Risk Avoidance Strategy and Performance of Non-Withdrawable Deposit Taking Saccos in Nairobi City County, Kenya
Loading...
Date
2024-05
Authors
Oluoch, Lilian Akinyi
Muchemi, Anne
Journal Title
Journal ISSN
Volume Title
Publisher
IJIRAS
Abstract
Saccos provide savings and credit facilities to their members and like other organizations in the financial
sector, it undergoes several economic challenges which threaten their growth. The non-withdrawable deposit taking
Saccos subsector have undergone performance failures leading to some collapsing, hence the necessity of a successful
risk management plan to meet their goals. The objective of this research was to investigate the effects of risk avoidance
strategy on performance of non-withdrawable deposit taking Saccos in Nairobi County. The research was grounded on
modern portfolio and agency theories. For this investigation, a descriptive research design was used and the target
population constituted 132 non-withdrawable deposit taking Saccos in Nairobi County. A census method was employed to
choose the 132 Saccos while purposive sampling was adopted to select 1 respondent in management position, from each of
the Saccos. Primary data was gathered by questionnaires, and secondary data came from documented information in
regulatory bodies reports, journals, books amongst others. Descriptive and inferential statistics were used in to analyse the
data. The results of the investigation demonstrated that risk avoidance has a positive and significant (p=0.0000<0.05)
relationship with performance. The study recommends that stakeholders of non-withdrawable deposit taking Saccos
should focus on the use of adequate credit securities, staff and board training, and comply to regulatory laws and policies
for better performance of their Saccos and other financial institutions.
Description
Article
Keywords
Risk Avoidance strategy, Performance of Non-Withdrawable Saccos, Nairobi County
Citation
Oluoch, L. A., & Muchemi, A. Risk Avoidance Strategy And Performance Of Non-Withdrawable Deposit Taking Saccos In Nairobi City County, Kenya.