LIQUIDITY LEVELS MANAGEMENT PRACTICES AND FINANCIAL PERFORMANCE OF DEPOSIT TAKING SACCOS IN WESTERN KENYA
Abstract
Cash flow management is at the core of every financial organization that wishes to gain a competitive edge over its market competition. However, its agreeable to note that many SACCOs suffer the challenge of maintained their cash flow for financial performance. The purpose of this study was to examine liquidity levels management practices and their influence on financial performance of SACCOs in Kenya; a case of SACCOs in western Kenya. This study was supported by theories of walkers’ three propositions, cash management and loanability funds theory. This research work used descriptive research design. The study was carried out in Western Kenya. This study targeted 2226 respondents. The study sampled the 339 respondents using simple random sampling. Structured questionnaires with interview schedules were engaged in collecting data constructed on a five-point Likert scale containing close ended questions. In testing validity of the study, the research tools were reviewed by a team of experts while reliability was established at 0.7 level of significance through a pilot test. The collected data was filtered, organized and corded before data analysis. Statistical Package for Social Sciences (SPSS) version 22 was employed for data analysis. Analysis was done in form of descriptive as well as inferential statistics. Descriptive statistics included the means, frequencies, standard deviations and percentages while inferential statistics included coefficient of determination and analysis of variance. Findings were presented in statistical tables accompanied by relevant discussions. From the findings, the first null research hypothesis posited H01: There is no significant effect of Liquidity levels management practices on financial performance of deposit taking SACCOs in western Kenya was rejected using both r and R2. From the results, Liquidity levels management practices had significant positive effect on financial performance of deposit taking SACCOs in western Kenya and it significantly accounted variance in financial performance of deposit taking SACCOs. Therefore, the null hypothesis was rejected as capital investments management practices has significant effect on financial performance of deposit taking SACCOs.
Key Words: Liquidity Levels management Practices, Financial Performance, Deposit Taking SACCOs, Western Kenya
CITATION: Nasenya, W. E., Malenya, A., & Makokha, A. N. (2021). Liquidity levels management practices and financial performance of deposit taking SACCOs in Western Kenya. The Strategic Journal of Business & Change Management, 8 (3), 858 – 869.
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DOI: http://dx.doi.org/10.61426/sjbcm.v8i3.2071
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