ACCESSING FINANCIAL SERVICES ON MEMBER ADVANCEMENT OF LICENSED DEPOSIT TAKING SACCOS IN NAIROBI COUNTY, KENYA
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Abstract
The purpose of this study was to examine access to financial services on member advancement of licensed deposit taking SACCOs in Nairobi County, Kenya. The study adopted a descriptive cross-sectional survey design, where both quantitative and qualitative approaches were applied. Questionnaires and semi-structured interviews were used in data collection. Email (internet) and drop and pick methods were also used. Collected data was organized according to the research objectives and hypotheses using statistical package software for social sciences (SPSS). The sample had 39 respondents out of a population frame of 42 participating licensed deposit taking SACCOs in Nairobi County. They comprised of the chief executive officers, the deputies and the departmental heads from the sampled licensed deposit taking SACCOs. Data was analyzed using descriptive and inferential statistics. Descriptive statistics included mean, standard deviation, frequencies and percentages. Inferential statistics included correlation analysis and regression analysis. The results indicated that financial services had a statistically insignificant positive relationship with Member advancement of deposit taking SACCOs in Nairobi county Kenya. Access to financial services is a significant challenge in Kenya, where majority of the population is excluded from the formal banking sector. Deposit taking SACCOs continue to look out for their members’ interests particularly those under served by banks and providing a level of service that is not generally available in other financial institutions. The operating income is returned to depositors in the form of interest on savings and lower interest rates on loans. Licensed deposit taking SACCOs should develop diversified financial products that meet the needs of different levels of membership and therefore retain their loyalty. This changes their financial behavior for prudent borrowing to improve the liquidity conditions thus generating funds for on lending to the growing credit demand.
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