wambisa, Conslata Adhiambo2026-02-232026-02-232025-11https://ir-library.ku.ac.ke/handle/123456789/32535A research project submitted to the school of business, economics and tourism in partial fulfilment of the requirements for the award of degree of master of business administration (finance) of kenyatta university, November 2025 Supervisor: Dr. Moses Odhiambo AluochProfitability is an important element in every organization’s financial productivity. As millions of people across Kenya continue to benefit both directly and indirectly from cooperatives, their dwindling financial profitability remains of great concern, especially the non-withdrawable deposit taking cooperatives. This project sought to establish influence of operational risk management on the profitability of non withdrawable cooperatives in Nairobi City County, Kenya. The following specific objectives were used; to evaluate influence of stakeholder engagement, internal audit, information technology systems, and external events on the profitability of these savings and credit cooperative societies. Research sought to provide answers as to whether stakeholder engagement, internal audit, information technology systems and adverse external events have influence on profitability of these cooperatives in Nairobi city county, Kenya. Scope of the study was taken from 2020 to 2024. Study was anchored on risk management theory, finance distress theory, market power theory together with behavioral theories of profitability. Descriptive study design was adopted on a population of thirty non - withdrawable deposit taking cooperatives regulated by Savings and Credit Cooperative Societies Regulatory Authority. Stratified sampling design was used to select the institutions. Primary data was collected by use of questionnaires whereby secondary data was collected using data extraction table. These were then encrypted and slated into Statistical Package for Social Scientist computer software following data correction procedure Before the study being carried out, a reliability test was undertaken to evaluate the consistency of the research tools using Cronbach’s Alpha. Validity and reliability tests were used to test instruments that were used to gather data through a pilot study on non - withdrawable cooperatives in Kiambu County, Kenya. Relevant diagnostic test, that is normality test was performed to test reliability of data. Findings were analyzed using summary statistics, in particular mean and standard deviation and statistical inference analyzed by use of multiple correlation. Pearson correlation and simple linear regressions were used to assess significance of survey parameters. Results were presented in tables and a chart. Findings obtained by the study revealed that stakeholder engagement, effectively established internal audit, information technology systems and threats from external environment all had significance influence on the economic health of cooperatives that do not offer front office services in Nairobi City County, Kenya. To ensure adherence to ethical considerations an authorization letter was obtained from Kenyatta University together with grant to carry out research by National Commission for Science, Technology & Innovation. The study recommends that an interactive stakeholder relationship, especially employees involvement in decision making processes, effective internal audit measures and information technology systems together with proper contingency plans in place to mitigate external threats should be adopted in a bid to propel financial institutions’ economic performance to the next levelenThesis