  A significant number of the non-financial firms listed at Nairobi Securities
Exchange (NSE) have been experiencing declining financial performance which
deter 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 short-term debt on
financial growth of non-financial firms listed at Nairobi Securities Exchange
for a period of ten years from 2008 to 2017. Financial firms were excluded
because of their specific sector characteristics and stringent regulatory
framework. The study is guided by Agency Theory and Theory of Growth of the
Firm. Explanatory research design was adopted. The target population of the
study comprised of 45 non-financial firms listed at the NSE for a period of ten
years from 2008 to 2017. The study conducted both descriptive statistics
analysis and panel data analysis. The result indicates that, short term debt
explains 45.99% and 25.6% of variations in financial growth as measured by
growth in earnings per share and growth in market capitalization respectively.
Short term debt positively and significantly influences financial growth
measured using both growth in earnings per share and growth in market
capitalization. The study recommends that, the management of non-financial
firms listed at Nairobi Securities Exchange to employ financing means that can
improve the earnings per share, market capitalization and enhance the value of
the firm for the benefit of its stakeholders.
