Strategic Planning and Performance of Savings and Credit Cooperative Societies in Nairobi City County, Kenya
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Date
2023
Authors
Karuoya, Elizabeth Wairimu
Waithaka, Paul
Journal Title
Journal ISSN
Volume Title
Publisher
EAS Publishers
Abstract
SACCOs play a crucial role in granting access to sustainable fiscal
assistance and are identified as most effective models in enhancing productivity
with over 80% of the population in Kenya, deriving their livelihood directly or
indirectly from the cooperative sector. However, SACCOs are facing challenges
in performance as a result of stiff competition from other financial institutions,
modern technology, problems in financial management, poor leadership, and
governance issues. This review narrows the gap by evaluating the impact of
strategic planning on SACCO performance in Nairobi City County, Kenya. A
descriptive survey research design was utilized. The research targeted 47
licensed SACCOs in Nairobi City County using a census sampling method.
Results revealed that all independent variables comprise environment analysis,
strategy formulation and strategy selection, were significant and had a positive
relationship with SACCO performance. Therefore, it was concluded that
strategy planning delivers positive results in a firm, with strategy selection
contributing most to the performance of SACCOs, followed by strategy
formulation and then environmental analysis. The study recommends that
SACCOs should review its strategic plan every quarter of the year for
continuous improvement of performance as well as that the top management of
SACCOs ought to incorporate the other strategic planning practices in order to
improve their performance and competitiveness. SACCOs should acquire a
steady improvement in performance by reviewing its strategic plan every
quarter of the year. This will enable SACCOs to develop a better strategy.
Based on the research results, top management ought to play the key role on
ensuring the strategic plan process is success in SACCOs and it is a critical
factor in the SACCO performance in NCC. There is need to embrace good
leadership structure to ensure improvement on strategic plan implementation.
Description
Article
Keywords
Environment Analysis, Strategy formulation, strategy selection, Strategic Planning, Organization performance
Citation
Karuoya, E. W., & Waithaka, P. (2023). Strategic Planning and Performance of Savings and Credit Cooperative Societies in Nairobi City County, Kenya.