| dc.description.abstract | Response strategies to environmental changes by Saccos in Nyeri County and in Kenya
as a whole have become a phenomenal issue for the survival of the Saccos. This study
has therefore been designed to establish the environmental changes occurring in this
sector and consequent response strategies being adopted by the Saccos.
The Savings and Credit Cooperative Societies in the Nyeri County, like other
organizations, do not exist in a vacuum. Their operating environment keeps changing
continuously. These Saccos have to respond to the changes in the environment
accordingly in order to guarantee their continuous existence.
This survey was meant to establish the response strategies to environmental changes
adopted by the Saccos in the Nyeri County. The population of interest in this study was
all the 53 active Saccos in Nyeri County at the end of the year 2009. The sample in this
study consisted of 30 Saccos. This size was chosen because it was expected to be
representative of the population since the sector is largely homogeneous. The stratified
sampling method was used since the population is further divided into strata based on the
types of Saccos which differ depending on the type of members and the Sacco’s
activities. Responses were sought from Managers or executive committee members who
have been in the firms for at least three years since these are the ones who are involved in
the crafting and implementation of response strategies in their respective organizations.
The data collected was analyzed by use of percentages, means and standard deviation and
presented in the form of tables and charts.
The major challenges that have greatly affected the growth of this sector include;
employment laws, political instability, high interest rates, low economic growth rates,
high population growth rate, poor age distribution, strong emphasis on safety, increase in
automation and high rate of technological change. Despite these challenges, most of the
Saccos in Nyeri County have remained in operation for over ten years with some of them
having over 30 years of operation.
The main response strategies which have enabled these Saccos to remain in business are:
targeting new market segments; identification of new potential users of their services;
adding product features or product refinement and developing new products for existing
market. The main pricing strategy employed in response to some of these challenges
when setting charges by the Saccos is setting charges based on the market. The Saccos
employ a cost leadership strategy in an effort to acquire a competitive advantage. | en |
