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Biomdo Linah Chelangat - Master of Business Administration, Kenyatta University, Kenya

Dr. Mary Namusonge - Business Administration Department, School of Business, Kenyatta University, Kenya


Over time, Savings and Credit Cooperative Societies have been trying to address members’ demands by mobilizing funds and granting credit to members. However, they have not been able to grow their wealth strategically through accumulation of enough institutional capital to finance non-withdrawable capital funded assets, provide cushion to absorb losses and impairment of members’ deposits. The purpose of this study was to establish the effects of deposit mobilization strategies on the growth of savings and credit cooperative societies in Kenya. The study was guided by the following objectives; to examine the effect of product development, product marketing and customer focus strategy on the strategic growth of Savings and Credit Cooperative Societies in Kenya. This study was hinged on resource-based view theory, dynamic capabilities theory and the group formation theory discussed below. This study used a descriptive research design. The target population of this study was 38 authorized deposit taking Savings and Credit Cooperative Societies in Nairobi, Kenya that have been in existence for at least the last 5 years. The target population composed of Members of the Savings and Credit Cooperative Societies, Board members, Branch Managers, Cooperative Ministry/regulatory officials, Operations Managers and other stakeholders of each Savings and Credit Cooperative Societies. A sample size of 286 was arrived at by calculating the target population of 1127 with a 95% confidence level and an error of 0.05 using the below formula taken from Kothari. The study employed descriptive analysis technique on both primary and secondary data. In both cases, the study used Statistical Package for the Social Sciences (Version 24) in the analysis and data output was tabulated. In addition, a multiple linear regression model was run to quantify the combined effect of the contribution of deposit mobilization strategies to growth of savings and credit cooperative societies. Data was presented by use of graphs and tables and qualitative information presented in prose-form. The study found that product development/diversification affects the growth of savings and credit cooperatives very greatly, that product marketing affects the growth of savings and credit cooperatives moderately and that customer focus strategy affects the growth of savings and credit cooperatives greatly. The study concluded that product marketing had greatest effect on growth of savings and credit cooperatives followed by customer focus strategy while product development had the least effect on growth of savings and credit cooperatives. The study recommends that Saccos and other organizations should pursue diversification strategies as a strategic goal which businesswise is health as business risks are spread over different business lines, that the Saccos should endorse product marketing since it is believed to greatly affect their growth positively and that Saccos should improve the customers’ services quality.

Full Length Research (PDF Format)