Abstract: Savings and Credit Co-operatives Societies sector in Kenya has been very vibrant. It has grown to touch every part of our society and sector. The purpose of this study was to investigate the effect of interest rates capping on financial performance of SACCOs in Bomet County. The study was be based on four specific objectives Therefore the objective of this study was to provide an understanding of how interest rate capping affects the financial performance of SACCOs in Bomet County, and bridge the knowledge gap that exists. The study adopted descriptive research design study in which Primary Data was used from respondents. The study made use of regression analysis to analyze the data by equating dependent variables to the independent variable. It ensured that variables in the selected sample represent the study population proportionally. The researcher collected primary data by use of questionnaire. The researcher ensured that the questionnaire was be aligned to the literature review to strengthen the results of the study participants in the pilot study was be purposively excluded from the main study to avoid any possible respondent bias. Reliability was ensured by collecting data from both the management and the staff who was aim at ironing out any significant inconsistencies or biases in the data. Collected data was edited, coded and checked to have the required quality, accuracy and completeness. Thereafter; analysis of these variables was done. This is because there was more than one variable affecting the dependent variable. The study was collate data into tables, frequency tables was be useful methods. The coefficient of determination which is the proportion of variance in the dependent variable that can be explained by the independent variables. Thus, the independent variables account for 57.7% of the variability of the dependent variable. This means that independent variables account for 57.7% of financial performance of the SACCOs. The difference of 42.3% (from 100%) is accounted by other factors which were beyond the scope of this study. The research challenges the management of SACCOs of Bomet County to consider the operating cost they charge on members as compared to other financial institutions because if featured as the major challenge to financial performance of SACCOs of Bomet County. Operating cost should be reviewed frequently depending on the prevailing need of SACCO operation and size. The management have given a lot of attention to increased marketing to increase membership but this alone was not be of much benefit if the whole business environment is not brought into the picture. This should include the services given to customers and the time taken to give these services.
Keywords: financial performance, SACCOs, financial institutions independent variables.
Title: EFFECT OF INTEREST RATES CAPPING ON FINANCIAL PERFORMANCE OF SACCO’S IN BOMET COUNTY
Author: KIPRONO SOI, PETER KIBET LELEI, DR. KEPHA OMBUI
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Research Publish Journals
