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David Njega Waweru - Masters of Business Administration Candidate, Department of Business Administration, Kenyatta University, Kenya

Dr. Paul Waithaka - Lecturer, Department of Business Administration, Kenyatta University, Kenya


Kenya has the highest fraction, in percentage points, of Gross Domestic Product (GDP) attributable to cooperative societies globally. The subsector is however characteristically faced with intense competition that has seen several players exit. Theorists and researchers have proposed that one of the key determinants of the survival and growth of SACCOs will be their ability to fully satisfy the needs and growing preferences of the customers through quality and high value products which is the foundation of total quality management. The current study sought to determine the effect of continuous improvement on performance of SACCO’s. Performance was evaluated using non-financial metrics that considered the outreach performance of the SACCOs. The study used a census study approach to subject all the 15 active deposit taking SACCOs in Nyeri County as provided by the Directorate of Cooperative Development of Nyeri County. The study also purposively selected Branch Managers, Customer Relationship Managers, Accountants, Credit Managers and Marketing Managers of all the 15 SACCOs as the choice class of respondents. This led to a total of 75 respondents. The study was interested with non-financial (outreach) performance of the SACCOs. Both primary and secondary data collection methods were utilised. Primary data was collected through questionnaires which were administered through the drop and pick method. The instrument was tested for validity and reliability using Cronbach’s Alpha Reliability test and expert opinion. Secondary data was collected from SACCO publications and handbooks. The study employed both descriptive and inferential statistics in analysis and used correlation and regression analysis as key analytical models. The multiple regression analysis provided evidence that continuous improvement has a positive and statistically significant effect on SACCOs’ performance. The results of Pearson correlation analysis indicated that continuous improvement has a strong positive and statistically significant relationship with SACCOs’ performance. The study recommended that the SACCOs’ management establish structures to ensure conduct of continuous quality audits and improvement of the promptness with which corrective action is provided.

Full Length Research (PDF Format)