| dc.description.abstract | The Savings and Credit Co-operative Organizations (SACCOs) have for a long time been
offering loans to their members at a relatively cheaper rate which made the institutions
the preferred source of funds by the members and even other groups of clients. The main
objective of this study was to determine what challenges the institutions faced while
carrying out this noble task and how the challenges could be affecting their performance.
It is in the realization of the fact that co-operatives play an important role that it was
viewed that good corporate governance in the sector will also impact positively in the
future growth of the sector and the economy. Likewise the challenges being faced if not
well addressed would impact negatively not only on the members themselves but the
economy of the many areas where the SACCO movement has taken a foot hold. The
research was based on a sample of 66 SACCO societies operating in Mombasa County
and it sought to identify the corporate governance practices and measures which have
been put in place and the challenges being faced in implementing them and how they had
an impact on their overall performance.
Data was collected using a self-administered structured questionnaire and direct questions
were asked for clarifications. The challenges focused on, were those experienced by the
elected board members, hired societies staff and those emanating from the institutional
structure and policy and regulatory framework. Performance impact assessment was
gauged on the basis of financial viability as regards to safety of members’ funds and easy
access and duration involved to access and pay back the loans. Board members’ general
understanding and adherence to the set corporate governance procedures was also
addressed. The results were analyzed, presented in form of charts, percentage distribution
tables and interpreted using other statistical methods. From the results it was deduced that
despite the challenges being faced, most of the institutions reported an improved level of
performance in terms of membership numbers, loans and savings portfolios and
efficiency. It was observed that to a great extent those societies that had put in place
elaborate governance structures, laid out clear rules and policies generally performed
better and experienced few challenges. However it was also noted that many SACCOs
were complying with regulatory requirements laid down by the government to streamline
the sector mainly to avoid being deregistered and be locked out by the governmental
oversight bodies. Further research was recommended to establish the government and the
sector’s relationship. | en_US |
