100%(1)1 out of 1 people found this document helpful
This preview shows page 69 - 71 out of 89 pages.
Overall TNT shows good operational and financial performance with significant Good weaknesses noted in governance, information and risk management. governance is hampered by the tendency the members over relying on a few individuals to run the SACCO through the pronounced re-election of the committee members and a linked to poor planning processin the education and trainingwhich are seen to be political influences. the SACCO has numerous savings Through data analysis it was identified that, though should of the options, it greater diversify its products to take into account the needs market. The SACCO should include consideration of the special needs of the advanced in age since this segment has only been relegated to ordinary accounts as a favorable option for saving. According to Sen, (1999) benefits of education to the SACCOs are enormous, fact was making investments in education a transformative and distributive gain. This governance in identified in this study, showing education and training will improve enlightened SACCOs twofold as knowledgeable SACCO members will elect and and secondly, the institution of the SACCO trustworthy boards to manage their wealth of existing policy. will be strengthened enabling it to operate within the confines Further, a knowledgeable membership base has the power to influence future policy and skill. The board members should be willing to go through a comprehensive training
57provide program to acquire basic financial skills needed to strengthen the SACCO and adequate direction and leadership. Board members should also show their commitment to the SACCO by adhering to the policies, contributing to the success of the institution and speaking with one voice. Poor members appear to primarilyvalue financial services of the SACCO as a tool for building up basic assets and coping with risk and crises. Access to finance as provided by the SACCO, both savings and credit, helps to provide the lump sums required to invest in basic household assets such as land, housing, health and education. Assets which can be SACCO upon times of crisis serve as a form of protection against risk. drawn from the financial assets This may include physical assets (land, housing, and equipment), savings), (human assets (education) and social assets (friends, neighbors, networks, relationships). People also protect against risk by diversifying their income savings into various products availed). When struck by external crises (death, theft, fire, drought), access to savings, credit or insurance can prevent erosion of the household asset base. Conclusions 5.5SACCO. This The study identifiedpertinent issues that affect the performance of the study challenges the SACCO management to consider the role of governance, diversity of the membership base, education and training and market risks in the performance of the institutions in the in Kenya. It also shows that these institutions are vital in the economic growth of the country as it involves the lower cadre of citizens.