The purpose of this course is to equip students with the knowledge and practical skills required for effective financial planning and modeling. It enables learners to analyze financial information, forecast future performance, and develop financial models that support informed decision-making and strategic planning. The course emphasizes real-world application within the Kenyan context while maintaining alignment with international standards, preparing students to navigate financial challenges with confidence and professionalism.

CLO 1: Explain the key principles and concepts of financial planning and financial modeling.

CLO 2: Analyze financial statements and data to support planning and decision-making.

CLO 3: Develop financial forecasts and construct basic financial models using appropriate tools and techniques.

CLO 4: Evaluate investment and financing decisions using relevant financial planning and modeling approaches.

CLO 4: Apply financial planning and modeling skills to real-world business scenarios within the Kenyan and global context.

CLO 4:Demonstrate ethical and professional judgment in financial planning and modeling practices.

Topics in this course include Introduction to Financial Planning and Modeling: an overview of the concepts, scope, and importance of financial planning and modeling in supporting organizational decision-making. Emphasis is placed on the financial planning process, goal setting, and the role of financial models in both corporate and SME contexts within Kenya and globally.

Financial Statement Analysis for Planning: detailed examination of financial statements, including the statement of financial position, income statement, and cash flow statement, with a focus on their use in financial planning. Application of ratio analysis, trend analysis, and common-size analysis to evaluate financial performance and inform strategic decisions.

Budgeting and Financial Planning: exploration of budgeting techniques, including operating, financial, and capital budgets. Emphasis is placed on budget preparation, coordination, variance analysis, and the role of budgeting in resource allocation and performance management in both public- and private-sector organizations.

Cost Analysis and Decision-Making: analysis of cost behavior and cost structures, including fixed, variable, and mixed costs. Application of cost-volume-profit (CVP) analysis, break-even analysis, and activity-based costing in supporting managerial decision-making and financial planning.

Financial Forecasting Techniques: Introduction to forecasting methods used in financial planning, including time series analysis, regression analysis, and qualitative forecasting approaches. Emphasis is placed on forecasting under uncertainty, considering factors such as inflation, interest rates, and exchange rate fluctuations in the Kenyan economy.

Capital Budgeting and Investment Appraisal: study of investment decision-making techniques, including net present value (NPV), internal rate of return (IRR), and payback period. Evaluation of investment risks and the application of these techniques in real-world projects, including infrastructure and SME investments.

Financial Modeling Techniques: development of financial models to support planning and decision-making. Topics include scenario analysis, sensitivity analysis, and simulation techniques. Emphasis is placed on model structure, assumptions, and interpretation of outputs.

Excel and Digital Tools for Financial Modeling: practical application of spreadsheet tools in financial modeling, including the use of financial functions, data tables, pivot tables, and dashboards. Introduction to digital tools and automation in financial analysis and reporting.

Corporate Financial Planning and Strategy: examination of strategic financial planning, including working capital management, financing decisions, and dividend policy. Application of financial planning principles in corporate and SME environments within Kenya.

Risk Analysis, Ethics, and Sustainability in Financial Planning and Modeling: analysis of financial risks, including market, credit, and operational risks, and their incorporation into financial models. Emphasis is placed on ethical considerations, professional standards, and regulatory compliance, as well as emerging trends in sustainability and responsible financial decision-making.