COSTS MANAGEMENT PRACTICES KEY DRIVERS TO PROFITABILITY OF REGISTERED SEED MERCHANTS IN NAIROBI CITY COUNTY, KENYA

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Published Oct 29, 2026

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YUSSUF KULOW GEDI
Student, Department of Accounting and Finance, School Business, Economics and Tourism, Kenyatta University, Kenya
SALOME MUSAU, PhD
Senior Lecturer, Department of Accounting and Finance, School of Business, Economics and Tourism, Kenyatta University, Kenya

Abstract

Registered Seed Merchants are key players in Kenya’s agricultural value chain. Registered Seed Merchants ensure availability of certified seed inputs across markets that enhance yields for the farmers, food security and furthering economic growth. Despite their strategic importance, many Registered Seed Merchants in Kenya continue to experience fluctuating profitability and rising costs in the seed certification value chain. This study therefore sought to ascertain the effect of costs management on the profitability of registered Seed Merchants in Nairobi City, Kenya. This study adopted descriptive and explanatory cross-sectional research designs. The target respondents comprised of 184 finance, operations, and marketing and inventory managers drawn from the 46 registered Seed Merchants by Kenya Plant Health Inspectorate Service under Cap. 326, and operating within Nairobi City County. Primary data were collected through questionnaires while secondary profitability was collected for the years 2021-2025. Descriptive statistics (frequencies, percentages, means, and standard deviations) and inferential methods (correlation and multiple regression) were applied. Outcomes indicated that cost compliance and production cost management both had a positive but non‑significant effects on profitability indicating that although effective compliance and production management contributed positively to Return on Assets (ROA), they were not significant, Marketing and distribution and operations cost management both had positive and significant effect on profitability. The study recommends that registered Seed Merchants prioritize investment in efficient marketing, distribution and operational cost management systems by strengthening logistics management, adopting cost-effective marketing strategies, continuously monitoring operating expenses and promoting a cost-conscious organizational culture.

Article Details

Issue
Vol 7 No 1 (2026)
Section
Articles
Author Biographies

YUSSUF KULOW GEDI, Student, Department of Accounting and Finance, School Business, Economics and Tourism, Kenyatta University, Kenya

Student, Department of Accounting and Finance, School Business, Economics and Tourism, Kenyatta University, Kenya

SALOME MUSAU, PhD, Senior Lecturer, Department of Accounting and Finance, School of Business, Economics and Tourism, Kenyatta University, Kenya

Senior Lecturer, Department of Accounting and Finance, School of Business, Economics and Tourism, Kenyatta University, Kenya

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