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Financial Factors Influencing Performance of Savings and Credit Co-Operative Organization in Kenya

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  • Jeremiah Mugo Karagu
  • Bichanga Okibo

Abstract

This study was geared towards finding the financial factors influencing performance of SACCOs in Kenya. As a result the study found that funds misappropriation influences performance of Sacco’s. The study concluded that Sacco’s need to improve on their internal audit department and other internal control measures. It also established that investment decisions made by Sacco’s influence their performance. It also emerged from the study that Sacco’s need to invest in prudent projects in order to achieve better returns. It was also found that Sacco’s should put in place loan recovery strategies and introduce collateral securities as a way of eliminating or reducing loan defaulting. The study established that member withdrawal affects Sacco’s performance. The study concluded that Sacco’s should introduce more products in order compete with other organizations such as Micro finance Institutions.

Suggested Citation

  • Jeremiah Mugo Karagu & Bichanga Okibo, 2014. "Financial Factors Influencing Performance of Savings and Credit Co-Operative Organization in Kenya," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(2), pages 291-302, April.
    • Handle: RePEc:hur:ijaraf:v:4:y:2014:i:2:p:291-302
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    References listed on IDEAS

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    1. Uwalomwa UWUIGBE & Jimoh JAFARU & Anijesushola AJAYI, 2012. "Dividend Policy and Firm Performance: A Study of Listed Firms in Nigeria," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 11(3), pages 442-454, September.
    2. Brockett, P. L. & Charnes, A. & Cooper, W. W. & Huang, Z. M. & Sun, D. B., 1997. "Data transformations in DEA cone ratio envelopment approaches for monitoring bank performances," European Journal of Operational Research, Elsevier, vol. 98(2), pages 250-268, April.
    3. repec:ilo:ilowps:445029 is not listed on IDEAS
    4. Merton H. Miller & Franco Modigliani, 1961. "Dividend Policy, Growth, and the Valuation of Shares," The Journal of Business, University of Chicago Press, vol. 34, pages 411-411.
    5. Wanyama, Fredrick., 2009. "Surviving liberalization the cooperative movement in Kenya," ILO Working Papers 995016291502676, International Labour Organization.
    6. Wanyama, Fredrick O., 2009. "Surviving liberalization : the cooperative movement in Kenya," ILO Working Papers 994450293402676, International Labour Organization.
    7. du Jardin, Philippe & Séverin, Eric, 2011. "Dividend policy," MPRA Paper 44382, University Library of Munich, Germany.
    8. World Bank, 2007. "Providing Financial Services in Rural Areas : A Fresh Look at Financial Cooperatives," World Bank Publications - Reports 7935, The World Bank Group.
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    Cited by:

    1. Leonard Rang’ala Lari & Philip Mulama NYangweso & Lucy Jepchoge Rono, 2017. "Determinants of Technical Inefficiency of Saccos in Kenya: A Net Operating Cash Flows Output Slack Analysis," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 4(2), pages 49-60.

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