Working capital management and profitability of manufacturing firms listed at the Nairobi stock exchange

Working capital management plays a significant role in better performance of manufacturing firms; this paper analyzes the impact of working capital management on firm’s performance in Kenya. The study examined the relationship between working capital management and performance of manufacturing firms listed at the Nairobi Securities Exchange (NSE). The study used secondary data from a sample of 18 companies at the NSE. A regression model was determined to establish the relationship between the dependent variable and the independent variables. Pearson’s correlation and regression analysis were used for the analysis. The results indicated that there is a strong negative relationship between firm’s performance and liquidity of the firm.