Abstract:
The research in this area explores the relationship between the capital structure and the financial
performance of KAKUZI PLC company listed in the NSE markets. The two areas in a firm for
the major decision include financing and investment. How a firm is financed is very important to
the managers and the providers of the funds, including the stakeholders. The capital structure
variables and independent variables considered in this study include debt finance, equity finance,
and hybrid finance. The design used in this research is descriptive design. There are several
theories used in the research which include, the Trade Off Theory, Modigliani and miller theory
and the Market timing theory which explains the variation of price per share. The data used to
carry out this study is the secondary data obtained from the NSE database. The relevant data is
collected is analyzed using the regression analysis model, standard deviation and mean. This is
because the study entails more than one independent variable. The independent variables, Equity,
Debt and Hybrid financing explains 68.6 % of the financial performance of Kakuzi PLC. The
debt ratio has a favorable influence while Equity financing have a positive effect on the financial
performance of Kakuzi PLC. The hybrid financing have a negative influence on the financial
performance of the company.