FINANCIAL PLANNING PRACTICES AND PERFORMANCE OF SACCOS IN KISII COUNTY GOVERNMENT, KENYA
Abstract
The general objective of the study was to establish the effects of financial planning practices on the financial performance of an organization, specifically a survey of SACCOs in Kisii County. The study was guided by the following specific objectives: to determine the effect of investment strategy, financial literacy, liquidity needs and risk tolerance on the financial performance of SACCOs in Kisii County, Kenya.The study adopted a descriptive survey design. The study targeted 150 respondents from selected departments in different SACCOs in Kisii County, Kenya, out of which 109 samples were used. The study used closed questionnaires as the primary instruments to collect data, alongside other instruments such as interview schedules and observations. Prior to summarizing the data, the questionnaires were checked for completeness and accuracy. Data was coded sequentially to ensure uniformity during presentation. Data was tabulated in the form of frequency tables and percentages. The findings revealed that investment strategy, financial literacy liquidity needs and risk tolerance have significant positive influence on on the financial performance of SACCOs in Kisii County. The R Square value is 0.672, meaning that approximately 67.2% of the variance in SACCO performance can be explained by these financial planning practices. This is a strong proportion, highlighting the importance of these practices in determining SACCO performance. The study concluded that investment strategy, financial literacy liquidity needs and risk tolerance have significant influence on on the financial performance of SACCOs in Kisii County, Kenya. The study reccommended that SACCOs in Kisii County should develop and implement comprehensive investment strategies that align with their financial goals and member needs. SACCOs should prioritize continuous financial education and training for both management and members. SACCOs should establish robust liquidity management frameworks to ensure sufficient cash flow for daily operations and long-term obligations. SACCOs should adopt balanced and well-informed risk management strategies that align with their institutional capacity and goals.
Key Words: Investment Strategy, Financial Literacy, Liquidity Needs, Risk Tolerance
CITATION: Morembe, E. N., & Miroga, J. (2025). Financial planning practices and performance of saccos in Kisii County Government, Kenya. The Strategic Journal of Business & Change Management, 12 (2), 704 – 726. http://dx.doi.org/10.61426/sjbcm.v12i2.3237
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DOI: http://dx.doi.org/10.61426/sjbcm.v12i2.3237
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