Firm Characteristics and Profitability of Savings and Credit Cooperative Societies in Laikipia County, Kenya
| dc.contributor.author | Gitumbi, Juliet Njoki | |
| dc.date.accessioned | 2026-02-04T12:08:28Z | |
| dc.date.available | 2026-02-04T12:08:28Z | |
| dc.date.issued | 2025-10 | |
| dc.description | A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirements for the Award of Degree of Master of Business Administration (Finance Option) of Kenyatta University supervisor. John Mungai | |
| dc.description.abstract | The profitability of Savings and Credit Cooperative Societies (SACCOs) in Kenya has shown inconsistent trends despite their critical role in promoting financial inclusion and economic empowerment. In Laikipia County, some SACCOs have experienced declining profits or ceased operations due to competition, financial constraints, and poor management practices. The literature review stated that there was plenty study that had been completed on diverse entities to assess the connection between company attributes and profitability. Despite previous studies, there were still unanswered questions regarding the impact of company characteristics on profitability, highlighting the need for further research in distinct contexts and settings. This study's primary goal was to investigate how a firm's features (firm age, liquidity, capital structure and firm size) affected profitability in Laikipia County SACCOs. The study’s theoretical foundation was based on the pecking order, agency and information signalling theories. The research employed a cross-sectional study design that incorporated both descriptive and analytical research methods. The anticipated information from the SACCOs financial reports for the years 2018, 2019, 2020, 2021, and 2022 was obtained via filling in a secondary data collection tool. The study adopted selected and stratified sampling designs to get a sample size of 43 out of the 150 SACCOs as listed in Department of Trade, Tourism and Co-operatives, County Government of Laikipia for the period 2018 to 2022. The study adopted causal research design and utilized secondary data which involved time series and cross-sectional attributes; data was analysed using descriptive analysis. A variety of diagnostic tests, including multicollinearity, heteroskedasticity, and random effect tests, were performed on the statistical analysis using data panel regression and independent t-tests. The regression model explained 71.8% of the variation in profitability (R² = 0.718). Firm size (p = 0.004), liquidity (p = 0.011), capital structure (p = 0.037), and firm age (p = 0.026) were all found to have significant effects on profitability. The findings suggest that larger and older SACCOs benefit from economies of scale and institutional experience, while effective liquidity management and balanced capital structures enhance performance. The study’s findings were shown through tabular presentation. The findings revealed that firm size, liquidity, capital structure, and age significantly influenced the profitability of Savings and Credit Cooperative Societies (SACCOs) in Laikipia County, Kenya. Regression results showed these factors together accounted for 71.8% of the variability in profitability. Larger and older SACCOs outperformed smaller and younger ones. The study recommends updating of the existing SACCOs assessment policies to include firm size and firm age as basis of SACCOs evaluation. The study further recommends encouraging strategic asset expansion, adopting sound liquidity frameworks, maintaining optimal debt-equity balances, and utilizing organizational knowledge for improved outcomes. In conclusion, the research underscores the importance of effectively managing firm-specific characteristics to ensure the long-term financial health and growth of SACCOs. | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/32259 | |
| dc.language.iso | en | |
| dc.publisher | Kenyatta University | |
| dc.title | Firm Characteristics and Profitability of Savings and Credit Cooperative Societies in Laikipia County, Kenya | |
| dc.type | Thesis |