Digital Transformation and Financial Performance of Deposit-Taking Savings and Credit Co-Operatives in Nairobi City County, Kenya


  • Eunita Atieno Ogindo Kenyatta University
  • Charity Njoka Kenyatta University


Digital transformation, mobile banking, Automatic Teller Machines, Agency banking services, internet banking, financial performance


The deposit-taking Saccos in Kenya have registered an increased amount of non-performing loans as well as a reduction in liquidity, which have affected their overall financial performance. There is little research on digital transformation and the financial performance of recipient pockets. Therefore, this study aims to examine how digital transformation affects the financial performance of Nairobi-based Saccos. Specific objectives include investigating the impact of mobile banking, ATM, agency banking, and Internet banking on financial performance. Financial intermediation theory, agency theory, and transaction cost innovation theory support this research. Explanatory research is used in this study. The target group consists of 44 licensed savers. 30 Saccos were included in this study. This study uses secondary panel data from 2017 to 2021. The method used is panel regression. Regression and correlation were also employed. The results showed that agency banking (β=0.046817, p<0.05) and internet banking (β=0.109425, p<0.05) had a positive and significant effect on the financial performance of Saccos in Nairobi districts. The results also show that mobile banking (β= -0.00945, p>0.05) and ATM (β=0.072028, p>0.05) have no significant impact on the financial performance of saccos by taking deposits in cities in Nairobi. The study concluded that the key factors improving the financial performance of Sacco's deposit beneficiaries in Nairobi District were agency banking and online banking. This study also concludes that ATMs and mobile banking have no impact on deposit-taking saccos' financial success. The paper makes recommendations for enhancing agency banking services for Saccos that accept deposits. The study also suggests enhancing the online banking system for managing Saccos that accept deposits. The research also advises the leadership of deposit-taking Saccos to review their policies on ATMs and mobile banking to identify any potential obstacles to taking appropriate action.

Author Biographies

Eunita Atieno Ogindo, Kenyatta University

Department of Accounting and Finance

Charity Njoka, Kenyatta University

Department of Accounting and Finance


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How to Cite

Ogindo, E. A. ., & Njoka, C. . (2023). Digital Transformation and Financial Performance of Deposit-Taking Savings and Credit Co-Operatives in Nairobi City County, Kenya. Journal of Finance and Accounting, 3(2), 45–56. Retrieved from