Restructuring Strategies and Performance of Deposit Taking Savings and Credit Cooperative Societies in Nairobi City County, Kenya
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Date
2025-02
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The Strategic Journal of Business & Change Management
Abstract
This study was conducted in Nairobi City County, Kenya, to examine how restructuring strategies affect deposit-taking savings and credit cooperatives. Specifically, the objectives were to assess the performance of these societies after restructuring their operations, downsizing their organizations, and reforming the governance systems. Stakeholder, institutional, dynamic capability, and contingency theories were incorporated into the study. Based on a descriptive survey design, it examined 39 SACCO's licensed to take deposits in Nairobi. The respondents included all chief executive officers, accountants, credit managers, marketing managers, human resource managers, and the four executive board members of each society, totalling 351 respondents. Data collection instruments was validated for reliability. A descriptive analysis of the data was conducted using mean and standard deviation, as well as an inferential analysis using Pearson correlations. There were tables of frequency distributions, graphs, bar charts, pie charts, and equations displayed on the screen. Operational changes, downsizing, and governance affected DT-SACCO performance in Nairobi City County, Kenya. Within deposit-taking SACCOs in Nairobi City County, Kenya, operations redesign, downsizing, and governance reforms have a significantly positive correlation. Nairobi City County is one of the counties in Kenya where operation rethinking, downsizing, and governance reforms have positively impacted deposit-taking SACCOs' performance. Study recommendations include automating systems, optimizing processes, eliminating redundancies, reallocating jobs, and decentralizing SACCO functions. SACCOS should ensure a lean and effective workforce. Top management team appointment should be meritbased and be done regularly. Top management team roles and responsibilities should be clearly defined. SACCOS should ensure that resources are allocated equally and effectively.
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Ndanu, F. G. & Karugu, J. (2025) Restructuring strategies and performance of deposit taking savings and credit cooperative societies in Nairobi City County, Kenya. The Strategic Journal of Business & Change Management, 12 (1), 119 – 133. http://dx.doi.org/10.61426/sjbcm.v12i1.3175