Abstract:
The financial intermediation role played by Savings and Credit Co-operatives
(SACCOs) is well appreciated. Therefore, growth of these saving and credit societies
will ultimately bring multiplier effects allowing members to achieve economic
empowerment and improve investment climate. To achieve growth, internal factors
within the organization remain paramount. Therefore, to bridge this gap this study
sought to determine internal factors influencing growth of savings and credit
cooperatives in Uasin Gishu County. The specific objectives of this study were;
determine how the liquidity, technology, strategic management and loan portfolio
affect SACCO growth in Uasin Gishu Kenya. The study adopted both explanatory
and descriptive research designs. The study was guided by Ansoff Growth Matrix
Theory; the target population was derived from 10 licensed SACCOs. A desired
sample size of 63 was computed from the target population. The sampling method
used was proportionate stratified random sampling method to select the respondents.
Questionnaires were used in data collection. Descriptive statistics were analysed using
frequencies and percentages while inferential statistics were analysed using Pearson
Correlation, Multiple Regression and Analysis of variance with the aid of SPSS
(V.23). Findings from the study indicated that there was a significant influence of
liquidity on the SACCO growth in Uasin Gishu County. The findings also established
that there was a significant positive influence of technology adopted on the SACCO
growth in Uasin Gishu County. Study found a significant influence of Strategic
management skills on SACCO growth in Uasin Gishu County. Similarly, it was
established that that there was a significant influence of Portfolio balance on SACCO
growth in Uasin Gishu County. The study concluded that managing asset quality, cash
reserves, loan repayment strategies, and capital reserves are crucial for SACCO
growth. The study also concluded that technology adoption, including
computerization and internet connectivity, has improved loan disbursement,
communication, and member services for SACCOs in Uasin Gishu County. It was
also concluded that, while target job training did not significantly impact SACCO
membership and growth, factors such as budget allocation for training, improved loan
management, fast decision-making, and innovation were important for SACCO
growth. The study revealed that having loan repayment strategies, addressing loan
recovery challenges, loan monitoring, credit history understanding, and collateral
presence are crucial for SACCO growth by minimizing risk for lenders. It is hoped
that the findings of this study will be helpful strengthening SACCOs, officials,
members and even staff on the internal factors determining the SACCO growth which
may be extrapolated to other counties.
