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Kenya is among the leading countries in Africa that command a large Savings and Credit co-operative movement. However, the financial performance of Savings and Credit cooperatives is often affected by many internal and external factors that undermine the going concern of SACCOs. The general objective of this study was to establish the determinants of financial performance of Savings and Credit Cooperatives in Narok County, Kenya. The study examined the effect of Membership size. This study was guided by Organizational Theory. The study adopted cross sectional survey research design. The target population comprised of 213-registered, where only 17 were active based on the financial statements. Purposive sampling technique was used where 17 active SACCOs in Narok Town were considered. Secondary data was collected from financial statements of individual SACCO. Linear regression technique was applied to analyse data where the dependent variable Return on Equity (ROE) was regressed against the independent variable ( Membership size).The study established Membership size had no significant effect on the ROE, t (87) = 1.71, p=0.090. Based on the significant effects of the underlined variable, this study concludes that the effect of membership size, was not a significant contributor to the financial performance of SACCOs in Narok County. However the study recommends that SACCOs need to put more efforts, build their membership size to boost their savings and put measures in place to enhance their competitive advantage. This will increase the level of SACCO deposits and other income, in order to enhance financial performance of SACCOs in Narok County.
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In-Text Citation: (Kipai et al., 2022)
To Cite this Article: Kipai, E. S., Gudda, P., & George, R. (2022). Effect of Membership Size on Financial Performance of Savings and Credit Cooprative Societies in Narok County, Kenya. International Journal of Academic Research in Accounting Finance and Management Sciences, 12(4), 1–22.
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