Abstract: Liquidity management is among the four cardinal decision areas of financial management that requires careful handling and planning for a business enterprise to be successful and profitable. Saving and Credit Cooperative Societies face a risks arising from liquidity shortage and this has been a major cause of failure of many financial cooperatives. This study sought to examine the influence of liquidity management on profitability of deposit taking SACCO in Kakamega County. The specific objective was to determine the influence of liquidity decision practices on profitability of deposit taking SACCO in Kakamega County. The study adopted descriptive survey design. The study targeted 11 Deposit taking SACCOs in Kakamega County. Forty seven managers were sampled using census sampling technique. Primary data was collected using structured questionnaire. Validity was achieved through content validity while reliability was achieved through Cronbach alpha (0.841). Data was analyzed descriptively using frequencies, Mean, Standard deviation and percentage while Pearson Correlation Coefficient and simple linear regression with aid of SPSS version 22 generated inferential statistics. The data was presented in form of tables and regression models. The results revealed liquidity decision practices significant influence profitability of deposit taking SACCOs in Kakamega County. Liquidity management practices account for 66.3% significant variance in profitability (R square =.663, P=0.000). Therefore, the study concluded that liquidity decision practices have significant influence on the profitability of deposit taking SACCOs in Kakamega County. The study also recommended that SACCOs should acquire quality human resource so as to come up with sound liquidity decisions.
Keywords: Liquidity Decision, Liquidity Management Practices, Profitability, Deposit Taking SACCOs.
Influence of Liquidity Management Practices on Profitability of Deposit Taking SACCOs in Kakamega County
Pauline Tsindoli Mwashi, Dr. Julius Miroga
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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