Browsing by Author "Mutai, Japhet Kipkirui"

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    Management Practices and Financial Performance of Selected Deposit-Taking Saccos in Kericho and Bomet Counties, Kenya
    (Kenyatta University, 2025-05) Mutai, Japhet Kipkirui
    Persistent challenges, such as the decline in market share, clientele, and profitability, have plagued Kenya's “deposit-taking savings and credit cooperatives (DT SACCOs) As the market becomes more competitive with the entry of new participants, several DT SACCOs, particularly in Bomet and Kericho Counties, have experienced failures due to changes in the industry. Some have faced restrictions on specific operations, while others have even lost their licenses. “A significant number (over 40%) of DT SACCO owners attribute these failures to poor management practices within SACCO operations, which hinder their ability to cover operating costs, expand market share, pay dividends, or venture into new areas. The current study focuses on the management practices and financial performance of selected DT SACCOs in Kericho and Bomet Counties. Its objective is to determine how corporate governance, SACCO regulations, stakeholder involvement, and core competencies influence the performance of these SACCOs. The study draws on various theories such as open system theory, contingency theory, stakeholder theory, and the resource-based view theory to guide its investigation. Using a descriptive research methodology, the study concentrated on employees of the selected DT SACCOs in Kenya. The target population consisted of 87 employees from Kericho and Bomet Counties, with a sample size of 87 was adopted for the study. Data was collected through questionnaires and supplemented by literature analysis to enhance content validity. The study assessed predictive and construct validity through statistical analysis and expert input. It employed the Cronbach Alpha Reliability test, considering a dependability coefficient of 0.70 or higher as acceptable. Data analysis was conducted using SPSS Version 20, and the findings were presented in descriptive and frequency tables. Regression analysis was also employed to further analyze the data. The results of this study provided stakeholders with valuable insights to make more informed decisions regarding strategy execution, taking into consideration the challenges faced by DT SACCOs in Kenya. The research findings indicate that employees hold a strong consensus on the critical role that various elements of corporate governance such as board composition, management accountability, and effective communication play in improving the financial performance of SACCOs. The relatively low standard deviations observed across most survey statements suggest a high degree of agreement among participants regarding the importance of these governance practices. The study recommended that; SACCOs should prioritize the establishment and strengthening of corporate governance frameworks. This includes ensuring well-defined roles and responsibilities for board members, promoting management accountability, and implementing regular evaluations of governance practices. Training programs on governance best practices can equip board members and management with the necessary skills to make informed decisions that align with the SACCO’s strategic goals.