Cash Management Practices and Financial Performance of Livestock Marketing Cooperative Societies in Marsabit County, Kenya.
| dc.contributor.author | Dae, Malle Hido | |
| dc.date.accessioned | 2025-07-25T08:13:43Z | |
| dc.date.available | 2025-07-25T08:13:43Z | |
| dc.date.issued | 2025-06 | |
| dc.description | A Research Project Submitted to the School of Business, Economics and Tourisms in Partial Fulfillment of the Requirement for the Award of Degree of Master of Business Administration (Finance) Kenyatta University, June, 2025 Supervisor: 1.Jeremiah Koori | |
| dc.description.abstract | In the context of Kenya’s livestock sector, the performance of marketing cooperative societies remains a critical concern due to inconsistencies in financial outcomes and limited clarity on how internal financial practices affect operational sustainability. Despite their significant role in promoting rural economic development and offering market access to livestock producers, many of these cooperatives continue to struggle with issues of liquidity, poor cash flow management, and underutilization of financial planning tools. These challenges undermine their ability to deliver value to members and sustain operations effectively. The research problem addressed in this study centers on the persistent inefficiencies in financial performance among livestock marketing cooperative societies in Marsabit County and the unclear link between cash management practices and financial outcomes. To address this gap, the study explored the influence of specific cash management practices—including periodic cash planning, surplus cash investment, cash flow management, and credit line utilization—on the financial performance of livestock marketing cooperative societies in Marsabit County, Kenya. By examining these practices, the study sought to understand whether internal cash handling strategies significantly contribute to or detract from the economic performance and sustainability of these cooperatives. The study is grounded in Keynesian theory of money, free cash flow theory, and stakeholder theory, which provide a robust conceptual framework for evaluating how financial decisions impact stakeholder value and organizational health. A quantitative research approach was adopted to assess the relationships between cash management variables and financial performance. The research employed a descriptive research design to gather empirical data from the target population. Stratified random sampling was used to select 86 respondents from twelve active livestock marketing cooperative societies operating in the county between 2019 and 2023. Primary data was collected using structured questionnaires administered to finance department staff, while secondary data was sourced from financial audit reports available at cooperative offices and the Ministry of Cooperatives. Data analysis was carried out using SPSS Version 25, with descriptive statistics used to summarize the data and regression analysis applied to examine the relationship between variables. The study established that effective cash management practices—particularly periodic cash budgeting, proper investment of surplus funds, and consistent monitoring of cash flow—contribute positively to the financial performance of livestock marketing cooperatives. Moreover, the use of decentralized financial systems and software tools was identified as a key enabler for improving financial visibility and control across departments. The findings suggest that many cooperatives underperform due to a lack of structured financial planning and limited institutional capacity to manage liquidity risks. Based on these findings, the study recommends that managers of livestock marketing cooperative societies in Marsabit County should adopt and institutionalize formal periodic cash planning processes to enhance budgetary control. Societies should also develop clear investment strategies for surplus cash to generate additional income. Strengthening cash flow monitoring systems and adopting decentralized accounting software can also promote timely financial decision-making. Furthermore, the study suggests that credit lines should be strategically utilized to bridge short-term cash gaps without jeopardizing long-term financial stability. On the policy level, government regulators and cooperative development agencies are encouraged to create a supportive regulatory environment, invest in cooperative capacity building, and develop infrastructure that enhances market access and financial integration for rural cooperatives. | |
| dc.description.sponsorship | Kenyatta University | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/30836 | |
| dc.language.iso | en | |
| dc.publisher | Kenyatta University | |
| dc.title | Cash Management Practices and Financial Performance of Livestock Marketing Cooperative Societies in Marsabit County, Kenya. | |
| dc.type | Thesis |