EFFECT OF RETAINED EARNINGS ON FINANCIAL PERFORMANCE OF SAVING AND CREDIT CO-OPERATIVE SOCIETIES IN NAIROBI COUNTY, KENYA
Nduati Naomi Waithira - Master of Business Administration, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Joshua Matanda Wepukhulu - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
Savings and Credit Cooperative Societies like other monetary foundations assume an extraordinary role in the economy by preparing reserve funds and providing credit for members. They provide financial services to members through existing products. Members have the opportunities to save with the cooperatives and get dividends from the SACCOs proceedings. The aim of the study was to assess the effect of retained earnings on financial performance of regulated SACCOs in Nairobi County. The study adopted descriptive survey research design. The target population of the study was 29 registered DTS. The study used secondary data from financial reports in Deposit Taking SACCOs. Descriptive data analysis which included mean, standard deviation, mode and frequencies was adopted. A univariate linear regression analysis was also done to assess the relationship between retained earnings and financial performance. The results revealed that retained earnings predict a significant and positive effect on financial performance in Deposit Taking SACCOs. The study recommends management and policymakers improve on total earnings to foster retained earnings that have a significant and positive relationship with financial performance of Deposit Taking SACCOs.
