The Socio-economic Benefits of Wakulima Commercial Savings and Credit Cooperative Ltd to Its Membership in Nyeri County, Kenya

Abstract

Two-thirds of the Kenyan population directly or indirectly benefit from a co-operative movement. There are 14,000 registered cooperatives of which 5000 are SACCOs. SACCOs are recognized as one of the most crucial as well as visible typology of cooperatives in Kenya (SASRA, 2017). Objectives for this study were: To establish the socio economic benefits to members of Wakulima Commercial SACCO, to examine how members participate in decision making process of the SACCO, to investigate the performance of the SACCO based on service provision to the members and to investigate the challenges that SACCO members are face while seeking services from the SACCO. Descriptive research design was employed because it outlines characteristics of the defined population under study and also helps in validating existing conditions. The population was drawn from Wakulima Commercial SACCO membership and two key informants. Wakulima Commercial SACCO has a membership of 22,442 according to the audited accounts of 2019. A sample of 118 was considered. Interviews and focus group discussion data collection techniques were adapted while a questionnaire and an interview schedule were used as data collection tools. The study found out that SACCO members have benefited from the SACCO in different ways with 36.0% having benefited by way of paying school fees, 31.0% in farming, 4.0% in business 26.0% in developments such as connection to electricity, buying water tanks, building houses and buying of property) and finally 3% have benefited by way of paying hospital bills.The analysis on the challenges that members face led to the conclusion that most members lack information on the SACCO products which limits the benefits that come with different products. Participation of SACCO members in decision making analysis led to the conclusion that the SACCO members participate in decision making through attendance of AGM. The analysis of performance of the SACCO led to the conclusion that most members were not aware of the services provided by the SACCO. This research recommends proper education to members for awareness of the services offered by the SACCO its operations and engagement during the AGM. The level of knowledge of all the services offered is very low which could be a hindrance of getting more benefits from the SACCO. This research also recommends that the loan system should be reviewed to ensure ease access to loans by the members. The fact that access to loans is pegged on delivery of milk limits members from accessing credit. This research further recommends a strategy to reach the younger generation for posterity purposes since the current membership has a bulk of 50 years and above. This also means products like insurance cannot do well due to age limits that call for higher premiums of which most members may not afford. Employment of new technology is also hindered due to age issues. Finally this research also recommends products inclined to female members since they are the majority for instance table banking.