| dc.description.abstract | At one time in the life time of every institution, there are high possibilities for experiencing
financial distress. Consequently, corporative societies just like any other organization are not
immune to these financial difficulties. The impact of these difficulties is critical as it can also
result to the downfall of the co-operative society. Therefore, understanding the causes and the
remedies for this financial distress could play a major role towards saving these vital institutions.
Consequently, this research focuses on the causes of financial difficulties in the cooperative
societies in the Nairobi area. The paper is divided into five chapters that help in achieving the
main goal of the research. The first chapter introduces the corporative societies and their current
status, the second chapter looks into the related literature and gives an in depth review of the
causes of financial distress and how it could be overcome. The third chapter, provides a
framework for the method used to conduct research, collect data and the mode of data collection
and the type of data, the fourth chapter gives an analysis of the data collected which is presented
in form of chats, table and figures and deduces a model that relates the relationship between the
dependent and the independent variables.
The last chapter gives a summary, conclusion and recommendations for further studies. The
researcher concluded that the causes of financial distress can be traced from the internal factors
that heavily rely on management of co-operatives and external factors that mainly surround the
politics, governance and legislation. The researcher recommended that co-operative managers
should be well qualified to take up their roles and that the government should develop more
effective guidelines, ensure stable political environment and most importantly facilitate external
audits of the co-operative to curb corruption guarantees continued survivor of co-operatives. | en |
