Effect of savings and credit co-operative saccos strategies on member’s savings mobilization in bomet county, kenya

Abstract

Studies have shown that lack of sufficient Growth of SACCO’s Wealth has made it difficult for them to absorb their operational losses, which has threatened their sustainability. This has led to the losses being absorbed by members’ savings and share capital, hence loss of member’s saving’s. while the purpose of SACCO’s is to mobilize member’s funds and grant credit for the member’s development, this has made it difficult for the SACCO’s to grow their wealth, achieve this objective and contribute favorably to National Domestic Savings. Saving mobilization is a key component in any development endeavor as it is believed to be the surest way of increasing income and boosting productivity in attempt to eradicate poverty. The main purpose of the study was to determine the effect of cooperative strategies on members’ saving mobilization and analyze the effect of intervening factor (family size attitude, and income level) on savings mobilization. The study utilized a sample of 3 SACCOS out of 72 and SACCO member out of 60,000 in Bomet County. These were selected through simple random sampling method. A semi structure questionnaire was used to collect data from 72 respondents. Data was analyzed using a multiple linear regression model to test relationship and assess impact of the independent variables on members’ savings mobilization. A response rate of 45.7% (96) respondents was achieved. Correlation coefficient revealed that training requirement had an average positive influence on saving mobilization, while investment opportunities and intervening Variables had a strong positive influence on saving mobilization. The most significant factors were investment opportunities, and intervening variables at 99% confidence level. It was therefore concluded that cooperative strategies partially affected members’ savings mobilization.