wrangles and endless litigations due to conflicts end up to wastage of resources and loss of focus in terms of the sound development of the Co-operative (Wanyama, 2009). At the staff level, Job insecurity and instances of illegal dismissal of employed staff cause loss of loyalty from the other staff and this hinders performance (Sile, 2009). Lobbying and canvassing for the election of certain Board members who may be relatives, friends favour their working arrangements is detrimental to the functioning of the or appear to Co-operative Society At members’ level, inadequacy of resources, lack of Education and Training force members to exert pressure on the Board members to implement issues in a manner that spirit of good abuses the governance (Sile, 2009) .. It has also been identified that the members are usually unwilling to offer salaries higher than what they earn and as a result large, the salariesof staff are not competitive. In addition where a Co-operative is very
19 the existence of informal relationships in the SACCOs, such as danism and patron-client relationships that arrest the performance of the institutions (Sexsmith, 2009). This shows that education and training is a great requirement in the running of the SACCO societies to abate against this negative developments. The education and training is pivotal for the improvement of loan utilization (WUCCO, 2009) . This is because effective utilization of loan depends upon the knowledge and skill of the borrower. The borrower should know the appropriate timing, planning, budgeting loans. make with and proper implementation of the project or investment they This the Besides, the can only be achieved through education and training of the borrowers. marketability of the initiative for which the member takes a loan should be taken into revealed where consideration. It is indicated that poor repayment conditions are and business borrowers fail to properly utilize their loansdue toweak entrepreneurial This development skills (WUCCO, 2009). call for members demand driven and tailor made trainings on proper and efficient utilization their loans. attribute that Kariuki, (2009) remarks that the attitude of the beneficiaries is a key education can instill into the fabric of the SACCO members. For instance the member’s attitude towards their SACCOs is a very important factor that influences the performance of the organizations. This can be achieved through; timely approval and disbursement of loans, accessibility of the service to members, limited and short procedures, flexibility of ownership the type of loans, meeting members social needs and enhanced members (WUCCO, 2009). All this require comprehensive education and training programmes for the entire SACCO society to achieve. 2.10.3 Market risk Safety of SACCOs refers to the ability to collect 100% of the investments plus interest earned in a given period. This indicates the various levels of risks borne by the SACCOs.
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- Fall '10
- The Land, Cooperative, SACCOs, sacco performance