INFLUENCE OF LIQUIDITY ON SAVING AND CREDIT COOPERATIVE SOCIETY PERFORMANCE IN KAKAMEGA COUNTY, KENYA
Abstract
The general goal of this examination was to research the impact of liquidity on the execution of Saccos in Kakamega County, Kenya. The examination depended on liquidity hypothesis and organization hypothesis. The investigation focused on 149 respondents structure where Yamame's equation was connected to get an example size of 109 respondents. Elucidating overview configuration was utilized in the investigation and information was gathered utilizing organized polls. Content legitimacy was utilized to check instrument legitimacy while cronbachs alpha was utilized to check instrument unwavering quality. Factual bundle for sociologies adaptation 23 programming was utilized in information investigation. A sum of 88 out 109 respondents returned totally filled polls showing a reaction rate of 80.7% which is useful for generalizability of study discoveries to a more extensive populace. The investigation discoveries demonstrated that all indicator factors (resource quality, capital ampleness, capital influence, capitalization) fundamentally affected execution of Saccos in Kakamega County, Kenya. The examination inferred that one; asset quality is a significant predictor of Saving and Credit Cooperative Society performance, thus, Saccos with better net performing assets and low debt ratios experiences an improvement in its financial performance, and two; capital adequacy significantly influences Sacco performance, thus, Saccos that adhere to SASRA’s minimum capital requirements rarely experience financial management problems, and thirdly, capital leveraging in terms debt and equity ratios determines financial performance of many Saccos that practice prudent capital leveraging measures. The study recommended that first, all Saccos should enforce viable loaning policies so as to ensure that they have quality loan products with low non-performing loans so as to boost Saccos’ performance; secondly, Saccos should adhere to SASRA’s minimum capital requirements so as to ensure they have adequate capital base to check insolvency risks; and three; Saccos should foster implementation of capitalization initiatives to boost share capital/equity which can consequently boost their performance.
Key Words: benefit quality, capital ampleness, capital utilizing, Saccos, Kakamega County
CITATION: Alele, B., Kadima, J. M., & Otinga, H. N. (2019). Influence of liquidity on saving and credit cooperative society performance in Kakamega County, Kenya. The Strategic Journal of Business & Change Management, 6 (2), 1030 –1045.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i2.1169
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