Moderating Effect of Firm Size on Financial Uncertainty Indicators and Financial Performance of Manufacturing Firms in Kenya

Purpose: To what extend does firm size moderates’ relationship between manufacturing firms’ financial performance and financial uncertainty indicators. This was necessitated below expectation performance of manufacturing firms in Kenya. They are expected to employ 30% of Kenya population, contribute to Gross domestic product up to 10% and attract at least 10% of large investor. This has not been possible in the last 12 years. Design/Methodology/Approach: The study adapted descriptive design. Study was done in Kenya for manufacturing firms registered under Kenya Association of Manufacturers (KAM) for period between 2009 to 2020. Total population was 856 with a sample size of 90 firms chosen using stratified and them random sampling. Indicators were Return on Equity, trade credit uncertainty, Liquidity uncertainty, Leverage uncertainty, operational cost uncertainty and Logarithm of total asset’ Findings: Firm size moderates relationship between financial uncertainty indicators and financial performance of manufacturing firms in Kenya. Firm size negatively and significantly affected performance. Though moderation was not significant, but it strengthened relationship between variables. Implications/Originality/Value: Firm size should be monitored since it significantly affected financial performance of manufacturing firms in Kenya. Firm assets should not be financed by leverage since it had significant negative relationship with financial performance.