Effect of Financial Literacy Training on the Financial Performance of Saccos in Kilifi County

Abstract

The purpose of the study was to determine the effect of financial literacy training on the financial performance of SACCOs in Kilifi County. The study employed a descriptive research design to gather data on factors affecting the performance of SACCOs in Kilifi County. The target population of this study was 174 active registered SACCOS in Kilifi County. The target population typically comprises all individuals or units that meet the study's criteria. The study sample comprised 122 savings and credit cooperative societies, selected from the total SACCO population in Kilifi County. Data was collected using primary techniques. The report emphasizes the importance of financial literacy education for improving SACCOs' financial performance. An informed and financially literate membership has a positive impact on co-operative societies' financial performance, as evidenced by the positive coefficient on financial literacy training. This underscores the need for microfinance organizations and policymakers to prioritize financial education initiatives to equip SACCO members with the knowledge and skills required to make sound financial decisions, manage their resources effectively, and fully leverage microfinance services. For policymakers, it is crucial to strengthen the regulatory framework governing SACCOs. Emphasizing transparency, accountability, and effective governance practices will ensure the sound operation of SACCOs and protect the interests of their members and the financial system as a whole. Additionally, policymakers should prioritize implementing financial literacy programs for SACCO members to enhance their financial decision-making and use of microfinance services.