Effect of Savings on the Financial Performance of Saccos in Kilifi County
DOI:
https://doi.org/10.70619/vol5iss11pp23-35-702Keywords:
Savings, financial performance, SACCOsAbstract
The study sought to determine the effect of savings on the financial performance of SACCOs in Kilifi County. The study was based on a cross-sectional survey research design whereby data were collected only once from a random sample of 122 SACCOs, spread out proportionately across the seven sub-counties in Kilifi County. Questionnaires were prepared and distributed among administrators in the select samples. The results at the basic level were then presented in the form of charts, tables, and explanations on major thematic areas. The findings of the study revealed that there was a statistically significant relationship between savings and the financial performance of SACCOs (t=2.691 & p=0.009<0.05). This highlights the need to foster a savings culture within SACCOs and provide members with alluring savings options. The capital base of SACCOs is strengthened by increased savings, allowing them to better meet the financial demands of their members. This is in addition to improving the financial health of individual members. For SACCO managers, diversifying financial products is essential to meet the diverse needs of their members. By offering innovative loan products, savings plans, and insurance offerings, SACCOs can attract more members and increase their overall financial performance.
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Copyright (c) 2025 Fred Cmatete Wafula, Ronald Koech, Josephine Kilifi
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
