Information Technology as a Strategic Management Driver and the Performance of Savings and Credit Cooperative Organizations in Nakuru County, Kenya

Abstract

In Kenya, the cooperative sector and the Savings and Credit Cooperative Organizations (SACCOS) sub-sector have made significant contributions to the financial sector and the economy at large. Despite their role as alternative financiers, Saving and Credit Cooperative Organizations have faced performance challenges. This study aimed to determine how information technology as a strategic management driver affects the performance of SACCOs in Nakuru County, Kenya. The study was anchored on the Technological Acceptance Model (TAM). The study applied an explanatory research design. The unit of analysis was 23 Saving and Credit Cooperative Organizations licensed by the SACCO Societies Regulatory Authority and operating in Nakuru County. The specific respondents were senior general managers, business development managers, marketing managers, finance managers, human resource managers, and information and communication technology managers. Therefore, the total population was 138 managers. The researcher purposively sampled the 138 managers. Primary and secondary data were both gathered for this project. Both descriptive and inferential statistics were used to analyze the data. Results showed that information technology had a positive and significant effect on SACCOs' performance (β = 0.304, p = 0.000). The study concluded that information technology had a positive and significant effect on SACCO performance. The adoption of digital services, such as mobile and internet banking, along with fintech solutions, helps improve operational efficiency, customer satisfaction, and financial performance by streamlining operations and reducing costs, though challenges such as transaction costs and system delays remain. The study also concluded that improved ICT policy implementation led to better performance among deposit-taking SACCOs. Based on the study's conclusions and findings, the study recommends that DT SACCOs deepen their investments in mobile banking platforms, as they are the next frontier in ICT innovation.