Performance Of SACCOs Research Articles

Asset and Liability Structure on Investment Performance of Deposit Taking Savings and Credit Cooperatives in Nairobi City County, Kenya

Aim: Similar to conventional financial organizations, deposit taking SACCOs rely on assets to generate better returns, improving their financial stability and, consequently, their profits. Inadequate assets have also meant that deposit taking SACCOs sometimes proved unable to service externally procured debts. This affirms that the asset and liability ratio of deposit taking SACCOs is critical for them to succeed. It implies that nexus subsists amongst asset and liability structure and investment performance of the SACCOs. The main objective of this study was to establish the influence of asset and liability structure on investment performance of deposit taking SACCOs in Nairobi County, Kenya.
 Methods: The study utilized a causal research design. The target population for this study was 42 licensed deposit-taking SACCOs in Nairobi County, Kenya. The study was a census of all deposit taking SACCOs in Nairobi City County. Additionally, this research utilized secondary panel data that was retrieved from annual reports of the SACCOs from 2017 to 2021. The study used descriptive statistics in the data analysis. Additionally, inferential statistics which included correlation and regression were used in the data analysis.
 Results: The findings showed that fixed assets and currents assets have a significant positive effect on investment performance of SACCOs in Nairobi County while short-term liabilities and long-term liabilities have significant negative effect on investment performance of SACCOs in Nairobi County. The results also showed that fixed assets have a positive and significant effect on the ROI.
 Conclusion: Fixed assets like land & buildings, properties and equipment increase the wealth of the SACCOs, and have a significant impact on their investment performance.
 Recommendations: The management of deposit-taking SACCOs should increase investments in fixed assets including land, buildings, and equipment since they increase return on investment. Instead of leasing, the DT-SACCOs management can buy the fixed assets. To manage their cash flows, particularly those from account receivables and account payables, the management of DT-SACCOs should continuously guarantee they develop cash budgets and maintain a cashbook.

Impact of Accounts Receivable Management on the Financial Performance of SACCOS in Sheema Municipality, Southwestern Uganda

The study aimed to examine the impact of accounts receivable management on the financial performance of Savings and Credit Cooperative Societies (SACCOs). Despite their significant contribution to a country's economic development, SACCOs still face financial challenges, with 26% of loans considered bad debts and 60% of them failing within a year. A correlational research design was adopted, with a sample size of 145 and a questionnaire used for data collection. A regression analysis using SPSS was used to analyze the data. The results showed that accounts receivable management significantly affects financial performance, suggesting that innovative programs can increase SACCOs' financial performance by.494 units. The study recommends the introduction of innovative programs to improve SACCOs' financial performance, benefiting government policy makers, researchers, and management teams. The findings will be beneficial to government policy makers, researchers, and Sheema Municipality management teams. Keywords: SACCOs, Accounts receivable management, financial performance

Effect of Loan Repayment on Financial Performance of SACCOs in Rwanda A Case of Umwalimu SACCO Head Office

Consequently, Poor loan repayments have a negative effect on an institution's capital, earnings, and ability to achieve its goals, and they may even cause a financial institution to fail. For instance, poor loan repayment management results in losses and expensive delinquent management expenses. Such expenses have a negative impact on the income earned and, generally, the operations of the lending institution; as a result, the institution becomes financially unsustainable. The main objective of this study was to analyze the effect of loan repayment on financial performance of SACCOs in Rwanda and specific was to assess the effect of loan period on the financial performance of UMWALIMU SACCO for the period under study, to analyses the effect of loan follow-up policy on the financial performance of UMWALIMU SACCO for the period under study and to examine the effect of loan recovery policy on the financial performance of UMWALIMU SACCO for the period under study. Descriptive research design was used for this study, while Regression analysis was also employed. It provides empirical evidence suggesting two or more variables are or are not related and the researcher use a sample of 33 employees of UMWALIMU SACCO, therefore: financial performance of UMWALIMU SACCO main Branch = 16.631+ .361 loan period + .712 follow up policy +.584 loan recovery policy. At 5% level of significance all three variables which are Loan Period, Loan Follow-up Policy, and Loan Recovery Policy were positively and statistically significance since their p-values was below the acceptable threshold of 0.05. From the research findings, positive effect was found on three the variable i.e. is Loan Period, Loan Follow-up Policy, and Loan Recovery Policy with regression coefficients of 0.361, 0.712 and 0.584 respectively. These findings suggest that a unit increase in loan period, taking all the other variables constant at zero would result to a 0.361 increase in financial performance in UMWALIMU SACCO. Similarly, a unit increase in loan follow up policy would result to 0.712 increases in financial performance of UMWALIMU SACCO. A unit increase in loan recovery policy would result to 0.584 increases in financial performance of UMWALIMU SACCO main branch. Therefore, this study recommends that credit officers and credit committees should go beyond customer character before approving loans but assess other factors such as job security and the amount borrowed by the prospect.

Loan Collection Procedures and Financial Performance of Saccos in Mbarara City

The study flexed off to establish whether a relationship occurs amid loan collection procedures and financial performance of SACCOs in Mbarara City. This undertaking championed a non-experimental crosssectional research design with both descriptive and analytical styles where mixed method approach was used to collect and analyse data. The undertaking gathered quantitative data from 109 participants using questionnaires. Questionnaires were used to gather quantitative data which was then put into a data management tool, statistical package for social scientists’ version 20 for further description and inferences.
 The tool was then used to output a descriptive presentation and Pearson correlation coefficient mounted employed to ascertain statistical significance between the loan collection procedures besides financial performance of SACCOs in Mbarara city. The undertaking findings uncovered a slight positive connection amid loan collection procedure besides financial performance of SACCOs (r=0.259, p<0.001). Qualitative data was obtained by use of an interview guide that were subjected to the SACCO managers to give deep insight concerning the variables being undertaken. This undertaking resolved that loan collection procedures positively influences SACCOs’ financial performance. The undertaking commends SACCOs towards adopting unique revised loan collection procedures if the collections are to be realized on the agreed time as per the loan contract to ensure better loan performance hence improving the financial performance of the SACCOs.

English

This study's objective was to assess how lending appraisal affected SACCO performance in the District. The study's outcome variables were the performance of SACCOs, with SACCO governance serving as a predictor variable. The investigation was preceded by a cross-sectional survey. Data from 5 SACCOs with 109 respondents were collected, and both quantitative and qualitative analyses were merged. The analysis was conducted at three levels, namely: Descriptive, bivariate and multivariate analyses. Since descriptive analysis entailed description of a single variable and its attributes, frequency tables were used to present the data. At the bivariate level, a Pearson correlation matrix was conducted to ascertain the relationships between the predictor variables and the dependent variable. The dependent variable was regressed against using the updated predictor variables for loan approval at the multivariate level (performance of SACCOs). A linear regression model was used to fit the data. According to study findings from the regression model, loan appraisal (coef. = -0. 635, p-value=0.000) have a positive influence on the performance of SACCO in District. This study's main finding is that corporate governance has a big impact on SACCOS performance. The study consequently advises that more emphasis should be given to implementing corporate governance in order to ensure good performance of SACCOs in Rukiga District.   Key words: Lending appraisal, performance, SACCO.

Effect of Corporate Governance on Performance of SACCOs in Rubanda District South Western Uganda

The goal of this study was to evaluate the effect of corporate governance on the performance of SACCOs, in Rukiga District. SACCO governance was a predictor variable and performance of SACCOs was the study’s outcome variables. A cross-sectional survey was the precursor to the study. Quantitative and qualitative analysis were combined with the collection and analysis of data from 109 respondents. Descriptive, bivariate, and multivariate analyses were used in the analysis, which was done on three different levels. Frequency tables were employed to portray the data as descriptive analysis required presentation of a single variable and its characteristics. A Pearson correlation matrix was used to determine the correlations between the predictor factors and the dependent variable at the bivariate level. The modified predictor variables for corporate governance were regressed against the dependent variable at the multivariate level (performance of SACCOs). To fit the data, a linear regression model was employed. Corporate governance (coef. = 0. 532) has a positive influence on the performance of SACCO in Rukiga District, according to research results from the regression model. The key finding of this study is that corporate governance significantly affects SACCOS performance. The study therefore suggests that in order to ensure the sustainability of SACCO performance in Rubanda District, greater emphasis should be placed on implementing corporate governance.

Effect of Corporate Governance on Performance of SACCOs in Rubanda District South Western Uganda

Effect of Corporate Governance on Performance of SACCOs in Rubanda District South Western Uganda

Mobile Banking Services and Financial Performance of Saccos in Mandera County, Kenya

In spite of the role played by mobile banking as supported by the statistics shown above, how SACCOS’ financial performance is affected by mobile banking services. Therefore, this study sought to determine the influence of mobile banking services on financial performance of SACCOS in Mandera County. The specific objectives were to establish the effect of mobile money transfer, mobile account management, mobile credit facilitation and mobile bill presentment on financial performance of selected SACCOs in Mandera County. The study was guided by diffusion of innovation theory, theory of technological acceptance model and the task technology fit theory. A descriptive research design was deployed. The target population for this was all the selected SACCOs in Mandera County. There are 39 registered SACCOS in the County. This study focused on the 39 SACCOs distributed in all constituencies in Mandera County. Three respondents were selected from every SACCo to form a total population of 117 respondents. The target population was the management staff of the selected SACCOs. Stratified random sampling technique was deployed in obtaining sample of 35 SACCOs and 90 management staff. The study will collect primary data using semi-administered questionnaires containing open and close ended questions. Descriptive statistics including standard deviation, means, frequencies and percentages will be utilized. Frequency in tables were used in quantitative data presentation. Regression analysis will be done to illustrate how mobile money transfer, mobile account management and mobile credit facilitation and mobile bill presentment affects financial performance of selected SACCOs in Mandera County. The study found the mobile money transfer, mobile account management, mobile credit facilitation and mobile bill presentment had a positive significant relationship with the financial performance of selected SACCOs in Madera County. The study concluded that cash transfers influence mobile money transfer performance also to a very large extent and there was linear relationship between mobile money transfer and the performance of the inception of mobile phone financial transaction has brought a lot of benefits to the SACCOs in Mandera County. Mobile banking services such as airtime top up service has enabled commercial banks to increase their sales volumes, reducing costs of distribution and increasing customer satisfaction which ends up influencing financial performance positively. New payment technologies like bill payments have not only reduced the settlement time required for transactions but also financial costs that may arise from the processing of bill payments. Mobile credit facilitation to a larger extent impacts the financial performance of commercial banks in Kenya in that it helps reduce unnecessary cost, increase efficiency and improves on service delivery to customers. The study recommended that the management of the SACCOs in Mandera County should conduct research on other possible m-banking packages to capture market niches that competitors have not identified hence expand on the market share leading to improved financial performance. The SACCOs have put in place measures become more competitive by keeping pace with the technological developments. The SACCOs in Mandera County need to consider using person to person payments to improve on their financial performance and the SACCOs should ensure security and privacy on telephone services to avoid impersonation and fraud involved.
 

Influence of Staff Recruitment and Development on Performance of Saccos in Meru County, Kenya

The Savings and Credit Co-operative (SACCO) subsector is critical to Kenya's economic growth, since it provides a distinct and crucial role in financial services. Despite this, most SACCOs continue to suffer significant losses, with some even folding, raising questions about the procedures put in place to ensure continuing success. SACCOs in Meru County, in particular, have been plagued by financial scandals and employee-related issues, resulting in poor performance, raising questions about the role of human resource practices in easing these problems. The purpose of the study was to determine the influence of human resource management practices on performance of SACCOS in Meru County, Kenya. The specific objectives were to assess the influence of staff welfare practices and employee development practices on the performance of SACCOS in Meru County, Kenya. The study was anchored on Contingency Theory. A descriptive research design was followed by the study. The research was conducted on 24 SACCOs in Meru County, with the target population consisting of SACCO managers, auditors, human resource directors, and operations managers. Questionnaires were used to gather data for the study, which were then analyzed using descriptive and inferential statistics. From the descriptive analysis, it was revealed that the human resource management practices including Staff recruitment practices (x̅=4.46), Employee development practices (x̅=4.40) were adopted to a very large extent in the Saccos. The correlation analysis showed that all the research variables including Staff recruitment practices (r=0.276) and Employee development practices (r=0.535) had a positive effect on the performance of Saccos in Meru County, Kenya. The study recommends that Saccos to engage human resource practitioners’ offices or employee experts in recruiting if they are to meet their objectives. The study recommends that the organizations should undertake job training for their employees, and employee training techniques should be in line with available resources, organizational structure, and organizational culture.

Financial Management Practices and Financial Performance of Deposit Taking Saccos in Nairobi City County, Kenya

Purpose: The purpose of this study was to examine the effect of financial management practices on financial performance of SACCOs in Nairobi City County, Kenya.
 Methodology: This study adopted an explanatory research design. The target population consisted of the 215 deposit taking SACCOs in Kenya. A sample of 41 deposit taking Saccos in Nairobi city County registered by SASRA for the period 2015 to 2019 was drawn from the target population. Thus, the 41 deposit taking SACCOs as registered by SASRA and their published financial statements constitute the unit of analysis and unit of observation respectively. The census sampling method was used in order to gather enough information since the number of SACCOs is limited and justifies the requirements of efficiency, reliability and representativeness. Further, secondary data was also collected through data collection schedule. Facts and figures were collected through published financial reports and statements of deposit taking SACCOs licensed by SASRA in Nairobi County for the period 2015 to 2019 and the key financial information on the variables of concern were discerned from these reports. The data for this study was panel and therefore the STATA software was used for analysis under panel regression model. Descriptive analysis were done to explain the basic features of the data. Inferential analysis was done afterwards based on panel regression which was then used to test the research hypothesis according to the research specific objectives. The testing was under the 5% significance level.
 Findings: The results of the study revealed that fixed asset, loan portfolio, cash asset and financial investment management practices were positive and significantly correlated to financial performance of DT-Saccos in Nairobi City County. In addition, the results also indicated that financial investment management practices had a more positive and significant effect on financial performance, followed by loan portfolio management practices, then cash asset management practices and lastly fixed asset management practices. The moderating variable, sacco size was found to have a moderating effect on the relationship between financial management practices and financial performance of DT-Saccos in Nairobi City County.
 Unique Contribution to Theory, Practice and Policy: The study recommended that the management of DT-Saccos should consistently ensure they prepare cash budgets and maintaining a cash book so as to be able to manage their cashflows especially from the account receivables and account payables. They should also implement effective financial investment management practices that can help them reduce the risk of financial losses from investments such as projects or securities. The study findings may help policymakers in DT-Saccos such as the SASRA to enforce better loan portfolio management policies that encourage their customers to purchase loans and reduce cases of loan defaulting. Moreover, these policies may also be used to reduces the number of non-performing loans which have a significant effect on the ROA of the DT-Saccos. Researchers and Scholars could benefit from this study by use of the theories that were discussed in this study. They can also use the results to validate and corroborate findings of their own study.

Assessment of Credit Risk Identification on Loan Repayment Performance of Saccos in Imenti South Sub-county, Meru, Kenya

With the emergence of COVID-19 pandemic the economic status in the country has drastically changed due to the loss of livelihood of many citizens. Repayment of loans has been affected and thus there is need to assess the effect of credit risk identification on the loan repayment performance of SACCOs in Imenti South Sub-county, Meru. The study adopted a correlation research design to establish the relationship between independent and dependent variables. The target population for this study was 36 employees employed by SACCOs in Imenti South Sub County. The sample size was 36 respondents since census study was carried out to get information on the study variables. Data were collected by use of questionnaire from the respondents. The regression analysis model was applied by the researcher to determine the association between the study variables. Results have been presented using frequency tables, graphs and pie charts. To ensure that ethical consideration was taken into account, the researcher obtained informed consent from the participants so that only the participants who agreed participated voluntarily. The researcher was also honest so that the information obtained from the study was used for this research study only. The research found that identifying credit risk has an impact on how well loans are repaid. This is shown by the significance threshold for credit risk identification, which was 0.0174–0.05, showing a substantial link between credit risk identification and loan payback performance. Identification of risk is important in order to improve risk management and control the hazards SACCOs may face. SACCOs should establish proper credit risk identification practices such as having a clearly defined process of risk reporting and training all staff on risk identification to avoid loss and defaults.

Financial Accountability and Financial Performance of Savings and Credit Cooperatives in Mid-Western Uganda

Purpose: To establish the association between financial accountability and Financial Performance of SACCOs in Mid-Western Uganda.
 Methodology: A cross-sectional research design and positivist paradigm were used to collect data from 93 SACCOs in Mid-Western Uganda using a close-ended questionnaire. Besides, a standard linear regression analysis was conducted. From the target population of 122 SACCOs, a sample of 93 SACCOs was selected using probability sampling technique.
 Findings: The study established a positive significant association between financial accountability and Financial Performance.
 Unique Contribution to Practice and Policy: The study confirms the theoretical assertions that financial accountability associates with financial performance. Besides, the study addresses the mixed findings on the link between financial accountability and financial performance. Also, the study suggests a need for management to consider financial accountability as a key driver of financial performance of SACCOs. Still, there is need for government to advocate for effective financial accountability to ensure that SACCOs attain sustainable financial performance.

Regulatory Framework and Performance of Saving and Credit Co-Operatives in Rwanda:A Survey of Selected Saving and Credit Co-Operatives in Gasabo District

A regulatory framework is regulation, law, rule or other orders prescribed by authority, especially to regulate the conduct of SACCO in Rwanda. Hence, the study sought to examine the impact of the regulatory framework on the performance of SACCOs in Rwanda with specific reference to the Survey of selected SACCOs in the Gasabo District. The research used a descriptive research design. The study targeted 110 drawn from two categories SACCO staff /employees and SACCO members. The study used both primary data and secondary data. The primary data was collected using structured questionnaires both open and closed. The data was analyzed using a qualitative and quantitative method using MS excel SPSS. Research findings showed there is a very high correlation (r=0.943) between internal control and performance. In addition, the study findings indicated a very high correlation (r=0.823) between saving mobilization and the performance of Sacco. It was revealed there is a very high correlation (r=0.749) between credit risk management and the performance of Sacco. The study reported the correlations between liquidity requirements and performance of SACCO is very high (r=0.923). Moreover, the results established that the regulatory framework is satisfactory in determining the performance. The adjusted R square was found to be 0.887. This implied that the regulatory framework could explain 88.7% of the variations in the performance. All four variables of the regulatory framework: Internal control, saving mobilization, credit risk management and liquidity requirement, were positively correlated to the performance. Furthermore, regression indicates that any change (increase) would have a significant change in the performance of Selected SACCO in the GASABO District. The recommendation is that the RCA and other policymakers of saving and credit cooperatives in Rwanda should clear that internal control, saving mobilization, credit risk management and liquidity requirement, and performance of selected Saccos in Gasabo District, Rwanda. There should be structuralization of permanent internal audit control and verification for all income and expenses of SACCOs and should set the boundaries for some members who ask for loans to limit payment loans. Keywords: Internal control, Saving mobilization, Credit risk management, Liquidity requirement, Performance

Business Intelligence and Performance among Savings and Credit Cooperative Society in Nairobi City County, Kenya

Deposit-taking credit cooperatives and other commercial should deliberately position themselves to all the more likely to serve their clients and support a strategic advantage in the present cutthroat worldwide market. To acquire an upper hand, the financial sector has focused on Business Intelligence to improve organizational performance. Therefore, the overall aim was to probe how business intelligence affects how corporate strategy, structure, culture and business process impacts the performance of Saccos in Nairobi County, Kenya. The research was conducted using a descriptive design method. The study populace included all 38 deposit-taking SACCOs in Nairobi County. To choose research participants, the study utilized a proportionate random sampling technique. Participants were given self-administered questionnaires to provide data. The completed self-administered questionnaires duly filled were coded as figures and descriptive analysis was used to describe the perceived level of corporate strategy, structure, culture, business process and organizational performance of SACCOs in Nairobi County, Kenya. Pie charts and tables were used to display the findings. Inferential analysis was carried out using multiple linear regressions to investigate the correlation between business intelligence (BI) and organizational performance. The findings observed that corporate strategy, structure, culture and business process considerably impacts the performance of SACCOs in Nairobi County, Kenya in a positive manner. As a result, the BI systems must be properly linked with the organization’s business strategy and core competencies in order to fulfill their full potential in planning effectiveness.

Relationship between Liquidity Management and Performance of Savings and Credit Cooperative Societies

The purpose of the study was to determine the relationship between liquidity management and performance of savings and cooperative societies. The study was conducted through a cross – sectional, descriptive and correlational survey designs. Primary data collection was conducted using self-administered structured questionnaires. The study considered five (5) Matatu saving and Credit Cooperatives societies operating in Kitale town main stage with a total of 79 employees. The study concluded that there was a very strong positive significant relationship between liquidity management and performance of SACCOs. The study recommended that SACCOs management to ensure that specific loan processing and recovery period is observed to meet its obligations whenever they fall due in order to maintains adequate liquidity for its day-to-day operations. The study also recommended that SACCOs to provide regular training to its members before advancing loans to them. The study also recommended that SACCO's managements should be keen on improving its liquidity and strengthen liquidity management for their respective SACCOs to be competitive and investors get value for their money.

Effect of Payroll Outsourcing Practices on Performance of Saccos in Uasin Gishu County

Effect of Payroll Outsourcing Practices on Performance of Saccos in Uasin Gishu County

Influence of Corporate Governance on Performance of Deposit Taking Saccos in Kenya

The Kenyan Sacco Sub Sector has witnessed rapid growth, contributing to financial access reaching 13% of the population. Apart from the commercial banking sector, Deposit Taking Saccos remain the single largest formal financial credit service provider to household economies in Kenya. This is attributed to fact that the members’ savings can be treated as collateral for borrowing at the same time earn interest from the surplus made by the SACCO. Despite their contribution, Saccos are riddled with poor governance issues resulting to gross mismanagement, financial scandals, management problems which has led to low performance and collapse of some. Guidelines on governance of Saccos have been enacted as an approach to improve the performance of Saccos. The increasing importance in corporate governance in Saccos for higher firm performance was the basis of this study. The research objective was to investigate the influence of corporate governance on the performance of Deposit Taking SACCOs in Kenya. The scope of the study was the licensed Deposit Taking Saccos in Kenya which were in operational between 2014 to 2018. This study was anchored on the Resource Dependence Theory, Agency Theory and Upper Echelons Theory. The research study was guided by pragmatic paradigm. Descriptive cross-sectional survey and correlational research designs were adopted. A sample size of 108 licensed Deposit Taking Saccos in Kenya was drawn from a target population of 150. Proportionate stratified and simple random sampling technique was used to select sample size. A semi structured questionnaire was used to collect primary data from CEOs, Managers and Sacco employees. Secondary data collection sheet was used to collect secondary data from published annual financial reports. The pilot study of the questionnaire covered 11 licensed Saccos to test the validity and reliability. Out of the 108 questionnaires administered, 105 questionnaires were dully filled and returned representing a response rate of 97.2% percent. Data was analyzed using descriptive statistics, Pearson’s correlation, hypotheses testing and regression analysis. The study findings suggest that the overall correlation coefficient for influence of Corporate Governance on performance of deposit taking SACCOs in Kenya was not significant with an overall correlation coefficient of 0.225 with a P- value of 0.201>0.05, hence failing to reject the null hypothesis. The study concludes that corporate governance may not ensure the desired performance. However, the study recommends adoption of the corporate governance practices as a mechanism to protect owners’ interests. Limitations of the study included contingencies, choice of study variable and measurement scale. Areas for further studies suggested are conducting studies in other contexts to corroborate these findings and consideration of other dimensions of corporate governance in their influence on performance of Deposit Taking Saccos in Kenya. Keywords: Corporate Governance, Performance, Deposit Taking Saccos DOI: 10.7176/EJBM/14-8-10 Publication date: April 30 th 2022

Debt Management Literacy and Financial Performance of Saccos in Kumi County – Kumi Uganda

This dissertation is presented on the topic, “Debt management literacy and financial performance of SACCOs in Kumi County”. The overall objective of the study was to determine the effect of Debt management literacy on financial performance of SACCOs in Kumi County and to achieve this the researcher used one specific objective Vinz; “To determine the effect of Debt management literacy on financial performance of SACCOs in Kumi County”. In carrying out the study, the researcher used a case study research design because of its ability to investigate the study variables in detail. The population under study was 150 (N) people and a sample population of 108 (n) people consisting of; SACCO board members, SACCO management team members and SACCO members. The sample size was determined by use of both probability and non-probability sampling techniques. In data collection, the researcher used a duo approach with the use of; Questionnaire survey method which allowed collection of firsthand information within a short period of time and interview method employed on some key informants i.e. SACCO Board members as this was intended to probe for more information, get clarification and capture facial expression. Two tools in this context were used i.e. Research Questionnaire and interview guide. The data collected was both quantitative and qualitative in nature. Data analysis was carried out in two fold; Quantitative data was analysed using Statistical Package for Social Scientists (SPSS) version 25*64 bit. Qualitative data was recorded in the researchers note book and transcribed for a clear meaning. The research findings highlighted a strong positive relationship between debt management literacy and financial performance of SACCOs with R = 0.666. The study confirmed that Debt management literacy explains 44.4% of financial performance as evident with R2= 0.444. The researcher based on the study findings recommended creation of awareness and corporative member education on debt management; Documentation and implementation of a comprehensive credit or debt management policy; There must be a clear line of authority as to who authorizes and approves what and creation of a policy on relationship management strategies so as to ensure long and lasting beneficial relationships with clients.

The Effect of Voluntary Leadership on the Performance of SACCOS in Wakiso District, Uganda

The Effect of Voluntary Leadership on the Performance of SACCOS in Wakiso District, Uganda

Relationship Between Mode of Financing and Financial Performance of Deposit Taking Savings and Credit Cooperative Societies in the Lake Region Counties of Kenya

Mode of financing is an important factor for consideration when it comes to firm financial performance. Several studies show that highly leveraged organizations usually do well in terms of financial growth by increasing the value of a firm, contrary to the MM theorem that argues that capital structure is irrelevant factor to consider since it does not affect the value of an organization. This study focused on establishing the relationship between share capital, retained earnings, members’ deposits, debt financing and financial performance of SACCOs in the Lake Region Counties of Kenya. The study was prompted by the increase in the number of SACCOs in the Lake Region Counties facing financial difficulties resulting to low returns to investors and in some instances, SACCOs being de-registered by SASRA for not meeting the SASRA regulations, thus threatening the wellbeing of the lake region’s economy. The study adopted explanatory research design and the target population was all the 34-deposit taking SACCOs in the Lake Region Counties of Kenya. Secondary data was obtained from the annual reports and financial statements of the 34 DT-SACCOs were used for analysis. The annual reports and financial statements were sourced from the official website of SASRA and the respective official websites of the DT-SACCOs. The period of study was stretch from year 2015 to year 2019. The collected data was converted into panels and fed into STATA version 14 for analysis. The data was analyzed using descriptive statistics, correlation analysis and panel data regression analysis. The study revealed that share capital has an insignificant positive relationship with performance of SACCOs in the lake region while retained earnings has a significant effect on financial performance of SACCOs in the lake region. The study also showed that debt financing has a significant negative effect on financial performance of SACCOs in the lake region. The study recommends DT SACCO management to exploit internal source of financing such as retained earnings and share capital. It also recommends that DT SACCOs should avoid expensive debts but instead sought loans with favorable terms. Keywords : Mode of financing, financial performance, Deposit taking Savings and credit cooperative societies DOI: 10.7176/EJBM/13-23-04 Publication date: December 31 st 2021