Savings And Credit Cooperative Societies Research Articles

Corporate Governance and the Value Relevance of Financial Information in Tanzanian Savings and Credit Cooperatives: A Panel-Data Approach

The study examined the influence of corporate governance on the relevance of financial information towards the value of Savings and Credit Cooperative Societies (SACCOS) in Tanzania. Thus far, evidence on how corporate governance influences the relevance of financial information in cooperative societies is limited globally, notably in emerging economies. Therefore, this research contributes to the body of knowledge by extending the application of agency theory to determine this relationship among variables. The study specifically employed a quantitative panel data set of 202 SACCOs from 2013 to 2020 that was gathered from yearly financial reports and processed through descriptive analysis and regression models. Descriptive statistics demonstrate that the SACCOs' value in Tanzania is increasing. Empirical results show a significant positive relationship between earnings financial information and the value of SACCOS; the book value of equity financial information insignificantly influences the value of SACCOS. The findings deliver empirical and theoretical backing for the notion that board size, skills and supervisory committee skills have a significant impact on the relevance of financial information towards the value of the firm. However, the examination showed no proof that the number of meetings affected the relevance of financial information. This implies that Policymakers should make reforms that will enable SACCOs to improve the quality of financial information and widen the publication of financial reports through effective corporate governance, including the emphasis on online publications.

INFLUENCE OF FINANCIAL STATEMENTS RATIO ANALYSIS ON THE PERFORMANCE OF SAVINGS AND CREDIT CO-OPERATIVE SOCIETY IN KAKAMEGA COUNTY, KENYA

An essential function of Savings and Credit Cooperative Societies (SACCOS) is to provide financial services to the underprivileged, who are not eligible for services provided by Formal Financial Institutions (FFIs). These SACCOS, however, face a number of difficulties that could affect how well they operate as a whole. The purpose of this study is to look into how financial statement analysis affects SACCO’s performance in Kakamega, Kenya. Examining a company's financial statements such as the income statement, cash flow statement, and balance sheet in order to evaluate its financial performance and make informed investment decisions is known as financial statement analysis. Because Kakamega, Kenya, has a large number of SACCOS and little research has been done in the area, it was chosen as the study location. Kakamega considerable agricultural output and comparatively high rates of poverty make it an ideal place to research how SACCOS help the underprivileged get financial access. The study specifically looked at how ratio analysis affects the performance of Sacco's in Kakamega, Kenya. The inquiry was conducted using a survey research design because it allows for the manipulation of variables and allows the researcher to choose and study distinct groups of people at one time. There were 830 respondents in the study population, of which 400 respondents made up the sample size determined by applying the Krecjie and Morgan methodology. Document analysis, interviews, and questionnaires were used to gather data. In order to examine the collected data, descriptive statistics such as means, frequencies, and percentages was used. A summary of the quantitative data was used to measure how strongly the variables are related. To determine the link between the independent and dependent variables, the researcher performed a multiple linear regression analysis. The study finished with a discussion of the significance of the findings for the success of SACCOS in Kakamega, Kenya, and recommendations for further research. The results were presented as tables, graphs, and pie charts. The study concluded that the majority of SACCOs in Kakamega, Kenya, recognize the significance of ratio analysis in monitoring and enhancing financial performance. With 85.3% of SACCOs employing ratio analysis, and recommended that the Policymakers can develop and enforce policies that promote the standardization of financial reporting practices across SACCOs. This can involve the establishment of guidelines, regulations, and reporting frameworks to ensure consistency and comparability in financial reporting KEY WORDS: Financial Statements Analysis, Ratio Analysis Performance, Savings and Credit Co-Operative Society

Effects of Information Communication Technology Adoption on Financial Perfomance of Depost Taking Saccos in Eldoret Town

Kenya Vision 2030 recognises the critical role of information and communication technology (ICT) as an amplifier for innovation, growth, and competitiveness in all organisations, which ultimately contributes to better economic productivity. The general well-being of the populace has been stabilised by economic stability. The emergence of digital inclusive finance has improved people's quality of life while reducing financial barriers, enhancing the credit system, and allocating resources as effectively as is feasible . The main objective of this study was assess the effects of Information Communication Technology (ICT) adoption on the financial performance of the savings and credit cooperative societies (SACCOS) in Eldoret town. The study was guided by the following objectives to determine the effect of mobile banking on the financial performance of the SACCOs in Eldoret town and to determine the effect of internet banking on the financial performance of the SACCOs in Eldoret town. The study utilised the Diffusion Innovation Theory..The study adopted a descriptive research design to obtain pertinent and precise information on current status of the phenomena. Eleven authorised SACCOs in Eldoret that accept deposits were the focus of the research. Questionnaires was used in the study to gather data from primary sources. The gathered data was coded, edited, and then SPSS version 29 was used for analysis and presentation. The study findings found that mobile banking played a crucial role in saving time for both clients and Sacco employees (mean = 3.46, std deviation = 1.268), also the study established that internet banking significantly increased transaction volume per day compared to traditional methods (mean = 3.84, std deviation = 1.153).The study concluded that accessibility and user-friendly interface of mobile banking enhanced usability and appealed to a wide range of users.The study recommended that the SACCOs should focus on expanding and promoting mobile banking services, given their demonstrated effectiveness in optimizing time management and enhancing customer satisfaction and the SACCOs should leverage internet banking to increase daily transaction volumes and improve financial efficiency

Analyzing the Effect of Liquidity on Financial Stability: Evidence from Kenyan Deposit-Taking Savings and Credit Cooperative Societies

Non-performing loans have been on the rise among DT SACCOs in Kenya over the past five years as evidenced by the increase in percentage of NPLs to gross loans in SACCO regulatory authority report of 2020. Consequently, if this trend is allowed to continue then this sector’s contribution to financial intermediation through provision of financial services will be negatively affected. In view of the above this study sought to investigate the effect of firm characteristics and financial stability of deposit taking savings and credit cooperative societies in Kenya. In view of the above this study sought to assess the effect of liquidity on financial stability of deposit taking savings and credit and cooperative societies in Kenya. The study was anchored on agency theory. Positivist research philosophy was adopted in this study. The study adopted explanatory research design. The target population for the study comprised 160 DT SACCOs which were fully operational in the period. A census approach was used for the study. This study utilized quantitative secondary data which was obtained from the society’s financial statements and supervision reports from the savings and credit cooperatives regulatory authority. The study utilized annual panel data for the period of 2017 to 2021. Multicollinearity test, normality tests, autocorrelation test, homoscedasticity, stationarity test and model specification test were carried out prior to panel data analysis. Data was analyzed using descriptive statistics, Pearson’s correlation analysis and panel regression analysis. STATA software was used for the analysis. The findings showed that liquidity had a strong, positive effect on NPLs ratio (β = 0.410056, p=0.003<0.05). In view of the findings, the study recommends that DT SACCOs with high liquidity levels should consider implementing rigorous lending practices to ensure that loans are extended to creditworthy borrowers. Additionally, effective credit risk assessment and continuous monitoring of borrower repayment behavior are essential to minimize NPLs. DT SACCOs should focus on improving management efficiency by implementing cost-effective operational processes. Keywords: Liquidity, Liquidity Ratio, Financial stability, Deposit-taking, Savings and Credit Cooperative Societies (SACCOs), Kenya.

The Link between Capital Adequacy and Financial Stability: Evidence from Deposit Taking Savings and Credit Co-Operative Societies in Kenya

In Kenya, financial stability of Deposit Taking (DT) Savings and Credit Cooperative Societies (SACCOs) as evident in non-performing loans of DT SACCOS has been an issue of concern over the past few years due to evidence indication fluctuating trends. Consequently, should this continue then this sector’s contribution to financial intermediation through provision of financial services will be negatively affected. Though DT SACCOs have sought to enhance their capital adequacy, its effect on enhancement of financial stability remains an issue for further empirical investigation. In view this, the study sought to investigate the effect of capital adequacy on financial stability of DT SACCOS in Kenya. The study was anchored on agency theory. Positivist research philosophy was adopted in this study. The study adopted explanatory research design. The target population for the study comprised 160 DT SACCOs which were fully operational in the period. A census approach was used for the study. This study utilized quantitative secondary data which was obtained from the society’s financial statements and supervision reports from the savings and credit cooperatives regulatory authority. The study utilized annual panel data for the period of 2017 to 2021. Multicollinearity test, normality tests, autocorrelation test, homoscedasticity, stationarity test and model specification test were carried out prior to panel data analysis. Data was analyzed using descriptive statistics, Pearson’s correlation analysis and panel regression analysis. STATA software was used for the analysis. Ethical standards and regulations were adhered to accordingly. The regression results revealed that capital adequacy had a significant negative effect on NPLs (β=-0.3249614, p-value=0.000<0.05). In view of the findings, the study recommends that regulatory authorities in Kenya should take a proactive response in establishing and enforcing robust capital adequacy standards for DT SACCOs. In addition, higher levels of capital adequacy and improved management efficiency are associated with reduced NPLs ratio among DT SACCOs in Kenya, hence improved financial stability. Keywords: Capital Adequacy, Financial Stability, Deposit Taking, Savings and Credit, Co-Operative Societies

Influence of Control Environment Strategy on Financial Performance of Rushere Savings and Credit Cooperative Organization in Kiruhura District, Western Uganda

Savings and Credit Cooperative Societies (SACCOs) play a crucial role in improving the standards of living of people globally, particularly in communities and regions where they are established. By offering savings and credit facilities, SACCOs empower people to manage their finances effectively and access capital for income-generating activities. They provide loans for housing and asset acquisition. This helps individuals and families improve their living conditions and build assets, contributing to long-term wealth creation. Despite the significant role they play, SACCOs face various challenges, which impact the effectiveness of their operations. In Uganda, as in other countries, some common challenges faced by SACCOs are in terms of internal audit. The purpose of this study was to establish the influence of the control environment strategy on the financial performance of Rushere SACCO in Kiruhura District in Uganda. This research was carried out solely to determine the extent to which control environment strategy influences the financial performance of Rushere SACCO. The research questions were based on risk assessment, communication and information sharing, organizational policies and practices, organization structure, workers’ competence as well as ethics and integrity. The study was underpinned by the Stewardship Theory. This study was based on a quantitative research approach. The study used a descriptive research design whereby the attitudes, perceptions, and opinions of the respondents were statistically described in figurative terms. The target population of the study was 160 from which a sample size of 127 respondents was selected using the Yamane formula. Thereafter, respondents were selected by using both stratified and simple random sampling techniques. Self-administered questionnaires were used to collect primary data from the research sites. They contained closed-ended questions framed on a Likert scale of 5. Collected 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 internal control strategy and financial performance (p=0.000<0.05). This study concluded that there is a strong positive relationship between the control environment strategy and the financial performance of Rushere SACCO. Keywords: Control Environment, Strategy, Microfinance, Financial Performance

Prediction of SACCOS Failure in Tanzania using Machine Learning Models

Savings and Credit Co-Operative Societies (SACCOS) are seen as viable opportunities to promote financial inclusion and overall socioeconomic development. Despite the positive outlook for socioeconomic progress, recent observations have highlighted instances of SACCOS failures. For example, the number of SACCOS decreased from 4,177 in 2018 to 3,714 in 2019, and the value of shares held by SACCOS members in Tanzania dropped from Tshs 57.06 billion to 53.63 billion in 2018. In particular, there is limited focus on predicting SACCOS failures in Tanzania using predictive models. In this study, data were collected using a questionnaire from 880 members of SACCOS, using a stratified random sampling technique. The collected data was analyzed using machine learning models, including Random Forest (RF), Logistic Regression (LR), K Nearest Neighbors (KNN), and Support Vector Machine (SVM). The results showed that RF was the most effective model to classify and predict failures, followed by LR and KNN, while the results of SVM were not satisfactory. The findings show that RF is the most suitable model to predict SACCOS failures in Tanzania, challenging the common use of regression models in microfinance institutions. Consequently, the RF model could be considered when formulating policies related to SACCOS performance evaluation.

Board Assurance and Financial Performance of Selected Saccos in Kiruhura District, Uganda

Board assurance is the term used to describe the board's degree of trust in the organization's capacity for efficient risk management. Among SACCOs in Uganda, board assurance and financial performance are important ideas. The financial sector in Uganda has been characterized by investor activity, hostile takeovers, poor corporate governance, weak boards of directors, and protection of minority shareholders. Several banks and other financial institutions have failed to operate despite Bank Uganda's multiple interventions, necessitating regulatory action to maintain the stability of the financial system. This study's goal was to examine how board assurance affected the financial performance of a subset of SACCOs in Uganda's Kiruhura District. This study used both quantitative and qualitative research methods, utilizing a cross-sectional survey research design. At a 95% confidence level or 0.05 error rate, a population of 342 individuals was used. The sample size consisted of 184 respondents, staff members, and members of the six SACCOs that were registered in the Kiruhura area of Uganda as of January 2023. There were two stages to the data collection for analysis. First, SPSS version 20.0 was used to conduct the preliminary data analysis and descriptive statistics on the respondents.In the second phase, structural equation modeling (SEM) was used to evaluate and investigate the structural relationships between the variables in the proposed conceptual model. These statistics included multicollinearity, mean and standard deviation, outliers and extreme values, and missing data. SEM was implemented using Jaffrey's Amazing Statistical Program (JASP) version 0.17.2.0. The study's conclusion supported Ha1 by showing that board assurance (BoA) (=0.343**) significantly improved the financial management of savings and credit co-operative societies (SACCOs) in Uganda. According to the study's findings, SACCO would perform better financially the more its board took responsibility for the company's decisions and told stakeholders about them. The study recommends that; board of directors should be more effective in ensuring that they communicate the decisions clearly and appropriately so that SACCO’s maximize shareholders wealth.

Effectiveness of Financial Cooperatives as Cost-Effective Models for Financing Rural Economies in Nigeria

Financial cooperatives, commonly known as credit unions or savings and credit cooperative societies (SACCOs), have emerged as integral components of Nigeria's financial landscape, especially in rural areas. This paper explores the effectiveness of financial cooperatives as cost- effective models for financing rural economies. The study delves into their structure, benefits, challenges, and impact on rural communities, with a focus on Nigeria's unique context. Financial cooperatives, characterized by member ownership and control, aim to provide affordable financial services to low-income populations. In Nigeria, where rural areas face challenges in accessing traditional banking services, financial cooperatives have been promoted as a sustainable approach to extend financial inclusivity. SACCOs leverage member savings to offer loans at reasonable interest rates, fostering cost-effectiveness compared to other microfinance models. The paper also discusses the structure of the rural economy in Nigeria, its challenges, and potential policy pathways for fostering rural economic growth. The components of financial cooperatives, such as membership, governance, savings mobilization, lending methodology, and regulation, are examined. The study emphasizes the significance of good governance in ensuring cooperatives act in the best interests of their members. It also discusses the positive impact of financial cooperatives on rural communities, offering accessibility, affordability, and contributing to community development. In conclusion, financial cooperatives present a promising model for rural economic development in Nigeria. The paper provides recommendations for enhancing their effectiveness, emphasizing collaboration with regulatory bodies, targeted initiatives for financial inclusion, capacity building, technological adoption, diversification of financial products, community

Liquidity Management and Financial Performance of SACCOs in Bushenyi District

The main objective of this paper is to examine the association between elements of liquidity management and the financial performance of SACCOs in Bushenyi District. This research was conducted through a cross-sectional survey involving a sample of 72 Savings and Credit Cooperative Societies (SACCOs) located in the Bushenyi District. A sample of 61 SACCOs operating in Bushenyi was determined using Krejcie and Morgan's Table, with accountants, managers, and credit officers serving as the units of analysis, resulting in a total population of 183 respondents. The research instrument's validity was assessed using the content validity index, and its reliability was evaluated through Cronbach's alpha coefficient, a measure of the consistency in obtaining similar results from the same respondents when administering the instrument at different times. In accordance with the research objectives, inferential statistics, specifically correlation and regression analyses, were conducted. The findings reveal a statistically significant positive correlation between cash ratios, liquidity ratios and financial performance. Lastly, the research outcomes demonstrate a statistically significant positive relationship between the comprehensive liquidity management elements and financial performance. This suggests that any favorable change in the management of liquidity within SACCOs is associated with a positive change in financial performance. Therefore, enhancing liquidity management can aid in maximizing the use of cash on hand, while efficient cash budgeting can guarantee good planning and resource allocation. Due to their weakly positive associations with liquidity management, debtor management, as well as bank reconciliation statements, must also be considered; this will improve the financial performance of SACCOs.

Credit Risk Management on Financial Performance of Selected Microfinance Institutions

The purpose of this study was to look at the impact of credit risk management on the financial performance of a few Kenyan microfinance firms. The study's approach was a descriptive survey research design and a panel data analysis technique. The study comprised credit managers from all 52 Kenyan microfinance institutions registered in the Association of Microfinance Institutions in Kenya (AMFI) database. The study included all of the institutions that were targeted. The questionnaire, which had previously been tested on local microfinance banks in Kakamega County, was used to collect data. Data analysis included regression analysis and correlation. Throughout the data collection process, the researcher observed integrity. Tables were used to present the study's findings. According to the model summary, credit risk management accounts for 49.1% of the variance in the financial performance of Kenyan MFIs, while other factors not included in the study model account for the remaining 50.9%. With a p-value of 0.01 that is statistically significant. Multiple linear regression analysis revealed that a one-unit change in credit risk management resulted in a significant improvement of 0.672 units in microfinance institution performance (= 0.672 (0.087); at p.01). The study found that prudent and effective credit risk management boosts net profit margins, return on capital invested, and cash flow. The study adds to existing theories by emphasizing the importance of credit risk management in microfinance, lays the groundwork for future research, and advises Kenyan microfinance organizations to invest in efficient credit risk management to improve their financial performance. The report also suggests that studies on Savings and Credit Cooperative Societies (SACCOs) be conducted to compare study findings and that the Association of Microfinance Institutions do studies on non-registered microfinance across the country.

Effect of Working Capital Management on Financial Performance of Savings and Credit Cooperative Societies in Sheema Municipality, Uganda

This study examines the impact of working capital management on the financial performance of Savings and Credit Cooperative Societies (SACCOs) in Sheema Municipality, Uganda. SACCOs play a vital role in Uganda's economic development, contributing to the country's GDP and providing financial services to a significant portion of the population. However, SACCOs have faced challenges in managing their working capital, particularly in cash management, accounts receivable management, and accounts payable management. The study employed a descriptive research design with a sample size of 106 respondents. The data was collected using questionnaires, and the study used multiple regression analysis to analyze the data. The findings indicated that cash management and accounts payable management had an insignificant effect on financial performance, while accounts receivable management had a significant effect. The study recommends the implementation of automated systems, effective internal controls, and staff training to improve SACCOs' working capital management. The research is valuable for government policymakers, scholars, and SACCO management teams. Keywords: Accounts receivable management, Cash management, Account payable management, Financial performance.

Internal Audit Report Quality and Financial Statement Accuracy of Savings and Credit Cooperatives Societies in Kenya

The focus of this study is to examine the correlation between the caliber of internal audit reports and the precision of financial reporting within Kenyan savings and credit cooperative societies (SACCOs). The accuracy of financial reporting is of paramount importance as it influences investment decisions and market efficacy. In view of SACCOs' limited accounting expertise, this investigation aims to evaluate the impact of adept internal auditors on financial accuracy and the internal audit function's role in enhancing controls and preventing fraud. The study utilizes agency and stakeholder theories to probe into the SACCO management-shareholder relationship. By highlighting the significance of accurate financial statements and internal audit quality, the study employs theoretical frameworks to analyze the impact of audit reporting quality on financial accuracy. The ultimate objective of this study is to augment our comprehension of the role of internal audit quality in enhancing financial accuracy in Kenyan SACCOs. The theoretical basis of agency and stakeholder theories facilitates the analysis of intricate SACCO dynamics. In light of the criticality of SACCOs in Kenya's financial sector, the insights derived from this study support governance strengthening and the promotion of accurate financial reporting.

Employees’ Perceptions on the use of Online Internal Communication for Knowledge Sharing

The primary objective of this study was to assess employees’ perceptions on the use of online internal communication (OIC) for knowledge sharing from a personal/individual perspective. This is important because of the emphasis placed on the relevance of knowledge management (KM) in transforming ordinary organisations into learning ones, and to a greater degree through the use of new media technologies. One of the important dimensions of KM that is crucial for organisational learning is knowledge sharing (KS). However, the use of OIC to share knowledge among employees in deposit-taking savings and credit co-operative societies (SACCOs) in Kenya is still low. Therefore, it is necessary to explore employees’ perceptions and personal/individual factors influencing employees’ online KS using the available OIC tools. A cross-sectional survey design was adopted. Primary data were collected using an online structured questionnaire targeting the accessible population of 485 mid-level employees of deposit taking SACCOs in Kenya, and data were migrated to SPSS version 25.0 to generate descriptive statistics. Thematic coding of data obtained from eight focus group discussions involving 72 employees and in-depth interviews with eight senior managers were presented as narrative analysis. The findings of this study indicated that most employees lacked the requisite knowledge, skills and attitude for adopting OIC for knowledge sharing (KS), and emphasised the need for training prior to the implementation process and an organisational environment that is conducive for attutude modification in the use of existing OIC. This study is unique and adds to the existing body of knowledge in the proposed theoretical framework emphasing the need to enhance KS through OIC, specifically on a personal/individual level, considering the managerial/organisational and technical levels as well, to contribute to organisational learning and innovation to ensure sustainable competitive advantage.

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

The Influence of Recruitment and Selection on Performance of Savings and Credit Cooperative Societies (SACCOS) in Tanzania

Objective: This study sought to examine the influence of recruitment and selection on performance of SACCOS in Tanzania. Research Design & Methods: The study used a quantitative approach. Data collection was done using self-administered questionnaires to collect data from 231 HR Managers (or their equivalent) in Tanzania SACCOS with a specific focus on the Dar es Salaam region. Simple random sampling technique was used to sample the respondents. Questionnaires were distributed to the respondents who were asked to fill correct and relevant information. Descriptive and inferential statistics were used for data analysis. Findings: The study found a significant positive relationship between recruitment methods and SACCOS performance, selection criteria and SACCOS performance, and selection process and SACCOS performance. Further, workforce diversity had a significant moderating effect on the relationship between recruitment and selection and SACCOS performance. Implications & Recommendations: The use of effective recruitment and selection practices is capable of enhancing performance of SACCOS in Tanzania. Diversified workforce in SACCOS is capable of moderating the relationship between recruitment and selection and SACCOS performance. The study recommends the use of best practices in recruiting employees in SACCOS and ensures workforce diversity is embraced in these organizations for an improved organizational performance. Contribution & Value Added: The study extends the literature on the influence of recruitment and selection practices on organisational performance with specific reference to Tanzania SACCOS something that the existed body of knowledge missed. As per the reviewed literature, this is the first study to examine the influence of recruitment and selection on performance of SACCOS in Tanzania.

Mediating Effect of Positioning Co-operatives on Post Covid-19 Economic Resilience Dilemma: Evidence from Deposit Taking SACCOs in Kenya

In 2019 China reported an upper infectious respiratory viral disease, Covid 19, which spread worldwide posing a unprecedented threat in the history of mankind. Whereas the economic impact including fatalities was high, in the recent months most affected economies are beginning to debate on the best robust approach of economic recovery. Although United Nations advocates forSocial Solidarity Economy (SSE), people have limited understanding about it. This paper contributes to debate about SEE by examining the mediating effect of Deposit Taking (DT) Savings and Credit Co-operative Societies (SACCOs) on the economic resilience dilemma. The commonwealth co-operative school of thought theory guided the study. The theory states that co-operatives are social-economic institutions started by people having a common bond so as to meet their social-economic problems. A sample of 175 DT SACCOs was purposively taken using descriptive research design. Secondary data was collected from SACCOs Societies Regulatory Authority (SASRA) database and reliability test ascertained by carrying out test retest of the instruments. Data were analyzed through binary logistic regression whereby independent variables were categorical while the dependent variable was binary. Findings indicated that SACCOs had a positive significant relationship on economic resilience. The p-values for the types of SACCOs Government, Teachers, Farmers, and Private and Community based and output on savings, income, employment, loans, deposits and assets tested were less than 0.05. It was concluded that the DT SACCOs had significant relationship with economic recovery. The study recommended economies to consider SACCOs form of SSE as vehicles for economic recovery.

Transformational leadership and innovation in deposit taking SACCOs

With the drive for enhanced financial inclusion of the population through encouraging savings and investments in a bid to spur economic growth and attain the Sustainable Development Goals (SDGs), the critical role played by Savings and Credit Cooperative Societies (SACCOs) in developing countries in this endeavor cannot be gainsaid. It is worth noting that the extent to which such entities will contribute to economic development depends on the leadership paradigm utilized in guiding their operations and the extent to which they are innovative in their undertakings. This may further depend on the moderating effects of various factors, among them competitor orientation, especially in developing countries like Kenya, where the SACCO sector has grown tremendously with many deposit-taking SACCOs licensed to operate by the government. This study sought to establish the influence of transformational leadership on innovation in Deposit Taking SACCOs as moderated by competitor orientation in developing countries with a focus on Kenya. The study utilized descriptive and correlation research designs where 49 respondents, drawn from all the 7 Deposit-taking SACCOs in the Western region of Kenya, were targeted. Structured questionnaires were employed for data collection. The study used descriptive and inferential statistics to analyze data. Findings revealed that transformational leadership had a positive and significant influence on innovation. Further, competitor orientation had a positive but insignificant moderating effect on the relationship between transformational leadership and innovation. The study recommends that managers utilize transformational leadership practices in their undertakings to encourage innovation that ensures firm competitiveness. They should also focus on competitor orientation to support the firms’ innovative efforts.

Influence of Interest Rates Charged on Financial Performance of Savings and Credit Cooperative Societies: A Case of Nyamira County, Kenya

The study sought to determine the influence of interest rates on financial performance of savings and credit cooperative societies (SACCOs). Savings and Credit Cooperative Societies (SACCOs) play an essential role in economic development as part of the financial system. Descriptive research design was used. The target population of this study was all the six deposit taking SACCOs in Nyamira County consisting of 234 employees, from whom a sample of 75 employees was selected. Data collected was primary data. Reliability of the research instrument was calculated using Cronbach’s coefficient alpha of 0.7472. Data was collected using questionnaires and analyzed using both descriptive statistics and inferential statistics with the aid of Statistical Package for Social Sciences (SPSS). The study identified issues that affect financial performance of the SACCO. The research challenges the management of Gusii Mwalimu SACCO to consider the interest rates they charge on loan to members as compared to other financial institutions because if featured as the major challenge to financial performance of Gusii Mwalimu SACCO. Interest rates should be reviewed frequently depending on the prevailing market rates.

Influence of Board Attributes on Board Roles Performance in Savings and Credit Co-operative Societies (SACCOS) in Tanzania

This paper reports the findings of a study that had evaluated the influence of board attributes size, gender diversity, skills and meetings on board’s role performance in terms of strategic, resource provision and monitoring roles in SACCOS, Tanzania. Data on the boards’ roles were collected using a questionnaire survey administered to 198 SACCOS boards’ chairpersons. Data for board’s attributes were obtained from annual audited financial reports. Data were then subjected to factor analysis and linear regression models. The results show that board meetings have a positive and significant influence on the boards’ ability to perform strategic, resource provision and monitoring roles. The study further shows that board financial skills have positive and significant effect on strategic and monitoring roles. Impliedly, having a financial skill director on board parallel with board meetings help to stimulate active participation of board members in executing their roles. No evidence, however, was found on the effect of board size and board gender diversity on the board roles’ performance. Thus, the study suggests that financial skills of members needs high prioritization in the election of board members to boost efficiency in performing their board roles. Also, regular board meetings for worthy strategies settings, advice and effective monitoring of the SACCOS.