RISK MANAGEMENT ON MEMBER ADVANCEMENT OF LICENSED DEPOSIT TAKING SACCOS IN NAIROBI CITY COUNTY, KENYA

Jane Kaari Kibanga

Abstract


The purpose of the study was to examine risk management on member advancement of licensed deposit taking Saccos in Nairobi County, Kenya. The study adopted a descriptive cross sectional survey design, where both quantitative and qualitative approaches were applied. Questionnaires and semi-structured interviews were used in data collection. Email (internet) and drop and pick methods were also used. Collected data was organized according to the research objectives and hypotheses using statistical package software for social sciences (SPSS). The sample had 39 respondents out of a population frame of 42 participating licensed deposit taking Saccos in Nairobi County. They comprised of the chief executive officers, the deputies and the departmental heads from the sampled licensed deposit taking Saccos. Data was analyzed using descriptive and inferential statistics. Descriptive statistics included mean, standard deviation, frequencies and percentages. Inferential statistics included correlation analysis and regression analysis. The results indicated that risk management had a positive and significant relationship with Member advancement of deposit taking Saccos in Nairobi city county Kenya. The study recommended that deposit taking Saccos adopt proactive risk management approach that enables risks to be detected well in advance. If risks are discovered at a later stage, deposit taking Saccos would have little time to address the problems. Further, a comprehensive and dynamic approach of risk management would enable deposit taking Saccos to maintain a dynamic approach in the management of risks resulting from the external environmental factors. For successful mitigation of risks, it is recommended that deposit taking Saccos detect and introduce risks management systems in their Risk Management Policy to build credibility.

Key Words: Members Advancement, Risk Management, Cooperative Societies


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