Responses of Saving and Credit Co-operatives Societies (Sacco) the Challenges of Competition in the Kenyan Financial Sector : the Case of Saccos in Eldoret

Abstract

Economic and political reforms are sweeping the whole world affecting all nations. in Kenya these forms are created fundermental kchanges in the environment in which firms operate. An obvious manifestation of such changes is the liberalization of trade. Such liberalization has meant that SACCOs in Eldoret have to contend with unbearable competitive pressues from the resilikent flobal companies. The study set out to document the responses adopted by saving and credit cooperatives(SACCOs) to challeges of competuition in the Kenyan financial sector. The objectives of the study were: (i) To establish the challeges of competition encountered by SACCOs in Eldoret. (ii) to determine the responses of SACCOs in Eldoret to the challeges of competition. Primary data was collected using open and closedoended questionnaires distributed to sennior managers in selected SACCOs.The data was thereafter analyzes using descriptive statistics and an appropriate computer package. The analysis revealed that SACCOs have made various changes in their traditional, resource mobilization and lending methods in attempt to cope with the changed operating environment......................................................................