INFLUENCE OF LIQUIDITY ON FINANCIAL PERFORMANCE OF SAVINGS AND CREDIT CO-OPERATIVE SOCIETIES IN KAKAMEGA COUNTY; KENYA
Abstract
The study focused on the influence of Liquidity being a factor of financial distress on financial performance among Savings and Credit Co-operative Societies in Kakamega County. Sacco shareholders were posting a great challenge on financial performance due to their rigid stand towards revenue generation as a result this has led to mismanagement and poor investment decisions among SACCOs hence contributing to organization failure. The objective of the study was to investigate how liquidity influences the financial performance of SACCOs in Kakamega County. This study adopted a descriptive Survey research design. The target population was the employed managers of SACCOs in Kakamega County; Kenya. The study applied Krejcie Morgan approach for determination of the sample. Primary data was collected by use of self-administered structured questionnaires. The data collected was analyzed using descriptive statistics and inferential statistics. The findings were that liquidity was found to have a positive influence on Return on Equity. The study recommended that managers should be keen on the liquidity policies in their SACCOs. Members should invest ideas in the understanding of Liquidity to boost financial performance of SACCOs. The study recommended for further studies on similar variables in other different financial institutions but different analytical methods to be applied.
Key words: Liquidity, Financial Distress Factors, Financial Performance
CITATION: Khisa, A. T., Kadima, M. J., & Juma, D. (2022). Influence of liquidity on financial performance of savings and credit co-operative societies in Kakamega County; Kenya. The Strategic Journal of Business & Change Management, 9 (1), 1040 – 1047.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i1.2242
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