Effects of Savings Mobilization on Financial Performance of Saccos in Kenya
Abstract
This study's goal was to determine how consumer behavior in form of savings
mobilization affected the financial performance of SACCOs in Kenya. The study was
of great importance, since SACCOs contribute greatly to a nation’s economic
development, by making funds available to as many people as they can through
advancement of loans and savings mobilization. Over the past few years, financial
performance of many SACCOs has been on a declining trajectory as many have
folded, raising questions as to whether the strategies employed to sustain them are
working. Savings mobilization has been one of these strategies making it possible to
undertake this study. Descriptive correlational research design was used, focusing on
10 DTS that were licensed by SASRA, and had been in operation for the last five
years. SPSS was used to examine secondary data that was obtained from the SASRA
website. The research results suggested that the financial performance of SACCOs in
Kenya was not significantly affected by the mobilization of savings. According to the
study’s recommendation, SACCOs will have to provide savings solutions that are
easy to use, adaptable, competitive, liquid, and appealing and that continuous training
and or in-service courses should be mounted for SACCO staff to equip them with
product knowledge and customer care services which will impact financial
performance.
Publisher
University of Nairobi
Subject
Effects of Savings MobilizationRights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1521]
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