Develop financial literacy for non-finance managers — reading statements, budgeting, cash flow management, cost-benefit analysis and KRA compliance explained in plain language.
What You Will Learn
✓Read and interpret income statements, balance sheets and cash flow statements
✓Prepare and manage departmental budgets
✓Conduct cost-benefit analysis for investment decisions
✓Understand cash vs profit distinction
✓Apply KRA compliance requirements
✓Use management accounts for decision-making
3
Modules
4
Lessons
18 hours
Duration
🎍 Certificate & NITA Accreditation
On passing the final exam (50 MCQs, 70% pass mark, unlimited retakes) you receive a GLI-branded PDF certificate with QR verification. CCS is NITA-accredited — eligible employers can claim NITA levy reimbursement for this course.
Course Curriculum
3 modules · 4 lessons · Interactive quizzes · Study notes · Practical exercises · Final exam
1
Module 1: Understanding Financial Statements
2 lessons · 110 min · 5 hours
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Lesson 1: The Income Statement: Reading P&L
55 min · Video + Reading
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The P&L tells you whether your organisation is making or losing money. Every manager with budget responsibility must read one.
Key Ratios Gross Profit Margin = GP ÷ Revenue × 100 (how much remains after direct costs) Operating Margin = EBIT ÷ Revenue × 100 (core business profitability) Net Profit Margin = Net Profit ÷ Revenue × 100 (bottom line)
Warning Signs Revenue growing but margins declining → cost creep High revenue, low/negative net profit → structural cost problem EBIT positive but net profit negative → unsustainable debt load
Revenue Recognition Revenue is recognised when EARNED, not when cash is received. Accounts Receivable = Revenue earned, cash not yet received Deferred Revenue = Cash received, service not yet delivered
NGO/Government Terminology Revenue → Income (grants, donations) COGS → Programme/Direct Costs Net Profit → Surplus or Deficit
Case Study: Nakuru Dairy Cooperative Gross margin 38% (healthy) but net margin 2.1%. Investigation: admin costs 35.9% of revenue. Restructured, reduced to 28%, restored net margin to 9.2% within 18 months. The P&L revealed what operations couldn't see.
Safaricom's 2024 annual P&L showed revenue of KES 357B with a 24% net margin — exceptional by any standard and available to any analyst on the NSE website.
💬 Lesson Quiz
1. Gross Profit equals:
2. A company with rising revenue but declining gross margins likely has:
3. Revenue is recognised when:
4. For an NGO, the equivalent of 'Net Profit' is:
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Lesson 2: Balance Sheet and Cash Flow Management
55 min · Video + Reading
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While the P&L shows performance over a period, the Balance Sheet shows financial position at a specific point in time.
Balance Sheet Structure Current Assets (cash, receivables, inventory) | Non-Current Assets (property, equipment) Current Liabilities (payables, short-term loans) | Non-Current Liabilities (long-term debt) Equity (share capital + retained earnings)
Key Ratios Current Ratio = Current Assets ÷ Current Liabilities (target: 1.5-2.5. Below 1.0 = potential crisis) Quick Ratio = (Current Assets - Inventory) ÷ Current Liabilities (more conservative) Debt/Equity = Total Liabilities ÷ Total Equity (above 2.0 = high financial risk)
Cash vs Profit: The Critical Difference You can be profitable and run out of cash. Example: Consulting firm invoices KES 5M in December, pays salaries KES 2M on 31 Dec, client pays in February. P&L: KES 3M profit ✓ | Cash Flow: -KES 2M ✗
The 13-Week Cash Flow Forecast Weekly: Opening Balance + Inflows - Outflows = Closing Balance Identify cash gaps BEFORE they become crises. Review weekly.
Budget Types Incremental: Last year + adjustment (simple but perpetuates inefficiency) Zero-Based (ZBB): Every line justified from zero (rigorous) Activity-Based: Budget by planned activities and costs Rolling: 12-month forward-looking, updated monthly (best practice for uncertain environments)
Key Concepts
Accounting EquationLiquidity RatiosCash vs Profit13-Week ForecastBudget Types
🌍 Real-World Example
When Kenya Airways experienced financial difficulties, the balance sheet told the story long before the P&L — massively negative equity and unsustainable debt ratios visible to any analyst who looked.
💬 Lesson Quiz
1. The accounting equation is:
2. A Current Ratio of 0.8 indicates:
3. A company can be profitable but run out of cash primarily because:
Financial Statement Analysis: 1. Find your organisation's last income statement. Calculate Gross Margin, Operating Margin, Net Margin 2. Find the balance sheet. Calculate Current Ratio, Quick Ratio, Working Capital 3. Identify: What is the biggest cost line? Is it growing faster than revenue? 4. Prepare a simple 4-week cash flow forecast for your department 5. Compare budget vs actual for last quarter. What was your biggest variance and why?
Submit your completed exercise through the LMS dashboard for instructor review.
2
Module 2: Financial Decisions and KRA Compliance
1 lessons · 50 min · 4 hours
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Lesson 1: Cost-Benefit Analysis and Investment Decisions
50 min · Video + Reading
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Every management decision has a financial dimension. Managers who can structure a financial case gain credibility with leadership.
Cost-Benefit Framework 1. Identify all costs (one-time and recurring) 2. Identify all benefits (financial and non-financial) 3. Calculate Net Benefit = Benefits - Costs 4. Calculate ROI = (Net Benefit ÷ Total Cost) × 100 5. Calculate Payback = Initial Investment ÷ Annual Net Benefit
Example: CRM Upgrade Year 1 costs: KES 760,000 | Year 1 benefits: KES 732,000 Year 1 ROI: -3.7% (marginal negative) | Year 2 ROI: +52.5% (strong positive) Payback: 1.04 years → Approve
Net Present Value (NPV) Money today is worth more than money tomorrow (time value of money). NPV > 0 → Investment creates value → Approve NPV < 0 → Investment destroys value → Decline Use 12% discount rate as Kenya's typical cost of capital.
Make vs Buy Analysis Internal: High fixed cost, low variable, higher quality control External: Low fixed cost, high variable per unit, more flexibility Break-even volume = (External Unit Cost - Internal Variable Cost) ÷ Internal Fixed Cost
KRA Tax Obligations PAYE: Monthly from salaries (per KRA tax brackets) VAT: 16% on taxable goods/services — filed by 20th monthly Corporation Tax: 30% on profits — filed annually NHIF: KES 1,700/employee/month (2024) NSSF: 6% of pensionable pay (employer + employee) Housing Levy: 1.5% of gross salary (effective 2024) Non-compliance: 20% penalty + 1% monthly interest
Key Concepts
Cost-Benefit FrameworkROI CalculationNPVMake vs BuyKRA Obligations
🌍 Real-World Example
Naivas Supermarket evaluates every new location using NPV analysis — projecting setup costs, revenue and 3-year payback periods before signing any lease.
💬 Lesson Quiz
1. ROI (Return on Investment) is calculated as:
2. NPV (Net Present Value) accounts for:
3. The Housing Levy rate introduced in Kenya in 2024 is:
ROI = (Net Benefit ÷ Total Cost) × 100 Payback = Initial Investment ÷ Annual Net Benefit NPV: Positive = value creating | Negative = value destroying | Use 12% discount rate Kenya
Investment Decision Case Study: Your department needs new laptops. Option A: Buy 10 at KES 90,000 each (3-year life) Option B: Lease at KES 40,000 per laptop per year
1. Calculate total 3-year cost for each option 2. Identify non-financial factors favouring each option 3. Calculate NPV of Option A vs B using 12% discount rate 4. Make and justify your recommendation in a one-page business case
Submit your completed exercise through the LMS dashboard for instructor review.
3
Module 3: NITA, Management Reporting and Financial KPIs
1 lessons · 50 min · 4 hours
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Lesson 1: Management Accounts and Financial Ratios
50 min · Video + Reading
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Management accounts are internal financial reports designed for decision-making — unlike statutory accounts prepared for external stakeholders.
Typical Management Account Pack 1. Executive summary dashboard (traffic light) 2. P&L — actual vs budget vs prior year 3. Balance sheet snapshot 4. Cash flow statement 5. Departmental cost breakdown 6. Narrative commentary on variances
Traffic Light Dashboard 🟢 Green: On target or better 🟡 Amber: Within 5-10% of target 🔴 Red: More than 10% off target, requires action and explanation
Key Efficiency Ratios DSO (Debtor Days) = (Receivables ÷ Revenue) × 365 — how long to collect payment. Target: 30-45 days. DPO (Creditor Days) = (Payables ÷ COGS) × 365 — how long before paying suppliers Inventory Days = (Inventory ÷ COGS) × 365 — how long stock sits Asset Turnover = Revenue ÷ Total Assets — revenue generated per KES of assets
Variance Analysis Favourable variance: Better than budget (revenue) or less than budget (cost) Adverse variance: Worse than budget
For each material variance, ask: 1. What caused it? 2. Is it one-time or recurring? 3. What action is required?
NITA Levy and Reimbursement NITA levy: KES 50 per employee per month CCS is NITA-accredited — all 129 courses qualify for reimbursement Claim process: Pre-approve training → Attend CCS course → Submit claim within 3 months Required documents: Invoice, attendance register, CCS certificate (accredited) Reimbursement: 50-100% of course fees depending on programme
Equity Bank distributes monthly management accounts to every branch manager — ensuring financial accountability is distributed, not centralised, with each manager responsible for their P&L.
💬 Lesson Quiz
1. Management accounts differ from statutory accounts primarily because they are:
2. DSO (Days Sales Outstanding) measures:
3. The NITA levy is currently set at:
4. A 'traffic light' dashboard marks a metric RED when:
Variance: Favourable = better than budget | Adverse = worse than budget
NITA Levy: KES 50/employee/month NITA Reimbursement: Pre-approve → Train at CCS → Claim within 3 months CCS is NITA-accredited — all 129 courses qualify
Financial Ratios Analysis: 1. Using your organisation's last financial statements, calculate all ratios in each category 2. Compare each ratio to the industry benchmark for your sector 3. Identify your organisation's top 3 financial strengths 4. Identify your organisation's top 2 financial vulnerabilities 5. Recommend one management action based on your analysis 6. Calculate your organisation's NITA levy liability and identify 3 CCS courses for reimbursement
Submit your completed exercise through the LMS dashboard for instructor review.
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Final Examination
50 MCQs · 70% pass mark · Unlimited retakes · Auto-graded · GLI Certificate issued immediately on passing.
Who Should Take This Course
✦Managers with P&L responsibility but no finance background
✦Programme managers in NGOs
✦Government officers managing budgets
✦Entrepreneurs managing business finances
Learning Outcomes
✓Read and interpret income statements, balance sheets and cash flow statements
✓Prepare and manage departmental budgets
✓Conduct cost-benefit analysis for investment decisions
✓Understand cash vs profit distinction
✓Apply KRA compliance requirements
✓Use management accounts for decision-making
Quick Details
Duration18 hours
Modules3 modules
Lessons4 lessons
LevelProfessional
PriceKES 15,000
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