WORKING CAPITAL MANAGEMENT ON FINANCIAL PERFORMANCE OF FOUR-STAR RATED BEACH HOTELS IN MOMBASA, KENYA

This study was to investigate the effect of working capital management on financial performance five-star rated hotels in Mombasa. The adopted cross-sectional descriptive survey research design. target population and supervisory staff beach Mombasa County which include; Sarova Whitesands Beach Resort, Serena Bahari Hotel, Pride Inn Flamingo Hotel Nyali International Resort . drawn from departments Operations, Finance Credit. utilized purposive sampling design a sample 57 respondents selected by use Slovins statistical formula. primary data collected structured closed-ended questionnaires. On analysis, statistics inferential employed analyze data. Statistical Package for Social Science (SPSS) analysis tool. results revealed that hotel has account receivable payment policy. policy assists planning accounts prudently. Further, it is shown takes less than month collect Also t here maintenance records reconciliation sets credit limits its customers. concludes draw their funding equity external borrowing. concluded have adequate total asset reserves cover needs this means base will be affected loss income-generating activities. fact led triggered diversify portfolio. recommended should widen focusing financing avenues addition It ensure adequacy cushion itself goods are purchased when need arises. Further develop re-order level dynamic. adopt sales forecast approach placing order suppliers they purchase large quantities enjoy trade discount Key Words: Receivable Cycle, Payment Deferral Period, Inventory Conversion Cash Cycle CITATION: Twaha, N., & Ibrahim, A. (2022). Working four-star Mombasa, Kenya. Strategic Journal Business Change Management, 9 (4), 139 - 154.