Strategic Management factors affecting performance of deposit taking SACCOS in Machakos Sub -County

Abstract

SACCOs have become very popular in communities therefore becoming an important part of the financial sectors in many countries. SACCOs however face a myriad of challenges coming from the ever-changing socio-economic landscape in the co-operatives and SACCO sector in the country and the increased competition from other financial players. The government of Kenya has invested well in policies and legislations that support SACCOs but despite this there is a significant number of SACCOs failing to meet their obligations. The study sought to investigate the strategic management factors that affect the performance of SACCOs. This study took place in Machakos sub-county which has 42 registered deposit taking SACCOs and studied the following objectives:-to determine the influence of management competency on performance of SACCOs, to examine the influence of corporate governance on performance of SACCOs in Machakos Sub- county, To examine the influence of ICT on performance of SACCOS ,to evaluate the influence of competitive strategies on performance of SACCOs in Machakos Sub -county and to come up with recommendations on ways to improve sustainability and high performance of SACCOs. The study was guided by agency theory which identifies well with corporate governance structure and stake holder’s theory which identifies well with cooperatives which are serving the interests of varying stakeholders in society. The study adopted a descriptive survey research design. By use of questionnaires,42 respondents who comprised of chief executive officers and board of directors of the DT-SACCOs; who in this case were the target population, were interviewed. Data was collected using observation and key informant interviews. Simple random sampling was the main method of sampling techniques employed in this study. The findings will be significant to the scholarly world in that it has informed further research on strategic management practices affecting the SACCO sector and informed management of the SACCOs as it will act as a guide to setting up strategies of improving their performance. In conclusion the study recommends that SACCOs should ensure that their management teams possess the necessary competencies and skills so as to ensure high effectiveness and efficiency in their management work. From the findings the study further recommends that SACCOs should ensure proper structures are in place, invest in recent and efficient ICT applications and continuously formulate and implement strategies that can set them apart from their competitors and improve their profitability and sustainabili