Use of corporate governance as a post liberalization strategy by SACCOS in Kenya: a case study of selected SACCOS in Nairobi area
Tokei, Jonathan C
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When globalization hit the economic market, it became inevitable for organizations to adopt new competitive strategies. With liberalization in the banking industry, many SACCOs found themselves in precarious position that demanded urgent but sound decision. Many adopted corporate governance concept as a strategy. The study therefore utilized descriptive survey employing both qualitative and quantitative methods of data collection. The target population constituted all the SACCOs from all the sectors of the economy in Kenya. A sample of 120 respondents was selected from four randomly selected divisions in Nairobi. These were drawn from three sectors using the Ministry of Co-operatives categorization that is; Private, Public and Parastatals sectors. Simple random sampling was used to select 10 respondents from each of the four divisions. Of each of the selected SACCOs, two respondents from management, six employees and two members were selected at random. A self-administered open and closed ended questionnaire was utilized in soliciting primary data from the field Data collected from the field was analyzed using both descriptive and inferential data analysis, consequently information presented in tables, figures and frequency distribution and measures of central tendency. In addition, cross tabulations and correlation were computed to determine the relationship between various variables in the study. It emerged that despite adopting these strategies, many SACCOs were yet to reap maximum returns. Slow and apathetic approach to good corporate governance was still prevalent and that the management of these SACCOs seemed ill equipped to drive the entire industry into success. Researcher recommended the SACCOs need to embrace change and allow for the autonomy by de-linking government interference.
University of Nairobi