| dc.description.abstract | SACCOS have developed rapidly in terms of size, structure and variety of products and services
by embracing technology to increase the speed of transactions, give clients more flexibility and
reduce costs of doing business. With the introduction of M-Sacco, it is expected that the
SACCOS’ financial performance will improve as the SACCOS’ avail their services to their
members on the mobile platform thus increasing the volume of their transactions.
The study sought to establish the effect of Mobile Sacco service on the financial performance of
licensed deposit taking SACCOS in Nairobi County with a focus on all 42 licensed deposit
taking SACCOS in Nairobi County. The secondary data in this analysis covered a period of 4
years (2011 – 2014) and extracted from the audited financial statements which included
comprehensive income statement and Statement of financial position. Data was analyzed using a
linear regression equation model to establish the effect of Mobile Sacco service on financial
performance of SACCOS in Nairobi County. From the regression model, the study found out
that there were factors influencing the financial performance of licensed deposit taking SACCOS
in Nairobi County, which are Number of M-SACCO transactions carried out, investment in MSACCO
service, size of SACCO, capital and management quality. They either influenced it
positively or negatively. The five independent variables that were studied (Number of MSACCO
transactions carried out, investment in M-SACCO service, size of SACCO, capital and
management quality) explain a substantial 65.8% of financial performance of licensed deposit
taking SACCOS in Nairobi County as represented by the adjusted R2 (0.658).
The study concludes that Number of M-SACCO transactions carried out, investment in MSACCO
service, size of SACCO, capital and management quality significantly influenced the
financial performance of licensed deposit taking SACCOS in Nairobi County. The study
therefore recommends that SASRA should enhance the authority’s regulations such as ensuring
safety and security of member’s deposits through establishment and implementation of the
Deposit Guarantee Fund (DGF), increased savings and credit due to stability in the Sacco subsector.
The study also recommends that SACCO mangers should be have training programs on
application of business process automation to promote growth and development of skills and
technical capacities within the Sacco sub-sector since it is through the business process
automation that has led to mobile banking being used in the delivery of services to members of
SACCOS. | en_US |
