Saccos In Kenya Research Articles

LIQUIDITY MANAGEMENT AND FINANCIAL PERFORMANCE OF TEACHERS DEPOSIT TAKING SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN KENYA

Purpose: The study objective was to establish the effect of liquidity management on the financial performance of Teachers DT Saccos in Kenya and to evaluate the moderating effect of the size on liquidity management and financial performance of Teachers DT Saccos in Kenya.
 Methodology: This study adopted a post-positivist research paradigm to interpret the effect of liquidity management on the financial performance of deposit-taking Saccos in Kenya. The study adopted a descriptive, survey research design. The target population was 18 Saccos classified under teachers' based DT SACCOs according to SASRA records of December 2017 (SASRA, 2018). Census Methodology was used. The study used a data capture form that has been designed by the researcher to collect the data on the independent variables of liquidity management, moderator variable size and dependent variable which was DT Saccos financial Performance. Data were analysed using a combination of descriptive and inferential statistics with the statistical package STATA. Analysed data was presented using graphs and tables.
 Findings: The study established that there was a significant effect of capacity and purchased funds on the financial performance of Teachers DT Saccos. The study also established that cash position, total deposit, and core deposit had an insignificant effect on the financial performance of Teachers DT Saccos and that size of the Sacco affects the relationship between liquidity management and financial performance of Teachers DT Saccos.
 Unique contribution to theory, practice and policy: The study recommended the development of a more robust liquidity monitoring policy as well as enhancement of the oversight on liquidity management practices. The study also recommended that Teachers DT Saccos should reduce the provisions of loan losses as well as their reliance on external borrowing. Further, the study recommended future studies using other factors influencing liquidity in the Teachers DT Saccos. Lastly, the study recommends a comparative study using other financial intermediaries with similar deposit and asset features such as Deposit Taking Micro Finance Institutions.

Corporate Growth Strategies and Performance of Selected Savings and Credit Cooperative Societies in Nairobi City County, Kenya

The dynamic nature of business operating environment has called on business leaders to be strategic in their leadership roles if they are to sustain their competitiveness into the unforeseen future. Growth is important in Sacco’s because it is future oriented establishing ways in which the organizational operations can be aligned to future changes in the business environment to ensure that competitiveness is sustained. The SACCOs in Kenya have experienced problems in the past; some even shutting down therefore there is need for customer growth to be enhanced so as to increase their incomes so as to sustain the business. These SACCOs have to look for leaders and managers who can develop future targets, direct and lead other staffs towards meeting the firm’s objective and gaining a competitive edge. The aim of this study was an assessment of corporate growth strategies and performance in savings and cooperative societies in Kenya, Nairobi County. The study sought to determine the influence of market expansion, diversification strategies and acquisition strategies. The study target population was 41 licensed SACCOs in Nairobi County. The study used primary data to collect information, and the data collection instrument was a questionnaire which was given to the 41 operations managers in the 41 selected SACCOs. The data collection procedure was done by the researcher and drop-and-pick strategy will be applied. The data was coded and keyed in Statistical Package for Social Science (SPSS Version 23.0), and was analyzed using both descriptive and inferential statistics. For descriptive statistics was through mean scores, standard deviations, frequencies and percentages, while the inferential statistics was through regression analysis to establish the relationship between strategic leadership and customer growth. The findings were presented in tables and charts for easy understanding, interpreting, and describing the data. The study established that market expansion, diversification strategies and acquisition strategies as corporate growth strategies had a positive and significant effect on the performance of SACCOs in Nairobi City County. The study concluded that the SACCOs significantly employed market expansion strategies through improved branch network, customer base enhancement, new distribution channels and technological innovation. The study concluded that the SACCOs embraced a hybrid of the main diversification strategies, diverse products and services significantly. It was concluded that to a little extent the selected SACCOs in Nairobi City County have employed acquisition as a corporate growth strategy. The study recommends that the SACCOs should embrace integrate technology in the implementation of corporate growth strategies to enhance efficiency and effectiveness. Further studies should be undertaken to establish the effect of corporate growth strategies on the performance of other SACCOs in other regions to establish the disparities or similarities among the financial sector players.

Influence of Strategic Formulation on Performance of Matatu Savings and Credit Co-Operatives in Kenya

Strategy formulation in Matatu SACCOs in Kenya is important in setting short term, long term objectives and cost leadership and differentiation. In terms of absolute figures, the sector contributed to the country's GDP about 3% in 2008, 3.5% in 2009 and 5.9% in 2010. The SACCO movement within the Matatu sector was introduced in 2010 and since then, the sector has witnessed decrease in growth. In 2011, the sector generated a GDP of 5.0%, 4.7% in 2012, 4.5% in 2013 and 4.2 % in 2014. The study focused on 635 registered Matatu SACCOs. The main objective of this study was to determine the influence of strategic formulation on performance of Matatu SACCOs in Kenya. This study adopted mixed research design . The target population for this study was all Matatu SACCOs in Kenya. The questionnaires were pilot tested to determine its validity and reliability. The study used primary data gathered from Matatu savings and credit co-operatives. Primary data was obtained through use of structured and semi structured questionnaires drawn from 245 Matatu SACCOs selected for the study. The results of the analysis indicated that strategic formulation had a positive relationship with performance of Matatu SACCOs. The study found that strategic formulation had significant influence on the performance of Matatu SACCOs which had coefficient of determination of 0.17.On the strategic formulation the study recommended that management of Matatu SACCOs to recruit qualified managers and provide adequate resources in formulation of strategy. Internal promotions of employees for succession planning and acquisition of management skills.

Internal Control Systems Implementation and Fraud Mitigation Nexus among Deposit Taking Saccos in Kenya

Purpose: This paper analyses the relationship between the implementation of internal control and fraud mitigation among the savings and credit cooperatives societies (Saccos) in Kenya. 
 Methodology: To achieve the objective, specific variables were formulated based on the five components of internal control model. Particularly, the research focuses on the effect of control environment, control activities, monitoring, information and communication, and risk assessment, on fraud mitigation. Data was collected through the use of a structured questionnaire. Ordinary Least Square Regression approach was used for analysis. 
 Results: The data analysis found that all the mentioned variables significantly affect fraud mitigation among Saccos in Kenya. 
 Implications: The analysis highlighted that there is a need for Saccos to strive and implement internal control systems to a higher extent to cure the persistent problem of fraud that they grapple with. The analysis also recommends that Saccos should institute proper mechanisms to provide adequate checks during staff recruitment, install adequate security, provide regulation of valuable information access, they should also conduct regular monitoring of third party links with personnel as measures to mitigate fraud.

Influence of Strategic Implementation on Performance of Matatu Savings and Credit Co-operatives in Kenya

Strategy implementation in Matatu SACCOs in Kenya is a key driver of the economy that keeps recording significant positive contributions but decline in growth. In terms of absolute figures, the sector contributed to the country’s GDP about 3% in 2008, 3.5% in 2009 and 5.9% in 2010. The SACCO movement within the Matatu sector was introduced in 2010 and since then, the sector has witnessed decrease in growth. In 2011, the sector generated a GDP of 5.0%, 4.7% in 2012, 4.5% in 2013 and 4.2 % in 2014. The study focused on 635 registered Matatu SACCOs. The main objective of this study was to determine the influence of strategic implementation on performance of Matatu SACCOs in Kenya. This study adopted mixed research design which included cross-sectional survey, causal and descriptive designs. The target population for this study was all Matatu SACCOs in Kenya. The questionnaires were pilot tested to determine its validity and reliability. The study used primary data gathered from Matatu savings and credit co-operatives from the Ministry of Industrialization and Enterprise Development. Primary data was obtained through use of structured and semi structured questionnaires drawn from 245 Matatu SACCOs selected for the study. The results of the analysis indicated that strategic implementation had a positive relationship with performance of Matatu SACCOs. The study found that strategic implementation had significant influence on the performance of Matatu SACCOs which was 0.704. On the strategic implementation the study recommended that management of Matatu SACCOs should recruit qualified employees and provide adequate resources to make them efficient and effective in their operations. Adoption of cashless mode of payment to reduce wastage on revenue collection.

Determinants of Technical Inefficiency of Saccos in Kenya: Total Revenue Output Slack Analysis

This study assessed the determinants of technical inefficiency of Saccos in Kenya. The explanatory research design was applied. The certified annual reports information was collected from a census total of 46 deposit taking Saccos and methods used in estimation of technical inefficiency were both non-parametric DEA and parametric SFA. The log truncated panel data covered a period of 8 years (2007-2014). The result indicates insignificant influence of all predictor variables on inefficiency given total revenue output (TR) slack as hypothesized in agency, x-inefficiency and intermediation theories. TR slack regression reflects a significant managerial influence as indicated by Gamma (0.999956). However, DEA result of all Saccos showed 0.024 mean inefficiency. The TR slack is key in identifying managerial inefficiency, thus apt for decision making while the relationship between earnings management and the insignificance of predictors given TR slack, should be explored in the future studies. Keywords: Saccos in Kenya, Technical Inefficiency, Total Revenue Output Slack. DOI: 10.7176/RJFA/11-8-05 Publication date: April 30 th 2020

Audit Fees and Financial Performance of Deposit Taking Saccos in North RIFT, Kenya

The collapse of Deposit-Taking SACCOS and financial institutions in Kenya has caught the attention of the public and supervisory agencies to query the quality of audit. SACCO Societies Regulatory Authority on its inspection report indicated that SACCOs have been implicated in maladministration, scams and fraudulent dealings that led to their eventual collapse. SASRA also revoked licenses and rejected audited financial statements of some Deposit Taking SACCOs between 2013 to 2017.These financial scandals have been traced to poor audit quality. The study aimed to test the impact of audit quality on financial performance of Deposit-Taking SACCOs in North Rift Region, Kenya. The study sought to establish the influence of audit fees on financial performance; determine the influence of audit firm tenure on financial performance; establish the influence of auditor independence on financial performance and to determine the influence of audit firm experience on financial performance of Deposit-Taking SACCOs in North Rift Region, Kenya. This study was based on Agency theory, Role theory and the Concept of audit expectation gap, and Stakeholders’ theory. This research adopted descriptive cross-sectional research design. The target population for the study was 266 staff of all the 16 registered Deposit-Taking SACCOs in North Rift Region, Kenya. The sample size was 48 respondents comprising of chief executive officers, finance officers and internal auditors of the Deposit-Taking SACCOs selected using purposive sampling method. Primary and secondary data was used. Questionnaires collected primary data while audited annual financial statements of SACCOs provided secondary data. Inferential and descriptive statistics was used in analyzing data through SPSS version 25. It emerged that audit fees, audit firm tenure and audit firm experience have a significant positive influence on financial performance of Deposit-Taking SACCOs in North Rift Region, Kenya. Auditor independence had an insignificant positive influence on financial performance of Deposit-Taking SACCOs in North Rift Region, Kenya. The study concluded that audit quality has a positive noteworthy impact on financial performance of Deposit-Taking SACCOs in Kenya. The study recommends that regulatory authorities should formulate strict rules on audit fee charges and oversee the implementation of the same. Also, SASRA should ensure DT-SACCOs implement auditor rotation in compliance with auditing regulations and standards. DT-SACCOs to consider auditor’s professional competence and experience before initiating any audit engagement. Finally, DT-SACCOs and auditors should reinforce the professional code of ethics in regard to auditor independence in terms of familiarity between auditor and the client that may lead audit work into jeopardy.

Influence of Sacco Lending Rates on Dividend Payout Among DT Saccos in Kenya

This study explored the influence of sacco lending rates on dividend payout among saccos in Kenya. The study was motivated by inconsistency in the ability of Saccos to live up to their promise of paying dividends to members. There are variabilities in dividend payout based on different sacco sectors. Saccos pay dividends on a different percentage from the previous year. Different saccos have varying rates of interest charged on loans lend to members. The present study targeted all registered DTSSaccos in Kenya (n=179) over an eight-year period (2012-2019). The study used panel data. Descriptive results showed that Sacco Lending interest rates which reflect the capacity of saccos to generate income, which they could distribute as dividends were on a downward trend, between 2012 and 2019 and large scale saccos had highest rates. Indeed, small saccos use dividends as a business strategy to retain and attract new members, thereby augment their capital. The findings from this study are useful to the board of directors and management team of companies in deciding an appropriate lending rate for the company. The results are also useful to shareholders in making investment decisions. The study extends empirical evidence on dividend policy determinants which are currently reported to be inconclusive. In addition, the study fills the lacuna in the existing literature by focusing on the issue of dividend policy determinants in the context of an emerging sector, namely saccos.

Influence of Financial Performance and Financial Leverage on Dividend Payout

This study explored the influence of financial performance and financial leverage on Deposit-Taking Saccos in Kenya. The study was motivated by inconsistency in the ability of Saccos to live up to their promise of paying dividends to members consistently. Many of them pay dividends from unforeseen profits and/or while highly leveraged. These unhealthy dividend practices leave Saccos unable to pay dividends in the long term sustainably, besides exposing them to insolvency. Existing studies on the factors of dividend payout in Kenya were mainly used unidimensional variables and/or were limited in sectoral scope. The present study targeted all registered DTSSaccos in Kenya (n=179) over an eight-year period (2012-2019). Panel data modelling was used, which was a departure in methodology from previous studies. The effects of financial performance, financial leverage. Descriptive results showed that financial performance measured by ROE for for DT-saccos was below industry standards at 3%. During the panel period, Saccos failed to improve their ability to generate resources from equity yet, they sustained a high dividend payout. To maintain their dividend payout, the DT-saccos borrowed funds to pay dividends Financial leverage measured by Debt ratio had an inverse, significant effect on dividend payout. Between 2012-2019, the debt ratio of DT saccos averaged 195%, and this ratio was much higher than the comparable ratio for the banking industry, which was just 20% between 2012-2019. The findings deepen our understanding of the interplay of factors influencing dividend payout in DT-Saccos in Kenya. Small saccos have higher dividend payout compared to large ones. Indeed, small saccos use dividends as a business strategy to retain and attract new members, thereby augment their capital.

Process Innovation Promoters, Firm Performance and Moderating Role of Service Quality Practices in SACCOs in Kenya

Process Innovation Promoters, Firm Performance and Moderating Role of Service Quality Practices in SACCOs in Kenya

Effect of Liquidity and Dividend Pay-out on Financial Performance of Deposit Taking SACCOs in Kenya

Capital structure is one of the fundamental aspects to the success of Deposit Taking Savings (DPS) and Credit Cooperative Societies (CCS) as it influences the realization of its objectives and goals. The study intended to determine the effect of two capital structure determinants; liquidity and dividend payout, on financial performance as measured by Return on Assets of DPS and CCS, in Kenya. The study was grounded on the Pecking order and Free cash flow capital structure theories. The study utilized a mixed research design using primary and secondary data for the period 2013 to 2017. The population of the study was 174 DPS and CCS. Stratified and purposive sampling technique was employed. Descriptive statistics and a regression model were used to analyze the data. Results revealed that liquidity and dividend pay-out had a significant and positive effect on the financial performance of DPS and CCS in Kenya. The study concluded that liquidity and dividend pay-out play a significant role in the financial performance of DPS and CCS. The study recommends having in place an Assets and Liabilities Committee in each DPS and CCS that would help manage the assets and liabilities of the institution, ensuring adequate liquidity and cash flow management. Having in place a robust dividend policy that addresses; the basis of the rate of payments and activities that would require funding of which internally generated funds by way of dividend retention, is also critical.

Assessing the Current Status of Information Security Policies Among Saccos in Kenya

In 2013, Communication Authority of Kenya (CAK) recorded cyber-attacks amounting to Sh5.4 million loses. In April 2016, Bandari Savings and Credit Cooperative Society lost Sh5 million through fraudulent ATM withdrawals (Nation Newspapers, April 8, 2016). These examples demonstrate weaknesses that may exist from security breaches and incidents caused by people, processes, and technology. Ministry of ICT and CAK are lacking specific Information Security Models tailored towards SACCOS in Kenya. The study therefore sought to assess the current status of information security policies among SACCOS in Kenya. The study adopted descriptive research design. The unit of observation was 135 SACCOS registered with SACCO Societies Regulatory Authority (SASRA) while the unit of analysis was 270 ICT personnel working in the 135 targeted SACCOS. The study targeted the SACCOS heads of IT department. The study used Nassiuma (2000) formula to get a sample of 85 respondents. Purposive sampling was further used in selecting study participants in every SACCOS who were considered to be knowledgeable of the variables under study. The study utilized questionnaire as the survey instrument to collect both quantitative and qualitative data. The study adopted descriptive statistics. Descriptive data was presented by use of frequency tables. The study established that in all the SACCOS studied, information security policy is used. However, there are still challenges on how information security breaches and incidents can be contained based on the results of the study and therefore calls for further research in academic research. The findings of the study indicate that SACCOS were able to validate that the enhanced information security model using an integrated approach worked as planned and reported to auditors, managers and executives that incident response programs are robust and reliable. If security controls didn’t work as planned, they will need to fix them. The actions and resources needed should be included in in the report to executives in the SACCOS sector in Kenya Keywords : SACCOS, Management controls, Information Security Policies, Risk assessment DOI : 10.7176/EJBM/11-27-09 Publication date:September 30th 2019

Effects Of Credit Information Sharing On Performance Of Savings And Credit Cooperative Societies In Kenya

The purpose of the study was to analyse the effect of credit information sharing on the performance of Saccos in Kenya. The specific objective was; to identify the effect of credit rating on performance of saccos in Kenya, The study was anchored on Information Asymmetry Theory, Credit Rationing Theory and Transaction Cost Theory. The research used a descriptive survey research design. The population for this study was the 60 Saccos with head offices in Nairobi Kenya, from where the researcher targeted the credit managers as the respondents of the study. This study was a census survey. The study used both primary and secondary data. The primary data was collected through a questionnaire from the credit managers of the 60 Saccos while secondary data was retrieved from the SASRA’s Sacco supervision annual reports for the respective years. The quantitative data was analysed using both descriptive and inferential statistics. Both correlation and multiple linear regression analysis method were used to analyze the relationship between the study variables. The study findings showed that a significant positive relationship between credit rating and the performance of Saccos in Kenya (β = 0.719 and P value < 0.05). The study concluded that credit rating, played a significant role in enhancing the performance of Saccos in Kenya due to their centrality in the Saccos’ lending decisions. The study recommends that Saccos in Kenya should cross reference the information they hold about clients with information held by the CRBs in order to enhance their credit rating activities when evaluating a client’s suitability for loans applied. The study also recommends that Saccos in Kenya should review their lending policies to ensure that they promote timely repayment of monies given out as loans to various borrowers. The study will be of significance to many stakeholders; members/customers will both benefit from increased loanable funds as well as increased dividends. The government is likely to receive higher revenue arising from taxes while the citizenry may benefit from employment opportunities occasioned by a well performing Sacco.

Effect of Mobile Communication Services on Performance of Saccos in Kenya

The ubiquitous nature of mobile technologies and devices, present new challenges and opportunities for Deposit-Taking Savings and Credit Cooperative Societies (SACCOs) as they integrate them into their processes with the hope of improving their performance. To enhance their performance, Deposit-Taking SACCOs have adopted and are using mobile communication services including mobile messaging, mobile call services, mobile email, mobile chatting and mobile conferencing services. However, the effect of these mobile communication services on performance of Deposit-Taking SACCOs has not been well studied. Even though some studies have indicated the positive potential of mobile communication services, other studies indicate that they have no effect on organizational performance. Given these contradictions, this study sought to investigate the effect of mobile communication services on performance of Deposit-Taking SACCOs in Kenya. Descriptive and explanatory research designs were adopted using quantitative and qualitative approach to data collection, analysis and reporting. The study used a sample of 86 Deposit-Taking SACCOs drawn from a target population of 110 Deposit-Taking SACCOs that were licensed by SACCO Societies Regulatory Authority as at 31st December 2011. A structured questionnaire administered to two managers (from information technology and finance departments) in each SACCO was used to collect primary data. Inferential analysis revealed the exististence of statistically significant positive effect of mobile communication services on performance of Deposit-Taking SACCOs in Kenya. The study therefore recommends investments and increased utilization of mobile communication services within DepositTaking SACCOs in Kenya.

Financial Regulation and Firms Technical Efficiency: Does Size Matter? A Case of Deposit Taking SACCOs in Kenya

Financial Regulation and Firms Technical Efficiency: Does Size Matter? A Case of Deposit Taking SACCOs in Kenya

EFFECT OF TECHNOLOGICAL ADOPTION STRATEGY ON THE PERFORMANCE OF SACCOS IN KENYA

Purpose: To examine the effect of technological adoption strategy on the Performance of SACCOs in KenyaMethodology: The study was a cross-sectional survey with a descriptive research design. This design is appropriate because it is considered suitable for gathering information and generating appropriate conclusions with respect to the research questions. The target population of this study was the 181 authorized deposit taking SACCOs in Kenya that have been in existence for at least the last 5 years SASRA (2014). The firms which have been there for 5 years are considered to have adequate knowledge and have deposit mobilization strategies in place. The number of respondents was 181 CEOs and Business development managers, who are in charge of strategies. The study used questionnaires as the main data collection instrument that contained both open and closed ended questions. Questionnaires were preferred because they are effective data collection instruments that allow respondents to give much of their opinions pertaining to the research problem. Primary data was collected through administering of questionnaires to Members of the SACCOs, senior staff of the SACCOs and Cooperative Ministry/regulatory officials. The study employed descriptive analysis technique on the collected data. Multiple regression analysis was used to establish the relationship between the dependent and independent variables. Results were presented using frequency tables and figures.Results: Correlation analysis showed that technological adoption strategy and performance of Saccos are positively and significantly associated. Regression analysis indicated that technological adoption strategy has a positive and significant effect on performance of Saccos in Kenya. The hypotheses results indicated that there is a significant relationship between technological adoption strategy and performance of Saccos in Kenya. Unique contribution to theory, practice and policy: From the study findings, it was recommended that Saccos should lay out procedures and strategies such as product innovation, market innovation, technological innovation and process innovation so as to enhance their penetration in the market. Further, the study recommended the need for the firms to invest in technological advancement by equipping their staff with technical skills and also providing them with the necessary facilities.

EFFECT OF CUSTOMER FOCUS STRATEGY ON THE PERFORMANCE OF SACCOS IN KENYA

Purpose: To examine the effect of customer focus strategy on the Performance of SACCOs in KenyaMethodology: The study was a cross-sectional survey with a descriptive research design. This design is appropriate because it is considered suitable for gathering information and generating appropriate conclusions with respect to the research questions. The target population of this study was the 181 authorized deposit taking SACCOs in Kenya that have been in existence for at least the last 5 years SASRA (2014). The firms which have been there for 5 years are considered to have adequate knowledge and have deposit mobilization strategies in place. The number of respondents was 181 CEOs and Business development managers, who are in charge of strategies. The study used questionnaires as the main data collection instrument that contained both open and closed ended questions. Questionnaires were preferred because they are effective data collection instruments that allow respondents to give much of their opinions pertaining to the research problem. Primary data was collected through administering of questionnaires to Members of the SACCOs, senior staff of the SACCOs and Cooperative Ministry/regulatory officials. The study employed descriptive analysis technique on the collected data. Multiple regression analysis was used to establish the relationship between the dependent and independent variables. Results were presented using frequency tables and figures.Results: Correlation analysis showed that customer focus strategy and performance of Saccos are positively and significantly associated. Regression analysis indicated that customer focus strategy has a positive and significant effect on performance of Saccos in Kenya. The hypotheses results indicated that there is a significant relationship between customer focus strategy and performance of Saccos in Kenya. Unique contribution to theory, practice and policy: The study recommended that Saccos should ensure that they provide quality services to customers. This will create customer confidence in the firms’ ability to deliver. Further, it was recommended that the firms should develop a friendly customer-management relationship. In addition, the firms should adjust their pricing to ensure that they charge their customers reasonable charges.

THE INFLUENCE OF ORGANIZATIONAL CAPABILITY ON EFFECTIVE STRATEGY IMPLEMENTATION AMONG SACCOS IN KENYA

Purpose: To establish the influence of organizational capability on effective strategy implementation among SACCOs in Kenya.Methodology: Survey research design while both quantitative and qualitative research methodologies were used in the study. The target population of the study was all 176 Deposit Taking SACCOs in Kenya. Purposive sampling was used to sample at least three employees of the SACCO which includes one top level manager one middle level manager and one low level manage. The sample size was 192 respondents. Questionnaires were uses to collect the data. Descriptive analysis, analysis of variance (ANOVA) and multiple regressions were used in analyzing the data.Results: The results of the study indicate that organization capability is a key determinant of effective strategy implementation.Unique contribution to theory, practice and policy: Every organization has a potential capability that it employs in order to achieve stable competitive advantage and productivity. As long as these capabilities and potential capacities are neither unknown nor realized, it cannot be such efficient to provide barriers for competitors while allowing the organization to surpass competitors.

Effect of Business Management Training on Financial Performance of Deposit Taking Saccos in Kenya

Effect of Business Management Training on Financial Performance of Deposit Taking Saccos in Kenya

INFLUENCE OF ENVIRONMENTAL SCANNING ON PERFORMANCE OF MATATU SAVINGS AND CREDIT COOPERATIVES IN KENYA

Purpose: This study aimed at determining the influence of environmental scanning on performance of Matatu Savings and Credit Cooperatives in Kenya.Materials and methods: This study adopted cross-sectional survey research design. The target population for this study was all Matatu Saccos in Kenya. The questionnaire was pilot tested to determine its validity and reliability. The study used primary data gathered from Matatu savings and credit co-operatives from the Ministry of Industrialization and Enterprise Development. Primary data was obtained through use of structured and semi structured questionnaire. A total of 635 Matatu Saccos was selected. Sample size of 245 Matatu Saccos was selected for the study. Quantitative data was analyzed by multiple regressions, Factor analysis, Chi-square and Anova. Qualitative data was analyzed through content analysis to generate thematic topic for discussion in line with research objectiveResults: The results of the analysis indicated that environmental scanning has a positive relationship with performance of Matatu Saccos. The extent of environmental scanning was found to have a 0.113 influence on performance of Matatu Saccos which was relatively low but significant.Recommendations: The government should ensure that Matatu Saccos conduct SWOTanalysis to evaluate internal and external environment which affect performance. In addition Saccos should do strategic plan in line with vision and mission.