Financial Factors Influencing Performance of Savings and Credit Co-Operative Organization in Kenya

Abstract

This study was geared towards finding the financial factors influencing performance of SACCOs in Kenya. As a result the study found that funds misappropriation influences performance of Sacco’s. The study concluded that Sacco’s need to improve on their internal audit department and other internal control measures. It also established that investment decisions made by Sacco’s influence their performance. It also emerged from the study that Sacco’s need to invest in prudent projects in order to achieve better returns. It was also found that Sacco’s should put in place loan recovery strategies and introduce collateral securities as a way of eliminating or reducing loan defaulting. The study established that member withdrawal affects Sacco’s performance. The study concluded that Sacco’s should introduce more products in order compete with other organizations such as Micro finance Institutions.