycle transport riders as a base for their operations and its proximity to the varsity environment. This study covered a period of one and a half months 3 1.6 Justification of the study The research justification is the reason why the study is being conducted, which includes the design and methods employed in the research. The main reason for the study was to come out with the best financial factors that influence the revenue performance of motorcycle transport in Maseno town. From the research carried out the following were some factors which influenced revenue performances of motorcycle transport in Maseno market; level of investment, operating expenses which includes; maintenance cost and insurance cover. The purpose of the project was to examine the financial factors that influence the revenue performance of the motorcycle operators in Maseno Town. Motorcycle transport has become one of the largest sources of income especially to young people in the transport sector thus helping them to improve their standard of living and secure employment According to National and Transport Safety Authority (NTSA) there were 1,383,490 motorcycles in Kenya as at January 2019. This is due to the low acquiring costs. The study further indicated the economic contribution of motorcycle and its maintenance cost towards the economic contribution of motorcycle transport is approximated to be sh.219 billion per year. The study tried to examine some of the financial factors that would affect the revenue performance of the motorists in this sector like the operational cost and the investments methods. 1.7 Conceptual framework A conceptual framework is defined as a network of interlinked concepts that provides a comprehensive understanding of a phenomenon or phenomena, (Jabareen 2014). The components that constitute a conceptual framework support each another, articulate their respective phenomena and establish a framework specific philosophy according to Orodho (2015), a conceptual framework describes the relationship between the variables of the research. Jabareen (2010), argues that variables are some measurable characteristics that assumes different values among subjects. Independent variable is that variable which is presumed to affect or determine a dependent variable. A dependent variable is a variable dependent on another variable 4 like the independent variable. A dependent variable is the variable that is measured in the research study (Everitt 2016) Kaplan, (2013) defines a conceptual framework as a researcher’s own position on the problem that gives direction to the study. A conceptual framework is a hypothesized model identifying the concepts under study and their relationships. According to Mugenda (2017), the purpose of a conceptual framework is to help the reader to quickly see the proposed relationship between the dependent and independent variables. Mathieson et al (2015), defined a conceptual framework as virtual or written product that explains graphical or narrative form. The main things to be studied are the key factors, concepts or variables and the presumed relationships among them. Conceptual framework, according to educational researcher Roth and Stratman (2014), is structured from a set of broad ideas and theories that help researchers to properly identify the problem they are studying frame their questions and find suitable literature. Most academic research uses a conceptual framework at outset because it helps the researcher to clarify his research questions and of the study. Figure 1.1: Conceptual framework Source: research @2020 5 1.7.1: Operating expenses These are the ongoing cost incurred from running a business that are not relating to production. Basically, the day to day cost to operate. Any cost not related to direct production of services gets filled under operating expenses. 1.7.2: level of investment Investment refers to an increase in capital assets and typically includes investment by business or investment in property. Business investment comprises between 65% and 85% of total investment in majority of the G7 countries. The main reasons for investment include; To replace worn out or failing machinery (motorcycles). This is referred to as capital consumption and arises from the continuous depreciation of capital assets. It may be undertaken to purchase new machinery in order to increase productive capacity. This reduces long-term costs, increase competitiveness and raise profits. Investment is a sacrifice, which involves taking risks. This means that business, entrepreneur and capital owner will require a return on their investment in order to cover the risk and earn a reward. 6 CHAPTER TWO: 2.0 LITERATURE REVIEW 2.1: Introduction The chapter discusses the literature relevant to the study. Literature has been categorized into two categories, theoretical review and empirical review of relevant theories and empirical review on the studies conducted. Further the chapter highlights the gaps in literature and a conceptualization on the relationships between the research variables. 2.2: Theoretical review Theoretical framework refers to the explanations about a phenomenon and according to Marriam (2012), theoretical frameworks provide the researcher with the lens to view the world. A theory is an accepted fact that provides a plausible or rational explanation of cause (causes) of relationships among a group of observed phenomenon (Kothari 2011). Several theories and models have been put forward by scholars to explain the field of variable understanding of the public transport sector. Therefore the study borrows from a wide range of theories: the game theory, the system theory. 2.2.1: The Game Theory Also known as the zero sum theory, which has been developing in years. It spans games of static and dynamic nature under perfect or imperfect information. This theory is quite useful in analyzing highly dynamic and sequential decisions at the technical level (Binmore 2010). It puts much emphasis on the importance of being proactive or thinking ahead, considering alternatives and anticipating the reaction of competitors and other players in the game or the industry, which is the competitive environment. (Brandenburger and Nelebuff 2014). The game theory has been applied in the way organizations compete for scarce resources in a particular industry, their relationships and interactions in situations of cut throat competition, whereby one organization gains while another one loses within an unchanging total of market share and characteristics (Selten 2014). The choice of the operation strategy depends highly on the information that each player has. This could either be perfect or imperfect information and the strategic actions are simultaneous for the players. In this case the competing organizations in the same industry (Brandenburger and Nalebuff 2013). The organization cannot collude into a particular 7 decision since they make decisions simultaneously. The zero-sum game theory involves just two players in which one player can be made better off by making the other worse off (Myerson 2013). The game theory’s application areas in competitive strategy are in pricing, research and development, new product introduction, advertising, regulation and in each choice of either to undertake production. Understanding the game theory well enables organization to create a win-win situation to make an organization to be in a better position than the other players. This theory is important for this study because it helps explain the importance of being proactive by the youths in seeking opportunities whether they are literate or illiterate in this sector of transport to enable them be in a position of raising income that could meet their needs. Being pro-active by the unemployed youths to join hands and enter the bodaboda business has enabled them to be in a position of forming SACCOs that encourages savings from the business. 2.2.2: The System Theory Ludwig Von Bertalafy, William Ross Aslyby and others founded system theory based on principles from Physics, Biology and later in engineering. Systems theory or systematic theory is an interdisciplinary field which looks at system from a logistic perspective. This theory has been used in others fields such as, action theory and the social system theory. A system is a set of related components that work together in a particular environment to perform certain functions so as to achieve certain objectives. Systems work towards the realization of goals. One of the most important concepts in systems theory is interdependence between systems or subsystems. Systems rarely exist on their own or in isolation. A system will comprise of regularly interacting or interdependent group of activities that form a whole. There is always closer interdependence between group of individuals, structures and processes that enable a system to function. System theory helped in identifying interrelated components that are underplay within a public motorcycle transport system in the study area. Key components in this study included operating expenses and the investment made by the motorcycle operators of the study area. Some of the interrelated systems under study included insurance cover, motorcycle repairs and maintenance. 8 The relevance of system theory in this study can be seen in two different levels. First, the model helped to identify operating expenses of motorcycle operators of the study area incur as they operate in the motorcycle transport. Second, the model will help in identifying kinds of investments made by the motorcycle operators from the income they earn in day-to-day basis. Identifying the level of investment is the starting point in measuring the influence on the revenue performance of motorcycle operators in the study area. Motorcycle operators form organizations referred to as ‘Chama’ where they contribute part of their income. 2.3: EMPIRICAL REVIEW -2.3.1: Maintenance cost Howe and Lyiola (2016) highlight those earnings for motorcyclists are variable with place, ownership and hiring. Hired motorcycles acquire less than owner motorcycles although hidden costs of repair and depreciation are present. On the contrary, hired motorcycles fetch more than owned motorcycles in peri-urban areas weekly. Ownership patterns also differ motorcycles. The differences are notable in Uganda for instance where motorcycles that are owned by individuals generate more earnings as compared to motorcycles which are hired. The persons who engage in motorcycle hire tend to have other income generating activities. In Uganda a higher percentage of bodaboda are operated by the owners compared to motorcycle that are hired. According to Behrens and Muftis (2015) motorcycles in East Africa emerge as a great variable at the bicycle motorcycle expense. There use has spread faster and adopted quickly in the past decade especially Uganda. The African continent has witnessed a great influx of motorcycles over the past decade. The findings of these studies were that most of the operators had their own motorcycles which impacted their revenue performance positively as compared to the hired motorcycles, whereby the operators had to contribute a given percentage of their earnings to the owners on a daily basis. 9 Therefore, the recommendation for this was that the motorcycle operators should own a motorcycle in order to generate more revenue instead of hiring. 2.3.2: Level of investment 2.3.2.1: Investment methods Corporate news on Toyota targets bodaboda riders with bike loan scheme by Odhiambo and Dalton (2013) cited the following: Tsucho capital Kenya in partnership with the Yamaha division launched a pilot scheme in Kisumu to empower the riders to own motorcycles without collateral. The scheme called crux finance to enable a number of bodaboda riders acquire their own motorbike by pooling resources and plan requires six riders to register in a group and raise shs 48,000 with each getting a bike in phases of two months. The following case study will be also cited of Yamaha and key stakeholders that have held rampant road shows in creating awareness of motorcycle brands in Kenya. The campaign partners included NSSF, NHIF as well as Automobile Association of Kenya (AAK). Yamaha for instance used the slogan ‘Bike yaNguvu, BeiPoa’ in advocating for better financing deals to obtain motorcycles among the youth through a caravan. The caravan covered six regions Western, Nairobi, Coast, Rift valley, Central and Eastern. A 350/= a day payment deal aimed encouraging youth to obtain a crux motorcycle to enhance ownership of quality motorcycles among youth which will be in turn to be used by the youths to generate income for their daily activities. The youth will be enlightened on comprehensive licensing, proper documentation health, security, safety among others. A customized partnership with motor bank asset financing & tracking solutions for bodaboda came up with the 350 a day offer to help youth. Through this campaign more Kenyan entrepreneurs will access quality Yamaha bikes for increased income generation and encourage saving thus influencing the revenue performance of the motorcycle operators. They were therefore encouraged to join these loans schemes to help them in pooling their resources together. 10 In the study conducted by ‘Njoroge’ (2016) he reported that in Kenya transport industry regulation membership to a SACCO is a mandatory requirement, aimed at assisting authorities in controlling activities within the sector. Whereby in 2017, the County Government of Homa Bay supported motorcycle riders to launch a Savings and Credit Cooperative (SACCO) society to encourage savings and easy access to affordable loans to boost their business, envisaging that the association would enable the riders to access enterprise funds from the national government as well as from Non-Governmental Organizations. Homa Bay County’s Strategic Plan (2017) indicates that the management of bodaboda activities in Homa Bay County falls under the Department of Trade, Industrialization, Investment and Cooperative (DTIIC) and is reported to generate approximately Ksh. 140,000,000 (USD 1.4) million a year. Tapping into the bodaboda sector by promoting set up of vibrant welfare and investment groups to pool resources and share productive ideas can improve the economy of Homa Bay County and enhance socio-economic wellbeing of motorcycle taxi riders. In Kampala, Uganda, an organization called Own Your Own Bike (OYOB) will be set up by Michael Wilkerson who realized that a big portion of riders’ income goes towards rent payment (target) to the motorcycle owner (Cernansky, 2015). The study acknowledge that OYOB empowers riders to own motorcycle taxis and earn more income which they can then invest in addition to starting new businesses and being able to increase their level of income, hence motorcycle operators are advised to join these SACCOs. 2.3.2.2: Loaning and credit facilities According to Wamwa (2017), in Kenya, there are various avenues which youths can assess credit for starting a business. This includes formal financial institutions and microfinance institutions. However, for them to access such credit, they need to show that they are in a position to repay it and offer collateral. Properties, savings and being employed are some of the collateral accepted by financial institutions. These terms and conditions make it very difficult for the youth to access credit finances, especially when starting a business. It is in consideration of these barriers that the government of Kenya through the Ministry of Youth Affairs introduced the Youth Enterprise Development Fund. 11 According to YEDF (2017), the fund facilitates youth employment through enterprise development and structured labor export. The YEDF has objectives which include; the provision of loans to existing microfinance Institutions (MFIs), registration of nongovernmental organizations (NGOs) involved in micro financing, and Savings and Credit ` Cooperative Organizations (SACCOs) for lending to the youth enterprises; attract and facilitate investment in micro, small and medium enterprises oriented commercial infrastructures such as business or industrial parks, markets or business incubators that will be beneficial to youth enterprises; support youth micro, small and medium enterprises to develop linkages with large firms; promote marketing of products and services of youth enterprises in all domestic and international markets; and facilitate employment of young people in the global labor market. Constituency Youth Enterprise Scheme (C-YES) is a component of the YEDF that is meant to fund enterprises of youth groups in all constituencies. This constituency disbursement channel (C-YES) Will be majorly put in place to instill entrepreneurial culture among the youth in all areas of the Country. This channel mostly targeted the poor youths and those with no experience in dealing with the mainstream financial sector, primarily commercial banks. The C-YES targets viable enterprises of youth groups within the constituency. The fund has been able to reach young people in all areas of the Country including those with poor financial infrastructure (YEDF, 2017). According to MOYA Strategic Plan -), the youth can access the YEDF as the individual, or as the group and hence making the collateral requirements to secure the monies borrowed affordable in the sense that it can be in the form of group guarantee, guarantee by parents, relatives or even community leaders. This helps the youth to work towards the realization of their life goals that are hindered by tough regulations that have in the past barred them from accessing credit facilities. According to the YEDF status report -), youth can access loan from YEDF through the C-YES, but as an individual, the loan starts with Kshs. 25,000 and graduate to Kshs. 100,000 on the third loan. The groups start with Kshs. 50,000 and graduate upwards to Kshs 400,000. But to borrow as an individual one has to be a member of a group which has repaid its loan. Motorcyclist in Maseno town are also assumed to be able to access credit facilities through their chamas and groups. They are assumed to be able to borrow the money they invest in chamas and repay them back at a later date with a reasonable interest. Through the chamas they are also able to 12 access credit facilities from banks and other financial facilities using their group registration certificate as their security. Such loans taken from banks can be used in rolling out other income generating projects, which can help the members improve their net income thus improving their revenue performance. Through using this method of investment motorcycle operators, are able to save, borrow and acquire some services at a low interest rate from their SACCO/ Chama thus can help change their living standards. Financial institutions and microfinance institutions. Constituency youth enterprise scheme is also a component that meant to fund enterprises of youth groups in Maseno town. Motorcyclists are capable of accessing credit facilities through their chamas according to the study done. 13 CHAPTER THREE RESEARCH METHODOLOGY Introduction The purpose of this chapter was to explain the design of the research, sample size, the place where it took place, the population, methods of data collection and their reliability and validity, data presentation as well as analysis, ethical considerations and the operational definition of variables. The aim was to set out in detail what the research entailed and the way in which it was done. 3.1: Research design Research design represents the main strategy the study utilizes in order to address the question. Mugenda (2017) define a research design as a structure by which a researcher carries out his study by giving a systematic order and direction to the design. The research design adopted descriptive statistics. The study used this design to establish the financial factors affecting the revenue performance of motorcycle operators. This study involved gathering of opinions from motorcycle operators in Maseno town, Kisumu County which was used to generalize the results to other parts of the country with similar profile. According to Kothari (2015), descriptive research is used to obtain information concerning current status of a phenomena to describe “what exist” with respect to variables in the situation. It aims at collecting data from the study are without any manipulation of the research context and deals with naturally occurring phenomena where the researcher has no control over the variables (Mugenda 2017). The study adopted this design since it contributed towards minimizing biasness hence maximized reliability of data. 3.2: Study area 14 The research was conducted in Maseno town. Maseno town is located in Kisumu County, along Kisumu-Busia highway 25km to the provincial capital and it is in North West ward. The town lies on longitude of, 34.6095 and a latitude of 0.000. The altitude of Maseno is 1503m or 4934 feet above sea level. Maseno town is the headquarters of Maseno Division of four administration divisions of Kisumu District. Maseno division has a population of approximately 6177. Reason for selecting Maseno town as the study area was because it is within the reach of the researcher and the researcher incurred no cost when collecting data since the respondents were within the study area. 3.3: Target population According to Maxwel (2015), a target population is a large population of interest to the researcher from which the sample respondents are drawn. This study targets a population consisting of motorcycles operators in Maseno town. The study population consisted of purposively randomly sampled motorcycle riders, drawn from the various pick up stages within Maseno town with each stage having an average estimate of 10 to 20 operators. 3.4: Sampling Mugenda (2017) defines a study sample as the subjects from which study information will be obtained. He further state that there is no widely recommended formulae for determining the size of sample of a study. However Gay (2016) states that in a descriptive study 10% of the accessible population is adequate enough to provide information of interest to the researcher about the target population. 3.4.1: Sample size and sampling technique. Public motorcycle operators within Maseno town operate from specific stages along major roads. Passengers are picked from stages and transported to desired destinations within or outside the town. At the time of the study there existed 5 motorcycle stages in the town. Using cluster sampling 15 technique, the town was divided into 4 zones based on the major roads linking the town to other parts. The 4 clusters were named North, West, South and East. From each cluster, one stage was selected using simple random sampling technique. From each selected stage, five motorcycle operators were selected after administering questionnaires and the selection was based on the response of the questionnaires. The total number of selected respondents will be 20 (twenty). 3.4.2: Key informants Key informants were drawn from the most recognized operators in their respective stages. 3.5: Data collection Method which was used was through application of questionnaires which was useful for gathering information as the target persons were able to read and give responses according to the questions posted to them. Questionnaires reach large number of respondents as by Orodho (2014). The questionnaires were administered to motorcyclists within Maseno town and the feedback was recorded. Questions included the operating costs incurred by motorcycle operators and the level of investment of their operations. 3.5.1: Sources of data This research relied on primary data obtained from bodaboda operators in Maseno town from the main respondents. The Data was obtained through interviews and administering questionnaires. Questionnaires was designed to seek information in line with the objectives of the study. The questionnaires were administered through drop and pick method to the sampled population. The questionnaires were designed using both closed ended and open-ended questions. 3.5.2: Data collection procedures Procedure is most important. This is recent methodology. Without plan and procedures we cannot reach any conclusion. The following were the procedures; 16  Selection of data collection tools  Seeking permission on the study target  Data collection (administering questionnaires)  Analysis of the data  Conclusion and recommendation 3.5.3: Instrument for data collection Research instruments according to Oso & Onen, 2016 are the tools used to collect data. The data collection instruments that were used in this study for data collection were questionnaire and interview guide. 3.5.3.1 Questionnaires According to Kombo and Tromp (2015), a questionnaire is a written set of questions prepared to generate information on the desired area of study from a pool of participants. The questionnaires were divided into different sections in line with the research questions as follows; Section A contained general questions, section B solicited some of the ways in which operating expenses affect the revenue performance of the motorcyclists then Section C and D solicited information on ways through which level of investment affected the revenue performance of the motorcyclist in Maseno town 3.6: Data presentation and analysis After collecting the data, it was edited to familiarize with the data, check for completeness and accuracy. It was organized in terms of research instruments. Questionnaires, documentary analysis, interviews and observation research were arranged in terms of various research questions which facilitated analysis. Qualitative and quantitative data analysis technique was used. The data was analyzed using mean, standard deviation, bar graphs and tables. Descriptive statistics such as percentages were used and information was presented in form of tables. 3.7: Research ethics 17 The researchers informed the respondents on the topic of their study before administering the questionnaires and interviews to them. This ensured that the respondents consent was not ignored as they contributed to the study. The respondents were assured of confidentiality of the information they gave. 18 CHAPTER FOUR RESULTS AND DISCUSSION 4.1 Introduction This chapter highlights the findings of the study, which assessed the financial factors influencing revenue performance of motorcycle operators within Maseno town, conducted in relation to the objectives provided in chapter one. The chapter will first highlight the rate at which the response was provided. It focused on majorly on how the operating expenses and the level of investment affected the revenue earned by the motorcycle operators. All the data was collected from all the areas within Maseno Town where Total number of 25 questionnaires were distributed. However, of the total number of questionnaires that were distributed 3 of them were not returned and we were only left with 22 which represented 88% as the questionnaire return rate as shown in the table below. 4.1.1 Questionnaire return rate This return rate was considered adequate. Distributed questionnaires Returned questionnaires Percentage return rate 25 23 88% Source: Research data,2020 4.1.2 The demographic characteristics of the motorcycle operators This study went ahead to study the demographic characteristics of the motorcycle operators around Maseno. It mainly focused of on characteristics such as age, level of their education, stage of operation and the amount of cash they were able to make on a daily basis. Source: Research data,2020 Demographic Variables frequency Percentage Below 18 years 0 0.00 18-30 years 14 60.87 31-45 years 8 34.78 46-55 years 1 4.35 55 years and above 0 0.00 characteristics Age 19 23 100 Primary 3 13.04 Secondary 12 52.17 College 4 17.39 University 4 17.39 23 100 Siriba 8 34.78 Highway 2 8.70 Mabungo 3 13.04 Nyawita 5 21.74 Maseno police 5 21.74 23 100 Total Level of education Total Stage of operation Total Source: Research data,2020 During the data collection, this sector seemed to be a male dominated sector since there was no single stage that had a female operator. The strenuous nature of this sector justified this but there is no excuse as to why women should not try this sector. Maybe it requires a lot of courage and patience of being away from home for long hours. The area was also 100% rural and all the routes that the motorcycle operators took were within the area from different pick up points or stages. 4.2 Age distribution The data collected revealed that most of the operators as shown in the table above were aged between 18-30 years 14 (60.87%). They were followed by those aged between 31-35 years 8 (34.78). There was no operator in the category of 18 years and below in any of the stages that the questionnaires were distributed while between 46-55 years there was 1 (4.35%). We noticed that most of the operators were youths around at mid ages of around the ages of 20s. Therefore, the motorcycle transport sector provided a living for most of the youths of ages between 18 to 30 which represents (60.87%). This was also observed in Douala, Central and West Africa. The assumption is that maybe most of the youths are energetic and are able to work for long hours for instance wake up early and sleep late in the night. Most of the youths who engage this business do so to supplement their needs for instance most of them are students from around the region were involved during their holidays. 20 4.3 Level of education The study also focused on the level of education of the motorcycle operators. Most of the motorcycle operators have that popular image of being school dropouts but that was not the case here according to this study. A good number of them had at least completed their secondary education which was represented by 12 (52.17%) out of the collected 27 questionnaires. Besides that, there were 4 (17.39%) riders who has successfully completed their college, university degree and decided to venture into the motorcycle business. And lastly there were 4 who had ended their education at the primary level i.e 3 (13.04%) This clearly shows that despite the level of education, it is not easy to find a job out there. Although the study did not go deeper into much details to find out more about the other levels of education and the related specifications that the riders may have taken other than the indicated ones. 4.4 Stage of operation The study also did not leave behind the pickup points around the Maseno region. It was established that there were five different pickup points whose number of operators varied depending on how the demand of use of the motorcycles as a means of transport. Of all the stages within the region the Siriba stage was the one leading with the highest number of the motorcycle riders and this was as a result of the its proximity to the university 8 (34.78%), this was as a result of the availability of students. It was followed by a tie between the police station and Nyawita stage which also had a good number of the motorcycle operators 5 (21.74%). The other stages had few operators i.e Siriba 8 (34.78%), Mabungo 3 (13.04%) and lastly the highway stage 2 (8.70%), due to the nature of the areas, most of it being covered by rocks and therefore the area attracted little settlements in the region. Income Income Frequency Percentage Below 200 0 0.00 201-500 5 21.74 21 501-800 8 34.78 801-1,000 8 34.78 Above 1,000 2 8.70 Total 23 100 Source: Research data,2020 In evaluating the income earned by the motorcycle operators which was measured on a range of daily basis, the following trend was realized. Majority of the motorcycle operators were found to be earning between 501-800 and- (34.78%), followed by- (21.74), and only two managed to earn above 1,000 represented by 2 (8.70%). There was no single motorcycle operator who seemed to earn below 200 according to the data collected. This income earned was not high enough and perhaps that could be the reason as to why there were few individuals that were involved in this business or maybe due to the other costs that were incurred drove away the potential investors in this industry. Operating expenses Servicing of the motorcycles Period of service Frequency Percentage Weekly 14 60.87 Monthly 9 39.13 Total 23 100 Source: Research data,2020 Most of the operators preferred servicing their motorcycles on a weekly basis, this was represented by 14 (60.87) out of the total number of the interviewed operators while the others opted for a monthly basis 9 (39.13) which seemed to be convenient for their operations. 22 Cost of servicing of motorcycles Cost of service Frequency Percentage Below 500 4 17.39 501-1,000 8 34.78 1,001-1,500 6 26.09 1,501-2,000 3 13.04 Above 2000 2 8.70 Total 23 100 Source: Research data,2020 From the table above 8 (34.78%) of the operators incurred service expenses of 501-1,000. Most of this operators where those who did their motorcycle services on a weekly basis. The second category incurred expenses between 1,001-1,500 which translates to 6 (26.08%). There were 4 (17.39) operators who incurred expenses in the bracket of below Ksh. 500 and 3 (13.04) managed the category of 1,-. Only a few incurred expenses above 2000 represented by 2 (8.70%). This indicates how the servicing expenses affects the revenues earned by the operators in relation to the daily earnings and the other expenses that they incur. This also explains the reason as to why there were few operators who had invested in this business in the region. This costs greatly contributes in the reduction of income earned by the operators bearing in mind that the area in most cases relies on the students of the university. All such costs were attributed to repair/maintenance costs Fueling cost Cost of fuel Frequency Percentage Below 200 5 21.74 201-400 9 39.14 401-600 6 26.08 23 Above 600 3 13.04 TOTAL 23 100 Source: Research data,2020 This was an important aspect that the study considered in establishing the income that the operators earned as it is the critical part of any motorcycle business carried out. The table above shows that the fueling cost per day by majority is 201-400 represented by 9 (39.14%), while 6 (26.08%) use fueling cost of 401-600. There were those who fueled below 200 5 (21.74%) and only 3 (13.04%) managed to fuel their motorcycles at a cost of 600 and above. We noticed that there were quite a number of operators for the category of 200 and below which means that the monocycles had been affected by the Covid 19 pandemic and therefore they managed to get a few customers. This is one of the factors that determines the income that the operator can be able to generate in a day since part of it has to be used to propel the motorcycle in terms of purchasing fuel. The operators cannot run any business as their motorcycles entirely depend on fuel. Daily expenses Expenditure Frequency Percentage Below 100 6 26.07 100-500 11 47.83 501-1,000 6 26.07 1,- 0 Above 1500 0 Total 23 100 Source: Research data,2020 The table above shows that in the daily running of the motorcycle business the operators incurred some expenses whereby majority of them were under the category of 100-500 represented by 11 (47.83%), while 6 (26.07%) were in the range of 501-1,000 and below 100. Within the range of 1,- and above 1500 there was none. This daily expenditure was attributed to costs such as lunch, fines paid to the local traffic police officers which were charged more than the required amounts resulting to a decline in the income 24 generated. Being a requirement under the law that every motorcycle operator must have a reflective jacket, a helmet, insurance cover, and a valid license were some of the mistakes that made the be mishandled and penalized by the officers as revealed by one of the riders. Insurance cover Insurance renewal range After 3 months 2 8.70 After 6months 6 26.07 Yearly 9 39.13 5 years 1 4.35 N/A 5 21.74 Total 23 100 Source: Research data,2020 As represented on the table out of the total number of operators interviewed 9 (39.13%) were having 1year insurance covers while 6 (26.07%) had 6 months’ insurance covers. A good number of the operators preferred annual motorcycle insurance cover, the 3 months insurance covers had only 2 (8.7%). One of the operators did not fall within the category that the study was seeking and therefore a new group had to be introduced for his 5 years’ insurance cover that was represented by 4.35%. there we 5 (21.74%) operators who had no insurance cover at all Level of investment Factor Variable Frequency Percentage Membership Chama 17 73.91 Sacco 4 17.39 N/A 2 8.70 23 100 Total 25 Daily 2 8.70 Contribution Weekly 13 56.52 frequency Monthly 5 21.74 6 and above months 1 4.35 N/A 2 8.70 23 100 Below 100 1 4.35 101-500 11 47.83 Contribution - 7 30.43 range Above 1000 2 8.70 N/A 2 8.70 23 100 Total Total Source: Research data,2020 From the above table, all the statistics indicated that almost all the operators belonged to a chama 17 (73.91%) and few of them had joined a saccos 4 (17.39%). While there were those who were not in any 2 (8.7%) Out of all the members one of them was in both of them hance resulted to an increase in the frequency in the table. In terms of contribution frequency, it is realized that most of the operators made weekly contributions 13 (56.52%), while 5(21.74%) preferred contributions made on a monthly basis one made contributions of up to 6 months 4.35% and 2 (8.7%) were not in any chama or sacco and therefore they did not contribute any amount. Also we noticed that some of them could make contributions to their chamas in more than two periods, whereby they made weekly and monthly contributions. There were no operators that had long-term contribution. This is because most of the operators were not permanent in this business and it to contribute 6 months and beyond. Weekly and monthly contributions enable the operators be able to pool their funds together faster within a short period of time. The Saccos had no popularity in the region and therefore the operators had little knowledge on the operations run by them. The chamas that the operators join are in most cases are run by the operators themselves hence that explains the reason as to why they contribute to those chamas at their preferred time intervals 26 Contribution to chamas Contribution Frequency Percentage Below 100 1 4.35 100-500 14 60.87 501-1,000 4 17.39 Above 1,000 0 0 No contributions 4 17.39 Total 23 100 Source: Research data,2020 The findings from the table above revealed that majority of the motorcycle operators made a contribution between Ksh-%) subsequently followed by contribution range between Ksh.500-1,-%). There was 1 (4.35%) respondent below Ksh.100(%) while the remaining made no contributions 4(17.39%) to their respective Chama/Sacco they belonged in. From the above it shows that majority of the motorcycle operators are aware of the various avenues to further their investments i.e. through Chamas or Saccos. It is also evident that most made contribution in the range of Ksh-%) which is affordable to most bearing in mind the amount the make on the daily basis and benefits accrued afterwards. Benefits of chamas Benefit Frequency Percentage Low interest loans 12 31.58 Investment opportunity 6 15.79 High returns on deposit 3 7.90 Low insurance premiums 1 2.63 Savings 14 36.84 N/A 2 5.26 Total 38 100 Source: Research data,2020 27 The study did not limit the respondents from ticking the appropriate benefits that they were gaining from their investment groups. One respondent could tick up to three benefits depending on how he found the groups to be useful. For instance, majority of them benefited from the savings 14 (36.86%) and low interest loans 12 (31.58%) that they borrowed from the investment groups. Investment opportunities 6 (15.79%) and high returns on deposit 3 (7.9%) had low numbers of respondents responding to this. Most of the operators being the youths did not realize the investment opportunities the could get from the groups. Lastly, on the low insurance premiums there was only one respondent who was able to respond to this 1 (2.63%) and 2 (5.26%) extracted no benefit since they were not in any investment. This implies that most operators have not realize the need to obtain their insurance covers through the chamas the have invested in. Effects of contributions on earnings Response Frequency Percentage Strongly agree 2 8.70 Agree 14 60.87 Not sure 2 8.70 Disagree 2 8.70 Strongly disagree 0 0.00 N/A 3 13.04 Total 23 100 Source: Research data,2020 The table above shows that the operators agree that their contributions to chamas affect their weekly earnings. This is explained by 14(60.87%) who agree with the statement. This might have been contributed by low earnings of the operators who agreed with this statement and relatively contributed low amounts to their chamas. The other responses like strongly agree, not sure and disagree all had 2 operators 8.7%, while strongly disagree had no respondent and those who could not respond to this were 3 (13.04%) 28 CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMENDATIONS 5.1.Introduction This chapter presents summary of the findings, conclusion and recommendations of the study based on the purpose of the study which was to assess the financial factors influencing the revenue performance of motorcycle operators a case of Maseno Town. 5.1.1 Summay of findings This summary was done as per the objectives of the study. Objective 1; Determine the influence of operating expenses on revenue performance of motorcycle operators in Maseno town. In the study the level to which the operating expenses was measured in terms of the service and fuel cost using the following indices; low extent, average extent and high. Most of the motorcycle operators confirmed that the operating expenses had a low impact on their revenue earnings. This is evident from the study conducted which revealed that % agreed that this expenses have a no significant impact on the amount of earnings that the business can generate. On the other hand, there were % who were affected at an average extent. Objective 2; Establish the level of investment and its contribution to revenue performance of motorcycle operators in Maseno town.the analysis of the findings of our research on factors that affect the revenue performance of motor cycle operators in Maseno has been interpreted in form of tables. The table format provide a concise and transparent summary of key findings. Operational expenses been one the factors the affect the income of the motor cycle operators in Maseno town has the largest impact. motor cycle operators of Maseno town spend their day to day income on refueling, maintenance cost and taking insurance cover which occur oftenly. It shows operational expenses is a necessary factor and thus should be minimized by motor cycle operators riding the motor cycle carefully so as to incur less cost on maintenance and hence maximize their savings. 29 5.2 Conclusion The study concluded that the basic operating expenses greatly affected the amount of earnings they usually earned depending on the cost incurred by the operator in fueling and servicing their motorcycles, the other costs that affected their earnings were those of the daily expenses. Most of this expenses were those that the operators did not expect such as the fines paid to the authorities for breaking simple rules. Based on the data analysis findings, the level of investment had a significant impact on the revenue earned by the motorcycle operators. The study was conducted at a time when the Covid 19 pandemic had hit the world, the operators had little money earned on a daily basis and were not able to raise enough funds to support their contribution to those chamas and saccos. Restrictions that were imposed such as carrying one passenger had significant impact on the income earned. Therefore, most of them had to reduce the amounts they usually contributed. 5.3 Recommendations From the findings, the study recommends that the motorcycle operators should form awareness groups that should enable them educate one another to enable them be able to determine the important rules that they need to follow. This will enable them be able to avoid being fined by the authorities, since this daily expenses are the ones that greatly contribute to reduced earnings at the end of the day. The study also recommends that the operators be educated and advised on the importance of starting and joining chamas and saccos to help them in savings and investment purposes. The study further recommends that the national government in conjunction with the local authorities should come up with programs to help support the social groups especially those which can help empower them with funding and various group projects which can boost their earnings and improve their standards of living. The study also recommends that the operators be enlightened on the ways and steps they can follow to register in saccos and even the importance of being a member of this saccos. 30 5.4Limitations of the study This research was faced with various challenges and limitations given that it was conducted during the world’s most dangerous pandemic,Covid-19 pandemic. The following are some of the limitations of the study. 5.4.1 Sample size Getting the required number of sample size was not an easy task for the team. Most of the boda boda operators within Maseno town who were the respondents to the study had now changed their routes of operations due to the pandemic and given that most of their potential customers in the area were university students who had been sent back home because of the pandemic. We took a lot of time looking for the respondents and also the ones who were available could not be very open enough to us to answer some of the questions on the questionnaire. 5.4.2 Inoperative respondents. Most of the respondents could not be free enough to fill the questionnaire because they thought we might use the data collected to evaluate their profit ratio in the business and even to submit their identity to the county revenue authority. Some of the respondents also feared sharing their real value of daily income. 5.5 Suggestions for further studies This study mainly focused on the factors that influence the revenue performance of motorcycle operators in maseno town. This study therefore recommends that a similar study be done on other Counties in Kenya for the purposes of comparison and generalization of findings. there are other factors not covered by the current study that have affected the revenue performance of the operators. and therefore future scholars should attempt to cover these factors. The current study also only used primary data and therefore need for similar studies using secondary data or both. 31 REFERENCES Rugut, J & Makori, B (2015) Determinants Influencing Performance of Alternative Public Transport In Kenya: A Case of Motorcycle Transport, Nakuru Town. Strategic Journal Of Business and Change Management. Vol 2, No 2 (2015) p. 436-471 www.strategicjournals.com Masanga, T. (2016) Factors Influencing the Income of 'boda-boda' Entrepreneurs in Siaya District, Kenya. Master's Thesis, University of Nairobi Yakubu, A (2015). Determinants of Earnings among Commercial Motorcycle Operators in Kwara State, Nigeria. International Journal of Economics and Management Sciences. 2(2) p. 11-17 Kombo D.K., and Tromp D.L.A., (2015). Proposal and Thesis Writing. An Introduction. Nairobi, Don Bosco Printing Press, Pauline Publications Africa Ministry of Youth Affairs (2016). National Action Plan on Youth Employment. Nairobi: MoYA. Ministry of Youth Affairs (2018). Department of Youth Development: Strategic Plan-. Nairobi: MoYA. Ministry of Youth Affairs (2015). Youth Enterprise Development Fund: Fund Status Report as of March, 2015.YEDF Board. Nairobi YEDF, 2017. Youth Enterprise Development Fund. Retrieved from www.yedf.go.ke. 2nd August, 2017. 32 Babbie, E. (2016). The basis of social research Wadsworth: Cengage learning Hook, W. (2016) .Urban transport and the millennium development goals. Global Urban Development journal 2(1), 13-34 Muhlrad N,Lassarve S.(2015) System approach. New Delhi Macmillan India Ltd. Mutiso W and Behrens (2015)‘BodaBoda’ bicycle taxis and their role in urban transport systems case study of Nakuru and Kisumu Kenya. Muftis w, (2015): Bodaboda bicycle taxis and their role in their transport systems. Case studies of Kisumu and Nakuru, Kenya, Master of science in Engineering, 120-credit dissertation, University of cape town Motorcycle Association of Kenya,(2015) The MAK handbook Kenya National Bureau of Statistics. (2019). Economic Survey. Government printers. Nairobi Kenya. 33 APPENDIX QUESTIONNAIRE Letter of Introduction Ref: Motorcycle operators /Chama chairperson(s) Dear Sir/Madam, We are fourth year students at Maseno University pursuing bachelor’s degree in Business Administration (Accounting option) with IT. The purpose of this study is to determine the financial factors influencing the revenue performance of motorcycle operators in Maseno town The information collected is for academic purpose only. Therefore, you are assured of anonymity and confidentiality. Kindly fill this questionnaire as honestly as possible and your contribution will be highly appreciated. Otumba Daniel ADM NO. BE/00212/016 Maseno University P.O Box Private Bag Maseno MOBILE:- Email Address:- 34 Questionnaire INSTRUCTIONS 1. Please, do not write your name on the questionnaire. 2. Kindly, respond to all the questions accurately and honestly. 3. You need to respond by ticking ( ) the appropriate spaces. SECTION A: GENERAL QUESTIONS. 1. Kindly indicate your age bracket. Below 18 yrs. 2. 31-45 yrs. 46-55 yrs. Above 55 yrs. What is your highest level of education? Primary. 3. 18-30 yrs. Secondary. College. University. Boda boda stage of operation. Siriba Highway Mabungo Nyawita Maseno Police 4. How much on average do you make on a daily basis? Below 200. 200-500 500-800 800-1,000 35 Above 1,000 SECTION B: OPERATING EXPENSES. Kindly tick where necessary. 1) a) How often do you service your motorcycle? Weekly. b) Monthly. Cost of the servicing. Below 500 c) 501-1,000 1,001-1,500 1,- Above 2,000 Kindly tick the box with the range of the approximate amount you incur on fueling the motorcycle on daily basis. Below 200. 201-400 401-600 Above 600 d). Please tick the box with a range of the approximate amount you incur on other expenses on a daily basis. Below 100 2. 100-500 501-1,000 1,000- 1,500 Above 1,500 How often do you renew your motorcycle insurance cover? After 3 months. 3. After 6 months Yearly N/A How much does your insurance cover cost? Below 1,000 4. extent 1,001- 2,000 2,001- 3,000. Above 3,000. To what extent do the above expenses [ service, fuel] affect your weekly income Average extent High extent 36 Low SECTION C. LEVEL OF INVESTMENT 1) a). Kindly indicate if you are a member of either of the following. Chama Sacco. b). Please indicate how often you contribute to the above. Daily. Weekly. Monthly. 6 Months and above c) What is your amount of contribution range to the Chama/Sacco? Below 100 2) 100-500 500-1,000 Above 1,000 On a scale of 1-5 where 5 represents strongly agree and 1 represents strongly disagree, do you agree or disagree that the Chamas/Saccos are beneficial? Strongly disagree. 3) Disagree. Not sure. Agree Kindly indicate how you benefit from the Chamas/Saccos Strongly agree. Low interest loans. Investment opportunity. Higher returns on deposit. Lower insurance premiums. Savings. 4) Contribution to Chama/Sacco affect your average weekly income. To what extent do you agree or disagree on this. Strongly disagree. Disagree. Not sure. Agree 37 Strongly agree.