Relationship between Board Size and Performance of Deposit Taking Saccos in Nairobi City County, Kenya
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Date
2022-01
Authors
Kinyua, Godfrey
Chesire, Zephaniah C.
Journal Title
Journal ISSN
Volume Title
Publisher
Creative Commons Attribution
Abstract
The performance of deposit taking savings and credit societies has been dwindling with members seeking financial services from SACCOS in Kenya declining from 13.5% in the year 2009 to 9.1% in the year 2015. More than 100 deposit-taking Saccos did not meet the mandatory capital adequacy requirement in 2016 and 22% increase in loan loss allowance implying that more and more are providing for potential bad loans in their books of accounts raising questions over their fitness in the key credit market (SASRA, 2017). This study therefore, aimed at determining the relationship between board size and performance of deposit taking Saccos in Nairobi City County, Kenya. Descriptive cross-sectional survey was adopted by the study. Target population comprised staff at the managerial level employed at the head offices of licensed deposit taking savings and credit societies in Nairobi City County, Kenya who were selected using census sampling. The study used both primary and secondary data in obtaining information. The primary data was obtained by the use of semi-questionnaires. Descriptive statistics were used to provide summary measures of data observed and include frequencies, percentages, mean, coefficient of variation and standard deviation. Inferential statistics was conducted using correlation and simple linear regression analysis. Research findings were presented in form of graphs, charts, tables and descriptive statistics.Based on the findings obtained the study concluded that board size has a strong influence on the performance of the Deposit Taking SACCOs. The study recommends that lean or small board size but professional and qualified should be embraced among the SACCOs due to their efficiency and effectiveness in decision making, management, communication, coordination, monitoring and in operation cost.
Description
research article
Keywords
Board Size, Deposit Taking Savings and Credit Co-Operative Societies, Performance
Citation
Zephaniah C. Chesire, Dr Godfrey Kinyua. “Relationship between Board Size and Performance of Deposit Taking Saccos in Nairobi City County, Kenya" International Journal of Managerial Studies and Research (IJMSR), vol 10, no. 1, 2022, pp. 112-120. doi: https://doi.org/10.20431/2349-0349.1001010.