INFLUENCE OF CASH MANAGEMENT PRACTICES ON FINANCIAL PERFORMANCE OF DEPOSIT TAKING SACCO’S IN KAKAMEGA COUNTY
Abstract
This study was on the influence of cash management practices on the financial performance of Deposit taking Saccos in Kakamega County. The theory that guided the study was liquidity management preference theory. The coverage of the study was based on the Saccos registered under SASRA in Kakamega County. The total target population was four Deposit taking Saccos in Kakamega County where it targeted three senior managers (Branch managers, operation managers and loan managers) Shareholders and Board of directors from the four deposit taking Saccos in Kakamega County. The sample size was ninety nine respondents which was formed using stratified random sampling technique. Descriptive research design was employed which demonstrated the relationships between the variables. Closed ended questionnaires was used as data collection instruments and was conveyed to the respondents through drop and pick technique. Data analysis and interpretation was done using quantitative method based on descriptive statistics such as measures of mean and measures of dispersion as well as inferential statistics mainly analysis of variance, multi-linear regression and bivariate Pearson correlation. Data processing and analysis was finally done by use of the SPSS software version twenty four. The correlation between cash management practices and financial performance was significant. The model was fit to predict financial performance using cash management. From the results it was concluded that cash management practices had explanatory power of change in the financial performance of deposit taking Saccos in Kakamega County. The study recommended introduction of other forms of loan guarantees for loan issuance since members‟ investments is on huge risk exposure when left only to members deposit guarantors.
Key Words: Cash Management Practices, Financial Performance, SACCOs
CITATION: Matianyi, B. J. & Ndirangu, A. W. (2019). Influence of cash management practices on financial performance of deposit taking SACCO’s in Kakamega County. The Strategic Journal of Business & Change Management, 6 (2), 1994 –2005.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i2.1235
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