ASSESSMENT OF THE FACTORS INFLUENCING PERFORMANCE OF DEPOSIT TAKING SACCOS (SOCIETIES) IN MACHAKOS COUNTY: A CASE STUDY OF MACHAKOS TOWN SUB-COUNTY

Abstract

Savings and credit cooperative societies (SACCO, s) in Kenya have been in operation for many years. The cooperative sector has been able to impact significantly on the Kenyan Economy. The basic purpose of SACCOs in Kenya has been the provision of access to business capital to members of the public who are members of these cooperative societies. However, this expectation of the cooperatives has not been met due to factors like financial management inadequacy dynamics, the SACCOs policy framework and the SACCOs’ external environmental factors. The purpose of this study was therefore to assess the factors that influence the performance of SACCO’s in Machakos Sub-county in Machakos County. The study was guided by major key objective namely; to investigate the influence of financial management capacity on performance of SACCO’s in Machakos Sub-County. The study adopted a descriptive survey design. Performance measurement of the SSACCO’s was done using the balanced scorecard model. The model incorporated both financial and non-financial performance measures. The measures tested key perspectives of the balanced scorecard which included processes, customer experience and learning, growth perspective and financial measures to determine the performance of the SACCO’s in Machakos Sub-County. A simple regression model was used in this study to determine the level of relationships between the independent variables and dependent variable. Data collection was carried out using closed ended questionnaires while data analysis was done using the Statistical Package for Social Scientists (SPSS). The study findings were presented using APA tables. The findings of the study established that there was a significant relationship between all the variables of study and the performance of the Sacco’s in Machakos Sub-County in Machakos County.  The findings found that there was a positive correlation between the SACCO’s financial management capacity. The study recommended that SACCOs in Machakos Sub-County to strengthen their financial capacity because it had a significant correlation with performance.

Key words: Financial Management Capacity, Cooperative Society, Performance

CITATION: Mbatha, C. L., & Muhoho, J. K. (2020). Assessment of the factors influencing performance of deposit taking SACCOs (Societies) in Machakos County: A case study of Machakos Town Sub-County. The Strategic Journal of Business & Change Management, 7(3), 1416 – 1427.