Abstract: The purpose of this study therefore was to assess the effect of selected statutory regulations on financial performance of SACCOs. The study was guided by four theories; Buffer theory of Capital Adequacy, Capital Asset Pricing Model, Earnings Theory of Capitalization and Anticipated Income Theory. The study employed a descriptive research design using quantitative approaches. The target population was FOSA managers, finance managers, credit managers and internal auditors all totaling 64 targeted respondents from SACCOs in Nakuru County, Kenya. The study used a census approach to collect data and it used closed ended questionnaires in collecting primary data. Secondary data was collected from SASRA annual publications. The questionnaires were pretested to ensure validity and reliability. The collected data was summarized and analysed using both descriptive and inferential statistics and then presented in tables. From the findings, capital adequacy (r = 0.267) and asset quality (r = 0.080) had a positive and weak correlation with ROE. The study concluded that since all the variables had some effect on financial performance, it would be prudent for SACCO to adhere to these regulations in order to enhance their performance.
Keywords: Statutory Regulations, Financial Performance and Deposit taking Sacco’s.
Title: Effect of Statutory Regulations on Financial Performance of Deposit Taking Savings and Credit Cooperative Organizations in Nakuru County, Kenya
Author: Kiplangat Ngetich Onchwari, Antony Wahome
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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