Effect of Transformational Leadership Style on Performance of Savings and Credit Cooperative Society: A Case of Imarisha Savings and Credit Cooperative Society in Kericho County, Kenya

Leadership is known globally for the most productive performance. Performances of organisations are directly affected by leadership styles. In Kenya the use of leadership is a major challenge in the management of Savings and Credit Cooperative Societies and thus affecting performance. The study was aimed at assessing effect of leadership on performance of savings and credit cooperative society: a case of Imarisha savings and credit cooperative society in Kericho County, Kenya. The objective of the study was to establish the effect of transformational leadership style on performance. The study was important to provide knowledge on the effect of leadership on performance of savings and credit cooperative society and provide a solution to mismanagement and thus improved performance. The main theory of the study was transformational theory. The study covered the effect of leadership on performance. The study used descriptive research design. The population comprised of all staff of Imarisha savings and credit cooperative society. Simple random sampling was used. A sample of 27 management staff and 36 support staff was drawn from the purposively selected savings and credit cooperative society and used in the study. The study used two sets of questionnaires one for management staff and another for support staff. The questionnaires were piloted to validate and test its reliability before the actual data collection. Data was collected through administration of two sets of self administered questionnaires to the selected respondents. The data was processed and analyzed using descriptive statistics with the aid of Statistical Package for Social Sciences (SPSS) Version 20 and presented using frequency distribution tables and charts. An analysis of the major findings in study indicated that coefficient of determination (R2) is 0.790 therefore about 79.0% of the variation in effect of leadership styles on performance is explained by transformational leadership style. The study recommended that management staff should be trained on new methods of leadership so as to keep up with current leadership styles. It was hoped that the findings would be of significance to organisational leadership of Imarisha Savings and Credit Cooperative Society, World Council of Credit Unions (WOCCU), KUSCCO, SACCO Society Regulation Authority-Kenya (SASRA), Ministry of co-operative development, Non-Governmental organizations, policy makers, researchers, and managers of financial institutions.