An investigation on the members attitudes as regards the lending policies for the savings and credit co-operative societies in Kenya: a case study of Mwalimu Savings and Credit Cooperative society limited

Abstract

Savings and credit co-operative societies are one of the many non-agricultural cooperative societies in Kenya. They are unique in that, out of their services and daily contribution towards economic development, the government through the Ministry of Co-operative Development issues policies, which guide their operations. These policies are reviewed periodically to be in line with changing economic conditions.

The researcher's main objective was to find out the attitudes members held towards the lending policies and also the aspects of such policies that members were not satisfied with. The other objective was to find out whether members' attitudes were influenced by the salary scale or the number of years one had been in the society.

The researcher undertook a case study of Mwalimu Savings and Credit Co-operative Society Ltd, Nairobi where a sample of 150 was used. A questionnaire was used in collecting data. The data collected were analysed by way of tabulation, mean scores, percentages and semantic differential profiles. From the study it was found that, depending on the lending policy in question, members' attitudes varied from positive to negative. Further, it was established that members' satisfaction or dissatisfaction with particular lending policies was not influenced by either salary scale or number of year one had been with the society.

From the findings it was recommended that those policies to which members held negative attitudes be dropped and that the government should withdraw its involvement in the running of day-to-day operations of the savings and credit cooperative societies. This could ensure autonomy of such societies and members' full participation in their management could enhance high savings.