📄 Abstract
Retail supermarkets play a vital role in the economic development of Garissa County by providing essential goods, creating employment opportunities, and supporting local livelihoods. However, many of these supermarkets face significant financial management challenges that undermine their profitability and threaten their long-term sustainability. The purpose of this study was to investigate the influence of cash flow management practices on the financial performance of retail supermarkets in Garissa County. Free Cash Flow Theory was utilized to anchor the study. The study utilized a correlational research design. Five major supermarkets that operate in Garissa County made up the target population. Each supermarket's managers and cashiers served as the units of observation. A total of 76 respondents were targeted. A census technique was used. The study employed structured questionnaires to collect data through a drop and pick approach. Data collected was analyzed through descriptive statistics as well as inferential statistics. Data were analyzed using Statistical Package for Social Scientist software. A regression model was utilized to relate the independent variables with the dependent variable. The results of the study were presented through tables and figures. The study found out that cash flow management practices have a positive significant influence financial performance of the retail supermarkets in Garissa County. This was depicted by beta value of 0.528 and significant value of 0.000. The study concluded that cash flow management practices significantly influence the financial performance of retail supermarkets in Garissa County. To improve liquidity management, the findings recommends retail supermarkets to improve cash flow forecasts, create explicit cash reserve regulations, and implement automated monitoring systems. The study recommended that the management of retail supermarkets in Garissa County to consider financial management practices as a part of general managerial decision making. Management should introduce cash flow forecasts and automated cash flow monitoring systems to make early decision on issues of cash balances, payments, investments and other operational needs. Regular review of cash utilisation should be done to identify areas of inefficient cash use and correct accordingly.
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📚 How to Cite:
Mohamed Farah Abdi, Dr. Samuel Nyambega Nyang'au,PhD, Dr. Steve Ondieki, PhD , CASH FLOW MANAGEMENT PRACTICES AND FINANCIAL PERFORMANCE OF RETAIL SUPERMARKETS IN GARISSA COUNTY, KENYA , Volume 13 , Issue 9, September 2026, EPRA International Journal of Economics, Business and Management Studies (EBMS) , Pages: 242 - 249 , DOI: https://doi.org/10.36713/epra31679