| dc.description.abstract | Co-operatives play a major role in resources mobilization, agro-processing and
marketing of agricultural produce. The movement plays an important role in wealth
creation, food security and generation of employment and therefore alleviating
poverty. From the foregoing it is evident that the cooperative movement is of strategic
importance in encouraging national savings and development of the country. Changes
that occur in the co-operative sector therefore affect the development of the country
and the general welfare of the members.
Given the increasing aggressiveness by commercial banks in the country to increase
their product range to both their clients and non-clients and their marketing techniques
that ensures wide coverage, a question for this study is that has this affected the
operations of the SACCO movement in the country?
Thus the objective of the study is to establish if there is any threat to the business of
SACCO’s by the banks with the competitive products that the commercial banks offer
to members of co-operative Societies and how it affects the profitability of Savings
and credit co-operative Societies.
This study adopted a descriptive research design. The population of the study
comprised of all SACCOs in Nairobi, registered in the role of co-operatives. The data
was collected through the use of Questionnaires which were circulated to the
treasurers or managers of the SACCOs sampled. Data was collated, coded
summarized and then analyzed using the Statistical Package for Social Sciences
(SPSS Version 17).
The study concluded that SACCO suffered challenges in meeting loan requests by the
members partly due to the Long term investments they engage in. Members of the
SACCOs preferred loans from the bank to the ones from the SACCOs due to the
speed within which the loans are disbursed and also due to the fact that amount of
loan awarded is not pegged on saving as is the case in SACCOs.
The study recommends that SACCOs should change their mode of recovery of loans
so that an equal amount is deducted every month until the loan is cleared besides
introducing more products to its members such as vehicle Insurance premium
financing so as to increase their profitability. | en |
