An assessment of the financial sustainability of savings and credit cooperative societies in Kenya

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dc.contributor.advisorRamaboa, Kutlwano K K Men_ZA
dc.contributor.authorWaweru, Gabrielen_ZA
dc.date.accessioned2018-05-25T07:41:03Z
dc.date.available2018-05-25T07:41:03Z
dc.date.issued2018en_ZA
dc.description.abstractSavings and Credit Cooperative Societies (SACCOs) are voluntary associations of people with the common goal of encouraging savings and granting credit to members as a means to their economic improvement. For a long period of time, SACCOs have been seen as a way of ensuring savings and investments, especially by the middle and lower economic classes. In Kenya, these institutions have managed to accumulate funds running into billions of shillings, and many members have benefited from them. However, in the last few years, many of these institutions have experienced serious financial challenges that have led to some of them winding up or becoming dormant, resulting in a loss of funds for members. The primary objective of this study was to determine the factors that influence the financial sustainability of SACCOs in Kenya. The study explored the influence of financial outreach, financial regulation, corporate governance, size and age on financial sustainability. A sample of 166 SACCOs was drawn for the study, and generalised least square technique was used to analyse the data. Empirical findings of the study reveal that financial outreach, as measured by the number of members, exerts a significant influence on financial sustainability. Similarly, financial regulation, SACCOs' governance, SACCOs' size and SACCOs' age were found to exert a significant influence on the financial sustainability of SACCOs. The study has contributed to theory by applying both monetary and non-monetary measures to profitability theory of financial sustainability. While contributing to empirics, the study has delineated the relationship between the study factors and their financial sustainability status (FSS), as well as documenting the FSS of SACCOs in Kenya. In terms of methodology, the study applied the GLS analysis technique. Finally, the study provides useful information to SACCO policy makers and opens avenues for future research, thus contributing to practice. The recommendations of the study provide insights into how to rescue ailing SACCOs in Kenya and ameliorate the existing situation.en_ZA
dc.identifier.apacitationWaweru, G. (2018). <i>An assessment of the financial sustainability of savings and credit cooperative societies in Kenya</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,Research of GSB. Retrieved from http://hdl.handle.net/11427/28115en_ZA
dc.identifier.chicagocitationWaweru, Gabriel. <i>"An assessment of the financial sustainability of savings and credit cooperative societies in Kenya."</i> Thesis., University of Cape Town ,Faculty of Commerce ,Research of GSB, 2018. http://hdl.handle.net/11427/28115en_ZA
dc.identifier.citationWaweru, G. 2018. An assessment of the financial sustainability of savings and credit cooperative societies in Kenya. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Waweru, Gabriel AB - Savings and Credit Cooperative Societies (SACCOs) are voluntary associations of people with the common goal of encouraging savings and granting credit to members as a means to their economic improvement. For a long period of time, SACCOs have been seen as a way of ensuring savings and investments, especially by the middle and lower economic classes. In Kenya, these institutions have managed to accumulate funds running into billions of shillings, and many members have benefited from them. However, in the last few years, many of these institutions have experienced serious financial challenges that have led to some of them winding up or becoming dormant, resulting in a loss of funds for members. The primary objective of this study was to determine the factors that influence the financial sustainability of SACCOs in Kenya. The study explored the influence of financial outreach, financial regulation, corporate governance, size and age on financial sustainability. A sample of 166 SACCOs was drawn for the study, and generalised least square technique was used to analyse the data. Empirical findings of the study reveal that financial outreach, as measured by the number of members, exerts a significant influence on financial sustainability. Similarly, financial regulation, SACCOs' governance, SACCOs' size and SACCOs' age were found to exert a significant influence on the financial sustainability of SACCOs. The study has contributed to theory by applying both monetary and non-monetary measures to profitability theory of financial sustainability. While contributing to empirics, the study has delineated the relationship between the study factors and their financial sustainability status (FSS), as well as documenting the FSS of SACCOs in Kenya. In terms of methodology, the study applied the GLS analysis technique. Finally, the study provides useful information to SACCO policy makers and opens avenues for future research, thus contributing to practice. The recommendations of the study provide insights into how to rescue ailing SACCOs in Kenya and ameliorate the existing situation. DA - 2018 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2018 T1 - An assessment of the financial sustainability of savings and credit cooperative societies in Kenya TI - An assessment of the financial sustainability of savings and credit cooperative societies in Kenya UR - http://hdl.handle.net/11427/28115 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/28115
dc.identifier.vancouvercitationWaweru G. An assessment of the financial sustainability of savings and credit cooperative societies in Kenya. [Thesis]. University of Cape Town ,Faculty of Commerce ,Research of GSB, 2018 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/28115en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentResearch of GSBen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherSavings and Credit Cooperative Societiesen_ZA
dc.titleAn assessment of the financial sustainability of savings and credit cooperative societies in Kenyaen_ZA
dc.typeDoctoral Thesis
dc.type.qualificationlevelDoctoral
dc.type.qualificationnamePhDen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
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