Browsing by Author "Kiplagat, Kipsuge"

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    Front Office Products Income and Liquidity of Deposit Taking Savings and Credit Cooperative Societies in Nairobi City County, Kenya
    (Kenyatta University, 2025-07) Kiplagat, Kipsuge
    This study examined how income from Front Office Service Activity (FOSA) products influences the liquidity of deposit-taking Savings and Credit Cooperative Societies (SACCOs) operating in Nairobi City County, Kenya. Liquidity remains a persistent concern for SACCOs, undermining their ability to meet short-term financial obligations. This study focused on three key income streams: loan products, investment products, and utility services. The study also considered the role of firm size as a moderating variable. The general objective of the study was to assess the effect of income generated from FOSA services on the liquidity of deposit-taking SACCOs. Specifically, the study aimed to: determine the effect of income from FOSA loan products on liquidity, assess the effect of income from FOSA investment products on liquidity, examine the effect of income from FOSA utility services on liquidity, and evaluate the moderating role of firm size on the relationship between FOSA income and liquidity. A census approach was employed, targeting all 34 licensed deposit-taking SACCOs within Nairobi City County. Secondary data was collected from published financial statements covering a five-year period, from 2018 to 2022. Descriptive statistics were used to summarize the data, while inferential analysis using multiple regression was conducted to examine the relationships among variables. The findings showed that income from loan products, investment products, and utility services each positively influenced SACCO liquidity. These results imply that diversified income streams from FOSA activities enhance the SACCOs' ability to meet short-term financial obligations. However, firm size was found to negatively moderate these relationships, suggesting that as SACCOs grow larger, their liquidity position may become more strained due to increased operational demands. Based on the findings, the study recommends that SACCOs strengthen their FOSA product lines to ensure consistent income generation. Policymakers and SACCO regulators should consider creating enabling environments and reviewing regulations to allow SACCOs more flexibility in product innovation. Additionally, SACCOs should regularly evaluate their liquidity management strategies and ensure that growth in firm size is accompanied by improved financial controls and risk mitigation measures. This study contributes to the body of knowledge by offering a multidimensional analysis of FOSA income, liquidity, and firm size. It provides insights relevant to SACCO managers, policymakers, and stakeholders seeking to enhance financial resilience and service delivery within Kenya’s cooperative sector