STRATEGIC CONTROL TECNHIQUES AND FINANCIAL PERFORMANCE OF SAVINGS AND CREDIT COOPERATIVES IN NAIROBI CITY COUNTY, KENYA

Allan Wanjohi Kariuki, Dr. Mary Mwanzia

Abstract


SACCOs being one of the organizations that use strategic control techniques needed to achieve their goals, they are need to implement strategies that enhance performance. A supervisory annual report of 2018 by SASRA indicated SACCOS’ that encounter challenges in strategic control technique appear to weaken the SACCOs’ capability to provide timely services. The general objective of this study was to determine the influence of strategic control techniques on financial performance of Savings and Credit Cooperatives in Nairobi City County, Kenya. Specifically, the study sought to examine the influence of implementation control on financial performance of Savings and Credit Cooperatives in Nairobi City County, Kenya and to establish the influence of special alert control on financial performance of Savings and Credit Cooperatives in Nairobi City County, Kenya. The study adopted descriptive research design. The unit of analysis for this study was SACCOs in Nairobi County. Nairobi was selected because it has the highest concentration of the registered head-offices of deposit taking SACCOs in Kenya (SASRA, 2023). The unit of observation of this study was management employees in the selected 43 deposit-taking SACCOs in Nairobi County, Kenya.  The target population was therefore 258 management employees working in the 43 deposit-taking SACCOs in Nairobi County, Kenya. The Yamane formula was adopted to calculate the study sample size. Therefore, the study sample size was 157 respondents. The stratified random sampling method was adopted to select the study sample size. Data was collected using a self-administered semi-structured questionnaire. Qualitative reports were analyzed in content analysis and presented in form of essays. Descriptive statistical analysis included frequency, percentages, mean and standard deviation and was used to analyze quantitative data. SPSS version 25 was used for analysis. Inferential statistical analysis used was multiple regression and correlation analysis and tested the relationship between the study variables. The findings were displayed in tables and figures. the study concludes that implementation control has a positive and significant effect on financial performance of Savings and Credit Cooperatives in Nairobi City County, Kenya. The study also concludes that special alert control has a positive and significant effect on financial performance of Savings and Credit Cooperatives in Nairobi City County, Kenya. Based on the findings, the study recommends that the management of Savings and Credit Cooperatives in Kenya should establish a comprehensive performance monitoring and evaluation system. By systematically tracking and analysing key performance indicators, SACCOs can identify areas for improvement, address inefficiencies, and ensure that strategic goals are being met.

 

Key Words: Strategic Control Techniques, Implementation Control, Special Alert Control and Financial Performance


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