Abstract: The financial management practices of financial institutions are of great concern to the financial regulators globally. The financial management practices on the credit union industry and its influence financial stability minimize loan default and achieving of better financial performance of the industry. In Kenya, Deposit Taking SACCOs (DTS) institute financial management practices such as working capital management and cash budgeting in an effort to improve financial performance. Despite the increase in adoption of DTS’s financial management practices, its impact on financial performance has not been sufficiently established. This study, therefore, sought out to examine the effect of financial management practices on financial performance of DTS in Kenya. The objective of the study was to determine effect of financial management practices on financial performance of DTS in Nairobi County, Kenya. Descriptive research design was deemed appropriate for this study as it will assist in understanding the effect of effects of financial management practices on financial performance in DTS in Kenya and therefore answer the “How” question of the study. The study population consisted of all 175 DTS registered under the SACCO societies Act in Nairobi County, Kenya. By using Yamane’s formula, the sample size will be 122 DTS. The study adopted simple random sampling technique where all units from the sampling frame will have an equal chance to be drawn and to occur in the sample. Questionnaires was used to obtain important information about the population. Descriptive analysis which included percentages, frequencies, means and standard deviation was done to establish the extent to which financial management practices influence financial performance in DTS in Kenya. Inferential data analysis techniques of correlation and regression analysis was used to establish the relationship between financial management practices and financial performance of DTS. The study found that overall 59.6% of the variation in Financial performance of Deposit Taking Saccos in Nairobi County, Kenya can be explained by for working capital management, Capital structure decisions, Liquidity management, financial investment management while the remaining percentage can be explained by other factors excluded in the model. The findings of the study demonstrated that Financial Management Practices significant influence on Financial performance of Deposit Taking Saccos in Nairobi County, Kenya.
Keywords: working capital management, capital structure decisions, liquidity management, financial investment management, Financial performance.
Title: Influence of Financial Management Practices on Financial Perfomance of Deposit Taking Saccos in Nairobi County, Kenya
Author: Kipchumba Kipkorir Amos, Dr. Jane Omwenga, Dr. Agnes Njeru
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
Vol. 10, Issue 4, October 2022 - December 2022
Page No: 90-112
Research Publish Journals
Website: www.researchpublish.com
Published Date: 06-October-2022
