Abstract: The objective of this study was to evaluate the influence of financial planning on financial sustainability of housing cooperatives in Nakuru County, Kenya. The institutional theory and agency cost theory guided the study. The study adopted a cross-sectional survey design and quantitative approach. A total of 240 finance officers, credit officers, operational managers, and chief executive officers working with the aforementioned firms constituted the study population. A sample of 91 respondents was obtained using simple random sampling technique. A structured questionnaire was used to aid in collecting data. The questionnaire was pilot tested and subsequently its validity and reliability determined. Data analysis was electronically carried out with the aid of the Statistical Package for Social Sciences tool. The analysis encapsulated descriptive and inferential statistics. The pertinent results were presented in tables. The study found that financial planning explained 32.6% variance in financial sustainability of housing cooperatives. The influence of financial planning on financial sustainability was established to be statistically significant (p < 0.05). The null hypothesis was thus rejected. The study concluded that financial planning was a critical internal factor that influenced financial sustainability of the studied cooperatives. It was recommended that housing cooperatives should have clear and reliable financial plans to enable them to effectively source requisite funds and appropriately allocate the same to ventures with high return on investment.
Keywords: Agency cost theory, financial planning, financial sustainability, housing cooperatives, institutional theory, Nakuru County.
Title: INFLUENCE OF FINANCIAL PLANNING ON SUSTAINABILITY OF HOUSING COOPERATIVES IN NAKURU COUNTY, KENYA
Author: Kipkures Bernard Masai, Kibati Patrick
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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