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Philip Ngare is a Senior Lecturer in  Actuarial Science at University of Nairobi. He received his Ph.D in Financial Mathematics from University of Linz, Austria. His research interests include Finance, Actuarial Science, Probability Modeling, Econometrics, Computational Methods and Simulation.

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Ngare, P, Leobacher G.  Forthcoming.  Utility indifference pricing of derivatives written on industrial loss index. Journal of Computational and Applied Mathematics.


Githui, T, Ngare P.  2014.  Financial Literacy and Retirement Planning in the Informal Sector in Kenya. Education and Reseach. :1-6. Abstract

Old age dependency has become a major issue of concern to governments today. This is because a large number of retirees lack any form of regular income to sustain them in retirement. Kenya has one of the highest levels of old age dependency currently estimated at 56%. The purpose of this study was to establish the impact of financial literacy on retirement planning in the informal sector in Kenya. The study found that financial literacy remains low in Kenya. Financial literacy was found to have a positive impact on retirement planning; however the results indicate that other factors such as income levels, age, marital status and level of education are also strongly related to retirement planning. Gender was found to have no impact on retirement planning. The study established that the probability of a financially illiterate person having no retirement planning is significantly high calling for increased investment in financial literacy programs to reverse the trend. The study recommends the development of a curriculum on financial education and pension education in middle level and higher learning institutions as well as community pension awareness programs such as road-shows and aggressive advertising campaigns to enlighten the people on importance of retirement planning

Kweyu, M, Ngare P.  2014.  Factor analysis of customers perception of mobile banking services in Kenya. International Journal of Emerging Trends in Economics and Management Sciences. 5(1) Abstract

Mobile banking service, M-Shwari, allows users to save, earn interest and borrow loan over a short period of time using their mobile phones. The service has a potential to spur economic growth if consumers could understand the concept, its' benefits and adopts it. In our study, we investigated factors that influence the adoption of mobile banking services in Kenya. In particular we have shown empirically that the influence of the intervening demographic factors and the consumer perception may have differential impact in emerging market as compared to developed market situations. We extracted and grouped factors that were perceived by the clients as important in adoption of mobile banking. We then tested if the differences in perceptions on some of the factors extracted by exploratory factor analysis significantly differ between gender categories. The results indicated that there was no significant difference in the perception of ease of use and risk of use between genders in the decision to adopt mobile banking service in emerging market. The findings of our study will therefore provide the financial industry with a better understanding of the factors underlying consumer adoption of mobile banking services and help them formulate marketing and promotional strategies for mobile banking services.

J.Ngalawa, Ngare P.  2014.  Interest rate risk management for commercial banks in Kenya.. Journal of economics and finance. 4(1):11-21. Abstract

We show empirically that bank's exposure to interest rate risk or income gap determines the
structure of the balance sheet. In particular, we show that in Kenya, commercial banks typically
retain a large exposure to interest rates that can be predicted through the income gap. We also
establish the sensitivity of income gaps to market interest rates as determined by the Central Bank
of Kenya (CBK) through treasury instruments. Quantitatively, a 200 basis point change in CBK
rates would lead to a change of net income equivalent to 0.4% of total assets of the bank.

Muturi, B, Ngare P.  2014.  Salary determinants in higher institutions of learning in Kenya.. International Journal of Academic Research in Economics and Management Sciences. 3 Abstract

There has been a debate over the years on which category of salary determinants best predicts an
employee salary, that is, whether it is organizational characteristics or individual attributes. This
study adopts a hybrid approach and seeks to examine the relationship between work experiences,
level of education, job category, and employee's salary. The findings of the study have shown
that there is a strong relationship. In addition, we have constructed a salary determinant model for
employees of higher institutions of learning in Kenya. The study has great significance to human
resource practitioners, who would find the salary determination model very useful in their
practice. The hybrid approach to salary determination will also provide a different academic and
scholarly perspective to the study of salary determinants.


Ngare, P.  2013.  Financial Modelling with strict Local Martingales. Under review.


Ngare, P.  2012.  Indifference pricing of contingent claims on NIG Levy model. Applied Mathematical Sciences. 6(47):2315-2326.


P.Ngare, Leobacher G.  2011.  On modelling and pricing rainfall derivatives with seasonality. Applied Mathematical Finance. 18(1):71-91.


Ngare, P.  2010.  Indifference Pricing and Hedging for Insurance and Weather Derivatives. , Linz- Austria: University of Linz

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