| dc.description.abstract | SACCOS are key components in the economy and social development. However, it’s
experiencing both internal and external issues which should be handled. The study
sought to determine the effect of firm financial factors on financial performance of
SACCOS in Nandi County. Specifically, the study determined the effects of
management of loan debtors, Capital sufficiency and interest rate levied on the financial
performance of SACCOs in Nandi County. Objectives of the study were to determine
the effects of management of loan debtors, Capital adequacy and the interest rate
charged on financial performance of SACCOs in Nandi County. The study was guided
by liquidity preference theory, human capital theory, efficient structure theory and
Pecking order theory. The study adopted descriptive survey research design. The target
population was therefore all the ten SACCOS in Nandi County registered and licensed
as at January 2023. Stratified and simple random method was used to single out the
Eighty-seven employees to participate. Primary data was used and data collected using
open self-structured questionnaires. Validity was tested using Content and construct
validity while Cronbach’s alpha coefficient was used to determine the reliability of the
research instruments. Data was analyzed using both descriptive and inferential
statistics. Data was analyzed descriptively using frequencies, percentages, mean and
standard deviations and also using inferential statistics that involved Pearson’s Product
Moment Correlation Coefficient, simple linear regression and stepwise regression
analysis whose results were presented in tables and figures. The study finding indicated
that there was a positive and significant effect by management of loan debtors to
performance of Saccos in Nandi County (β = 0.960, P= 0.05), there was a positive
significant relationship between capital adequacy and financial performance of
SACCOS in Nandi County (β = 1.289, P < 0.05) and that there was a significant effect on
interest rate charged (β = 0.635, P = 0. 05). These findings will be of great significance to
the CBK, Board of Directors, managers and shareholders of the Saccos, researchers and
the scholars. It will also provide input for further research to be conducted on SACCOS
in future. | en_US |
