Relationship Between Financial Performance and Growth of Saccos in Kenya

Abstract

This study sought to establish the correlation between financial performance and growth of Savings and Credit Cooperative Societies in Kenya: The research focused on financial performance measures on the growth of Saccos in Kenya. The research established how Saccos grow and can be measured with financial mix such as ROA, ROE, Earning per share and profitability. The researcher mainly looked at growth through strategies of growth of assets, innovation and creativity, productivity and turnover. The study employed descriptive research design. A sample of 42 Saccos was chosen from the total population of 175 Saccos using the sampling framework. The study employed primary data which was gathered by use of semi-structured questionnaires. The refined quantitative data was analyzed using descriptive statistics. The study found that there exists a strong correlation between financial performance and the growth of Saccos in Kenya. The study recommends that Saccos should ensure that they improve their financial ratios since they have a positive effect on the growth of Saccos and formulating policies that enhances financial performance of Saccos.