Performance of Deposit Taking Savings Credit Cooperative Societies in Kericho County, Kenya
Loading...
Date
2023
Authors
Mutai, Gideon Kiplangat
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Saccos are unable to accumulate savings and deposit fast enough to meet members'
credit needs. e-platforms that provide fast loans exacerbate this issue. A loan, unlike in
banks, requires multiple inputs to fund. This forces saccos to acquire expensive
commercial bank loans to satisfy their members' desires, incurring high borrowing
expenses.Treasury management practices cannot be understated, especially in terms of
saccos' long-term financial performance in Kenya. This research sought to find out how
treasury management practices affects performace of Deposit Taking Savings and
Credit Co-operative Societies within Kericho County, Kenya. Sacco's in Kenya have
been investing for a long time with the goal of increasing their capita. The objectives of
this study were to the effect of liquidity policies, cashflow forecasting and Members
deposit on financial performance of Deposit Taking Savings and Credit Co-operative
Societies within Kericho County, Kenya, Kenya visa vie regulations and external
environment factors. Significance of this study will benefit policy-makers both in the
government and Savings and Credit Co-operative Societies, particularly in terms of
enhancing policy deliberations in this area. The study also provided a new body of
knowledge to scholars. The scope of study was Kericho County, Kenya, Kenya due to
factors such its diversity in the types of Savings and Credit Co-operative Societies and
the sporadic nature of previous studies on the subject. The issue that this study was try
to solve is whether Deposit Taking Savings and Credit Co-operative Societies Societies
have implemented competent treasury management practices in their day today treasury
operations, and whether they have been able to boost their liquidity as a result of this
approach and overall financial performance, guaranteeing compliance with the Sacco
Societies Regulations 2010 relating to liquidity ongoing maintenance. On literature
review the study was anchored on Baumol’s EOQ Model of Cash Management, Miller-
Orr Cash Management Model and Stakeholders Theory. The study adopted a
descriptive research design where the researcher went to the saccos of interest to
collect information on treasury management practices and financial performance of
saccos in Kericho County, Kenya, Kenya. The population of this study was 171
respondents from Employee, Matatu, Farmers and Youth Based Saccos within Kericho
County, Kenya. From the population stipulated no sample was drawn and instead a
census of all the respondents were taken. Data was collected by means questionnaire
method which had both closed and open ended . a pilot study was done to prove the
validity and reliability of data collection instrument. Both descriptive and inferential
statistics and with the help of statistical tools such as SPSS and Excel were applied to
analyze the data obtained. A series of multiple regression analysis (standard and step
wise) was applied since they gave net impact estimates and explanatory power. The
study concluded that treasury management practices had a positive and a significant
effect on financial performance of deposit taking Saccos in Kericho County. Based on
descriptive and inferential analysis, the study concluded that liquidity policies
influenced the financial performance of deposit taking Saccos to a very great extent.
The cashflow forecasting was found to influence the financial performance to a great
extent. Cash budgeting and members deposits influenced the financial performance of
the Saccos to a great extent.Other studies should be done on factors ouside this study
that were identified by the coefficient of determination model that contributed to the
financial performance of Deposit Taking Savings and Credit Co-operative Societies.
Description
A Research Project Submitted to the School Of
Business,Economic and Tourism in Partial Fulfillment of
the Requirements for the Award of the Degree of Master
of Business Administration (Finance Option), Kenyatta
University
Keywords
Deposit Taking, Kericho County, Kenya, Savings Credit Cooperative Societies