  Purpose: A significant number of the non-financial firms listed at the
Nairobi Securities Exchange (NSE) have been experiencing declining financial
performance which deters investors from investing in such firms. The lenders
are also not willing to lend to such firms. As such, the firms struggle to
raise funds for their operations. Prudent financing decisions can lead to
financial growth of the firm. The purpose of this study is to assess the effect
of Share capital on financial growth of Non-financial firms listed at the
Nairobi Securities Exchange. Financial firms were excluded because of their
specific sector characteristics and stringent regulatory framework. The study
is guided by Market Timing Theory and Theory of Growth of the Firm.
Methodology: Explanatory research design was adopted. The target population of
the study comprised of 45 non-financial firms listed at NSE for a period of ten
years from 2008 to 2017. The study conducted both descriptive statistics
analysis and panel data analysis. Findings: The result indicates that, share
capital explains 32.73% and 11.62% of variations in financial growth as measure
by growth in earnings per share and growth in market capitalization
respectively. Share capital positively and significantly influences financial
growth as measured by both growth in earnings per share and growth in market
capitalization. Implications: The study recommends for the Non-financial firms
to utilize equity financing as a way of raising capital for major expansions,
asset growth or acquisitions which may require heavy funding. In this way,
firms will be assured of improved performance as well as high financial growth.
The study also recommends for substantial firm financing through equity. Value:
Equity financing is important to any firm, if the proceeds are used to invest
in projects which eventually bring growth to the firm.
