525 Management competency and financial performance The fifth research

525 management competency and financial performance

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5.2.5 Management competency and financial performance The fifth research objective to evaluate the effect of management competency on financial performance of deposit taking SACCOs in Kenya. Various methods analytical methods were used to arrive at the findings. These methods included descriptive statistics, thematic approach, correlation analysis and regression analysis. The findings indicated that there are policies in place to ensure management of SACCOs affairs and it
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125 had a great contribution towards financial performance of deposit taking SACCOs in Kenya. This observation was arrived at, since data showed that offering strategic direction was high, availability of credit policy and that implementation of internal controls in the institution was high. In addition application of professionalism across the institutions was high, human capital was rated fairly and management willingness towards adherence of SACCO regulations and policy was rated fairly. Contribution of the management in the SACCO financial performance included: oversight and administrative roles, approve investment plans and keeping records and managing finances. The study had a hypothesis that management competency affect financial performance of deposit taking SACCOs in Kenya. The results revealed that management competency was statistically significant in explaining Financial Performance of Deposit taking SACCOs in Kenya. This implied that the null hypothesis that management competency does not influence financial performance of deposit taking SACCOs failed to be accepted and the alternative hypothesis failed to be rejected. 5.2.6 Financial performance of Deposit Taking SACCOs The study sought to establish effect of liquidity management on financial performance of deposit taking SACCOs in Kenya. Descriptive statistic, regression analysis and ANOVA were conducted. The results showed that the growth of SACCOs in terms of profitability has been growing tremendously for the last seven years, there was an increase in awareness level of the need of the instit ution and also members‟ subscription was on a growing trend, membership tripled but loans only doubled during the same period of analysis and there was a huge increase of products offered by SACCOs that facilitated locking in members to the institutions.
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126 5.3 Conclusions Conclusions were arrived at the influence of independent variables (cash management, loan repayment, non-core investment, liquidity decisions and management competency), influence of moderating variable (SACCO regulation) on dependent variable of financial performance of deposit taking SACCOs in Kenya based on the findings of the study. 5.3.1 Cash Management and Financial Performance Cash management is very critical as a liquidity management tool in deposit taking SACCOs. The researcher studied the following parameters namely: preparation of regular cash budget, cash flow forecast, occurrence of cash shortages and surplus and monthly members‟ contribution. The researcher
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  • Spring '18
  • Financial services, SACCOs

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