WORKING CAPITAL MANAGEMENT AND PERFORMANCE OF QUOTED INSURANCE FIRMS IN KENYA.

ABSTRACT

The study examines the relationship between working capital management and financial performance of quoted insurance firms in Kenya within 2013-2022. The study found out that cash conversion has a negative and significant relationship with financial performance of quoted insurance firms in Kenya; Receivable turnover has a positive and significant relationship with financial performance of quoted insurance firms in Kenya; Payable turnover has a negative and insignificant relationship with financial performance of quoted insurance firms in Kenya. The study recommends that the regulatory framework has to be improved: Establishing precise rules and specifications for working capital management procedures in the insurance industry by collaborating with regulatory organizations like the Insurance Regulatory Authority (IRA). As a result, insurance companies should be forced to follow predetermined criteria and submit frequent reports on important working capital parameters. Education and Developing Capabilities:  Insurance personnel should be required to complete mandated training courses on efficient working capital management techniques. This is crucial to work with trade associations, educational institutions, and government agencies to create and administer training programs customized to the unique requirements of insurance companies. Strengthen Risk Management Practices: insurance firms should develop policies to help insurance companies identify and reduce risks related to working capital management, such as credit and liquidity risk. encouraging the management of exposure to interest rate and currency volatility through the use of hedging products.