IJSSE - International Journal of Social Sciences and Entrepreneurship Upcoming Journals: International Journal of Innovation and Management (IJIM), International Journal of Engineering and Architecture (IJEA) & International Journal of Science and Agriculture | IJAE, IJEF & IJHRP Call for Papers - Forthcoming Issue (Decemer 2014). Submission deadline: 25th December 2014 |

No images

United States United States
Your Time

User Statistics Info
IJSSE is one of the leading International Journals by User Statistics!

Login Form

IJSSE Newsletter Form
Full Names *
E-mail Address: *
Country *
PDF Print E-mail




1* Juliet Odhiambo 2*Dr. Margaret A. Oloko

1*School of Business, Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000, 00200 Nairobi, Kenya.

2*School of Business, Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000, 00200 Nairobi, Kenya.

Corresponding Author email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it


CITATION: Odhiambo, J., & Oloko, A., M., (2016). Challenges Affecting Growth of Savings and Credit Cooperative Societies in Kenya: A Case of Harambee Cooperative Society. International Journal of Strategic Management. Vol. 5 (5). Pp 20-37.





Reports from Kenya Union of Savings and Credit Cooperative Society indicate that membership in the Sacco was declining due to delay in loan disbursement, poor ATM services, inadequate credit facilities, fraud, understated bad debts, increase in demand for loans that have been fabricated, inadequate staffing and lack of efficient and effective information management system, cover up of massive fraud and understated bad debts which accrued risking billions in losses of members' money. The objective of this project was to examine the challenges affecting growth of Saccos in Kenya. The study adopted a descriptive research design. Data was collected from both primary and secondary sources. The target population comprised 210 staff working at the Sacco with their headquarters in Nairobi and more particularly the top, middle and lower level management staff. Stratified sampling method was used in selecting the sample of 63 respondents. The findings showed that a unit increase in corporate governance will lead to a 0.270 increase in growth of cooperatives in Kenya; a unit increase in information technology will lead to a 0. 032 increase in growth of cooperatives in Kenya; a unit increase in employee training, will lead to a 0. 305 increases in growth of cooperatives in Kenya and a unit increase in organizational structure will lead to a 0.391 increase in growth of cooperatives in Kenya. In conclusion, the study found out that the use of information technology contributes to the success of the implementation of international strategies in Saccos in Kenya. Information technology will accelerate changes in how markets conduct its activities. Lack of employees training is a challenge affecting growth of Saccos in Kenya. Cooperatives face management challenges, cooperatives does not comply with principles of corporate governance, cooperatives are well equipped to implement corporate governance, board members doesn’t guide the cooperative during a crisis and the board independence is a challenging aspect of corporate governance in the cooperative. The study recommends that Saccos management should ensure effective corporate governance which ensures that long-term strategic objectives and plans are established and the proper management and structures are in place to achieve these objectives. Cooperatives should constantly update their software and hardware to ensure that compatibility issues and increased knowledge of security systems and enhance competition. Cooperatives should educate members, staff and committee members on the affairs of cooperative movement, their rights and obligations, the legal framework, business ideas, good governance, leadership and investment. Regarding, organizational structure the study recommends independence, interaction and communication among employees.

Keywords: Corporate governance, Information technology, Training, Organization structure, growth of cooperatives


Full Text PDF Format


Publication Disclaimer: The accountability of the article published in IJSSE journals is entirely of the author(s) concerned and not of the publisher/editor. The view expressed in the articles of any IJSSE journal is those of the contributors, and it does not essentially correspond to the views of the publisher/editor. It is responsibility of the authors to seek copyright clearance for any part of the content of the articles. The publisher/editor of IJSSE journals is not liable for errors or any consequences arising from the exercise of information contained in it.
Free counters!
IJSSE - International Journal of Social Sciences and Entrepreneurship | Copyright 2013 | All Rights Reserved  <