A dissertation submitted in partial fulfilment of the requirements for the award of master of science in commerce in the school of business and public management at KCA University.
Using an interpretive research methodology, this study sought to find out how deposit taking SACCOs were responding to the competition from commercial banks and the implementation of the new Sacco regulations as being enforced by Sacco Society Regulatory Authority (SASRA).The study found out that SACCOs were opening up their common bonds, were maintaining their low interest rate regime and engaging in aggressive marketing and market research. The research also found out that SACCO’s were engaging in branch expansion and continuous rebranding. Responding to the new SACCO regulations, the study found out that SACCO’s were appointing SASRA compliance officers, upgrading their IT systems, and employing qualified staffs. The study also found out that Sacco’s were streamlining their books of accounts to comply with the requirement of the new regulation and were engaging in member’s education and implementing policies aimed at encouraging members to save and deposit more. It was also found out that SACCOs were engaged in implementing cost saving policies. It was found out that competition from commercial banks and the implementation of the new SACCO regulations has made SACCOs to become more responsive to member’s needs, and that SACCOs were becoming more transparent and thus attractive to members as they feel their savings and deposits are more secure in regulated SACCOs. It was found out that Sacco’s had responded and coped well with competition from commercial banks, and that with the implementation of the new Sacco Regulations, the confidence of members was high, as they felt that their investments were in safer hands than before. Further research is recommended on the same topic covering a wider area of study. Further recommendation is a research on financial performance of Sacco’s after the implementation of the new Sacco Regulations as being enforced by SASRA.
