| dc.description.abstract | SASRA adopted CAMELS model to supervise and monitor Deposit Taking SACCOs in Kenya. Little exists in literature on evaluation of factors influencing the financial performance of
deposit-taking SACCOs and this study aimed to bridge the gap and it further seeked to answer the question about which particular component of the CAMELS framework mostly affects
performance of DTS. The purpose of the study was to evaluate factors influencing the financial performance of deposit-taking SACCOs in Kisii County, Kenya and focused on CAMELS
variables. The study was guided by the following objectives, to determine the extent to which capital adequacy influences the financial performance of a DTS; to assess the extent to which
Asset Quality influences the financial performance of a DTS; to investigate the extent to which
Management ability influences the financial performance of a DTS; to identify the extent to which Earnings influence the financial performance of a DTS and finally to establish the extent
to which Liquidity management influences the financial performance of a DTS. The research used a descriptive research design. The main focus of this study was quantitative. However some
qualitative approach was used in order to gain a better understanding, which enabled a better and
more insightful interpretation of the results from the quantitative study. Target population was the 110 SACCO Managers in Kisii County of the 5 licenced DTS, 86 Managers served as a
sample size. Both primary and secondary data was collected. Primary data was obtained through self-administered questionnaires with closed and open-ended questions. Secondary data
constituted the income statements and balance sheet sourced from the SACCOs audited annual
reports and financial statements for the five year period, between 2010 to 2014 and got some from SASRA annual review reports and internet. Descriptive analysis method was used to
analyse data using excel. The findings revealed that capital adequacy, asset quality, management capability, earning quality do significantly influence financial performance of the DTS in Kisii
County. It was also observed that there is a significant difference between performance of rural
agricultural based DTS and urban-civil servants based DTS. The study finds that DTS specific variables by large explain the variation in profitability. High performance is related to the ability
of DTS to control their credit risk, diversify their income sources by incorporating non- traditional banking services and control their overhead expensesThe result suggests that the
Kenyan Government should set policies that encourage DTS to raise their assets and capital base
as this will enhance the performance of the sector. Another implication of the study is that DTS need to invest in technologies and management skills, which minimize costs of operations as
this, will impact positively on their growth and sustainability. Four of the DTS are competing for the same resource and are agricultural rural based. There is need of merging those DTS into one
larger DTS for better performance. Large DTS capacity to provide efficient banking services
should be the area that needs to be focused on. In addition, the currently observed aggressive move to open branches should be taken care of so as to reduce the negative impact on their
performance due to cost increases. | en_US |
