Edwin Wainaina Njuguna


FOSA is an investment of the Society that is geared towards providing more services/products to members and managing competition from other SACCOS/Banks. The main objective of this study was to establish the effect of Front office service activity (FOSA) on the performance of savings and credit co-operative societies (SACCOS). The specific objectives of the study were; To establish the Effect of FOSA on SACCO surplus, loan portfolio share capital and Membership recruitment. To establish the level of compliance with SASRA regulations. To establish if competition from other players in the industry namely banks and microfinance institutions affected the performance of the SACCO and FOSA.  To establish the level of uptake of FOSA products.

The study applied a descriptive research design; the target population was 388 respondents. These involved FOSA accountants, FOSA marketing officer, FOSA manager and FOSA business development manager. The study applied cluster sampling to obtain a sample size of 116 respondents. Questionnaires were the major data collection instruments and the gathered findings were analyzed through the use of quantitative and qualitative analysis, tables and charts were used to present the findings.

The study found out that on awareness on FOSA products and services, majority of respondents who were (40) greed, (25) disagreed, (20) strongly agreed and (15) strongly agreed. On whether FOSA banking charges are better than banks and micro finance institution, majority of respondents who were (38) agreed, (32) strongly agreed, (20) disagreed and (20) strongly disagreed. On whether respondents had both FOSA and microfinance account, majority of respondents who were (32) disagreed, (25) strongly disagreed, (22) agreed and (21) strongly agreed. Majority of respondents who were (31) indicated average (23) very bad, (20) good, (17) bad and (9) very good. On whether banking charges of FOSA compared to banks and microfinance institutions, majority of respondents who were (29) indicated average, (26) very good, (24) good (6) bad and (5) very bad.

The study recommended that share capital should maintain an upward trend. FOSA should have a better loan portfolio compared to other financial institutions which should help attract more members. SASRA should monitor and ensure full registration of FOSA before being allowed to offer FOSA related services. Saccos should improve the level of awareness of FOSA products through continuous marketing. FOSA bank charges should be lower compared to banks and microfinance institutions.

Key Words: Front Office, Performance, Savings and Credit Societies

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