Firms In Tanzania Research Articles

The effects of owner-managers' behavioural patterns on investment decisions among small-scale recycling firms in Tanzania

The effects of owner-managers' behavioural patterns on investment decisions among small-scale recycling firms in Tanzania

Implication of Transfer Pricing Scheme on Manufacturing Companies’ Profitability in Tanzania: A case of Dar es Salaam Stock Exchange

The main objective of the Study was to assess the implication of transfer pricing scheme on manufacturing companies’ profitability in Tanzania. Specifically aimed to determine the cause and effect relationship of interest payments on related party loans, payment of service fee on intercompany services and royalty payments for the use of related party intangible properties on manufacturing companies’ profitability. The study adopted a positivism philosophy and adopted deductive reasoning. The secondary data was collected from 4 manufacturing firm’s annual report for the period of 2013 to 2022. The study used multiple linear regression for data analysis and this was done through STATA software version 14.2. The study findings show that Interest payments on related party loans has significant negative effect on manufacturing companies’ profitability. Furthermore, the result shows that payment of service fee on intercompany services has no significant effect on manufacturing companies’ profitability. Finally, Royalty payments for the use of related party intangible properties has significant positive effect on manufacturing companies’ profitability. Current study recommends that, for companies to comply with relevant transfer pricing regulations, close supervision by taxing authority (TRA) is considered necessary to reduce unhealthy transfer pricing practices. Also, study recommends that interest payments on related party loans should be set at values that would not negatively impact the financial performance of manufacturing firms in Tanzania. Related party companies should set transfer price to reflect the ALP (arm’s-length price) that unrelated parties would agree to in the same circumstances for transfer or use of similar intangible property. Moreover, the study recommends government to put in place monetary policies that will facilitate financial performance of listed manufacturing companies and ensure proper regulation of the financial institutions so as to provide adequate credit facilities for the manufacturing firms in Tanzania.

Corporate Social Responsibility Communication on the Websites of Tourism Firms in Tanzania

This study investigates how Corporate Social Responsibility (CSR) information is communicated on the websites of tourism firms in Tanzania. Specifically, the study assesses the quantity, prominence and style of presentation of CSR information on the websites. Data was collected through a content analysis of the websites of the member firms of the Hotel Association of Tanzania (HAT) and Tanzania Association of Tour Operators (TATO). The findings reveal that about 50% of tourism firms disclose their CSR information on their websites. Also, about 57% of tourism firms disclose a minimal amount of CSR information (1 to 2 pages), 31% place their CSR information prominently on the homepage, 54% present their CSR information using textual format only and 38% of websites allow interaction with stakeholders for inquiries and feedbacks. Moreover, the study highlights that hotels are more effective in utilizing websites for CSR communication than their tour operators, suggesting that firm size and industry subsectors influence variations in CSR communication practices. The findings imply that tourism firms in Tanzania recognize the crucial role of websites in corporate communication including CSR communication. However, tourism firms need to improve their CSR web communication by enhancing the volume, prominence, multimedia-rich content and interactivity of web-based CSR communications. Further research focusing on specific subsectors and exploring strategies for enhancing CSR communication on tourism websites could provide valuable insights.

The Influence of Financial Self-efficacy on Financial Inclusion in Tanzania

This study investigates how Corporate Social Responsibility (CSR) information is communicated on the websites of tourism firms in Tanzania. Specifically, the study assesses the quantity, prominence and style of presentation of CSR information on the websites. Data was collected through a content analysis of the websites of the member firms of the Hotel Association of Tanzania (HAT) and Tanzania Association of Tour Operators (TATO). The findings reveal that about 50% of tourism firms disclose their CSR information on their websites. Also, about 57% of tourism firms disclose a minimal amount of CSR information (1 to 2 pages), 31% place their CSR information prominently on the homepage, 54% present their CSR information using textual format only and 38% of websites allow interaction with stakeholders for inquiries and feedbacks. Moreover, the study highlights that hotels are more effective in utilizing websites for CSR communication than their tour operators, suggesting that firm size and industry subsectors influence variations in CSR communication practices. The findings imply that tourism firms in Tanzania recognize the crucial role of websites in corporate communication including CSR communication. However, tourism firms need to improve their CSR web communication by enhancing the volume, prominence, multimedia-rich content and interactivity of web-based CSR communications. Further research focusing on specific subsectors and exploring strategies for enhancing CSR communication on tourism websites could provide valuable insights.

Implication of 4th Industrial Revolution on Tax Revenue Collection in Tanzania: A Case of Manufacturing Industries

The study assessed the implication of the Fourth Industrial Revolution (4IR) on tax revenue collection in Tanzania. Specifically, the study set out to establish the causality of investment in 4IR technologies, on manufacturing industries’ Value Added Tax (VAT); determine the influence of investment in 4IR technologies on manufacturing industries’ Corporate Tax and examine the effects of investment in 4IR technologies on manufacturing industries’ Employment Tax (PAYE). To achieve the research objectives, the study used a quantitative descriptive design to generate the required data. Moreover, the study used structured questionnaires for cross-sectional survey, administered with 225 production managers of manufacturing industries in Tanzania. It used probability sampling in the form of cluster sampling. Additionally, the study used the Least Square method to analyse the objectives of the study in addition to testing the hypotheses. The study found a positive and statistically significant causal effect between investment in modern technology, VAT, Corporate tax and Employment Tax (PAYE) of manufacturing firms in Tanzania, for the period under study. Implicitly, the emergence of 4IR does not necessarily occasion a decline in tax revenue collections (VAT, PAYE, and Corporate Tax) on the part of manufacturing firms in developing countries endowed with resources, like Tanzania, but rather complements and accelerates its growth. Thus, the study calls on the Tanzania Government to review and improve its Sustainable Industrial Development Policy of 2020 and the Integrated Industrial Development Strategy of 2025 to embrace, promote and support not only resource-based industries, but also technological based industries, to speed up industrialization within the country and ultimately improve and increase tax revenue collection. The government should also improve its investment policies and align them with technological changes brought by 4IR, to attract more foreign direct investments, importation and adaptation of 4IR technologies from developed countries that enhance productivity, turnover and tax revenue collections from the manufacturing sector.

Role of Managerial Social Ties in Firm Performance: Lessons from Grain-Milling Firms in Tanzania

ABSTRACT This article explores the role of managerial social ties in the performance of grain-milling firms in Tanzania. Specifically, it explores the composition of managerial social ties, investigates the resources embedded in the explored ties, and examines their influence on firm performance. A qualitative study was done based on 22 case studies of grain-milling firms operating in selected commercial cities in Tanzania. The findings reveal the major types of managerial social ties associated with the families, friends and ethnic groups. Interestingly, business ties (competitors, customers and suppliers) were embedded in the top managers’ connections rather than in their firms’ routines and processes. It is also evident that firm performance was greatly influenced by managers’ social ties, particularly with family members, which were beneficial in terms of market expansion, and access to micro-credits and new business ideas. Unlike previous studies, this study amplifies the role of social embeddedness in the development of inter-firm networks. This is because of the dominance of owner-managers in of the business operations hence hard to distinguish between the owner and the firm. The article adds knowledge on the sources of social capital and the kind of resources generated by social ties.

A Comparative Performance Analysis of Non-Life Insurance in Tanzania and Kenya

This study compares the performance of non-life insurance in Tanzania and Kenya. Specifically, the study compares the Technical and Scale Efficiency (TSE) of non-life insurance in the two countries. It further explores the sources of technical inefficiency in non-life insurance in Tanzania and Kenya. The study employs Data Envelopment Analysis (DEA) to estimate the efficiency of the non-life insurance firms by adopting two inputs: management expenses and commission paid, while premiums written, and net investment income were used as output variables. Data were extracted from the annual reports of non-life insurance companies in Tanzania and Kenya for the years 2014-2017 (four years). The study revealed that non-life insurance firms in Tanzania were more technical and scale efficient compared to their Kenya counterparts. When technical efficiency was further decomposed into pure and scale efficiency to examine what largely caused inefficiency, it was revealed that in both Tanzania and Kenya, inefficiency is largely derived from a lack of technical efficiency, which reflects issues of innovation in the sector, inappropriate management practices, operating at sub optimal size of operation and misallocation of resources in production system. This study offers information relevant for investors and policymakers to make informed decisions in the insurance sector in both countries. It further guides insurance firms on the important inputs and proper allocation of the resources in the production system. The findings also contribute to our growing understanding of the effectiveness of non-life insurance in the insurance markets of the two nations.

Knowledge ambidexterity in construction project-based organizations: predicaments of knowledge networking intention within outbound consultant-supplier interfaces

PurposeAgenda for knowledge creation within inter-project alliances and inter-firm supply chain networks has been extensively debated. However, the existing knowledge networks within consultant-supplier interfaces in the architecture, engineering and construction (AEC) industry seem to be vague, loose, incidental and insignificant. This study examines factors affecting knowledge networking intention (KNI) within construction service supply chain (CSSC) networks.Design/methodology/approachData analysis was conducted on a quantitative survey of 161 consulting professional service firms in Tanzania, employing stepwise regression modelling as the statistical technique.FindingsThe results indicate that three types of knowledge inertia (KI) exert varying effects on KNI. While both procedural (PI) and learning inertia (LI) negatively impact KNI, experience inertia (EI) has no impact on KNI. In addition, knowledge governance (KG) mechanisms are found to strongly strengthen and leverage the negative effects of PI and LI on KNI and the positive link between EI and KNI within outbound and heterogeneous CSSC actors, with formal KG having greater leverage than informal KG.Practical implicationsThe study offers guidance on how managers of PBOs should strategically orchestrate knowledge governance mechanisms within CSSC networks to leverage KI behaviours.Originality/valueCurrent literature on KNI, KI and KG within CSSC networks offers a limited understanding of how KI behaviours influence KNI of project-based organizations (PBOs) in tapping vibrant outbound peripheral knowledge. The research presents two major original contributions. First, the empirical evidence contributes to deepening the current understanding of how heterogeneous external knowledge within consultant-supplier interactions is negatively influenced by KI. Lastly, the study suggests formal and informal knowledge governance strategies for managers on how to counteract KI forces, thus extending the theoretical debate on KNI, KI and KG literature.

The Influence of Capital Structure on Corporate Effective Tax Rates of Listed Firms in Tanzania

This study examines the relationship between capital structure and corporate effective tax rates using data from 25 randomly selected listed firms on the Dar es Salaam Stock Exchange over a ten-year span (2013–2022). We employed a random fixed effect panel regression model while controlling for firm-specific variables such as size, profitability, age, and growth. The study reveals a significant and negative relationship between capital structure and effective tax rates, implying that firms utilising higher debt financing tend to experience lower effective tax rates. Additionally, firm size and profitability exhibit a significant relationship with capital structure. These findings hold significant implications for Tanzanian businesses, suggesting that they may enhance tax efficiency through strategic capital structure decisions. For policymakers, the results provide empirical insights on potential tax policy reforms, potentially fostering a more favourable business environment in Tanzania. This research contributes empirical evidence on the financial and tax dynamics of listed firms in Tanzania.

Capital Budgeting Implementation by Public Sector Construction Firms in Tanzania’s Housebuilding Industry: An Exploratory Study

This exploratory study investigates the implementation of capital budgeting practices (CBP) by selected public sector construction firms (PSCF) in Tanzania. This investigation seeks to assess the extent, to which such practices are used for effective investment decision-making, with a particular focus on the country’s housebuilding sector. A case study research design was adopted to collect data from five Tanzanian PSCF, serving as cases through a mix of questionnaires, interviews and document reviews. The emergent data was analysed using thematic analysis. An appreciable level of CBP implementation was observed in all the cases. The internal rate of return (IRR), net present value (NPV) and payback period (PBP) capital budgeting techniques (CBT) were observed to be mostly used by these PSCF, while sensitivity analysis was widely deployed for risk mitigation. The influence of top management in decision- making, political influence and lack of advanced software were some of the implementation challenges identified. The findings contribute to the elucidation of CBP implementation praxis in the public sector organisation context in developing countries, as it relates to the housebuilding industry in Tanzania’s unexplored context. The study proves to be a valuable resource for public sector entities in developing countries intent for facilitating effective investment decision-making about infrastructure procurement and it contributes to improving knowledge of CBP implementation, consideration of risk mitigation factors and post-project implementation audits by public sector firms.

A categorization of factors affecting quality of design documentation in Tanzanian construction projects

Purpose The design documents are products of a process that aims to provide sufficient details to enable the contractor to efficiently implement the project at a realistic cost. Accordingly, it is expected that these design documents must be of high quality to engender the attainment of the desired project objectives. The purpose of this study is to analyze the factors that affect the quality of design documentation in construction projects in the context of a developing country. Design/methodology/approach This study used a descriptive research design involving professionals from firms offering services in areas of design and documentation, mainly architectural, quantity surveying and engineering. A total of 80 out of 84 questionnaires were received and analyzed using IBM SPSS Statistics Version 25, and a factor analysis approach was used to categorize the factors into smaller five groups. Findings The factors were subsequently categorized according to size, time, staff, quality and training-related factors. Collectively, large size of the project, inadequate supervision of junior design staff, low professional fees, procurement process and system, failure to adopt quality management systems and allocation or assigning of staff to more than one project at the same time have high influence (component loading of 700) in respective groups. Research limitations/implications The reliance on data to analyze the factors of design documents in construction projects in developing economies context, using a Tanzanian exemplar, is considered a limitation. Developing countries with similar economic characteristics, procurement systems and cultural setup could benefit from the results of this study. Practical implications The study of factors affecting quality of design and documents in construction projects serves as a guide for built environment firms in Tanzania in conducting effective business and ensuring quality design documents, hence improved project performance. Understanding the nature of relationship between the design and construction teams as well as the impact of design documents on project performance is of great importance for the design teams of future projects and other decision-makers to pay attention when preparing design and related documents, especially during design stage of construction projects in developing countries. Originality/value The study contributes the knowledge by providing useful insights on the subject through a categorization of the factors affecting the quality of design documentation and exploring the nature of relationship between the design and construction teams in construction projects within a previously unexplored Tanzanian context focusing on a traditional procurement system for future improvement of project delivery, hence project success.

Cause – effect relationship of trust of buyer – suppliers' integration on procurement performance in large manufacturing firms in Tanzania

Purpose The purpose of this study was to establish the cause-effect relationship between determinants of trust in the buyer–supplier integration and the procurement performance of large manufacturing firms in Tanzania. Design/methodology/approach The study surveyed 52 firms from Temeke Municipality, Tanzania using questionnaire subjected to one procurement manager and one stores manager tallying a sample size of 104 respondents. Explanatory design was employed due to the presence of cause–effect relationship and the null hypotheses were tested using binary logistic regression technique at p values < 0.05 and ExpB > 1. Findings Mutual goals, geographical vicinity among partners, and supplier reliability are significant for the procurement performance of the manufacturing firms in Tanzania, whereas interpersonal and inter-organizational trusts and perceived buyers’ confidence are of no significant impact. Research limitations/implications Buyer–supplier integration is a recently embraced and paramount practice for the manufacturing firms in Tanzania. Therefore, longitudinal study would further add value. The presence of the causality from the tested hypothesis appeals for the necessity of progress tracking. Practical implications Causality has been established, and a framework has been developed for the performance of large manufacturing firms using trust of buyer–supplier integration. Social implications There shall be creation of more employment opportunities and timely availability of materials from large manufacturing firms in Tanzania. Originality/value Anchored on transaction cost economics and resource dependency theories, the study disclosed the root cause of procurement performance in the context of manufacturing firms in Tanzania whilst considering trust as a resource advantage of buyer–supplier integration.

Buyer–supplier collaboration's commitment. An antecedent for procurement performance of large manufacturing entities in Tanzania

PurposeThis study was steered to establish how buyer–supplier collaboration's commitment attributes serve as an antecedent for procurement performance in large manufacturing entities in Tanzania.Design/methodology/approachA parallel, concurrent, mixed method was used in the study. Quantitatively, 52 firms were surveyed from Temeke Municipality, Tanzania, using questionnaire that specified 1 procurement manager and 1 store manager from those firms, totaling a sample size of 104 respondents. Qualitatively, expressive opinions to supplement the numeric data were gathered from supply chain managers using the saturation principle. Explanatory design analyzed the existing cause–effect relationship, and the null hypotheses were tested using binary logistic regression at p values < 0.05 and ExpB > 1.FindingsFidelity and enthusiasm to suggest improvements to suppliers and the duration of the collaboration antecede the procurement performance of the manufacturing firms in Tanzania, while devotion to invest resources and initiatives on joint problem solving have no significant impact.Research limitations/implicationsThe causality between buyer–supplier collaboration and procurement performance has been revealed. Since there might be third party logistics in collaborations, future research should center on their moderating effect.Practical implicationsA framework has been developed for liberating procurement performance in the context of large manufacturing firms in Tanzania.Originality/valueBased on Transaction Cost Economics and Resource Dependency Theories, the study revealed the root cause of procurement performance in the context of Tanzanian manufacturing firms, while also considering commitment to buyer–supplier collaboration as a prerequisit for the commendable target.

The impact of board gender diversity on financial performance of listed firms in Tanzania: A panel analysis

This study seeks to determine whether gender diversity in the boardroom improves the financial performance of listed firms in Tanzania by examining theoretical and empirical findings and using 90 firm-year observations of 15 listed firms over six years from 2016–2021 from firms listed at the Dar es Salaam Stock Exchange (DSE). Return on equity (ROE) and Return on asset (ROA) were used as financial performance metrics. This study uses a balanced panel data analysis. The results showed that there was no statistically significant relationship between the percentages of women directors on boards or in executive roles and the financial performance of listed firms in Tanzania as measured by ROA and ROE. The results are inconsistent with theories of agency and resource dependence. The study is restricted to a sample of listed firms from DSE in Tanzania. The scope of future studies should be expanded to include listed firms across the East African region and more explanatory variables such as the Blau index in measuring boardroom gender diversity.

Career progression of women auditors in Tanzania: coping with the masculinity in audit firms

PurposeThis paper examines the career progression of women auditors working in auditing firms in Tanzania and the strategies employed by women auditors to cope with the masculine nature of audit firms.Design/methodology/approachData were collected through semi-structured, in-depth interviews with current and former female and male auditors in two auditing firms. A thematic approach to the analysis is adopted.FindingsThe study reveals that career progression of women auditors studied is constrained by gender-related barriers such as motherhood, pregnancy, maternity leave and limited coaching and networking, as well as household and caring responsibilities. These barriers are facilitated by the patriarchal system, which regards women as wives and mothers rather than professional workers. As a result, women auditors balanced work and family responsibilities by employing various coping strategies including establishing informal network organization, hiring nannies, living with family members, enrolling children to boarding schools and lobbying in the allocation of audit assignments. Despite employing these strategies, very few women reach top positions in audit firms in Tanzania.Practical implicationsThe findings reveal a need for wider engagement on the role of women and men in society, particularly to address the gender-related barriers faced by women in the accountancy profession.Originality/valueMost previous studies of gender in the accountancy profession have focused on Western contexts. This is one of few to examine the phenomenon in an African context.

Effects of Innovation on Business Performance: Empirical Evidence from Manufacturing Firms in Tanzania

Regardless of its relevance for business performance, the influence of innovation on the performance of manufacturing firms in Tanzania is not well documented. Thus, this study aimed to examine the effects of innovation on business performance of manufacturing firms in Tanzania. The study used cross-sectional design and quantitative approach. Copies of a structured questionnaire were administered to 420 participants from 28 manufacturing companies in Dar es Salaam and Coast Regions. An impressive response rate of 93.1% was achieved. Data were tested for reliability using Cronbach’s alpha coefficient. Tests for normality, multicollinearity and autocorrelation were conducted, and the results showed the data were reliable, normally distributed, free of multicollinearity and autocorrelation problems. Descriptive and multiple regression statistical techniques were employed. The results suggested that a significant positive effect existed between performance of manufacturing firms and product innovation (B=0.705, p=0.001), process innovation (B=0.640, p=0.000) and marketing innovation (B=.818, p=0.000). The obvious implication to industry is that innovation is important to business success of the manufacturing companies, thus the governments should motivate firms to innovate continuously by giving incentives to invest in R&amp;D. Past studies linking innovation and performance have focused on financial measures of performance. The major contribution of the current study is to use non-financial measures of performance such as business growth and responsiveness to change.

Use of Social Media to Improve Marketing Performance of Selected Manufacturing Firms in Tanzania: Evidence from Coastal Region

The purpose of this study was to examine the effect of social media marketing on marketing performance of the manufacturing companies in Tanzania. Specifically, the study aimed to examine the effect of social media strategy, active presence and customer engagement initiatives on the marketing performance of selected manufacturing companies in Coastal Region. The study used social penetration theory. Quantitative research approach and cross sectional research design was used. A sample of 138 respondents was selected from 29 manufacturing companies in Coastal Region using simple random sampling technique. A structured questionnaire was used for collecting primary data. Data were analysed by using the Statistical Package for Social Science (SPSS) to compute descriptive statistics and undertake multiple linear regression. The results show that social media strategy had positive and significant relationship with marketing performance (B = 0.539, p = 0.000). Moreover, the results show that there was positive and significant relationship between active presence in social media and the marketing performance of the manufacturing companies (B = 0.620, p=0.001). Furthermore, the findings show that there was positive and significant relationship between customer engagement initiatives in social media and marketing performance of the manufacturing companies (B = 0.919, p = 0.000). The study concludes that social media strategy, active presence and customer engagement initiatives in social media have positive effect on the marketing performance of the manufacturing companies. The study recommends that manufacturing companies should make sure social media strategy, active presence and customer engagement initiatives become part of the marketing strategies in order to increase marketing performance.

Communication and Supply Chain Performance in Tanzania Engineering and Manufacturing Design Organisation in Arusha

Communication is considered as one of the parameters that positively drive supply chain performance in organizations in various industries and sectors. However, there are limited studies that link communication and supply chain performance specifically in manufacturing industries in Tanzania. Therefore, this study intended to narrow such a gap by assessing the role of communication on supply chain performance in manufacturing firms in Tanzania, with a particular case of Tanzania Engineering and Manufacturing Design Organisation (TEMDO) in Arusha. As case studies research designs fit well with the use of mixed-methods or one of the two extremes (qualitative – quantitative spectrum), this study adopted a qualitative approach and used primary data gathered from respondents using questionnaire and interviews in form of opinions, views and their beliefs. Data collected were analysed using descriptive statistics such as frequencies, percentages, mean and standard deviation. Findings corroborates with other similar studies that communication plays a big role in the supply chain performance at TEMDO Arusha. As different organisations have different styles, forms and tools to communicate, this study revealed through parameters such as open sharing of information, willingness to share information, communication of unforeseen challenges and frequency of exchange of information have a significant impact to communication and consequently to supply chain performance. It is recommended that TEMDO should promote good communication so as to build a good relationship with suppliers to enhance efficiency. The firm should also ensure that it has competent supply chain staff with good communication skills, which will focus on ensuring that supply chain relationships are met. Implication and originality of this paper is that, as styles, modes, tools and culture of communication in organisations evolve, similar and context specific studies on communication and supply chain performance will be of beneficial impact in knowledge, management practice and academia.

Effects of corporate governance disclosure on profitability of public listed firms in Tanzania

This study investigated the effect of corporate governance information (CGI) disclosure on firms' profitability in the Dar es Salaam Stock Exchange (DSE). Twenty-one listed companies were studied for a period ranging from 2006 to 2021 using a mixed research method with an explanatory sequential design. Return on equity (ROE) and Return on Assets (ROA) was employed as dependent variables in the panel data analysis. CGI disclosure was an independent variable. The control variables were geographical diversification, firm age, size, and sales growth. Secondary data was obtained from DSE. Qualitative data was gathered via semi-structured interviews. Thematic analysis and a random effect model with two estimates (1 and 2) were used to analyze qualitative and quantitative data. The findings suggested a positive and significant effect of CGI disclosure on firm profitability. The findings add to the body of knowledge by signifying stakeholder theory. The study concluded that Disclosure of CGI might undeniably result in increased profitability. We recommended that firm managers look closely at CGI disclosure, enhance their disclosure practices, and invest in disclosure strategies that benefit stakeholders.

Assessment of the Effects of Host Country Macroeconomics on Performance of Cross Listed Firms in East Africa

This study makes assessment of the effects of host country macroeconomic factors on the performance of cross listed firms in East Africa. It uses quarterly time series from March 2010 to December 2020. The study used stock prices of five Kenyan companies that are cross listed in the stock markets of Uganda and Tanzania. The overall model capturing the impact of the macroeconomic factors on the average prices of stocks shows that interest rate exerts positive and significant impact on the stock market performance, while, inflation has negative and significant effects on the stock market performance in both Uganda and Tanzania. GDP is statistically not significant in influencing the stock prices in both countries. On the other hand, the model that captures individual effect provides mixed result in both Uganda and Tanzania, with the negative effect of inflation reported in three firms in Uganda and two firms in Tanzania; while, a positive effect is found in one firm listed in Uganda and two firms listed in Tanzania. Similarly, the effect of interest rate is positive for three firms in both Uganda and Tanzania; and it is negative in one firm listed in both USE and DSE. GDP negatively affect stock prices of two firms in Tanzania and positively affect the prices of one firm in Uganda. The study concludes that macroeconomic variables exert effect on stock returns of the cross listed firms in East Africa.