| dc.description.abstract | The study had two objectives. The first objective was to examine the budgetary
practices of Savings and Credit Cooperative Societies in Kenya. Secondly, the
study sought to determine the challenges of budgeting in Savings and Credit
Cooperative Societies in Kenya. This research was a descriptive survey study.
From a population of 1,200 registered savings and credit Cooperative Societies
(SACCOs) in Nairobi, a sample size of 40 SACCOs was selected using a simple
random sampling method. Primary data was collected using a semi-structured
questionnaire. Descriptive statistics especially percentages were used to establish
the budgetary process used by the SACCOs. The results were presented using
tables, graphs and charts for ease of understanding.
The study found that budgets in SACCOs serve to aid control, aid both short and
long term planning, communicate plans, and coordinate activities and also to
evaluate performance. Majority of SACCOs used a combination of both top-down
and bottom-up approach when preparing budgets. The SACCOs prepare annual
budgets covering 12 months. Majority of SACCOs involve the heads of various
departments, managing directors and administrative heads. Majority of SACCOs
also set specific benchmarks as a combination of monetary value and
percentages. Most of the SACCOs also review their budgetary planning and
control procedures and changes such as format and time are made during such
reviews. The challenges include unqualified personnel who form part of the
budgetary committees not being up to the task hence poor budgets made in the
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process, insufficient budgets, bureaucracy in procurement procedures, and poor
budget implementation.
The study recommends that all stakeholders, including the employees and
members need to be involved in the budgetary process. The study also
recommends that the committee members be trained on budgeting issues as it
was noted that some of them are not qualified yet they are relied on for
budgeting in the SACCOs. | en |
