A survey on the effects of non-remittance of members deductions by employers to the saving and credit co-operatives societies:

Abstract

The study examined the effects of non-remittance of members' deduction by the employers to the Saving and Credit Co-operative Societies,a case of Nairobi Province while looking at its relationship with the SACCO performance. The target population of the study was all registered SACCOs in Nairobi as at December 2006.A sample of 60 out of a population of 060SACCOswas studied. Primary data was collected using a questionnaire and a total of 28 questionnaires were completed and returned. Secondary data for 40 SACCOs was collected using a semi-structured questionnaire from the Ministryof Co-operative Development and Marketing main registry. Data was analyzed and processed using computer software's SPSS(statistical package for social Scientist). Tables, pie charts, graphs and percentages were used to summarize the data and present research findings. The findings of the study reveals that 64.3% of the SACCOs studied experience the problem of non-remittance and this has negative impact on SACCO performance. Some of the effects experienced include the SACCO are unable to give loans, they are unable to pay dividends, they cannot pay salaries, members are likely to withdraw and liquidity position is likely to deteriorate among others.