Effect of Regulatory Controls on Interest Rates of Deposit Taking Savings and Credit Co-operative Societies in Nairobi County
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Date
2013Author
Waswa, Cornelius M
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
This study was undertaken to assess the effects of regulatory controls on interest rates of
deposit taking Savings and Credit Co-operative Societies (SACCOs) in Nairobi County.
Its objective was to establish the impact of SACCO Societies Regulatory Authority
(SASRA) regulations on interest rates levels charged by SACCOs in Nairobi County. A
descriptive research design was used to collect data on a population of 34 Saccos that
operate Front Office Services Activity (FOSAs) licensed by SASRA. Primary data was
collected by use of questionnaire instrument while annual financial reports and Sasra
reports provided the secondary data. This data was processed by Statistical Package for
Social Scineces (SPSS) and analysed using analysis of variance (ANOVA) technique.
The research findings reveal that the regulatory controls inception led to a slight increase
in interest rates on Sacco loans /credit. This was as a result of increased compliance
costs. The study observes that implementation of regulations in phases shall cushion
Saccos on operational costs and profitability variations. The Sasra regulations are not
punitive as such but likey to give positive impact on Sacco subsector performance in the
long run.
Citation
Degree of Masters of Business AdministrationPublisher
University of Nairobi School of Business
Description
A research project submitted in partial fulfillment of the
requirement for the degree of master of business
administration, university of Nairobi