STRATEGIC FACTORS AFFECTING COMPLIANCE WITH THE SACCO ACT OF 2008 BY DEPOSIT TAKING SAVINGS AND CREDIT COOPERATIVES IN NAIROBI COUNTY
Abstract
Savings and Credit Cooperatives (Sacco’s) play an increasingly important role in the process of financial intermediation in the highly competitive financial market in Kenya. Various players in the financial sector are under regulatory arms and include Insurance regulatory authority, Retirement benefits authority, commercial banks under Central bank of Kenya and lately Sacco’s under Sacco society’s regulatory authority (SASRA). The study’s overall objective was to examine the strategic factors affecting compliance with the Sacco Act of 2008 by Deposit Taking Sacco in Nairobi County. The study adopted a correlational research design and a census survey of 42 Deposit taking Sacco’s in Nairobi County. Data was collected using a questionnaire and analyzed using descriptive statistics with the aid of Statistical Package for Social Sciences computer software version 21. To test the relationship in the hypotheses HA1, HA2 and HA3 Pearson’s correlation analysis was used while hypothesis HA4 was tested using multiple regression model in testing the strategic factors affecting compliance with the Sacco Act of 2008 by Deposit Taking Sacco’s in Nairobi County. The findings concluded that Information Communication Technology capacity of the Sacco’s in Nairobi County were inadequate; The Sacco’s in the County had not attained the required human resource capacity and approximately 80% of the Sacco’s had not fully complied with the Societies’ Act of 2008. The research’s conclusion and recommendations were that Information and Communication Technology capacity, corporate governance and human resource capacity were found to be important as far as compliance with the Societies’ Act of 2008 was concerned. These factors presented challenges that hindered deposit taking Sacco’s from compliance. Therefore more time was to be given to deposit taking Sacco’s to ensure that they complied with the Act. The research recommended Sacco’s to enhance management capacity on compliance issues, establish a training program, while on the other hand the board of directors should initiate change management with an aim of setting realistic user expectations objectives and goals.
Key Words: Human Resource Capacity, Information Communication Technology, Corporate Governance, SACCOs
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DOI: http://dx.doi.org/10.61426/sjbcm.v4i2.433
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