BACKGROUND

The programme, Postgraduate Diploma in Financial Management (PGDFM), was started in response to a request by Central Banks in Kenya and the region to have in place a postgraduate course in financial management.  It is offered in collaboration with Moi University through the Economics Department of the School of Business and Economics. One of the main functions of the department is to prepare students in economic management and policy analysis. 

The purpose of this programme is to provide an opportunity for participants who would wish to pursue or strengthen their careers in financial management.  The programme covers a wide range of courses drawn from various areas in economics and finance.  It meets the demands of both finance and non-finance managers.  The nine (9) month programme has been on offer since July 2008.  In order to enable prospective students on full time employment to participate, the School has organized to provide this course as a week-end programme.

OBJECTIVES

1. To acquire in depth knowledge in financial management.
2. To give opportunity for higher degree studies in the area of financial management.

ELIGIBILITY AND REQUIREMENTS

1. Holders of a degree of Moi University in Economics, Business Management or any other recognized University or
2. Holders of qualifications considered by Senate to be equivalent to a University degree.

DURATION AND STRUCTURE

The course will be offered in Collaboration with Kenya School of Monetary Studies. The duration of the programme will be a minimum of 10 months. It will consist of course work, research paper and examination. The programme will be conducted in 3 semesters of 14 weeks each as follows:

SEMESTER I
COURSES
I. Applied Microeconomics - 3 Units
2. Applied Macroeconomics - 3 Units
3. Quantitative Methods - 3 Units
4. Financial and Management Accounting - 3 Units
All the four courses will be compulsory.

SEMESTER II
COURSES (Compulsory)
1. Management Theory and Practice 3 Units
2. Commercial Law 3 Units

Electives
1. Corporate Finance
2. Portfolio Management and Derivatives
3. Macroeconomic Policy arid Stabilization Programs
4. Bank Financial Management
5. Credit Management
6. Fund Management and Trusteeship
7. Corporate Culture and Ethics
8. Taxation in Theory and Practice
Students will be expected to choose 2 courses from this group.

SEMESTER III
COURSES (Compulsory)
1. Research Methods and Paper

Electives
1.    International Trade and Finance
2. Operational Supervision and Inspection
3.     Monetary and Financial Systems
4. Development Finance
5. Empirical topics in Finance
6. Topics in Theory of Finance
7. Exchange Rates and International Finance.
8. Securities and Investment Analysis.

Students will be expected to choose 3 courses from this group.

 
ECO 701 APPLIED MICROECONOMICS

Demand and supply analysis, Consumer Theory, Theory of Production and Costs. Profit maximization and competitive supply. Non competitive market structures and factor input markets.

ECO 702 APPLIED MACROECONOMICS

The IS-LM models, Fiscal and Monetary Policies. A model of the open Economy, Aggregate Supply Function. Consumption and Savings, Investment Demand for Money, Inflation, Unemployment.

ECO 703 QUANTITATIVE METHODS

Basic Mathematical concepts, mathematics for growth free optimization, partial derivatives and integration. Descriptive Statistics and Interferential statistics, Elementary Econometrics.

ECO 704 MANAGEMENT THEORY AND PRACTICE

Management Principles and Administration, Management Services, Purchasing and Supplies Management. Human Resource Management ,Marketing Management, Financial Management , Production Management.

ECO 705 EXCHANGE RATES AND INTERNATIONAL FINANCE

International Macroeconomics, Income, trade and capital flows. Foreign exchange markets, investment and international fund sourcing. Risk evaluation of cross border investment. Offshore banking, external finance. Intermediation and regulations expectations, exchange rate dynamics and policy. Fixed vs flexible exchange rate systems.

ECO 706 INTERNATIONAL TRADE FINANCE

Classical theory of international trade, neo-classical and modem trade theory, trade policies, trade development balances of payments and the exchange rate Macroeconomic policy in an open economy international monetary system.

ECO 707 PORTFOLIO MANAGEMENT AND DERIVATIVES

Capital markets, portfolio analysis, Equilibrium pricing of financial assets, management of bond portfolios, future markets options markets. Risk management with options.

ECO 708 CORPORATE FINANCE

The nature of corporate sector and capital structure, sources of corporate sector finances, long-term debt finance. Equity Finance and Capital structure. Risk finance and capital structure. Risk, return and opportunity cost of capital. Investment decision, Arbitrage.

ECO 709 BANK FINANCIAL MANAGEMENT

Overview of Banking and finance, financial repression/liberalization model. Portfolio theory and assets pricing. Financial intermediation and banking. Corporate finance. Personal sector finances. Asset and liabilities of Commercial Banks, stock exchange and efficient market hypothesis. Financial regulation and Central Bank interest rates and security prices.

ECO 710 CREDIT MANAGEMENT
Principles of lending, marketing products to needs, protection and pricing. Types of credit finance. Credit Risk. Hedging techniques. Credit assessment techniques.

ECO 711 BANK FINANCIAL MANAGEMENT
Nature of banking. Causes of banks failures. Regulatory issues. Supervisory issues, handling bank failures. Protection schemes

ECO 712 DEVELOPMENT FINANCE
Alternative theories of development finance. Development of markets in financial instruments problems of commercial banks in the private sector vs development banks. Rural credit institutions and policy. External funding for development. Capital flight. External debt recovery. Impact of external aid.

ECO 713 TOPICS IN THEORY OF FINANCE
Equilibrium Arbitrage approaches to asset pricing multi-period frameworks to asset pricing. Modem theory of contingent claims valuation and its application to pricing of option and corporate liabilities. Advanced analysis of issues incorporate finance.

ECO 714 RESEARCH METHODS AND PAPER

The student will choose topics for research with approval and supervision of the department. Write and present a research project.

 
EXAMINATION OF COURSES

1. Candidates will be required to pass all the core courses. The pass mark shall be 50%.
2. Courses shall be examined at the end of each semester and that

        (a) A written examination shall normally constitute 70% of the total marks.
        (b) Continuous Assessment test, based on the assignments, papers and essays will constitute 30% of the total marks.

3. All other examination regulations of Moi University will be apply.