Factors affecting sacco performance in Meru South district: a case of Tharaka Nithi Teachers Sacco
The SACCO movement as for a long time performed below the members expectations thereby causing dissatisfaction among most of their members. Major policy reforms have been witnessed in these societies which have greatly impacted on the management of the SACCOs. In addition due to stiff competition from commercial banks, the SACCOs have embraced innovative and creative measures through product and services diversification to retain and attract more members. However, the government and various stakeholders have raised concerns over the performance of the SACCOs. The previous research studies showed that standardized tools for measuring performance are not available but some critical factors can be analyzed to give an indication of performance. The key movers of SACCO Financial Performance and growth include; Governance, education and training, market risks and membership base. This research study envisaged examining the Tharaka Nithi Teachers SACCO for the effects of these factors on its financial performance. The broad objective of the study was to investigate the effects management variables on SACCO's performance in the TNT SACCO. Descriptive research design was used in this study. Since the population was not homogeneous, stratified random sampling design was used as a technique to draw a sample from the sampling frame. The total population was stratified into the SACCO members, management committee members and staff sub-samples. Questionnaires were used as data collection instruments and the data was analyzed using the SPSS. The results show that governance has enormous effects on the performance of the SACCO. Further, the results also indicate that the aspects of education and training playa major role on influencing governance structures. The researcher recommends that the SACCO diversifies its products to take into account the needs of the members and the available market as a means for resource mobilization. The findings of this study are useful to SACCO management since critical factors which affect performance have been identified. The major causes of misappropriation of funds which include political influence and wrangles can now be dealt with to save members funds. This study also shows that externalities such as inflation are not addressed by the management and could affect SACCO performance and need to be investigated.