Financial Regulations on Financial Performance of Large-Tiered Deposit Taking Saccos in Nairobi City- Kenya.
| dc.contributor.author | Mkanjala, Mkala Florence | |
| dc.date.accessioned | 2025-01-27T09:37:44Z | |
| dc.date.available | 2025-01-27T09:37:44Z | |
| dc.date.issued | 2024 | |
| dc.description | MASTER OF BUSINESS ADMINISTRATION in Finance | |
| dc.description.abstract | Around the world, Savings and Credit Cooperative Organizations are acknowledged as significant engines of economic expansion. More than any other kind of financial institution, SACCOs continue to be the major participants in the financial services industry in Kenya. This study investigated the financial regulations on the financial performance of SACCOs (large-tiered deposit-taking savings and credit cooperative societies) located in Nairobi County, Kenya. The research aimed to analyze the compliance status of financial regulations and determine the financial performance of large-tiered Deposit-taking SACCO in Nairobi County. This has provided insight into how the regulatory frameworks established by the Sacco Societies Regulatory Authority (SASRA) affect SACCOs' financial and operational outcomes, given the industry's vital role in the local economy. The study's theoretical framework was based on an in-depth examination that integrates regulatory compliance theory, stakeholder theory, and the Resource-based perspective (RBV). Through the perspective of the conceptual framework, the interactions between financial regulations and Larger-Tiered Deposit Taking SACCOs performance were examined. Methodologically, the target population consisted of 20 registered Larger-Tiered Deposit-Taking SACCOs. Six were purposely selected. Regression and correlation analysis were carried out on secondary data, mostly obtained from financial accounts and SASRA's publications, and analyzed using SPSS software. The findings revealed that the capital adequacy regulations on Larger-Tiered Deposit Taking SACCOs were compliant at 100 percent on average and had better financial performance as seen by rising dividends per. Basing on the interest cover as a measure of performance in this study there was a noticeable drop over the 5 years period revealing rise in interest expense. According to the study's findings, SACCOs with high capital adequacy of more than the required regulations of SASRA are more likely to operate well, as seen by growing dividends from 8.92 to 11.33. The trend toward decreasing interest cover from 3.24 to 2.85 suggests possible financial strain, alerting and Larger-Tiered Deposit Taking SACCO management to the need for improved financial management. Strategic decisions and policy formation by SACCOs that better balance performance and regulatory compliance can benefit from these insights. There may be a need for additional specialized regulations that especially address the particular difficulties faced by large tiered DT SACCOs, as seen by the positive but negligible association between performance and financial regulations. The results could lead to the improvement of regulatory frameworks by SASRA and other policymakers, to improve SACCO performance without adding unnecessary costs. | |
| dc.identifier.citation | Mkanjala, M. F. (2024). Financial Regulations on Financial Performance of Large-Tiered Deposit Taking Saccos in Nairobi City- Kenya. Daystar University, School of Business and Economics | |
| dc.identifier.uri | https://repository.daystar.ac.ke/handle/123456789/6124 | |
| dc.language.iso | en | |
| dc.publisher | Daystar University, School of Business and Economics | |
| dc.subject | Savings and Credit Cooperative Organizations | |
| dc.subject | Economic expansion | |
| dc.subject | Financial services industry | |
| dc.subject | Financial performance | |
| dc.title | Financial Regulations on Financial Performance of Large-Tiered Deposit Taking Saccos in Nairobi City- Kenya. | |
| dc.type | Thesis |