EFFECT OF WORKING CAPITAL MANAGEMENT ON FINANCIAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN KENYA

Abstract: This study determined the effect of working capital management on performance of Small and Medium Enterprises in Kenya. Specifically, the study determined the effect of optimum inventory management on financial performance; determined the effect of cash conversion cycle on performance in Kenya; and determined the effect of debts management on performance. The study used descriptive research design. A population of 70 respondents was drawn from the industry. Data was collected through questionnaires and interviews. Collected data was analyzed using multiple regression analysis. Inferential statistics was used to determine the relationship between variables. The study revealed that there was a positive significant effect of working capital management on financial performance of SMEs in Kenya. This study is important for the policy makers to come up with the strategies on how to better manage working capital in SMEs in Kenya. Keywords: Inventory Management; Cash Conversion Cycle; Debts Management; Financial Performance. Title: EFFECT OF WORKING CAPITAL MANAGEMENT ON FINANCIAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN KENYA Author: Irene Cherono International Journal of Recent Research in Commerce Economics and Management (IJRRCEM) ISSN 2349-7807 Vol. 12, Issue 4, October 2025 - December 2025 Page No: 120-126 Paper Publications Website: www.paperpublications.org Published Date: 18-December-2025 DOI: https://doi.org/10.5281/zenodo.17973757 Paper Download Link (Source) https://www.paperpublications.org/upload/book/EFFECT%20OF%20WORKING%20CAPITAL%20MANAGEMENT-18122025-2.pdf