Abstract:
ABSTRACT DOI No: 10.36713/epra14794 Article DOI: https://doi.org/10.36713/epra14794
Developing Savings and Credit Cooperatives (SACCOs) in Kenya has proven remarkably fruitful. Recognized by the World
Council of Credit Unions as the most robust in Africa and the seventh fastest-growing globally, Kenya's SACCO sector has
witnessed a surge in participation, resulting in heightened competition. Although past studies have delved into the impact of
low-cost strategies on SACCOs' financial performance, research specifically centered on Kenyan SACCOs are still limited. In
response to this gap, this study sought to investigate the influence of low-cost strategies on the financial performance of SACCOs
in Narok Town, guided by Michael Porter's theory. Employing a descriptive research design, the study focused on ten registered
SACCOs in Narok Town, Kenya, with the study's respondents comprising the board of directors and the branch managers of
these SACCOs. The study used a census approach to determine a sample size of 100 respondents, and data analysis encompassed
both descriptive and simple linear regression model. The results indicated that low-cost strategies have an effect on financial
performance of SACCOs in Narok Town. It was concluded that low-cost strategies manifested interest rates, operation
efficiency, low transactional cost, economy of scale plays a critical role in augmenting the financial performance of SACCOs
in Narok Town. hence it was recommended that…to enhance the financial performance of SACCOs in Narok town there is
need to embrace low cost strategies.
KEYWORDS: Savings and Credit Cooperatives (SACCOs), World Council of Credit Unions, Low-cost strategies, financial
performance and Michael Porter's forces.
