Savings And Credit Cooperative Societies Research Articles

The Mediating Effects of Board Role Performance in the Relationship Between Board Capital and Survival of Financial Cooperatives in Uganda

Savings and Credit Cooperative Societies (SACCOs) in Uganda face persistent survival challenges, often associated with governance limitations and board effectiveness issues. This study investigates the association between board capital, which encompasses both human and social capital, and SACCO survival—measured through liquidity and gearing—with board role performance as a potential mediator. Data were collected from 311 participants across 60 SACCOs in a cross-sectional survey. Structural equation modeling analysis indicates that although board capital does not directly influence SACCO survival, it positively correlates with board role performance, which in turn is significantly associated with SACCO survival outcomes of liquidity and gearing. These findings underscore the importance of board engagement in translating board members’ collective expertise, knowledge, and external connections into enhanced liquidity and balanced gearing for SACCOs. Practical implications suggest that SACCOs could benefit from initiatives to strengthen board members' skills and networking capabilities through targeted training, mentorship, and structured networking opportunities. Establishing clear board roles, strengthening accountability mechanisms, and implementing regular performance evaluations are essential practices to bolster SACCO survival. This study contributes a novel perspective by integrating Role Theory with Agency and Resource Dependency Theories, providing a multi-theoretical framework to better understand SACCO survival in a developing economy context. This integration enriches the theoretical landscape and provides actionable insights for strengthening SACCO survival in Uganda’s challenging economic context.

Relationship Marketing and Customer Loyalty among Deposit-Taking SACCOS in Western Kenya

Deposit-taking Savings and Credit Cooperative Societies (SACCOS) in Kenya have faced significant challenges due to intense competition and declining customer numbers, which underscores the need for further investigation into relationship marketing strategies. A key research gap is the role of digital platforms in moderating the effectiveness of these strategies and their impact on customer loyalty. This study aimed to evaluate how digital platforms influence the relationship between relationship marketing (RM) and customer loyalty among SACCOs in Western Kenya. Using Relationship Commitment, Social Exchange, and Commitment Trust theories, the research focused on 23 SACCOs with 37,137 customers and surveyed 396 respondents, including prior pilot study. Descriptive and correlational research designs were used, with data collected via self-administered questionnaires and systematic sampling. Analysis with SPSS assessed validity and reliability, employing descriptive statistics and inferential methods such as Pearson’s Correlation, Simple Linear Regression, and Hierarchical Regression Analysis. Assumption tests confirmed that the research data met normality, linearity, homoscedasticity, and multicollinearity criteria, with a response rate of 87.63% and significant correlations (p<0.05) among variables. Digital Platforms were found to contribute significant moderating role on the link between Relationship Management and Customer Loyalty (p<0.05), emphasizing features like interactivity, personalization, and trustworthiness. The results suggest that in order to enhance customer experience, SACCOs should allocate resources towards the development of user-friendly digital platforms, utilize data analytics in targeted marketing efforts, so as to enhance engagement with the community via online channels. Moreover, it is crucial for SACCOs to prioritize personalized service, establish trust, and strive for continuous improvement, while taking into account regulatory revisions, in order to maximize the effectiveness of digital platforms within the financial sector.

The effect of service concept on customer acquisition: the moderating role of manager’s experience on Savings and Credit Cooperative Societies in Tanzania

PurposeThis study aims to investigate the influence of the service concept on customer acquisition and when the relationship is moderated with manager’s experience in Savings and Credit Cooperative Societies (SACCOS) within Dar es Salaam City, Tanzania.Design/methodology/approachThe study adopts a cross-sectional research design and utilizes simple random sampling to select 226 respondents, all of whom are managers of SACCOS in Tanzania. Data were collected through a questionnaire and analyzed using a partial least square structural equation modeling (PLS-SEM).FindingsThe findings indicate that service concept have a highly statistically significant impact on customer acquisition, with a p-value of less than 0.05. Conversely, managers’ experience also influences customer acquisition by the p-value of less than 0.05. The result also confirms the significance influence of positive moderating effect of manager’s experience on the relationship between service concept and customer acquisition, with a p-value of less than 0.05, therefore it shows that manager’s experience facilitate the influence of service concept to customer acquisition.Practical implicationsThe findings of this study provide valuable insights for SACCOS aiming to thrive and attract more customers. By understanding the nuances of service concepts, these institutions can refine their strategies for customer acquisition effectively.Originality/valueThe study’s insights into the composite effect of service concepts hold significance for SACCOS seeking to enhance their customer acquisition strategies enhanced by manager’s experience. These findings contribute new perspectives to the SACCOS and other related financial services sector, offering fresh insights into innovation and customer-centric approaches.

Examining the Internal Controls and Financial Performance of Selected Savings and Credit Cooperative Societies in Moyo District, Uganda

This research study examined the effect of internal controls on financial performance Savings and Credit Co-operative Societies (SACCOs) in Moyo district of Uganda. Utilizing both qualitative and quantitative methodologies, a descriptive cross-sectional research design was employed. The population consists of 56 participants. Data was collected with surveys and interviews. The study’s findings demonstrated that the control environment in the chosen SACCOs in Moyo district had a beneficial impact on financial performance. This is corroborated by the favourable internal control ratings and the highly satisfying view of the accounting and financial system of the chosen SACCOs. And well-constructed control environment has the potential to strengthen the entire governance and administration of SACCOs, resulting in enhanced financial performance. Based on these findings, the study calls for SACCOs to prioritize ethical values in their organizational culture. This includes promoting honesty, integrity, and accountability among staff and management. Ensure that the board of directors maintain their independence from management. This can be achieved by implementing governance structures that prevent conflicts of interest. Continuously adhere to audit standards and best practices to maintain high-quality financial reporting and internal controls. It is equally recommended that SACCOs should conduct periodic internal reviews of control activities to identify weaknesses and areas for improvement. It is recommended that management be tasked with the responsibility of promptly reviewing audit reports and resolving any non-compliance issues identified within them. Keywords: Stewardship, Internal controls, Savings, Cooperative societies, Financial performance.

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

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

Savings and Credit Cooperative Societies (SACCOS) Members’ Perception on Loan Services

The study examined members' perceptions of SACCOS' credit facilities. The study used descriptive research methods, statistics, factor analysis, and ANOVA to examine members' perceptions of credit facilities offered by SACCOS in Ethiopia. It involved 400 members from 30 selected SACCOS who completed 23 closed-ended questionnaires. The study based its results on four factors: credit volume, customer service, impartiality, and affordability. Timely lending, informed action on default, fair repayment periods, and simple application formalities influenced the credit volume. Borrower capacity, reasonable interest rates, and satisfactory loan distribution were all examples of customer service. Moreover, geographic location did not significantly influence perceptions.

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.