STRATEGIC RESPONSES AND PERFORMANCE OF SAVINGS & CREDIT CO-OPERATIVES (SACCOS) IN NAIROBI COUNTY, KENYA
Keywords:
Strategic Responses, Strategic Alliance, ICT Integration, Performance Of Savings & Credit Co-Operatives (SACCOS)Abstract
Despite their importance, the performance of SACCOs in Nairobi County has been declining in recent years, raising concerns about their sustainability and effectiveness. Several SACCOs have reported reduced profitability, increased loan defaults, and shrinking membership. The general objective of the study is to determine the effect of strategic responses on performance of Savings & Credit Co-operatives (SACCOs) in Nairobi County, Kenya. Specifically, the study sought to determine the effect of strategic alliance on performance of Savings & Credit Co-operatives (SACCOs) in Nairobi County, Kenya and to establish the effect of information communication technology (ICT) integration on performance of Savings & Credit Co-operatives (SACCOs) in Nairobi County, Kenya. The study employed the use of cross-sectional survey research design. The unit of analysis for this study was SACCOs in Nairobi City County, Kenya. Nairobi County, Kenya was selected because it has thigh concentration of deposit taking SACCOs (SASRA, 2023). The unit of observation of this study was management employees in the selected 43 deposit-taking SACCOs in Nairobi city County, Kenya. The target population was therefore 258 management employees working in the 43 deposit-taking SACCOs in Nairobi City County, Kenya. The Yamane formula was adopted to calculate the study sample size. Therefore, the study sample size was 157 respondents. Data was collected using a self-administered structured questionnaire. A pilot test was conducted to determine validity and reliability of the data collection instrument. Data analysis was done through use of descriptive and inferential statistics. The study results were presented through use of tables and figures. The study concludes that strategic alliance has a positive and significant effect on performance of Savings & Credit Co-operatives (SACCOs) in Nairobi County, Kenya. The study also concludes that ICT Integration has a positive and significant effect on performance of Savings & Credit Co-operatives (SACCOs) in Nairobi County, Kenya. Based on the on the findings, the management of SACCOs in Kenya should form partnerships with fintech companies to enhance digital financial services. By collaborating with fintech firms, SACCOs can leverage advanced technologies to improve service delivery, expand outreach, and streamline operations through mobile banking, digital loan processing, and automated savings platforms.
Key Words: Strategic Responses, Strategic Alliance, ICT Integration, Performance Of Savings & Credit Co-Operatives (SACCOS)
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