EFFECT OF HUMAN CAPITAL ON THE PERFORMANCE OF DEPOSIT TAKING SACCOS IN KENYA
Kiswili Michael Mutua - Phd Scholar, Jomo Kenyatta University of Agriculture and Technology, Kenya
Prof. Amuhaya Mike Iravo - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Noor Ismail - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Anaya Senelwa - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
Cooperatives significantly impact on growth and development of the Kenyan economy. However, despite their importance in the national economy, they are characterized by poor performance, leading to collapse, closure and restriction. In addition, there has been a decrease in the number of staff among SACCOs in Kenya. The objective of this study was to examine the effect of human capital on the performance of deposit taking Savings and Credit Cooperative Societies in Kenya. This study used a descriptive explanatory research design and pragmatic research paradigm. The target population was finance, human resource, information and communication technology and chief accountants in the selected 84 deposit taking SACCOs in five Counties in Kenya. The study used purposive sampling and stratified random sampling method to select 184 managers from the population. Semi structured questionnaire was employed to collect primary data while secondary data for the study was collected using data extraction tools. Quantitative data analysis was done with the assistance of inferential and descriptive statistics. Statistical Package for Social Sciences (SPSS version 22) also helped in the analysis. Descriptive statistics included percentages, frequency distribution, mean, and standard deviation. Pearson correlation coefficient, and univariate regression analysis were employed for analysis of inferential data. This study found that human capital has positive and significant effect on the performance of deposit taking SACCOs in Kenya. The study revealed that the indicators of human capital adequacy of staff, skills and experience affect deposit taking SACCOs in Kenya. The study recommends that SACCOs should have clear human resource training and development policies. In addition, SACCOs should more often use training experts and personnel in training their staff on key concepts in sectors like financial management, security and customer service. Further, the management of deposit taking SACCOs in Kenya should come up with human resource policies that guide job promotion. It also recommends that there should be policy guidelines on the minimum qualifications and background of person eligible to serve both in the Boards and top management of SACCOs. It’s further recommended that, the regulators should seek to have strict laws and regulations to deter employers and other institutions who fail to remit deductions on time.
