A research dissertation submited in partial fulfilment of the requirements for the degree of master of science in commerce (finance and accounting) of the school of business and public management, KCA University
Since independence, Cooperative movement in Kenya has experienced tremendous growth and is actually ranked first in Africa (Sacco Societies Regulatory Authority, 2011). It is entrenched in virtually all the sectors of the economy. Through the support of the government, the movement has produced some of the biggest players in provision of saving and credit services both to the rural and urban population in Kenya.In the rural areas there has been an upsurge of SACCOs that are now playing an important role in enhancing economic growth and development. Since the formalities involved in the formation of the SACCOs are simple, and due to their popularity, the government has continued to register more of these forms of organizations. Although Cooperatives have been there for a long time, poverty is still prevalent amongst the rural population in Kenya. These people still struggle to pay school fees for their children and some cannot afford the basic facilities like school fees and foodstuff.The research objective was to explore the role of Savings and Credit Cooperative Societies in creating wealth for their members in Limuru Sub County of Kiambu County in Kenya.Wealth created to the individual member was measured by the asset such member acquired since joining the SACCO. Other variables tested were the total shares and deposits which are here refered to as the members investment in the SACCO, total loans received by the member from the SACCO, the management effectiveness of the SACCO measured through the SACCO turnover and the products offered by the SACCOs. Descriptive research design was applied. The study population comprised of members of SACCOs in Limuru Sub County where a random sample of five percent of all the members were investigated. Both primary and secondary data was used as sources of data. Primary data was collected using a semi-structured questionnaire distributed to the sampled group. Statistical Package for Social Sciences (SPSS) was used to analyze the data. Descriptive statistics especially, frequencies and standard deviations was applied. Inferential statistics especially regression analysis was run to help establish, trends and relationships, and which made it easier for the researcher to understand and interpret implications of the study. Pie charts and tables have been used to represent data in a pictorial format, which could be easily used and understood by other usersThe research findings established that SACCOs play an important role in wealth creation in the Sub County. The most amoung the four variables tested, loans acquired by members from the SACCOs contribute most to the wealth creation of such a member. The research recommended that women and youth be encouraged to join SACCOs in the region. The conclusion of the research was that all the independent variables contributed positively to the dependent variable.
