Theses and Dissertations
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Item Response Of Saccos To Competition From Commercial Banks And New Sacco Regulations In Kirinyaga County, Kenya.(KCA University, 2013) Muriithi, Preminus.Using an interpretive research methodology, this study sought to find out how deposit taking SACCOs were responding to the competition from commercial banks and the implementation of the new Sacco regulations as being enforced by Sacco Society Regulatory Authority (SASRA).The study found out that SACCOs were opening up their common bonds, were maintaining their low interest rate regime and engaging in aggressive marketing and market research. The research also found out that SACCO’s were engaging in branch expansion and continuous rebranding. Responding to the new SACCO regulations, the study found out that SACCO’s were appointing SASRA compliance officers, upgrading their IT systems, and employing qualified staffs. The study also found out that Sacco’s were streamlining their books of accounts to comply with the requirement of the new regulation and were engaging in member’s education and implementing policies aimed at encouraging members to save and deposit more. It was also found out that SACCOs were engaged in implementing cost saving policies. It was found out that competition from commercial banks and the implementation of the new SACCO regulations has made SACCOs to become more responsive to member’s needs, and that SACCOs were becoming more transparent and thus attractive to members as they feel their savings and deposits are more secure in regulated SACCOs. It was found out that Sacco’s had responded and coped well with competition from commercial banks, and that with the implementation of the new Sacco Regulations, the confidence of members was high, as they felt that their investments were in safer hands than before. Further research is recommended on the same topic covering a wider area of study. Further recommendation is a research on financial performance of Sacco’s after the implementation of the new Sacco Regulations as being enforced by SASRA.Item Factors Affecting Dividend Payout Policy Of Savings And Credit Cooperative Societies Licensed By Sacco Society Regulatory Authority (Sasra)(KCA University, 2014) Bichanga, Gladys N.Savings and Credits Cooperatives Societies (SACCOs) licensed by SASRA are required to adhere to rules and regulations stipulated in the SACCO Societies regulations 2010. These regulations are risk oriented rules providing minimum operational regulations and prudential standards required of deposit-taking SACCO Societies to ensure financial stability of the SACCO sub sector and to maximize shareholders’ wealth. This research sought to fill existing knowledge gap to determine the factors affecting Dividend Payout Policies of SACCOs licensed by SASRA and answer the question of how much profits should be distributed to shareholders. A descriptive design was used to measure the relationship between explanatory and dependent variables. The target population was 124 SACCOs licensed by SASRA. A sample size of 34 SACCOs from Nairobi area were identified for the research from four different sectors. Secondary data was collected from sampled SACCO’s financial statements for a period of five years (2009-2013). Regression model was used to find the relationship between explanatory variables (Current earnings, Profitability, Liquidity, Financial leverage and Size of the SACCO) and dependent variable (Dividend Payout ratio). This research was concluded based on the above regression model of five years. Significant and non significant factors affecting dividend payout policies of SACCOs licensed by SASRA were determined. From the regression model, the study found out that there were factors influencing dividend payout ratio of SACCOs licensed by Sacco Society Regulatory Authority (SASRA), which are profitability, liquidity, current earnings, size of the SACCO and financial leverage. The study concluded that size of the Sacco determines its dividend payout ratio since investors perceive big SACCOS making profits more likely to pay more dividends. The study further recommended that shareholders should also recognize that, when a SACCO has unfavorable dividend payout ratio; it is due to either low profits or investment in growth opportunity.Item Effect Of Selected Firm Characteristics On Management Efficiency Of Deposit Taking Saccos In Kenya(KCA University, 2024) Kamondia, Amon NDeposit Taking Savings credit Cooperative Societies (DT-SACCOs) are financial institutions which developed from cooperative movements as member’s needs are charged over the years. DTSACCOs were expected to bridge the gap of financial service provision to the majority of unbanked individuals and small business entities to the extent that their growth and development in Kenya. DT SACCOs are saddled with management inefficiency, consequently poor financial performance. The study assessed the effect of firm specific characteristics measured by Asset quality, liquidity, and capital adequacy to management efficiency of DT Sacco’s. The principle guiding theories include liquidity preference theory, liquidity shift ability theory, the moral hazard theory, the agency theory and the credit default theory. The research targeted the population of all compliant DT Sacco’s in the period 2017 to 2021. Research data was secondary data derived from DT Sacco’s financial statement. Descriptive design was used for data analysis; the study was aided by Ms. Excel and STATA software to analyze the data. The study found that the study variables asset quality, liquidity and capital adequacy affected management efficiency. With reference to the research findings and interpretation above the study concluded that firm characteristics affect management efficiency of DT- SACCOs. Study variables; asset quality, liquidity and capital adequacy present a good measure of firm characteristics in DT – SACCOs in Kenya. In addition, the study concludes management of deposit taking SACCO’s in Kenya were not solely responsible for inefficiency but other factors contributed to efficiency. The study recommends that DTSACCO’s should effectively manage borrowers to ensure that they have adequate returns for the capital invested. To achieve this goal a prudent credit risk management policy must be put in place to provide checks and balances on management decisions which affect interest income earned, consequently, affecting asset quality. Members should be informed on the impact of defaulting on loans borrowed because it ultimately affects earnings on their capital that is if they pay their loan installments in time. The regulatory authority should intensify monitoring of DT- SACCO’s firm characteristics which caused management inefficiency. This study suggests that future research be done on matters affecting management efficiency since efficiency is an important aspect of stability in Deposit taking Saccos. This study recommends that further study be done with several more years that is a longer period; for example, ten years and the study be done on the entire population. In addition, the study suggests other measures of management efficiency be applied.