Savings and Credit Cooperative Societies' Services and Household Investment among Mwalimu Sacco Members In Nyandarua County, Kenya
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Date
2024-05
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Kenyatta University
Abstract
As per research, a significant portion of Kenyans do not use financial services, which also indicates insufficient investment. With the little or no uptake in household investments, there is need to sensitize and empower Kenyans who may be having little knowledge on matters investment which informs the basis of this study. This study therefore focused on savings and cooperative societies' services and their influence on household investments among members of Mwalimu Savings and Credit Cooperative Societies in Nyandarua County, Kenya. The research sought to explore the influence of capital mobilization, credit disbursements, collateral substitutes and financial education on household investments among members of Mwalimu Savings and Credit Cooperative Societies in Nyandarua County, Kenya. The survey was conducted between the month of April and May 2023. Theories underpinning this research were Neoclassical Growth Theory, Keyne's General Theory and Agency Theory. The study embraced descriptive survey research design. The target population was 154 public schools’ teachers registered as members of Mwalimu Savings and Credit Cooperative Societies in Nyandarua County Kenya. A total of 64 Public School teachers were chosen at random to take part in the research as participants using a simple random sample method. The information was gathered through questionnaires. Validity and reliability tests were conducted on the questionnaires. The statistical packages for social sciences(SPSS) was utilized to analyze the data that have been obtained. Descriptive statistics like percentages, frequency, mean, and standard deviation were utilized to analyze the data. The researcher also undertook diagonostic tests before conducting inferential analysis. Correlation and regression analysis were utilized to give inferential statistics. Further data displays included figures and tables. The researcher acquired authorization letter from Kenyatta University Graduate School. Further, researcher acquired research permit from National Commission for Science, Technology and Innovation. The study established that capital mobilization, credit disbursements, collateral substitutes and financial education all have positive and significant correlation with household investments amongst members of Mwalimu Savings and Credit Cooperative Societies in Nyandarua County, Kenya. Moreover, regression analysis demonstrated that capital mobilization, credit disbursements, collateral substitutes and financial education taken together account for up to 34.9% of the total variation in household investment. Additionally, all the independent variables were found to have a significant effect on household investments amongst the members of Mwalimu Savings and Credit Cooperative Societies. As such, the study concluded that capital mobilization, credit disbursements, collateral substitutes and financial education have significant effect on household investments amongst members of Mwalimu Savings and Credit Cooperative Societies in Nyandarua County, Kenya. Conversely, the survey recommended that the government should take this opportunity to support Savings and Credit Cooperative Societies in the country as this will enhance capital mobilization thus enhancing household investments. Moreover, strengthening of Savings and Credit Cooperative Societies will make available the highly needed credit facilities for business people and potential investors. Conversely, the study recommended that Savings and Credit Cooperative Societies management should continue enhancing the use of collateral substitutes to unlock financial access to many people. Additionally, members of Savings and Credit Cooperative Societies should take advantage of opportunities provided by the Savings and Credit Cooperative Societies to enhance their financial education for better investment decisions.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirements for the Award of the Degree of Master
of Business Administration Degree (Finance)
of Kenyatta University, May 2024.