IDEAS home Printed from https://ideas.repec.org/a/hur/ijaraf/v4y2014i2p291-302.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://hrmars.com/hrmars_papers/Article_29_Financial_Factors_Influencing_Performance_of_Savings1.pdf
    Download Restriction: no

    File URL: http://hrmars.com/hrmars_papers/Article_29_Financial_Factors_Influencing_Performance_of_Savings1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    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.
    2. Mohammad Mirbagherijam, 2014. "Asymmetric Effect of Inflation on Dividend Policy of Iran's Stocks Market," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(2), pages 337-350, February.
    3. Mercy Mwambi & Jos Bijman & Patience Mshenga, 2020. "Which type of producer organization is (more) inclusive? Dynamics of farmers’ membership and participation in the decision‐making process," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(2), pages 213-236, June.
    4. Lee, King Fuei, 2013. "Demographics and the long-horizon returns of dividend-yield strategies," The Quarterly Review of Economics and Finance, Elsevier, vol. 53(2), pages 202-218.
    5. Eichsteller, Marta & Njagi, Tim & Nyukuri, Elvin, 2022. "The role of agriculture in poverty escapes in Kenya – Developing a capabilities approach in the context of climate change," World Development, Elsevier, vol. 149(C).
    6. Eliasu Nuhu & Abubakar Musah & Damankah Basil Senyo, 2014. "Determinants of Dividend Payout of Financial Firms and Non-Financial Firms in Ghana," 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(3), pages 109-118, July.
    7. Abdulkadir Abdulrashid Rafindadi & Abdulrashid Bello, 2019. "Is Dividend Payment of any Influence to Corporate Performance in Nigeria? Empirical Evidence from Panel Cointegration," International Journal of Economics and Financial Issues, Econjournals, vol. 9(2), pages 48-58.
    8. Nana Afranaa Kwapong, 2013. "Restructured agricultural cooperative marketing system in Uganda: study of the Tripartite Cooperative Model," Euricse Working Papers 1357, Euricse (European Research Institute on Cooperative and Social Enterprises).
    9. James Wangu & Ellen Mangnus & A. C. M. (Guus) van Westen, 2021. "Recognizing Determinants to Smallholders’ Market Orientation and Marketing Arrangements: Building on a Case of Dairy Farming in Rural Kenya," Land, MDPI, vol. 10(6), pages 1-16, May.
    10. Avkiran, Necmi K. & Goto, Mika, 2011. "A tool for scrutinizing bank bailouts based on multi-period peer benchmarking," Pacific-Basin Finance Journal, Elsevier, vol. 19(5), pages 447-469, November.
    11. OKORO, Cyprian Okey, 2018. "Analysis Of The Determinants Of Dividend Payout Of Consumer Goods Companies In Nigeria," Annals of Spiru Haret University, Economic Series, Universitatea Spiru Haret, vol. 9(1), pages 141-165.
    12. Mbithi Mutua, 2019. "Linking Human Capital Resourcing Practices and Performance of Financial Cooperatives in Kenya: Does Presence of Formal Human Resource Department Matter?," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 44(2), pages 148-167, May.
    13. Kartal Demirg ne, 2015. "Determinants of Target Dividend Payout Ratio: A Panel Autoregressive Distributed Lag Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 5(2), pages 418-426.
    14. Allan Kayongo & Asumani Guloba & Joseph Muvawala & Andrew Ssali, 2022. "A Framework for Strengthening and Sustaining Cooperatives for Socio-Economic Transformation in Uganda," Applied Economics and Finance, Redfame publishing, vol. 9(2), pages 79-92, May.
    15. A. Olayiwola, John & M. Ajide, Folorunsho, 2019. "Do Oil Price and Institutional Quality Matter for Dividend Policy in Nigeria?," Working Papers 12, Department of Economics, University of Ilorin.
    16. Kehinde Adesina & Uwalomwa Uwuigbe & Olubukola Ranti Uwuigbe & Osariemen Asiriuwa & Sylvester Oriabe, 2017. "Dividend Policy and Share Price Valuation in Nigerian Banks," EuroEconomica, Danubius University of Galati, issue 1(36), pages 185-195, May.
    17. Ramesh C. Paudel & Chakra Pani Acharya, 2022. "Cooperatives and economic growth in a developing country: The case of Nepal," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(3), pages 797-815, September.
    18. Magni, Carlo Alberto, 2009. "Splitting up value: A critical review of residual income theories," European Journal of Operational Research, Elsevier, vol. 198(1), pages 1-22, October.
    19. Tran, Chung & Wende, Sebastian, 2021. "On the marginal excess burden of taxation in an overlapping generations model," Journal of Macroeconomics, Elsevier, vol. 70(C).
    20. Sjauw-Koen-Fa, August R. & Blok, Vincent & Omta, S.W.F. (Onno), 2016. "Critical Success Factors for Smallholder Inclusion in High Value-Adding Supply Chains by Food & Agribusiness Multinational Enterprise," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(1), pages 1-30, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hur:ijaraf:v:4:y:2014:i:2:p:291-302. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hassan Danial Aslam (email available below). General contact details of provider: http://hrmars.com/index.php/pages/detail/Accounting-Finance-Journal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.