Board Of Directors And Strategic Planning Within Deposit-Taking Savings And Credit Cooperative Societies In Nairobi County

Abstract

Given the highly competitive nature of the world, organizations are fast embracing modern approaches in management as a way of enhancing their competitiveness. However, one of the areas that has not been fully exploited is the involvement of the board of directors in strategic planning, particularly in SACCOs. With this background, the study objective was to establish the function of the board of directors in strategic planning within deposit-taking Saccos of the County of Nairobi, Kenya. This study was directed on the stewardship theory, the agency theory, managerial hegemony theory, and the stakeholder theory. The study adopted a purposive sampling technique, specifically the total population sampling, which in this context, constituted 44 SACCOs that were licensed to undertake business within the County of Nairobi, Kenya. The data was gathered by administering strutured questionnaires to the respondents. The collected data was analyzed using descriptive statistics by the assistance of SPSS version 23. The study established that the BOD performs important functions in the strategic planning process of SACCOS including the creation of mission, vision and core values, continuously review proposed strategic decisions and the conditions under which they operate, assessing financial and human resource capabilities needed to plan and execute strategies, questioning managers to stimulate thought and promote better strategic decision making, and approving strategic plans. The study concluded that board of directors performs an essential part