STRATEGY DETERMINANTS ON ORGANIZATIONAL GROWTH AMONG SAVINGS AND CREDIT CO-OPERATIVE SOCIETIES IN KISII COUNTY

Abstract

Numerous institutions establishments are currently facing the imminent risk of closure as a result of mismanagement, which has placed them in a precarious financial situation. The SACCOS, totaling 2,200 in number, were declared dormant or unknown by SASRA due to their failure to meet the required criteria. The aforementioned circumstances led to the initiation of a research investigation into strategy determinants on the  SACCO growth in Kisii. The main aim in this study was to examine the effect of strategic fund mobilization, strategic investments and strategic information dissemination. The study was founded on Efficiency Structure Theory, Neoclassical Theory of Investment and Modern Portfolio Theory. A total population from staff members in the SACCOS was 342. The sampling methodology was stratified random sampling. The sample size was 68 respondents, which corresponds to 20% of the target population. Data collection was collected using questionnaires. The questionnaire was pilot tested with a sample of six respondents from selected Sacco in Kisii town. The reliability tests were conducted by assessing its Cronbach alpha value. The research employed both descriptive analysis and inferential statistical analyses such as regression and correlation analysis. The SPSS software was utilized to compute percentages, frequencies, mean values, and standard deviations. The study's results showed that SACCOS benefited from strategic fund mobilization, and that this benefit was statistically significant as shown by (β) 0.224, t=1.859, p value 0.05). Based on the findings of the the analysis in Saccos in Kisii County, a favourable and statistically significant correlation (β)=0.849, t=4.438, p0.05) was found between Strategic investment and organizational growth. Still, there was negative as well as notable importance amongst Strategic information dissemination and organizational growth (β) -.161, t=-.664, p value 0.05). The study concluded that high member default rates do hurts Sacco growth. Thus, high default rates indicated inadequate financial planning by members, which hampered Sacco expansion. Sacco invests in service diversification to boost SACCO’s growth by producing new financial products and entering new markets with stronger growth prospects. The study recommends that authorities should develop mechanisms to help SACCOS access capital for expansion and liquidity management.