Kamondia, Amon N2025-08-132024http://192.168.8.146:4000/handle/123456789/34Deposit 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.enDT- SACCOsSASRAManagement efficiency and Asset qualityThesis