EFFECT OF STOCK MANAGEMENT ON FINANCIAL PERFORMANCE OF SWEET POTATO MARKETING COOPERATIVES IN KENYA
Abstract
Sweet potato global market is growing every year, presenting opportunities for export and for subsistence farmers to improve their food security situation and boost income from the sales of surplus. However, for most of the populations in the major production regions, this enterprise has given little impetus to the improvement in their incomes. Thus this study sought to determine the influence of stock management on the financial performance of sweet potato marketing cooperatives in Kenya. The study design was descriptive panel research design. Secondary data was used for analysis. The target population was four sweet potato marketing cooperatives with a total population of one thousand two hundred and forty five (1,245) sweet potato farmers registered as at December, 2015 by the Commissioner of cooperatives in Kenya comprising of Homabay, Bungoma, Busia and Siaya counties which also formed the study target units. Census sampling was used to select sample of the population. Secondary data over the ten year-period covering 2006-2015 was obtained. Data was collected using secondary data collection sheet and analyzed using multiple panel regression models. Limitations faced during data collection included high illiteracy levels amongst cooperative members. This was controlled by taking the officials through the facets of stock management to have them understand the concepts under enquiry. The study findings showed that stock management had significant influence on return on investment, a measure of financial performance of sweet potato marketing cooperatives in Kenya and tests for significance also showed that the influence was statistically significant. The study therefore recommended that all sweet potato marketing cooperative officials and members be trained on stock management aspects.
Key words: Stock management, financial management, marketing cooperative societies
CITATION: Gitau, B. N. (2019). Effect of stock management on financial performance of sweet potato marketing cooperatives in Kenya. The Strategic Journal of Business & Change Management, 6 (3), 45 – 54.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i3.1283
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