DETERMINANTS OF FINANCIAL PERFORMANCE OF DEPOSIT TAKING SAVINGS AND CREDIT COOPERATIVE ORGANIZATION IN KISII COUNTY
Damaris Kemunto Kunyoria - Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Julius Miroga (PhD) - Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
The study aimed to evaluate the effect of various determinants of the financial performance of Deposit Taking Savings and Credit Cooperative Organizations (SACCOs) in Kisii County. Specifically, it focused on four variables: saving mobilization, capital adequacy and liquidity, credit risk management, and governance and compliance. The primary objective was to enhance transparency, accountability, and resilience in the SACCO sector, contributing to regional economic and social development. A descriptive research design was employed, targeting a population of 147 finance, accounts, and marketing staff, from which 107 respondents were selected through stratified random sampling. Data were gathered using structured questionnaires, which were pilot-tested and analyzed using SPSS. Findings indicated a strong and statistically significant relationship between saving mobilization and financial performance. Capital adequacy and liquidity also had a significant and meaningful impact on performance. Credit risk management had a positive but comparatively modest influence, while governance and compliance exhibited the weakest association with financial performance among the studied factors. The study concluded that financial determinants significantly and positively influence the performance of deposit-taking SACCOs in the region. It recommended the standardization of savings mobilization practices across SACCOs through uniform policies and procedures. Further recommendations included enforcing standardized liquidity ratio disclosures, accurate solvency reporting, and strengthening risk oversight through dedicated committees. Additionally, SACCOs were advised to improve the documentation and accessibility of governance records to enhance transparency, member engagement, and trust. Overall, these measures are expected to bolster financial stability and institutional performance in Kisii County SACCOs.