FINANCIAL INNOVATION STRATEGY AND FINANCIAL PERFORMANCE OF DEPOSIT TAKING SACCO’S IN NAIROBI CITY COUNTY
Nancy Mbesa Moki - Master of Business Administration, St. Paul’s University, Kenya
Stephen Kanini Ndung’u - St. Pauls’ University, Kenya
Dr. Godfrey Muigai Kinyua (Ph.D.) - Kenyatta University, Kenya
ABSTRACT
Deposit taking SACCO’s continue to play a significant role in the lives of the poor in Kenya by responding to their needs, concerns and voices by providing easy access of financial services. Financial inclusion is seen as a solution to include on a large-scale previously excluded poorer groups without access to capital into the financial system. The objective of the study was to determine the effect of financial innovation strategy on performance of savings and credit co-operative society in Nairobi City County. The study was guided by open systems theory, financial intermediation theory and the Life cycle of saving theory. This study adopted both descriptive research design and causal research design. The study population comprised of the 40 registered deposit taking SACCO’s in Nairobi County and the study used descriptive inferential analysis of data collected. The study identified that financial innovation was significant in increasing financial performance of SACCO’s. The study concluded that firms that have not effectively implemented financial innovation may fail or collapse or otherwise can be absorbed by other well managed SACCO’s. The study recommended the need to invest in financial innovation strategy to reduce cost and increase efficiency in the sector.
