Relationship Between Cost Efficiency and Financial Performance of Deposit Taking Savings and Credit Co-operative Societies Registered in Sasra in Kenya

Abstract

In Kenya's money related scene SACCOSs assume a basic part of monetary intermediation. They generally concentrate on self-awareness, little and small scale undertaking division of the economy. Investment funds and Credit Co-agent Societies are part possessed budgetary organizations that offer reserve funds and credit to individuals. They acknowledge regularly scheduled installments for shares from individuals which shape a pool of assets to serve the credit needs of individuals. Investment funds and Credit Co-agent Societies speak to a significant part of the money related division in appreciation to access to credit, reserve funds activation and riches creation. Taken a toll Efficiency is key idea in organizations. Productivity estimation is one part of an organization's execution, additionally a measure of an association's general money related wellbeing over a given timeframe and can be utilized to analyze comparative firms over the same business or to look at ventures or divisions in conglomeration. The target of the study was to set up the relationship between cost Efficiency and monetary execution of store assuming funds and praise co-agents in Nairobi County. This study utilized a quantitative methodology. The objective populace was all the 45 Deposit assuming Savings and Acknowledgment Co-agents in Nairobi County as at 30th June 2013. The study connected auxiliary information which was separated from the Savings and Credit Co-agent's yearly reports and money related proclamations for the five-year time frame initiating 2009 up to 2013 Numerical information gathered utilizing polls will be coded and entered and examined utilizing a PC Statistical Package for Social Scientists (SPSS) program. Recurrence tables with shifting rates will be utilized to show the finding. The study set up that Financial Performance has a negative connection with aggregate resources at - 0.308, capital sufficiency at - 0.242, and return on resources at - 0.612, however a positive relationship with both Management quality at 0.153 and liquidity at 0.041. Low Financial Performance implies high productivity and the other way around, in this way all variables with a negative association with Financial Performance contribute to high efficiency while variables with a positive relationship with Financial Performance contribute to low efficiency levels