There is a paucity of knowledge in the existing empirical literature regarding the effects of exchange rate, interest rate, inflation rate and GDP fluctuations on the performance of the manufacturing industry in Kenya. Previous studies on the effects of exchange rate, interest rate, inflation rate and GDP on the performance of a firm have concentrated on the banking industry and the entire stock exchange market. The nature and extent of the effects macro economic factors are unique from one

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... stry to another. This seminar paper therefore seeks to determine the effects of the macroeconomic environment on the financial performance of firms listed in the manufacturing and allied market segment of the Nairobi stock exchange. The research will adopt an explanatory survey research approach and the targeted population would be the nine companies listed in the manufacturing and allied market segment. Secondary data would be obtained from the Nairobi Stock Exchange and the Kenya National Bureau of Statistics. The data collected will be analyzed with the use Microsoft Excel and SPSS version 20. This research would significantly add up to the existing body of empirical literature. The research would therefore be of great help to the corporate managers, shareholders, foreign investors, the government, researchers and academicians in general.