BSc Financial Engineering

The theories and practice of finance are not only challenged by complex financial systems, global systems but also by dynamically changing regulatory environments and politics. A world in transition creates both opportunities and challenges for experts who can turn theoretical and financial constructs into profitable, innovative and custom-designed instruments in the marketplace.Sophisticated modeling and revolution in information technology dominate the financial world which has sparked the rise in financial engineering.

Financial engineering is a cross-disciplinary field that utilizes computational intelligence, mathematical finance, and statistical modeling to analyze and predict market activity in order to make more informed investing, trading, and hedging decisions. It draws on tools from applied mathematics, computer science, statistics, and economic theory. As the name suggests it is a marriage of two critical age-old concepts finance and engineering, which uses mathematical techniques, financial theories and advanced programming techniques to solve critical and complex financial problems.

As a financial engineering student you are tasked to engineer the future of finance and transform financial theory into practice. The program furnishes students with foundational knowledge in financial concepts which then becomes a springboard to specialized fields where students can apply concepts.Teaching in Financial engineering focuses on finding optimal solutions to financial problems in broader and challenging environments and trains students specifically in independent study and research which is an essential skill for financial engineers.A student of financial engineering must be up to date with regards to global politics and their inevitable impact on economies.

Career opportunities

Career tracks for students in financial engineering include: Trading, Quantitative analysis, risk management, corporate finance, computational finance, FinTech and algorithmic finance, risk finance, derivatives development and pricing, asset/portfolio management, finance management and hedge fund management.

International Association of Quantitative Finance (IAQF)

International Association of Quantitative Finance (IAQF) is a not-for-profit, professional society dedicated to fostering the profession of quantitative finance by providing platforms to discuss cutting-edge and pivotal issues in the field.Founded in 1992, IAQF formerly the International Association of Financial Engineers (IAFE) is comprised of academics and professionals from banks, broker-dealers, hedge funds, pension funds, asset managers, technology firms, regulators, accounting, consulting law firms and universities worldwide. It provides a good resource platform for students of financial engineering that seek to grow their careers in the field. Link is available here.

Duration

4 years (2 semesters per year)

Students’ society

The Jomo Kenyatta University Association of Financial Engineers (JKUAFE) is a students’ organization that brings together all students of financial engineering in all years of study. JKUAFE was launched in 2009 and has continued to be an active society. The main objectives of JKUAFE are:

  1. To promote the all-round development of JKUAT financial engineeringstudents and graduates.
  2. To provide a bridge between the university, industry and financial engineering students.

JKUFE holds annual events that are aimed at bringing together students, staff and industry professionals providing presentations and debates on topical and contemporary financial engineering issues.The most outstanding financial engineering students are recognized during the association’s annual events.

Entry requirements

Minimum entry requirement into the program are a mean grade of C+with a minimum of C+ in Mathematics and English.

Fees and funding

The programme accommodates both government and self-sponsored students.  The fee structure is available here.

University application process

Government sponsored students are placed in the program through the Kenya Universities and Colleges Central Placement Service (KUCCPS). The university application process for self-sponsored students is available here. Intake is once a year in September.

Mode of delivery

COVID-19 pandemic has sparked the evolution of technology in learning at all educational levels. The department of Statistics and Actuarial Sciences has adopted blended learning that incorporates both physical and online academic learning in a bid to contain the spread of the pandemic. The university is well equipped with Wi-Fi that facilitates online delivery of lectures to our students. Physical learning includes lectures, tutorials, practical assignments, individual and group assignments, group discussions and presentations.  Self-learning instructional materials that enhance the spirit of independent study and research are available to all our students to supplement classwork.

Course content

First year First semester

CILS 2101: Communication and literacy skills

SMA 2104: Mathematics for Science

SMA 2100: Discrete Mathematics

STA 2101: Algebra for Statistics and Finance

STA 2102: Information Technology for Statistics

STA 2103: Business Economics I

STA 2014: Calculus for Statistics I

STA 2120: Fundamentals of Financial Engineering

First year second semester

HRD 2102: Development studies and Social Ethics

SZL 2111: HIV/AIDS

STA 2100: Probability and Statistics I

STA 2105: Calculus for Statistics II

STA 2106: Business Economics II

STA 2107: Database Management

STA 2121: Foundations of Financial Mathematics

STA 2122: Financial Accounting Theory

Second year first semester

SMA 2201: Linear Algebra I

STA 2200: Probability and Statistics II

STA 2202: Computer Interactive Statistics

STA 2204: Calculus for Statistics III

STA 2220: Fixed Income Securities Analysis

STA 2222: Money and Banking

STA 2224: Cost & Management Accounting

Second year second semester

SMA 2231: Differential Equations

STA 2201: Probability & Statistics III

STA 2205: Statistical Programming

STA 2211: Linear Programming

STA 2221: Theory of Insurance Practice

STA 2223: Business Finance & Financial Statement Analysis

STA 2225: Supply Chain & Fund Management

Third year first semester

SMA 2305 Complex Analysis

SMA 2306 Linear Algebra II

SMA 2321 Numerical Analysis

STA 2300 Theory of Estimation

STA 2302 Probability and Statistics IV

STA 2306 Real Analysis for Statistics

STA 2312 Regression Modelling I

Third year second semester

STA 2301 Tests of Hypothesis

STA 2305 Stochastic Processes

STA 2313 Research Methodology for Statistics

STA 2320 Investment Analysis & Portfolio Theory

STA 2321 Legal Environment of Business

STA 2322 Risk Management in Financial Institutions

STA 2401 Time series Analysis

Fourth year first semester

HRD 2401 Entrepreneurship skills

STA 2408 Regression Modelling II

STA 2418 Stochastic Calculus

STA 2420 Financial Time series

STA 2421 Derivative Securities and Markets

STA 2424 Behavioral Finance

STA 2428 Optimization Techniques

STA 2429 Project in Financial Engineering

Fourth year second semester

STA 2419 Computational Finance

STA 2422 Game Theory

STA 2423 Financial Risk Measurement

STA 2425 Life, Health and Social Insurance

STA 2426 Extreme Financial Risk Measurement

STA 2427 Corporate Finance

STA 2429 Project in Financial Engineering