Accounts Payable Management and Financial Performance of Manufacturing Firms. A Case of Kazire Health Products Limited

The study focused on establishing the relationship between accounts payable management and financial performance in Kazire Health Products Company Limited. It was based on the following objectives; to find out the accounts payable management strategies used by Kazire health products ltd, to assess the level of financial performance in Kazire health products Ltd and to establish the relationship between accounts payable management and financial performance of Kazire health products Ltd The researcher used a cross sectional research design consisting of quantitative approaches of data collection and analysis. The study population consisted of the management and operational staff consisting of employees from administration, marketing department, accounts, Sales Department and customers of Kazire health products limited. A sample size of 66 respondents was used. Questionnaires were used to collect data. Data collected was analyzed using Statistical Package for Social Sciences (SPSS). The study revealed that Kazire health products limited has an effective accounts payable Management Policy. It was further revealed that as much as the company is earning profits, her profitability levels in the past three years have been declining compared to the past years. The study findings established that there is a positive significant relationship between accounts payable management and financial performance of Kazire health products Ltd at r=0.872(**) with P-value = 0.000. Accounts payable is one of the major sources of unsecured short-term financing resulting from transactions in which merchandise is purchased.