Strategies that spur growth at stima SACCO, Kenya

Abstract

The aim of this study was determine the strategies that spur growth in savings and credit cooperative societies (Sacco‟s). The specific objectives were to determine how market development spurs growth in Stima Sacco, Kenya; to establish how product development spurs growth in Stima Sacco, Kenya. This study adopted a case study design which was the most appropriate in the investigation of the strategies that spur growth in savings and credit cooperative societies (Sacco‟s). The study used a structured interview guide as primary data collection instrument. The interview guide was administered through personal interviews with senior employees of Stima SACCO. Secondary data was collected by use of desk search techniques from published reports and other relevant documents. Qualitative techniques were used to analyze the qualitative data. The study concludes that Stima Sacco has implemented some strategies to spur its growth of which the major ones included opening up of new branches within the country, aggressive marketing to counter competition, implementation of new forms of businesses apart from the core banking functions, being more proactive in the approach of issues, developing competitive products, branding the Sacco, improving efficiency of service delivery at the Sacco and addressing governance issues, forming alliances with other institutions and strategic plan review.. The researcher recommends that a study be done on Stima SACCO to establish whether the SACCO has adopted the recommended strategies and how they have impacted on the performance of the SACCO. Other areas of study that the researcher recommends are researching on the effects of the current SACCO business model vis-à-vis a more market driven model and the aspects of the micro-finance industry that the SACCO could adopt in spurring its growth.