| dc.description.abstract | SACCOs in Kenya are required to adhere to regulations set in Sacco’s regulation authority (SASRA).
The management has to present the capital adequacy return reports, liquidity statement report,
Statement of financial position and Statement of deposit return as well as Return on investments
report which compares land, building, and financial assets to the SACCO’s total assets and its core
capital. This study sought to fill the existing knowledge gap to determine the effect of SASRA
regulation on Sacco’s financial performance and to answer the questions what is the impact of
SASRA regulations on SACCO’s financial performance in Kenya. The objective of the study was to
establish the impact of SASRA Regulations on SACCO financial performance in Kenya.
Causal research design was chosen to establish the effects of SASRA regulations on the financial
performance of SACCOs in Kenya. The study targeted the 98 SACCOs registered by SASRA. The
sampling method chosen for this study was purposive sampling which is a form of non-probability
sampling to select 30 SACCO based in Nairobi. The study used secondary data. The secondary data
was collected from the financial statements of the SACCOs to obtain information on annual earnings
of the SACCOs registered under SASRA. A linear regression model of SACCOs return on assets
versus SASRA regulations was applied to examine the relationship between the variables.
From the findings, the study found that higher capital requirements, and increase in management
efficiency impacted positively to SACCO’s profitability in the post- capital regulation period. The
study revealed that capital regulation affects financial performance in SACCOs. The study concluded
that financial stability could be at risk as a result of shocks impinging on the economic system and
absence of proper policy adjustments to mitigate the effects of these shocks. For policy implications,
the findings indicate the importance of reviving demand for credit using macroeconomic policies. | en |
