Vol 7 Issue 3 July 2020-September 2020
Florence,Akinyi, Onyango, Dr. Elizabeth Nambuswa, Prof. Gregory Namusonge.
Abstract: The purpose of the study was to assess the effects of financial management practices on savings and credit cooperative society’s performance in Kisumu County, Kenya. The specific objective of the study was; to examine the effect of cash management on SACCOs Performance in Kisumu County, Kenya; to evaluate the effect of credit risk management on SACCOs Performance in Kisumu County, Kenya; to establish the effect of budgeting on SACCOs Performance in Kisumu County, Kenya; to examine the effect of dividend management on SACCOs Performance in Kisumu County, Kenya. The study was guarded by cash management theory, the financial intermediation theory, free cash flow theory and bird in hand theory. Descriptive research design was adopted. The population for this research comprised of 31 major SACCOs in Kisumu County, Kenya with the respondents being managers, finance officers, credit officers and cashiers working in those SACCO. Questionnaires were used for primary data collection in this study. The collected data was cleaned, sorted and then entered into SPSS for analysis. The finding indicated that an increase in cash management would in turn increase performance of Sacco’s significantly, Sacco had segregated duties among staff handling cash, Sacco had set aside specific periods to evaluate member cash requirements, Sacco always requested for adequate documentation on all cash transactions, An increase in Credit risk management would increase performance of Sacco’s significantly, Sacco reviewed its credit policy more often, Sacco distributed non-performing loans to guarantors after expiry of a specified period, Budgeting management also would increase performance of Sacco’s significantly, Sacco was capable of coordinating its budget centers, Sacco knew how to plan its budget and expenditure. The study concludes that an increase in cash management would in turn increase performance of Sacco’s significantly ,SACCOs had segregated duties among staff handling cash, Sacco had set aside specific periods to evaluate member cash requirements, increase in credit risk management would increase performance of Sacco’s significantly, Sacco was capable of coordinating its budget centers, Sacco knew how to plan its budget planning and expenditure in their Sacco were based on the budget, Dividend management increased performance of Sacco’s significantly Sacco pegged its dividend payout on ability to sustain in future. The study recommended the following: the management of SACCOs in Kisumu County, Kenya should set aside specific periods to evaluate member cash requirements and develop stringent policies on cash holding in order to manage their cash. They should be careful especially in allocation of the finance to their members by making sure that they match payments of cash to cash receipt by carrying out regular independent checks on staff handling cash and done periodically to maintain a buffer cash balance. SACCOs should allow members to discount their dividends, pegs its dividend payout on member deposits and ability to sustain in future. The study would be significant to policy makers, management teams in SACCOs together with scholars and academicians.
Keywords: Cash management, credit risk management practice, budgeting practice and Dividend management.
Title: EFFECT OF FINANCIAL MANAGEMENT PRACTICES ON SAVINGS AND CREDIT COOPERATIVE SOCIETIES PERFORMANCE IN KISUMU COUNTY, KENYA
Author: Florence,Akinyi, Onyango, Dr. Elizabeth Nambuswa, Prof. Gregory Namusonge.
ISSN 2349-7807
International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)
Paper Publications