Performance Of SACCOs Research Articles

EFFECT OF DYNAMIC CAPABILITIES ON PERFORMANCE OF SACCOS IN MANDERA COUNTY, KENYA

Dynamic capabilities are the firm's ability to integrate, build, and reconfigure internal and external competencies to address rapidly changing environments. By developing inspired capabilities that go beyond ordinary strategic capabilities, firms will be in a strong position to achieve a long-lasting competitive advantage. SACCOs play a critical role of savings mobilization for investments as envisioned in the Kenya’s development blueprint, vision 2030. SACCOs have been facing financial challenges leading to closure while others have been put under receivership. The general objective of this study was to determine the effect of dynamic capabilities on performance of SACCOs in Mandera County, Kenya. The specific objectives was to examine the effect of markets technological sensing and effect of innovation and strategic renewal on performance of SACCOs in Mandera County, Kenya. The study was guided by dynamic capabilities theory and diffusion of innovation theory. This study adopted a descriptive research design. The study targeted 39 SACCOs distributed in all constituencies in Mandera. The target included 117 senior management staff of the SACCOs from which 117 senior management staff were subjected to the questionnaires through census. The study used content validity to confirm that the questionnaire would enable the researcher to achieve study objectives. A pilot study was conducted with 10% of the respondents hence 12 management staff in four SACCOs. Reliability was tested using Cronchba Alpha coefficient with a threshold of 0.7. Data was analyzed using descriptive and inferential statistics and presented in Tables. All ethical considerations were strictly adhered to. Findings show that; markets technological sensing has a strong positive significant correlation with performance of SACCOs in Mandera County (r = 0.542, p value =0.000), and innovation and strategic renewal has a strong positive significant correlation with performance of SACCOs in Mandera County (r = 0.842, p value =0.000). The study therefore recommends that; the management should invest in gathering and analyzing market intelligence, and make efforts to ensure that the staff who introduce successful ideas are rewarded.. KEY WORDS: Markets technological sensing, Innovation and strategic renewal , Performance of SACCOs

The Role of Savings and Credit Cooperative Societies in Financially Supporting Employed Women in Dar es Salaam, Tanzania: A Case Study of CRDB Workers SACCOS

Savings and Credit Cooperative Societies (SACCOS) are financial cooperatives that aim to meet the financial needs of different population segments, including women, men, or other specified categories. The primary role of these financial institutions is to improve the socio-economic development of their registered members and the community at large. The aim of this study was to determine the effects of SACCOS on women's financial accessibility, specifically focusing on those working with the Cooperative Rural Development Bank (CRDB) in Dar es Salaam. The research was grounded in Agency Theory and Stakeholder Theory. A descriptive research design was employed, and quantitative analysis was performed. A sample of 80 respondents was randomly selected from a population of 1,700 members of the CRDB workers’ SACCOs. The study utilized observation, surveys, and questionnaires. Secondary data sources included newspapers, journal articles, books, SACCO manuals, and authoritative internet sources. Simple descriptive methods were used to present the study's results, while percentages were used to highlight numerical patterns. Quantitative data was analyzed using Excel. The results showed that over 77% of SACCO's female members experienced better socio-economic conditions compared to non-members. The study recognized that quick access to finance through SACCO services significantly improved the standard of living, particularly for women. Although these women work with the bank, SACCO services have enabled them to access more finance than they would typically qualify for through the bank. However, SACCOs face several constraints, including poor management, lack of training opportunities for members, high-interest rates, and societal perceptions of women (segregation). These factors have presented challenges to the performance of SACCOs. The study recommends that members receive training on how to improve the performance of SACCOs to better leverage the services provided. In general, the government should amend and enforce policies related to governance, financial management, and the proper management of accounting and strategies that strengthen SACCOs. This would enhance their ability to support women’s access to finance, leading to improved socio-economic development.

Analysis of ICT Adoption on the Financial Performance of Kitui Teachers Sacco

ICT adoption refers to the utilization of technology in gathering, processing and using knowledge within the organization. The financial performance of SACCOs largely depends on the strategic actions undertaken by the management. Despite this, the performance of SACCOs has always been fraught with numerous management challenges as evidenced by the chaotic scenes at most annual general meetings. Maintaining a sustainable growth of earnings for SACCOs has become a universal challenge. This study seeks to analyze how ICT adoption affects the financial performance of KTS. The study employed a mixed methodology combining quantitative and qualitative approach. The target population comprised 12 Board of directors, 5 chief managers, 9 departmental heads, 8 branch managers and 12 assistant managers. Primary data was collected using questionnaires. Their validity and reliability was achieved through the use of pilot test. The data of the pilot test were not incorporated in the analyses. The quantitative data was analyzed using descriptive statistics and presented through the use frequencies and percentages. SPPS version 24 was used to carry out inferential statistics through the Pearson‘s Correlation analysis. The results of the descriptive statistics have been presented using frequency tables. The results of the analysis indicate ICT adoption had a positive and statistically significant influence on the financial performance of KTS (β=.0.287, P=0.05). The descriptive statistics had an overall average mean and SD of 3.72 and 0.495 respectively. The finding indicated that ICT adoption had a significant influence on the financial performance of KTS. The study concluded that ICT adoption play a vital role in the financial performance of organizations

Influence of Management Input on Effectiveness of Saccos Internal Audit in Western Kenya

Purpose: Examination of management input on effectiveness of Saccos internal audit in Western Kenya. Methodology/Approach: Employing causal design for cause and effect association, a target of 129 staffs in 15 DT-SACCOS was identified of which stratified sampling led to 97. Researcher designed structured questions in questionnaire that formed basis for data gathering. Findings: Results indicated that management input had a significant effect on effectiveness of Saccos internal audit in Western Kenya as indicated by p value and t values. Implications: The study recommended that the management should enhance their input by availing finances on time. This basically improves performance of Saccos.

Risk Management Strategy on Financial Performance of Micro Finance Institutions in Uganda: A Case of Rushere Savings and Credit Cooperative Organization in Kiruhura District

Microfinance institutions (MFIs) play a crucial role in promoting international and local development goals, especially in the context of poverty reduction, economic empowerment, and financial inclusion. MFIs provide financial services, such as microloans and savings accounts, to low-income individuals and small businesses. These services are intended to help people lift themselves out of poverty by providing access to capital for income generating activities. Many of the United Nations' Sustainable Development Goals, such as no poverty, zero hunger, and gender equality, can be furthered through the work of MFIs. However, it's essential to note that the impact of MFIs varies depending on the specific institution, its approach, and the regulatory environment in which it operates. While microfinance has the potential to be a powerful tool for development, it is not a panacea and must be implemented effectively to achieve the desired outcomes. Consequently, MFIs face various risks in their operations, which impact their financial stability and ability to achieve their social and economic development goals. To manage these risks effectively, MFIs need to implement robust risk management strategies. The specific objective of carrying out this study was to examine the extent to which risk management influences the financial performance of Rushere Savings and Credit Cooperative Organization in Kiruhura Uganda. The research questions focused on risk assessment, diversification of portfolio, credit risk management, member education, technology risk management, and insurance risk coverage. This study was based on a quantitative research approach. The study was underpinned by the modern portfolio theory. A descriptive research design was used to obtain the responses that were later statistically described in quantified formats. The study considered a target population of 160 people from which a sample size of 127 respondents was selected for this study. Both Stratified proportionate sampling and simple random sampling techniques were used to select individual respondents in their strata. Structured self-administered questionnaires were used for primary data collection. Data was analyzed by the use of inferential statistics with the aid of Statistical Package for Social Scientists (SPSS) version 24.0. The study established a significant positive relationship between risk management and financial performance (β1=-124, p=0.000<0.05). The study concluded that there is a strong positive relationship between risk management and financial performance. The study recommended the implementation of risk management strategies to enhance the performance of SACCOs. Keywords: Risk Management, Performance, Strategy, SACCOs

Effect of Accounting Controls on Financial Performance of Transport Sector SACCOs in Murang’a County, Kenya

The study sought to evaluate the effect of accounting controls on the financial performance of SACCOs in the transport sector. The Kenyan transport sector accounts for about 8.3% of the Kenyan GDP. However, the sector faces fundamental challenges such as inadequate flow of information and investment losses due to poor record keeping, which affect the financial performance of the SACCOs in the sector. The study aimed to establish specifically the effect of financial reporting and auditing controls on the financial performance of the transport sector SACCOs within Murang’a County in Kenya. The county was selected for the study because it was found to have nurtured several successful transport sector SACCOs, such as MTN, NTK and KST, serving customers from different parts of the country. The research was founded on the agency theory. The research design used was descriptive, and a census approach targeting all the transport SACCOs within Murang’a County (that are registered under the Ministry of Co-operative Societies Development of Murang’a County) was adopted. The primary data were obtained through the use of questionnaires, while the secondary data were obtained from the SACCOs' reported audited financial statements for five years from 2017 to 2021. Data collected were thereafter analyzed with the use of descriptive and inferential statistics encompassing the regression analysis. With a response rate of 84.2%, the data collected were cleaned and analyzed through regression analysis, and the hypotheses of the study were further tested. The R Square obtained of 0.027 suggests that the independent variables (financial reporting controls and auditing controls) account for only 2.7% of the financial performance of the transport SACCOs. The study, therefore, concluded that accounting controls had no significant effect on the financial performance of the transport sector SACCOs. The study, therefore, recommends that the SASRA regulatory authority (Ministry of Co-operative Societies) should ensure that the SACCOs are well managed and regulated. The SACCOs should implement strong internal controls that would aid in improving their financial performance. Through the study, the management of the various transport SACCOs will be able to ensure proper implementation of the necessary accounting controls within the SACCOs to enhance their operations.

Effect of Board Accountability on Financial Performance of Selected Saccos in Kiruhura District, Uganda

Board accountability and Financial Performance are significant concepts among SACCOs in Uganda due to their involvement in the financial inter mediation process. In spite of the several interventions by Bank Uganda, a number of banks and other financial institutions have failed to operate forcing the regulators to intervene to ensure sanity in the financial system. The purpose of this study was to investigate the effect of corporate governance on financial performance of SACCOs in Kiruhura District, Uganda and the specific objective were; To examine the effect of board accountability on financial performance of selected SACCOs in Kiruhura District, In this study, a cross-sectional survey research design was employed, adopting quantitative and qualitative approaches research approaches. A total population of 342 people were used at a confidence level of 95% or error of 0.05 and the sample size was 184 respodents who involved the staff and members taken from the six SACCOs registered in Kiruhura district’s, Uganda as of January 2023.The obtained data for analysis was divided into two phases. First, descriptive statistics on the respondents and the preliminary data analysis were performed using SPSS version 20.0. These statistics included multicollinearity, mean and standard deviation, outliers and extreme values, and missing values and in the second phase, the structural relationships between the variables in the suggested conceptual model were tested and examined using structural equation modeling (SEM). Jaffrey’s Amazing Statistical Program (JASP) version 0.17.2.0 was used to implement SEM. The findings of the study were: The effect of board accountability (BAC) on financial performance was found to have a negative effect (g = -0.908), implying that the data failed to support the direct relationship between BAC and FiP, thus not supporting H01, Therefore the study concludes that SACCOS will do less well financially the more its board assumes accountability for the company’s decisions and communicates them openly to stakeholders.the study recommends that the board of directors should be more effective in ensuring that they communicate the decisions clearly and appropriately so that SACCO’s maximize shareholders wealth. SACCO’s should seek best strategies of communicating and sharing the accountability feedback with SACCO members to generate maximum benefits for everyone.

Influence of Customer Relations Strategies on Performance of SACCOs in Kiambu County

Customer relationship management creates a good rapport between the organization and its customers thus enabling an organization to sustain a competitive edge in the market. Despite the importance of customer relationship management, many firms have not yet taken the full advantage that comes with managing customers effectively. This paper sought to examine the influence of customer relations strategies on the performance of SACCOs in Kiambu County. The study applied a descriptive research design. The study applied the Taro Yamane formula to come up with a sample of 250 participants. The population for the study was 250 employees of SACCOs in Kiambu County. Stratified random sampling was applied in addition to the Taro Yamane formula to come up with a sample size of 154 respondents. The study gathered data through questionnaires which were administered both physically and online. Data collected was analyzed through both descriptive and inferential analysis. Results revealed a β of 0.513 and a p-value of 0.001, between customers’ relations strategy and the performance of SACCOs. The study concluded that customer relations strategy had a positive and significant influence on the performance of SACCOs in Kiambu County. The study recommends building strong relationships with members which fosters trust, loyalty, and satisfaction, ultimately leading to increased financial stability and growth. Additionally, the study recommended that SACCOs should implement personalized communication channels, provide financial education programs, leverage technology for efficient service delivery, and continuously seek feedback to adapt strategies to members’ evolving needs. Lastly, the study recommends that SACCOs should implement robust member feedback mechanisms and actively incorporate member suggestions into decision-making processes.

Mediating Effect of Firm Size on the Nexus between Camel Rating Model and Financial Performance of Deposit Taking Savings and Credit Cooperative Societies in Kenya

Savings and credit cooperatives are of importance to developing countries due to their huge contributions on the national economy. The study sought to examine the mediation effect of firm size on the relationship between CAMEL rating model and financial performance of deposit taking SACCOs in Kenya. The study emanates from the Doctoral dissertation of the first author where the co-authors served as supervisors. Efficiency structure theory and working capital management theory were used. Panel regression analysis was used based on secondary data for the period 2013 to 2022. The study established that the mediation effect of firm size on the relationship between CAMEL rating model and financial performance of deposit taking SACCOs in Kenya was significant. Higher market value and consequently financial performance are linked to institutions with large firm sizes. It is therefore recommended that SACCOs should strive towards growing their total assets which will subsequently translate to higher profits and ultimately higher financial performance. The advantages of economies of scale of large institutions should be fully maximized so as to sustain higher financial performance of SACCOs. Keywords: CAMEL Rating Model, Firm Size, Financial Performance and Deposit Taking SACCOs

The Effect Of Strategic Implementation on Organizational Performance of Saccos In Southwestern Uganda

The purpose of the study was to examine the effect of strategy implementation on organizational performance of SACCOS in Uganda Case of Lyamujungu SACCO in Kabale District- Southwestern Uganda. The study employed a case study research design. It involved quantitative and qualitative methods which enabled the study to evaluate the relationship between the study variables at a snap shot. A sample of 140 respondents were selected using simple random sampling and purposive sampling techniques. The quantitative and qualitative data from the respondents was analyzed using SPSS Version 21.0 and thematic analysis respectively. Quantitative results in form of descriptive statistics, correlations and regressions were presented in tables based on the study objectives. The study found out that strategy implementation, has a positive significant relationship with organizational performance (r = .315, P≤.01). According to the study's conclusions, the Lyamujungu SACCO instance illustrates how strategy execution impacts organizational performance. According to the report, Lyamujungu SACCO's board of directors should implement its strategy effectively as staff members and clients carry out their job duties. The organization will be able to accomplish its goals of turning a profit thanks to this

Corporate Governance Practices and Performance of Deposit Taking Sacco's in Nairobi City County Kenya

Good performance of SACCOs is a key ingredient for its continuous existence and sustainability. The financial intermediation function carried out by SACCOs is dependent on how well they perform. Over the years, there have been various concerns by policy makers and academician over the SACCOs' dismal performance in Kenya. Despite the various corporate governance initiatives and measures implemented by important organizations such as the Centre for Company Governance, the issue of firm corporate governance remains unresolved, despite the involvement of the Capital Markets Authority and SASRA. The aim of this research is to determine how the performance of deposit taking SACCOs in Nairobi is influenced by corporate governance. The research focused on how stakeholder involvement, board composition, organizational structure, and control environment affect Nairobi-based deposit-taking SACCOs’ performance. The study's base was stakeholder, agency, stewardship, and resource dependence theory. The study employed a descriptive design. A census approach was used whereby all the deposit taking SACCOs in Nairobi were included in the study. The target population was 47 CEOs, 47 Sacco officers, 47 heads of finance and 47 heads of credit department. Data was gathered using structured questionnaire. In this research, to evaluate the construct and content validity, the researcher did a pilot test. Both descriptive and multiple regression analysis were used to examine the data. The findings showed that corporate governance factors (board composition, organization structure, control environment and stakeholder involvement) had a correlation coefficient (R) of 0.691 with an R squared of 0.477. From the ANOVA table corporate governance had a significant effect on performance of DT Saccos (F=28.513; p= 0.000). From the regression, corporate governance (board composition, organization structure, control environment and stakeholder involvement) had a positive effect on performance of DT Saccos. This study concludes that corporate governance (board composition, organization structure, control environment and stakeholder involvement) has a positive effect on performance of DT Saccos in Nairobi, Kenya. The study recommends that management of DT Saccos improve their corporate governance for increased performance levels. There is need for similar research based on other factors influencing performance, other measures of the variables, other Saccos & institutions as well as adopting secondary data.

Influence of Supplier Selection on Organizational Performance of Saccos in Kenya: A Case Study of Biashara Sacco in Nyeri County

Influence of Supplier Selection on Organizational Performance of Saccos in Kenya: A Case Study of Biashara Sacco in Nyeri County

Influence of Internal Audit Risk Planning Practices on the Financial Performance of SACCOs in the Western Region of Kenya

To better monitor and control risks, businesses may use risk-based internal audit (RBIA) practices. It also increases transparency and honesty in the financial reporting process. The Western Region and Kenyan Deposit Taking Savings and Credit Cooperatives (DT-SACCOs) are the primary subjects of this research. Despite having an audit department in place, some DT-SACCOs encounter difficulties in auditing their operations, such as a lack of audit evidence (too weak or incorrect) that makes it difficult for the auditor to make the proper choice or generate accurate findings. An internal audit that takes risk into account may help a company prioritize its resources where they will have the most impact. This allows the SACCO to boost its financial performance and provide better reporting to its members. This research looked at how risk-based internal audits affected the profitability of DT-SACCOs in Kenya's Western Region. Based on three theories - the Positive Accounting Theory of internal auditing risk planning, the Contingency Theory of risk management, and the Agency Theory of internal audit capacity—this descriptive study was conducted. Fifteen DT-SACCOs in the Western Region of Kenya will be the focus of the study. Primary data was collected from DT-SACCO members, with a response rate of five per SACCO. The data on financial performance was verified using secondary sources of information. Regression analysis shows that risk-based audit planning had a statistically significant effect on the financial performance of DT-SACCOs in the Western area (t = 5.626, p<0.05). The study recommended that SACCO management practice risk-based auditing with adequate planning from all stakeholders to enhance transparency and accountability. Furthermore, the management should ensure there is timely action on audit queries.

Effects of Debtors’ Management on Financial Performance of Savings and Credit Cooperative Organizations in Nandi County, Kenya

Savings and Credit Cooperative Organizations (SACCOs) are key components of the economy and social development. However, it’s experiencing both internal and external issues that should be handled. The study attempted to identify the effects of business financial parameters on the performance of SACCOS in Nandi County. Specifically, the study investigated the effects of the management of loan debtors on the financial performance of SACCOs in Nandi County. The study was guided by liquidity preference theory, human capital theory, efficient structure theory, and Pecking order theory. The study used a descriptive research design to examine all the influences on financial performance. The target population was therefore all the ten SACCOS in Nandi County registered and licensed as of January 2023, where eighty-seven employees were randomly sampled to participate. The primary sources of data collection used in data collection were structured questionnaires as the main tool. Content validity was used to determine the validity, while Cronchbach’s alpha coefficient was used to determine the reliability of the research instrument. The data was analyzed using both descriptive and inferential statistics. For descriptive statistics, tables and narratives were used, and for inferential statistics, correlations and regression analyses were used. The Statistical Package for Social Sciences software (SPSS) helped with data analysis. The study findings indicated that there was a positive and significant effect of loan debt management on the performance of Saccos in Nandi County (t = 9.833, P < 0.05). The study recommended that Sacco management should maintain a credit policy manual to help in debt recovery and even avail the required resources needed for effective management of loan debtors.

Indicative Factors for SACCOs Failure in Tanzania

SACCOs are viewed as a feasible opportunity toward financial inclusion in an economy where most of the citizens are poor, as they are very essential for the socio-economic development of members, the community, and the world at large. However, SACCOs sometimes do not realize the expected socio-economic potential, especially when they fail. This study aimed to comprehensively assess financial and non-financial factors, at institutional and personal levels, that contribute to the failure of SACCOS in Tanzania. The data were collected using a questionnaire on 5,000 members of SACCOs, obtained using stratified random sampling. Data collected were analyzed using descriptive statistics and binary logistic regression. The findings showed that both financial and non-financial factors, at personal and institutional levels, had a statistically significant and positive relationship with the failure of SACCOs. Therefore, the performance of SACCOs and other Microfinance Financial Institutions (MFIs) should be addressed from a comprehensive view of both financial and non-financial factors, at personal or institutional levels. In other words, the failure of MFIs should be addressed from a holistic point of view.

Exploration of Cash Flow Management Strategy and Financial Performance of Saccos in Imenti North Sub-County, Kenya

The study sought to explore the influence of cash flow management strategy on financial performance of Saccos in Imenti North Sub-County, Kenya. Descriptive research design was adopted to collect data from 21 deposit and non-deposit Saccos located in Imenti North Sub-County. The target respondents included 42 accounts department officers, 114 tellers, 93 back-office staff, and 120 loan officers hence a total of 369 respondents. Descriptive and inferential statistics were used to analyze the data. Cash flow management strategy had a correlation coefficient r=0.772** at α < 0.000 and a 99% significance level. The study established that the investment department was still undeveloped in many Saccos therefore limiting on the authorization of incorporation of funds in investment options like capital markets. This limited the Saccos to act as mere institutions of accepting deposits and savings, while at the same time issuing loans. This method of operation at many times did not guarantee consistent income due to competition from other financial institutions doing similar work. The study thus recommends that the Board of Management [BOM] should create policies and provide adequate funds to establish an investment department, if there is none, or strengthen it if in existence. The contribution to the study is that a quality policy structure would introduce the Saccos to endless opportunities in investment at capital markets which has a well-structured and managed fund portfolio. In return, this would improve the income since the operations of the Saccos would have been diversified spreading into various classes of investments available.

Strategy Formulation and Performance Of Saccos A Lyamujungu Sacco In Kabale District South Western Uganda

The purpose of the study was to determine how strategic formulation affected Lyamujungu SACCO's organizational performance. A correctional sectional research design was used for the investigation. The study was able to analyze the link between the study variables since it used both quantitative and qualitative methodologies. Simple random selection and purposive sampling methods were used to choose a sample of 105 respondents. Using thematic analysis and SPSS Version 21.0, the respondents' quantitative and qualitative data were examined. Based on the study's objectives, quantitative findings in the form of descriptive statistics, correlations, and regressions were provided in tables. The study discovered that the development of a plan had a substantial positive association with SACCO organizational performance (r =.785, P .01). With these results, the study makes a contribution by channeling the currently fervent conversation surrounding concerns of strategic formulation and organizational performance in Lyamujungu SACCO by offering empirical evidence that has been mostly absent. The study advises management to collaborate with Board members and all other stakeholders to implement the resolutions of both the Board meeting and the Annual General Meeting in order for Lyamujungu SACCO to develop effective strategies.

Strategic Management And Organizational Performance

The study was set to establish the effect of strategic management on organizational performance a case of Lyamujungu SACCO. The study employed a correctional sectional research design. It involved quantitative and qualitative methods which enabled the study to evaluate the relationship between the study variables. A sample of 105 respondents were selected using simple random sampling and purposive sampling techniques. The quantitative and qualitative data from the respondents was analyzed using SPSS Version 21.0 and thematic analysis respectively. Quantitative results in form of descriptive statistics, correlations and regressions were presented in tables based on the study objectives. The study found out that strategy management, has a positive significant relationship with organizational performance of SACCOs (r = .962, P≤.01). With these findings, the study makes a contribution of providing empirical evidence that has been widely absent to channel the presently zealous discussion surrounding issues of strategic management and organizational performance in Lyamujungu SACCO. The study recommends that, for effective strategic management at Lyamujungu SACCO management should work hand with Board members and all other stakeholders implement the resolutions of the Annual general meeting as well the Board meeting. 

Effects of Leadership on Financial Performance of Deposit Taking Saccos in Meru County

The emergence of Savings and Credit Co-operative Societies has been hailed as one of highly captivating financial sector in the world as a result of offering an alternative to financial intermediary and economic growth. However, over and above all the poor financial performance of these SACCOs has been subject of concern and it’s hinged on inadequate corporate governance. As a result, the purpose of this research is to establish the influence of leadership on financial performance of deposit taking SACCOs in Meru County. In this study, Stakeholders theory has been chosen to guide the study. The population of interest in this study will comprise of 12 DT- SACCOs with a target population of 120 participants drawn from the 12 DT- SACCOs in Meru County, the study population will comprise of CEOs, Executive Board Members, and operational Managers of the SACCOs. The study will employ census and purposively sample all the120 to participate in the study. Structured questionnaires with a five-point non-comparative Likert scale will be used to collect primary data. Data collected will be both qualitative and quantitative and will be analyzed by descriptive and inferential statistics. Statistical Program for Social Sciences (SPSS) will be used to analyze the data. The findings were presented using tables, charts, percentages, tabulations, means and other measures of central tendency. Tables were used to summarize responses for further analysis and facilitate comparison. This generated quantitative reports through tabulations, percentages, and measures of central tendency. The findings of this study established a strong positive correlation between board composition and financial performance of SACCOs. Academic qualification and occupation had the highest influence on SACCO’s financial performance with r (33) = 0.851, p < 0.05 and r (33) = 0.845, p< 0.005 respectively. It was however noted that there was a weak positive correlation between gender and SACCO’s financial performance, r (33) = 0.432, p < 0.05. It was also established that there is a strong negative correlation between size of board and SACCO’s financial performance, r (33) = - 0.784, p < 0.05. This means that the fewer the board members the better the financial performance of SACCOs. Besides, a strong positive correlation between board leadership and SACCO’s financial performance was determined, r (33) = 0.812, p < 0.05. A strong positive correlation between transparency and accountability and SACCO’s financial performance, r (33) = 0.884, p < 0.05 existed. The coefficient of determination R square was 0.542 which implied that 54.2% of variation in the dependent variable is determined by the independent variables (predictors). It also means the goodness of fit test is fulfilled. This also means that all the factors (board composition, board size, leadership, transparency and disclosure) significantly predict financial performance of SACCOs, with transparency and accountability having the highest prediction (ß = 2.208).

Strategic Planning and Performance of Savings and Credit Cooperative Societies in Nairobi City County, Kenya

SACCOs play a crucial role in granting access to sustainable fiscal assistance and are identified as most effective models in enhancing productivity with over 80% of the population in Kenya, deriving their livelihood directly or indirectly from the cooperative sector. However, SACCOs are facing challenges in performance as a result of stiff competition from other financial institutions, modern technology, problems in financial management, poor leadership, and governance issues. This review narrows the gap by evaluating the impact of strategic planning on SACCO performance in Nairobi City County, Kenya. A descriptive survey research design was utilized. The research targeted 47 licensed SACCOs in Nairobi City County using a census sampling method. Results revealed that all independent variables comprise environment analysis, strategy formulation and strategy selection, were significant and had a positive relationship with SACCO performance. Therefore, it was concluded that strategy planning delivers positive results in a firm, with strategy selection contributing most to the performance of SACCOs, followed by strategy formulation and then environmental analysis. The study recommends that SACCOs should review its strategic plan every quarter of the year for continuous improvement of performance as well as that the top management of SACCOs ought to incorporate the other strategic planning practices in order to improve their performance and competitiveness. SACCOs should acquire a steady improvement in performance by reviewing its strategic plan every quarter of the year. This will enable SACCOs to develop a better strategy. Based on the research results, top management ought to play the key role on ensuring the strategic plan process is success in SACCOs and it is a critical factor in the SACCO performance in NCC. There is need to embrace good leadership structure to ensure improvement on strategic plan implementation.