Final Copy Josphine Project

MOI UNIVERSITY

KERICHO CAMPUS

FACULTY OF BUSINESS

DEPARTMENT OF ACCOUNTING AND FINANCE

TOPIC; THE EFFECTS OF AFFILIATION TO KENYA UNION

OF SAVINGS AND CREDIT COOPERATIVE OF PRIMAR

SOCIETIES

PERFORMANCE

CASE STUDY: KIPSIGIS TEACHERS SACCO AND

GITHUNGURI

DAIRY FARMERS SACCO

BY JOSEPHINE CHEBET CHUMO

REG NO: BBM/3147/12

A RESEARCH PROJECT SUBMITTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENT FOR AWARD OF A

DEGREE IN BACHELOR OF BUSINESS MANAGEMENT

(FINANCE OPTION)AT MOI UNIVERSITY KERICHO CAMPUS

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TABLE OF CONTENTS

TABLE OF CONTENTS ........................................................................................................... ii

DECLARATION ...................................................................................................................... iv

DEDICATION ........................................................................................................................... v

ACKNOWLEDGEMENT ........................................................................................................ vi

ABSTRACT ............................................................................................................................. vii

ABBREVIATIONS ............................................................................................................... viii

LIST OF TABLES AND GRAPHS ......................................................................................... ix

CHAPTER ONE ........................................................................................................................ 1

1.0 Affiliation ......................................................................................................................... 1

1.1 The primary societies ....................................................................................................... 1

1.2 Statement of the problem ................................................................................................. 5

1.3 Purpose of the study ......................................................................................................... 6

1.4 Research Questions .......................................................................................................... 6

1.5 Scope of the study ............................................................................................................ 6

1.6 Significance of the study .................................................................................................. 7

1.7 Limitation of the study ..................................................................................................... 7

1.8 Conceptual framework ..................................................................................................... 8

CHAPTER TWO ..................................................................................................................... 10

2.0 Introduction .................................................................................................................... 10

2.1 Main review .................................................................................................................... 10

2.1.1 Role Of Kusco To Primary Societies. ........................................................................ 10

2.2.2 Benefits of Affiliation To Primary Societies ............................................................... 12

2.2 Criticism of the theories ................................................................................................. 13

2.3 Empirical review ............................................................................................................ 14

2.4 Knowledge gap ............................................................................................................... 14

CHAPTER THREE ................................................................................................................. 16

RESEARCH DESIGN AND METHODOLOGY ................................................................... 16

3.0 Introduction .................................................................................................................... 16

3.1 Research design .............................................................................................................. 16

3.2 Target population ........................................................................................................... 16

3.3 Descriptions of instruments ............................................................................................ 16

3.4. Data Collection procedure ............................................................................................. 17

3.5. Data analysis and presentation ...................................................................................... 17

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CHAPTER FOUR .................................................................................................................... 18

PRESENTATION, DISCUSSION AND INTERPRETATION OF FINDINGS .................... 18

4.0 Introduction ............................................................................................................... 18

4.1 Data Analysis (Personal Information) ....................................................................... 18

4.1.1 Gender distribution ................................................................................................ 18

4.1.3 Years of service ..................................................................................................... 20

4.1.4: Staff Designation (Departments) ........................................................................... 21

4.1.5: Employees Qualifications ...................................................................................... 22

4.2.1: Data Analysis (Societys Information) .................................................................. 23

4.2.2 Benefits of affiliation to Sacco .............................................................................. 23

4.2.3 Significance of Affiliation to the Sacco ................................................................ 24

4.2.4: Services offered by Kuscco to its affiliates ........................................................... 25

4.2.5: Effects of affiliation on performance of affiliated and non-affiliated societies ........ 26

4.2.6: Relationship between Affiliation and Growth in Saccos ..................................... 31

4.2.7 Performance of Sacco ............................................................................................ 32

4.2.8. Extent of Affiliation on employee morale ............................................................. 32

4.3.0. Suggestions of Affiliation to Saccos .................................................................... 33

CHAPTER FIVE ..................................................................................................................... 34

SUMMARY, CONCLUSION AND RECOMMENDATION. ............................................... 34

5.0 Introduction ............................................................................................................... 34

5.1 Discussion of findings ............................................................................................... 34

5.2 Summary of the findings ........................................................................................... 34

5.3 Conclusion ................................................................................................................. 35

5.4 Recommendation ....................................................................................................... 36

REFERENCES ........................................................................................................................ 38

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DECLARATION

I, the undersigned declare that this project is my original work and has never been presented

to any other University for academic credit.

NAME: JOSEPHINE CHEBET CHUMO

SIGNATURE: ________________________

DATE : _________________________

This project has been submitted for examination with my approval, as the University

Supervisor.

SUPERVISOR: MS NAUMI KOSKEI

SIGNATURE: _____________________

DATE : ______________________

It has been accepted by the Head of Accounting and finance department

NAME : MS. NAUMI KOSKEI

SIGNATURE: _____________________

DATE : ________________________

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DEDICATION

I dedicated this work to my beloved parents who made me to be what I am. I thank them for

giving me life, support both morally and financially, God bless them abundantly.

Also I dedicated this to my lovely husband, Staline Kirui whom we have climbed so many

hills and valleys during the hard times and this is a challenge to him to work harder in his

academics. I also dont forget to dedicate it to my dear juniors who had to suffer so that we

could study.

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ACKNOWLEDGEMENT

The process of writing this project was not an individual affair. This was the results of co-

operative efforts of my supervisor, lecturers, my fellow undergraduate students and others.

To all those involved, I wish to express my gratitude.

I would like to acknowledge my sincere appreciation to my supervisor Ms. Naumi for his

guidance right from the beginning of the work to its completion. Her advice at every stage

was timely. His willingness to go through my work and to hold discussion with me whenever

I sought his guidance is highly appreciated.

Also I recognize in a special way the support I got from the lecturers.

Special thanks go to my family members especially Mum brothers and sister for their

unlimited support both morally and financially. They gave me moral support when things

were tough during the hard times.

More thanks goes to my colleagues at school and also my fellow colleagues at work who

assisted me with vital information concerning the project.

My sincere gratitude goes to the staff members of both Kipsigis Teachers Sacco and

Githunguri dairy Farmers Sacco despite their busy schedules, they were able to find time and

avail themselves to respond to my questionnaires. The HRM should know that I recall their

assistance with great appreciation.

The secretary who typed and edited this project cannot be forgotten for tremendous work she

did. To all those I have mentioned and even those I have not mentioned and participated in

writing this project, I once again say thanks.

Above all, more gratitude goes to the almighty God who has given me the strength and

knowledge to complete this work.

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ABSTRACT

This research was conducted to investigate the effects of Affiliation to Kenya union of

savings and credit co-operative on primary societys performance.

The objectives of the study was to investigate the following. The services offered by Kuscco

to its affiliates, how Affiliation affect the performance of the Sacco and the growth of the

Affiliated and non-Affiliated society.

Two societies were used for the study; these are Kipsigis Teachers Sacco to represent the

affiliated society and Githunguri Dairy farmers Sacco to represent the non-affiliated society.

The design and methodology of the research was determined by time and resources, therefore

the researcher used a design which requires less time and money. The instruments used were

questionnaires, interview schedule and desk research observation. The resulting responses

were analyzed, summarized and then presented descriptively making use of tables and

frequencies in conversion to percentages.

The findings of the study achieved as per the objective of the study were the services offered

by Kuscco to Affiliated include Education and training, risk management, central finance

programme and research and consultancy. The effects of Affiliation of primary co-operative

societies on the performance include; increased in membership, new assets being acquired,

increased in members savings and increased in loans to members. The growth of the society

was manifested in the following areas, membership, members savings and loan to members.

The study recommended that kuscco should organize intense education and training on this in

order to enlighten Sacco about capitalization. Also kuscco should continue emphasize the

importance of information technology. Since kuscco operates a Sacco special deposits

accounts it is profitable investment for any Sacco uses short money with kuscco but be able

to withdraw this money after a short period of time, hence enabling Sacco to do better trade

with their money other than waiting until reseals deposits matures with kuscco finally non

Affiliated Sacco should affiliate to kuscco to enjoy their services.

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ABBREVIATIONS

KUSCCO - Kenya Union of Savings and Credit Co-operatives

SACCO - Savings and Credit Co-operative

ACOSCA - Africa Co-operative Savings and Credit Association

KAF - KnontadAdenaeur Foundation

WOCCU - World Council of Credit Union

CFP - Central Financeprogramme

FOSA - Front Office Services

BDPF - Banks Deposit Protection Fund

HRM - Human resource manager

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LIST OF TABLES AND GRAPHS

Respondents gender18

Respondent Age.19

Respondents years of service.21

Respondents staff designation.21

Employees qualification .22

Significance of affiliation 24

Education and training..25

Membership growth ..27

Membership savings.28

Assets 28

Loans to members 29

Dividends30

Relationship between affiliation and growth in Saccos31

Extent of affiliation on employees morale32

1

CHAPTER ONE

1.0 Affiliation

Affiliation is a positive, sometimes intimate, personal relationship. It can include concern

over establishing, maintaining or restoring a positive effective relationship with another

person or persons.

1.1 The primary societies

The term primary society has been defined by the Act to mean a cooperative society whose

membership is restricted to individual persons.

It is created by individuals at the lowest level of structures of co-operatives. The individuals

have common economic interest and desire for promoting most interest by pooling their

interest together and working as a team in order to minimize the cost of doing the same thing

as individuals.

Individuals may also form savings and credit societies which will enable them to pool their

money form which they can borrow in time of need. Individuals in Saccos are able to

borrow money from their societies at more reasonable terms than they would obtain from

commercial banks.

Individual farmers may form a primary society which will enable them to market their

products collectively and to share facilities such as factories which can serve all of them.

Primary societies are the backbone of co-operatives in Kenya. Examples include

1. Harambee co-operative savings and credits society limited, formed mainly by the

employees of the office of the president

2. Afya co-operative savings and credit society ltd, formed by employees of the

ministry of Health.

2

The Kenya Union of Savings and Credit co-operative (Kuscco)

The Kenya Union of savings and credit cooperatives (Kuscco) is the umbrella organization of

Saccos in Kenya. It was registered on September 27, 1973 to educate for a level

environment in which Saccos can do business, and provision of quality, diversified,

innovative and market driven financial and technical services.

In the 1960s, Sacco leaders moved the idea of an association for the group welfare of all

societies. This led to the formation of the Mombasa chapter and the Nairobi chapter. The

Mombasa chapter was fairly successful and a special committee was set up in 1971, which

recommended that a national association to cater for all savings and credit societies

established.

In 1972, the Kenya National promotion committee conducted a study whose findings led to

the birth of Kuscco with the following functions

- Promotion and advocacy, lobby, advice and protect members against adverse

legislation and /or restrictions.

- Education and training of its staff and committee

- Centralized bookkeeping services

- Insurance for members savings and loans through credit union National

Association (CUNA) mutual group.

- Act as the principal local and international representative and mouth-piece of all

Saccos.

- Promote the organization and development of viable Saccos Kuscco is affiliated

to CAK, the African Contederation of cooperative savings and credit Associations

(ACCOSCA), WOCCU, international Raiftersen Union (IRU), East African

Regional Assocations of Saccos (EARAS) and AFRACA

3

Challenges facing primary societies

(i) They may not have enough finances to cater for members financial needs

(ii) Faces stiff competition from well established financial institutions.

(iii) Mismanagement of societies is common

(iv) Corruption and misappropriation of funds may lead the societies to financial

problems.

(v) May suffer from political interference

(vi) Members may not take keen interest in the affairs of a co-operative society

because their capital contribution is small.

The Background of Kipsigis Teachers SACCO

Kipsigis teachers SACCO was established on 8th

May 1978 by teachers from primary and

secondary schools as well as lecturers from colleges and technical training institutions. Its

mission is to mobilize saving and deposits and provide affordable credit and other

diversified excellent financial product and services through efficient processes, prudent

management and highly motivated staff for the satisfaction of our members and other

stakeholders the vision is to be leading financially sound SACCO society in Kenya in the

provision of excellent diversified services. Its head office is in Kericho Town.

The objective of the society is to promote thrift among themembers as well as educating them

on their rights and responsibilities. This maxim has seen more SACCO become the biggest

SACCO in Rift Valley Province with a share capital of over Ksh. 970 million and

membership of 13600. The society provides three types of loans: normal, school fees and

emergency. Normal loans are processed once a month, while school fees and emergency

loans are processed on daily basis.

4

The operation of Kipsigis teachers SACCO is run by management committee by delegating

the same to staffs. This committee comprises of 12 members, which handle various issues as

follow:-

Executive Committee 4 members

Executive Committee 3 members

Supervisory Committee- 3 members

Credit Committee 2 members

The society has 36 employees paid by the society headed by the general manager. All

employees are on 3- years renewable contracts with a gratuity of 25% on basic salary. There

are two categories of staff management and union staff. Juniors staff is not under any

obligation to be union members and this is usually an individual decision. There is a monthly

fee for being a union member. The society was affiliated to Kuscco in 1985. It has

computerized most of its operation.

The Background of Githunguri Dairy farmers SACCO

Gighunguri dairy farmers co-operative society Ltd is a farmers management established in

1961 situated at Nairobi .For many years, they have been doing the business of collecting and

selling raw milk.

In 2003, they came up with the idea of processing that milk to add value they shopped for a

suppliers of dairy machinery and among others, picked on pack INOXN.V.

In April 2004, PackoNoxN.v supplied Gighunguri dairy farmers co-operative Ltd with a

turnkey dairy project plant with a capacity of 5000 litres per hour. Packo further ensured that

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installation and commissioning which took about (8) weeks to completion was satistuctoning

achieved for a job well done.

On 9th

July 2004, milk processing plant was launched by Kenyan Minister for co-operative

and processing started same day. Full capacity was realized by the end of October of the

same year.

Packo has then ensured that they get any spares required and they have collaborated quite

well as far as service is required.

1.2 Statement of the problem

In Kenya, primary co-operative societies are required by law to be affiliated to the umbrella

union, KUSCCO. This means that primary societies have to operate under KUSCCO co-

operative operate under the co-operative societys Act Cap (490). Despite the varied areas of

operation the co-operatives have one thing in common i.e. they share and exchange

information and ideas for mutual benefit of the societies. Among the issues the co-operative

movement should address to have prudent management and efficient delivery of services

costs reduction and improved services to members, recruiting qualified and competent

managers with entrepreneurial skills increasing share contributions by members and to

establish co-operative networking for strength and survival.

The area of common interest is useful to all the societies to gain and exchange ideas. This

will assist in maintaining meaningful and efficient communication, hence maximize the

Sacco has been going through various challenges, which include taxation, information

technology, traditional products and demands for loan. With linearization the pressure to

work together and survive for the future of the movement cannot be over emphasized. This

calls for information of credit union. The bottlenecks that tend to plague smooth running of

societies are poor management, lack of competent personnel, dishonest and greedy teacher

6

and failure to follow the amendment of co-operative Act through bill No. 12 of 1997, the

others have been left to membership of individual primary societies to democratically sheer

their affairs under the stewardship of KUSCCO to which they are affiliated. Therefore there

was a need to establish the effects of affiliation to KUSCCO on co-operative societies and the

performance in Kenya given control and supervision by government is considerably reduced.

1.3 Purpose of the study

The purpose of the study is to find out the performance of affiliated primary co-operative

societies to Kuscco in Kenya using across sectional survey design resulting in improving the

quality of products and services offered by primary co-operative societies.

Performance will be indicated by membership, loans to members, investments, assets and

education and training.

1.4 Research Questions

This study is being undertaken to provide answers to the following questions.

i. What are the services offered by Kuscco to its affiliates?

ii. How has affiliation affected the performance of the Sacco?

iii. What is the growth of the affiliated and not affiliated society?

1.5 Scope of the study

There is 4000 primary co-operative operating in various sectors and according to my research

only 1500 are affiliated to KUSCCO, Kipsigis Teachers Sacco is one of those affiliated to

KUSCCO. I opted to confine my study to Kipsigis teachers because I felt that it adequately

represent those societies which are affiliated and Githunguri dairy farmers co-operative

society to represent those societies which are not affiliated.

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1.6 Significance of the study

i. To the researcher

The researcher may get informed on the procedures during affiliation especially in

primary co-operative. He will also be able to be in a position to advise these

primary societies after measuring their performances through the research carried

out. Also he will able to know how these affiliated primary societies perform in

the country as per the sampled picked.

ii. To the co-operative movement

The study may show the co-operative movement members the importance of

being affiliated to other societies and therefore they can get their societies be

affiliated to the unions so as to enjoy the benefits obtained by affiliated societies.

iii. To the member

The study may help the members of co-operative to understand how the affiliated

has been performing. This will assist them especially; when making important

decision in the annual general meetings.

1.7 Limitation of the study

The study has the following limitation

i. Inadequate data from the records kept by the society due to the poor system of

record keeping, if the record keeping were up to date more comprehensive

results would have been acquired .

ii. The researcher was not able to get the necessary appointments at the same

instance i.e. not honored.

iii. The researcher was mostly referred to the junior staffs that were not

conversant with technical knowledge of the society. This limited the

information necessary for the research.

8

1.8 Conceptual framework

The schematic presentation below explains the variable interrelationship in the context of

Performance of affiliated primary societies.

Relationship between independent and dependent variables

Kuscco Primary societies

Below are the explanation of the relationship between the independent and dependent

variables. Education and training seeks to enlighten the member on various issues pertaining

Sacco and its operations. This gives staff and management committee much valuable

exposure that is necessary to bring Kipsigis Teachers to the next level of development.

Kipsigis Teachers has also had a chance to send staff to seminars organized by Kuscco at the

regional and national level. The education was targeted to committee members delegates and

Sacco staff who in turn train the general members. This gives leaders the much valuable

exposure that is necessary to bring Kipsigis teachers to next level of development. Risk

management is a mutual protection funds for Sacco that gives cover against loan losses. The

Services offered by Kuscco

Education and training

-Staff

-Management committee

Risk management

-Loan cover

Research and consultancy

-Advisory services

Central finance program

-Provide loan to the society

Business development and marketing

-Provide various products to members

Performance indicators

Employees performance improves

Membership

-Membership increased

Loans to members

-No loss to deceased members loan

-Increase loan to members

Investments

-Advice on investment

Dividends

-Rate of dividends increase

9

risk covered includes death and total permanent disability. Rebates are always given where

claims change paid total.

Research and consultancy is actively involved in provision of consultancy services to Saccos

Kipsigis Teachers had a chance to receive such a service when it was seeking to establish

services and development of by laws. The front office service (FOSA) is a banking section of

the Sacco. The need for FOSA was to enhance the members borrowing capacity, afford

cheaper basis banking services to members and encourage members to save the surplus funds.

The objective of FOSA was to provide savings and credit facilities to their members after

banking services and improve societys performance.

The central finance programmer has enabled Kipsigis Teacher Sacco to meet the school fees

loan whose pressure is mostly felt within the month of December, April and August. The

credit squeeze is so intense during these months those same times the Sacco has to suspend

issuing developmental loan and only gives out school fees loans. Kuscco provides loans after

six months of regular saving. Kipsigis teachers being one of Kuscco affiliates qualify to

borrow after six months of regular saving. The interest charged and loan is extremely fairer

while saving in the programmers earns reasonable interest.

Business developments and marketing creates unique and diversified products designed to

suit the needs of individual Sacco.

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CHAPTER TWO

2.0 Introduction

This chapter discusses the literature related to the effects of affiliation of primary co-

operative societies to KUSCO and their performance. This particularly focus on

determination of services offered due to affiliation establish the relationships between

affiliation and performance and to find out the growth rate of primary societies.

2.1 Main review

As in other African countries, co-operative objective has been hard to achieve in Kenya. It is

only that the turnover target has not reached. Even more the co-operative movement is still

fare from self-supporting credit facilities in the movement have been misused. Cooperative

idea has been received with enthusiasm and high expectation all over the country:

performance of cooperative societies however rarely lived up the expectations. The list of

problems affecting cooperatives according to (Goran 2003) include the following.

Numerous cases of frauds, dishonesty and favourism in the management.

Lack of understanding of the business.

Principles and inability or unwillingness on the part of the societies to recruit experienced

staff at competitive salaries.

(Goran 2003) contributed that these weakness leads to inefficiency in co-operative

management and to low dividend payout to ordinary member.

2.1.1 Role Of Kusco To Primary Societies.

The studies of (Ouma 2000) says KUSCCO provided education and training which is

relevant and quality to employees whereby Sacco committee delegates their duties to

employees. KUSCCO has a team of highly qualified professional multidisciplinary

professional; he also added that KUSCCO provide resources for staff on behalf of Sacco

societies. This has been known to create good working environment as favourism nepotism

and tribalism is neither reduced not eliminated.

According (Mutinda 2005) he emphasized about risk management as one of the series

provided by Kuscco. He says that the reason being the co-operative are unique institution

and conventionally insurance laws could not adequately cater for risk of consequences. Then

risk that co-operative societies is money lent out to members. Money in transit committee

11

members travelling and shares savings he says risks management provide protections of

funds to cater for risk that may occur to members or a given societies results of their inability

to repay loans. (Wafula 2002) says to manage risks for all Sacco insurance products and

services to all stake holders. He came up with objectives of risk management services.

To provide a forum from societies to cooperate horizontally

To enable Saccos to spread risk amongst themselves

To educate Sacco members on benefits of co-operative risk management

To maximize market share.

He also emphasis on types of cover Kuscco provides to societies

a. Savings cover

b. Loans cover

c. Funeral cover

d. Committee members and start cover

In their field a specialization consultancy services offered to affiliates and individual

members are feasibility study training needs analysis, curriculum developments, salary and

benefits survey strategy planning, job description and organization strategy restructuring

(Ouma 2006) he says it provides vital statistical data on the performance of the co-operative

movement with accurate statistical developed research work into various aspects of the

movement will be facilitated.

(Kimanthi 2006) says research and consultancy programme was started to provide practical

solutions to the following questions.

i. Have you enacted or revised your Saccos by laws

ii. How do you know to hire additions staff

iii. Does your Sacco have strategic plan

iv. Do you work to start FOSA and BOSA activities

v. Do you want to diversity your products?

(Wafula 2001) came up with the objectives of information technology as the role of kuscco.

He says that information technology help in automating societies business processes activates

by kuscco limited, applying it to redefine business processes and relationship in kuscco

12

limited advising members Saccos about automatic processes and procedures and facilitation

in acquisition of Sacco software by Sacco members.

Housing Fund programme started 2000 is necessary by Saccos having underdeveloped plots

which was caused by inability to access long term loans. The objectives are mobilization of

funds for constructions purpose and are mobilization of funds for construction purpose and

purchase of residential houses in urban areas for members (Aguko 2001)

Central finance programme (CFP) has been established by kuscco to provide a means of

centralizing investment plants of entire co-operative savings and credit movement,

acceleration of lending capacity of members societies through which increases members

confidence will be realized in secure of society ability to finance member requirements either

individually or group, extension of credit boundaries of Sacco societies by creating linkage

and mutual interdependence and mobilization of funds within the co-operative savings and

credit movement (Orau 2003)

2.2.2 Benefits of Affiliation To Primary Societies

According to (Mudibo 2003) he reveals the benefits of affiliation that it promotes co-

operative among organizations, it offers to facilitate the activities of primary societies for

achievement of economies of scale. Affiliation is very essential especially when it comes to

financial maters because the union provides credit facilities at the fairer rate of interest and

make follow up on usage of the same provisions and of common services to all Sacco

financed by the same pool of common funds contributed by each of them according to their

ability is the rain advantage to primary co-operative societies.

Affiliation enables the weak co-operatives to obtain support form strong ones because they

can support common experience and decide on common policies education is not an

exception in this because the union through co-operative education and publicly officers other

education to the members and staff of primary co-operative (Owen 2006).

Through Affiliation societies will lend some of their individual strength to common effort

with relating poorer savings and credit societies to achieve this expansions on credit services

for the movement create capacity to meet members credit requirements, increase financial

strength and mutual protections within Sacco members (Mutinda 2004).

Central financprogramme are easy to access when compared to other leading institution that

is the issue of collateral that one need before can get a creditor societies in Kenya had

13

accumulated sums of money in the commercial banks in savings, current and fixed deposits

accounts. However, borrowing loans from this commercial bank become tighter and hyid. It

was felt that kuscco would meet the finances needs of the movement (Mawira 2003)

Affiliation creates unique and diversified product design to suit the needs of individual Sacco

nationwide products under this include kuscco house fund, Sacco star magazine sale supply a

stationary, solar energy installation (Goran 2002) Affiliation provide a fast changing

operational environment to Saccos in Kenya facing varied challenges of liberation. It

provides wide range of high quality consultancy and advisory services to Sacco at very

competitive are of information technology, marketing and customer services (Owen 2000).

He continues to say since kuscco is an Umbrella union. It has been called upon to guide

Saccos in difficult time of adjustments such as going retrenchment of staff which has

resulted in unexpected decrease of both members of Saccos and capacity of Saccos to raise

or even retain members shares.

2.2 Criticism of the theories

Saccos by serving as instrument for implementing government socio-economic polices,

Sacco in many countries more or less served the interest of state than ordinary member and

general public. These institutions were engulfed into state politics to extent that failures of

state police found expression in co-operative movement. This explains why reports on failure

or co-operative meet their development expectations during bills band in literature. (Hussieta

al 2002), Porvall 2002) such era trigged call for change in co-operative in late 1990s.

Authoritative World Bank studies co-operatives acknowledge potential role of co-operatives.

This could only be realized if operated according to market principles.

Intentions in establishing these Saccos was to have instruments through which they would

implement their socio-economic policies e.g. British in their section colonies wish to

promote and product interest of white settler in order to enhance their productivity and

generate the very much needed income to run affairs of colonies (Hyden 2007). Sacco were

viewed as modern institution that would go along way to civilize and modernize Africans i.e.

French wished to use co-operatives that have committed leadership and clear vision of find

solution to driven and market oriented business organization thereby remaining tendency

with forces of linearization societies not in line along these lines are loosing the members due

to inability to provide demand services and subsequently closing down.

14

2.3 Empirical review

The creation and establishment of the National Union of Sacco was a most welcome more

and a step in the right direction. This was particularly so in view of the mushrooming and

increasing number of co-operatives. The rate at which the sector was expanding needed very

close guidance and regulation by an organization such as kuscco (Ouma 2005)

In Senegal, over half million people belong to one of the 3 largest savings and credit

movements of the adult population are affiliated to one of savings and credit co-operative

societies (Develtere and Pollet 2007) the reason behind emerging success of savings and

credit co-operatives. They largely rely on their own financing resources to transact their

activities thereby avoiding pitiful of dependency. Secondly, being in financial sector their

series will always remain and demand unlike agriculture co-operative that are dependent on

performance of agricultural sector.

The stakeholders include world council of credit unions (WOCCU) World Co-operatives

umbrella. Kenya revenue Authority (National task authority.Ministry of co-operative

development (Parent) ministry.Co-operative Bank of Kenya (Banking and Financial)

services.

Re inventing the wheel Africa co-operatives in a liberalized economy environment. Kuscco

that members to improvement of living conditions of their members societies i.e. low income

earnings cadres of the population (Owen 2006)

Being voluntary, democratic and self controlled business association co-operatives after

institutional framework through which communities gain over productive activities from

which they divine livelihood. (Ofeil 2005:14). It is for this reason that kuscco continue to be

promoted in Africa and other parts of dealying world.

2.4 Knowledge gap

(Baraza 2004) says when it comes to sharing of knowledge and information savings and

credit societies are unique in the financial service industry. Uninhibited by the co-operative

reil of secrecy to ensure the competitive advantage, Sacco leaders within their capabilities

acting co-operative with other stakeholders at local, national and international level. In

addition to placing importance on continuing education for days leaders, kuscco endeavors

to foster the long term sustainability of Sacco movement by developing the leaders of

tomorrow.

15

According to (Mudibo 2002) he says with the changing and competitive economy

environment there is to have Saccos that are economically viable and also have Saccos that

are economically viable and also self-sustaining. He added to say that the mission of kuscco

is to promote and develop Saccos in Kenya by providing unique and diversified quality

products and services that are capable of promoting the economic interest and general welfare

of their members in accordance with the co-operatives principles in changing environment.

Societies have survived market forces and continued to grow in number and membership.

Where as number of societies are increasing, societies membership is more than it was a

decade ago when liberations measures were initiated.Due to inability to provide members

with competitive services that the market dends. It in this regard that society are increasing

diversifying their activities in order to respond to challenges of market as they endeavor to

satisfy the interest and demand of their members societies that adopt to this market system.

The no of which continue to increase in recording better performance than they did in the

past. The future of societys affiliation seems to be bright; the challenge is how to inculcate

the business virtues in less adapted co-operative in order to spread the benefits of new mode

of co-operation to a wider population of a country (Goran 2004). He noted that opportunities

to compete with co-operative societies as local marketing agents are much greater in Kenya

than in the other East African countries.

16

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.0 Introduction

This chapter addresses the research methodology the description of the instruments and

procedure in the study. It highlights the study area, types of data and instrument used in

collection information form the organization, target population, presentation instrument,

procedures and methods used in data presentation and analysis.

3.1 Research design

This study is conducted through comprehensive study. This study is concerned with the

effects of affiliation of primary co-operative to KUSCCO on their performance. It is

specifically intended to investigate the relationship between the services offered by KUSCCO

i.e. education and training, risks management research and consultancy, central finance

program (C.F.P) and marketing and business development and indication of the performance

that include assets, investment no of employees, cash in hand, loan to members and

membership analysis of the societies performance and obtain multimodal concrete and

contextual information.

The case study research design means intensive, descriptive and holistic analysis so a single

entry and the bounder case to represent other entities in the same category for the purpose of

this study the case study is carried out in Kipsigis teachers Sacco. The design may suffer

from assumptions made, restricted data and limited information because the study is focused

on one entity but those are insignificant compared to its contribution to this study.

3.2 Target population

The target population for this study is all the staff of Kipsigis co-operatirative society. The

reason for this is that Kipsigis Teachers society is affiliated. The indicator of performance of

affiliated society, Kipsigis teachers society are the dividends, assets, investments, loan to

members and members savings.

The data pertaining the areas above covers a period of ten years.

3.3 Descriptions of instruments

The researcher will use questionnaires as a tool for collecting the data. The questionnaires

will consist of two parts.

17

i. The part which seeks to analyze and know personal information of the respondents.

ii. The part which seeks to know the information pertaining to the area under study.

3.4. Data Collection procedure

The researcher will issue the questionnaires to the respondent who will be expected to fill it.

Also the data will be collected form the relevant records using desk research method.

3.5. Data analysis and presentation

Data will be analyzed using descriptive statistics e.g. percentages and presented using tables

and graphs. Al the answered questionnaires in terms collected for the field will be coded for

analysis by scoring questionnaires responses. This analysis is done using both quantitative

and qualitative methods. This method is adopted because of its advantage of providing the

reader with general directions and associations existing between variables. Also they give

more comprehensive and overall understanding of the tabulate.

18

CHAPTER FOUR

PRESENTATION, DISCUSSION AND INTERPRETATION OF FINDINGS

4.0 Introduction

This chapter focuses and presents the results and interpretations. The study analyses the data

collected from one field of study where the questionnaires and interview were held within

Kipsigis teachers Sacco and Githunguri dairy farmers co-operative.

The aim of the study was to investigate what extend top which the services offered by kuscco

to primary societies affects their performance. This was in the light of finding effects of

affiliation to kuscco on primary societies. The data is gathered from fair departments of

Kipsigiss Teacher s Sacco that is, administration, Accounting and Finance, marketing and

Fosa. Data was collected from whom out of 50 questionnaires 40 were answered and 10

unanswered therefore showing that 80% of the total questionnaires were answered and 20%

were unanswered.

The data collected was analyzed using quantitative technique particularly descriptive

statistics and the presentation of this data is to be in the frequencies and converted into

percentages. This includes the use of graphs and tables for more comprehensive and overall

analysis is basically based on each of question asked by researcher in the questionnaires.

4.1 Data Analysis (Personal Information)

4.1.1 Gender distribution

The study finds it necessary to establish and analyze the gender equality of inequality that

exist in the different departments form the study of the Kipsigis teachers Sacco the researcher

found that 70% of the employees are male while 300% are females and from the study of the

Githunguri dairy farmers he finds that 50% of the employees are male and other 50% of the

employees are female as represented in the table below.

Table1: Gender

Gender Frequency Percentage

Kipsigis Githunguri Kipsigis Githunguri

Male 35 25 70 50

Female 15 25 30 50

Total 50 50 100 100

19

4.1.2 Respondents Age

The study Kipsigis Sacco reveals that 30% of the respondents are between the age of 21-30

years. 28% are 31-40 years, 22% are between 41-50%, 16% between 51-60% and 41% are

above the age of 60.

Table 2: Respondents Age

Age

groups(years)

Frequency Percentage


21-30 15 10 30 20

31-40 14 18 28 36

41-50 11 12 22 24

51-60 8 6 16 12

Above 60 2 4 4 8

Total 50 50 100 100

20

The study found out that most of the employees working in Kipsigis teachers are limited

between the age of 21-31 years and most of Gighunguri are limited between age of 31-40.

4.1.3 Years of service

The study of Kipsigis Sacco is that 30% of employees have been in service. 1-5 years, for 6-

10 years 50% for 1-15 years 10% and above 15 years 10%.

Table 3: years of services

Years of

services



1-5 15 20 30 40

6-10 25 15 50 30

11-15 5 10 10 20

Above 15 5 5 10 10

Total 50 50 100 100

21

4.1.4: Staff Designation (Departments)

The study is done to determine the departments of the employees. It shows their professions

in relation to the entire society.

Departments Frequency Percentage


Administration 10 5 20 10

Accounting and finance 9 10 18 20

Marketing 25 30 50 60

FOSA 6 5 12 10

Total 50 50 100 100

22

4.1.5: Employees Qualifications

The study considered the importance of establishing the level of education of employees in

order to assess their knowledge and skills.

The study of Kipsigis Sacco reveals that 10% possess Diploma certificates, 50% posses

degree certificates and 20% are post graduate certificates.

Qualification Frequency Percentage


High school 5 10 10 20

College

certificate/diploma

10 15 20 30

Graduate 25 22 50 44

Post graduate 10 3 20 6

Total 50 50 100 100

23

4.2.1: Data Analysis (Societys Information)

The study of Kipsigis Sacco reveals that 100% of employees respondents that the Sacco is an

affiliated society to Kenya union of saving and credit co-operative. For Githunguri dairy

Sacco, it reveals that 100% of the employees respondents that the Sacco is not affiliated to

any union.

4.2.2 Benefits of affiliation to Sacco

According to study it reveals the following benefits Affiliation promotes co-operation among

the organization. Union offers to facilitate the activities of primary societies for

achievements of economies of scale. Affiliation is very essential especially when it comes to

financial matters because the union provides credit facilities at the fairer rate of interest and

make follow up on usage of the same. Provisions of common services to all Sacco financed

by the same pool of common funds contributed by each of them according to their ability is

the main advantage of primary co-operative societies. Affiliation enables the weak co-

operatives to obtain support from strong ones because they can support common experiences

and decide on common policies. Education is not an exception in this because the union

24

through co-operative education and publicly officers offers education to the members and

staff of primary co-operative.

4.2.3 Significance of Affiliation to the Sacco

The study identified the importance of Affiliation in the Sacco in terms of its level of

significant to attainment of Sacco goals. The study of Kipsigis Sacco reveals that 70% of the

respondents agreed that affiliation is very significant and 30% reveals significant. The study

of Githuguri Sacco reveals 0% since it is not affiliated.

Table 2:

Significant of Affiliation Frequency Percentage

Very significant 35 70

Significant 15 30

Total 50 100

Bar graph 8.

25

4.2.4: Services offered by Kuscco to its affiliates

a. Education and Training

Kipsigis Teachers Sacco has had a chance to send off its staff to seminars organized by

kuscco at the regional and national level. The education has targeted committee members

delegates and Sacco staff who in turn train the general members. Githunguri dairy farmers

co-operative organizes their education and training for their staff by hiring people from other

societies, since it is not affiliate. Table below shows the number of people trained in

affiliated and non-affiliated society.

KIPSIGIS TEACHERS SACCO

Year Staff Management committee

2001 13 12

2002 14 14

2003 21 15

2004 23 16

2005 25 18

2006 27 19

2007 28 20

2008 30 21

GITHUNGURI DAIRY FARMERS CO-OPERATIVE

Year Staff Management committee

2001 1 4

2002 2 3

2003 3 3

2004 3 5

2005 4 7

2006 5 8

2007 7 9

2008 8 10

26

The results show that more staff and management committee was training affiliated society

than non-affiliated society.

b. Risk management

Kipsigiss teacher Sacco being affiliated to kuscco choose to take loan cover and staff

medical scheme with kuscco. Rebates are always given where total claims by Kipsigis

teacher Sacco do not exceed 45% of the total charges paid. Githunguri dairy farmers co-

operative have no loan cover hence no loan offering to members since they are risk averse

and it is not affiliated to kuscco which offer loan cover and staff medical scheme.

c. Research and development

Kipsigis teachers Sacco had a chance to receive consultancy services on establishing front

office development of by 1900 and development of software from kuscco.

d. Loan

The central finance programme has enable Kipsigis teachers Sacco to meet fees demand

whose pressure is mostly feet with the months of December, April and August.

The Githunguri dairy farmers co-operative in the credit so squeeze in that the Sacco has no

programme to find them in terms of loan, apart from their produce that is profit achieved.

4.2.5: Effects of affiliation on performance of affiliated and non-affiliated societies

The study was to establish the effects on the performance and affiliation at Saccos. The

management committee and staff were asked to show whether there is a relationship between

the performance and affiliation. Data on this was an analyzed under the question. How has

affiliation affected the performance of the Saccos?

a. Membership

The data was analyzed and found that the membership has grown tremendously by

10% in affiliated society than non-affiliated society members benefited a lot in that

they could get loans from Sacco at relatively lower rate of interest than the non-

affiliated society. Also at the end of the financial year, they received dividend from

the society.

27

Year 2003 2004 2005 2006 2007 2008

Growth

rate

Kipsigis

Sacco

20% 30% 40% 50% 60% 70%

Githunguri

Sacco

33.33% 58.33% 66.69% 100% 100% 66.67%

The graph below shows relationship between the affiliated and non affiliated society.

b. Members saving

The data analyzed shows that the member saving in Kipsigis teachers Sacco

increased because of increased in membership. Since Gighunguri Sacco members

saving tend to decrease. It shows that one of the factors contributing so is poor

performance of Sacco in form of making profit, affiliation i.e. not giving members a

chance to save at a fairer rate of interest, hence making members to withdraw from

the society. The graph below shows members savings in the two societies.

28

Table 8: membership saving

Year 2003 2004 2005 2006 2007 2008

Growth

rate

Kipsigis

Sacco

5% 10% 20% 30% 40% 50%

Githunguri

Sacco

15% 25% 50% 100% 100% 50%

Graph

c. Assets

Kipsigis teachers Sacco is a landlord of various business in Kericho. The building is a

source of income i.e. rental income. The Sacco has a motor vehicle that is very useful

to the society when it comes to transport. A number of computers and machines are

availed at the premises to enable the Sacco to fit to current technology. This amount

to total assets of the society.

29

Year 2003 2004 2005 2006 2007 2008

Growth

rate

Kipsigis

Sacco(000)

30000 40000 44000 52000 60000 80000

Githunguri

Sacco(1000)

1000 1100 1300 1500 1700 1300

Finding show that Githunguri Sacco disposes some of its assets in 2008 in order to

survive because it has come to collapse.

The analysis shows that the monetary value of assets increased in Kipsigis Sacco.

d. Loans to members

There are three types of loans that the Kipsigis Sacco is giving to the members that is normal,

emergency and school fees loans one is granted the loan once she/he has met all credit

gratuity policies. Non- members are not given any type of loan by the society.

Githuguri farmers dairy co-operative helps members in marketing produce at a fair market

value therefore they offer one type of loan to members i.e. emergency loan. The table below

shows the loan that was granted to members at Kipsigis Sacco and Githunguri Sacco.

Table 10: loans to members

Year 2003 2004 2005 2006 2007 2008

Growth

rate

Kipsigis

Sacco(000)

16.67% 33.33% 50L5 66.67% 755 83.33%

Githunguri

Sacco(1000)

25% 50% 75% 100% 100% 75%

30

Dividends

This is a benefit members received each and every year as per the shares they have in the

Sacco. It is shown that Kipsigis Sacco has been giving its members dividends at a certain

rate which have been increasing tremendously by 1.2%. The table below shows the rate of

dividends used by Kipsigis Sacco to pay its members.

Table 11: Dividends

The table below shows the rate of dividends us by Kipsigis

Year 2003 2004 2005 2006 2007 2008

Rate of

dividends

1.8% 2.9% 3.2% 3.5% 4% 4.7%

31

The table shows a growth on the rate of dividends paid to members hence they gain from

their savings in the society.

4.2.6: Relationship between Affiliation and Growth in Saccos

The study finds out the relationship that exists between affiliation and growth in Saccos.

The study of Kipsigiss Sacco finds out that 70% of the respondent rated very positive and

30% rated positive. For Githunguri no relations since it is not affiliated. It reveals that

growth was measured by membership, members savings assets and loans.

Relationship between

affiliation and

performance


Very positive 35 70

Positive 15 30

Total 50 100

32

4.2.7 Performance of Sacco

The study of Kipsigis Sacco shows that due to Affiliation, the performance shows that due to

affiliation the performance of Sacco has increased positively especially in membership,

Dividends, members savings and loans to members since Githunguri is not affiliated there is

no relationship between performance and affiliation.

4.2.8. Extent of Affiliation on employee morale

The study found out that 70% of the respondents confirmed that affiliation affects the morale

of employees to a very large extent while 20% confirmed that it affects the employees

morale to large extent and 10% affects them to moderate extent. This is shown by the skills

they have acquired, improved technology which make their work easier, staff loan with lower

rate and bonus issue.

Table 14.

Extent of Affiliation on

employee morale


Very large extent 35 70

Large extent 10 20

Moderate 5 10

Total 50 100

33

4.3.0. Suggestions of Affiliation to Saccos

Majority of respondents in Githunguri dairy farmers co-operative suggested that Affiliation to

kuscco should be introduced in the Sacco since it will assist them in improving their

performance hence benefiting the society at large.

On the other hand society at large members comment that Affiliation to kuscco is the best

policy that Saccos have undertaken to improve their performance as well as the welfare of

the members. They should affiliate also in all to promote co-operative among the

organizations. Since when the central finance programme, Saccos should affiliate in order to

achieve the greatest desire of credit facilities in financial matters at the fairer rate of interest.

34

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION.

5.0 Introduction

The following chapter discusses the findings, summary, conclusion and recommendation

made after the analysis of the data.

5.1 Discussion of findings

The first objective was to determine the services received by primary co-operative as a result

of affiliation to kuscco. Data analysis and interpretation of interviews to the staff and

management committee revealed that the services offered and consultancy, central

financeprogramme and business development and marketing. These findings indicate that

Affiliation of primary co-operative societies is very important to all Sacco in order to enjoy

the services offered to them by kuscco. These services have assisted the Sacco to provide

quality products and services to its members. It also assists in ensuring that quality

leadership and management is in place to over see the operation of the society.

The second objective was to establish the effects of affiliation of primary co-operative

societies on their performance. Data analysis and interpretation from the records held in the

society revealed the following major findings. It revealed the membership increase, loan to

members increased, more investments were undertaken, and staff and management

committee have trained on various issues affecting the society. The finding indicates that

there has been a positive performance on the affiliated society. Through efficient operation

the society has operated profitably and as result give high rate of dividends of its members.

This could owe to the service offered to affiliates by kuscco. It has enabled the society to

build institutional reserves which is necessity in ensuring financial growth, stability and

sustainability.

On the other hand the growth rate if affiliated society was growing tremendously as

compared to non-affiliated one. The interpretation of findings shows that growth of the

society is manifested by membership, members savings and loans to members.

5.2 Summary of the findings

The following is a summary of the findings as discussed in the previous section. This study

focuses on the effects of affiliation of primary societies and their performance. This study

attempted to answer several questions whose answers were summaries as follows:

35

1. Services offered to affiliates

Education and training

Risk management

Central finance programme

Research and consultancy

2. The effects of affiliation of primary co-operative societies on the performance:

Membership have increased

New assets acquired

Increased in members saving

Loans to members have increased

Enhance education and training to staff and management committee

3. The growth of the society is manifested in the following areas

Membership

Members savings

Loan to members

5.3 Conclusion

This study investigated the effects of Affiliation to kuscco on primary societys performance

and to obtain indicators of performance.

This was in relation to mismanagement of co-operative and misappropriation of assets in

primary societies because of lack of education and training and other services provided by the

kuscco.

The study specifically sought

i. To determine the services received by primary co-operative societies as result of

affiliation to kuscco.

ii. To establish the relationship between Affiliation of primary co-operative societies and

that of performance.

iii. To establish the growth rate of the Affiliated and non-affiliated society.

This study established that

36

i. The services received by affiliates are education and training, risk management,

research and consultancy, central finance programmes.

ii. The relationship between Affiliation and the performance has shown a positive trend

that is lead to increase of membership, increase of investment, increase in members

savings and higher rate of dividends.

iii. The growth of the affiliated society is higher than the non-affiliated society.

In the view of these findings the researcher concludes that:-

Affiliation enabled the increase in number of members who in turn lead to increase in the

share capital which meant more investment thus to Sacco perform well.

Affiliation enables many Saccos to pool their resources thuds enough funds to lend to

members and portion on it were channeled to viable projects which create income in the

society.

It also enables diversifications of services through the new products provided by business

development and marketing provides Sacco with reasonable source of credit squeeze for

Saccos during the seasonal high demand for loans.

Affiliation of primary societies improved their performance in terms of membership shares

capital investments and assets.

5.4 Recommendation

After completing the research, the researcher was able to make some recommendations from

which if implemented can even make the service offered be more effective in improving the

performance of primary societies.

Additional plans could be made to establish a body that will act similarly to the banks

deposits protection fund (BDPF). This is because it is imperative that Saccos being part if

the financial system be regulated so as to enforce prudential standards to enhance safety and

scandless of members funds.

Most Saccos are under capitalized, this because they cannot distinguish between shares and

members deposits under to financial structures kuscco should organize intense education and

training on this in order to enlighten Sacco about the same kuscco should continually

emphasize the importance of information technology in Saccos. This is because ignorance

on importance of information technology is greatly hampering the growth of Saccos.

37

Although kuscco at the moment operates a Sacco special deposits account for those societies

with excess funds in their reserves the researcher strongly feels that the key profitable

investments for any Sacco uses in short call deposits where societies would be able to deposit

money with kuscco but be able to withdraw this money after a short period of time e.g. 3

months. This will help Saccos to do better trade with their money other than waiting until

reserves deposits mature with kuscco.

38

REFERENCES

Goran hyden (2003) Efficiency versus distribution in East Africa countries 6th Ed. East

Africa literature Bureau, Nairobi Kenya.

Efficiency Versus Distribution in East Africa co-operatives East African Literature

Bureau, Nairobi

Hussieth al (2002) Theory of successful co-operatives development

Prentice Hall Publishers New Jersey London

Kenneth Mwira (2003) Kenya Union of Savings and Credit Co-operative movements 5th

Ed. Bookloise Limited Publishers, Nairobi Kenya

Mutinda James (2005) Kenya Societys literature 7th Ed. East Africa literature bureau

Nairobi Kenya

Porvall Johnson (2002) World Co-operative Development 4th Ed.

Prentice Hull publishers, New Jersey London

Ofeil Notrad (2ws:14) (2005)

Co-operatives Networking development 4th Ed.

Thomson press, London

Sylvester J. Ouma (2000) History of the Co-operative Movement in Kenya 3rd Ed.

East Africa literature Bureau, Nairobi Kenya.

Co-operates society Act Number 12 of 2wi laws of Kenya

The Kenyan Co-operator Nov./Dev. 2000

The SACCO star Dec. 2001/Jan 2002 issue No. 35-

The SACCO star Sept. 10th 2002 issue No 40-

The SACCO star Issue No. 45 2003 role of Saccos in National Development.

The SACCO star Issue No. 45 2003 Co-operative policy and legislation:

key to successful co-operative development.

The SACCO star issue No. 2. 2000 networking among co-operative London

Literature Bureau, Harvard.

39

KIPSIGIS TEACHERS CO-OPERATIVE SAVINGS AND

CREDIT SOCIETY LTD

Year Ref. No. Description No. of

members

Amount (Kshs)

2000 28304 Membership 2000

20895 Loan 300 1000000

30490 Assets 20000000

28208 Savings 500 1200000

20390 Dividends 1200 112011.87

40101 Investment 1000000

2001 28304 Membership 2700

20895 Loan 1200 2200000

30490 Assets 24000000

28208 Savings 400 1500000

20390 Dividends 1300 198890.67


2002 28304 Membership 3200

20895 Loan 1350 4000000

KIPSIGIS TEACHERS SACCO BLD

MOI HIGHWAY

KERICHO/NAKURU ROAD

SACCO BLD

NEXT TO MOBIL PETROL STATION

54072

P.O. BOX 682-20200

TEL: 254-052-21028/30229

FAX 052-21329, KERICHO

FOSA TEL. NO: 052-21341 KERICHO

BRANCH OFFICE

BOMET FOSA BRANCH


TEL/FAX. NO 052-22422

BOMET

BRANCH OFFICE

KAPKATET BRANCH


TEL/FAX. NO 052

BURETI

Email:[email protected]

40

30490 Assets 26000000

28208 Savings 400 2000000

20390 Dividends 1000 287820.23


2003 28304 Membership 4000

20895 Loan 2600 5000000

30490 Assets 30000000

28208 Savings 1000 2500000

20390 Dividends 2200 382978.72


2004 28304 Membership 6000

20895 Loan 3300 10000000

30490 Assets 40000000

28208 Savings 1200 5000000

20390 Dividends 5000 617021.28


2005 28304 Membership 8000

20895 Loan 3500 15000000

30490 Assets 44000000

28208 Savings 1500 10000000

20390 Dividends 6200 680851.06


2006 28304 Membership 10000

41

20895 Loan 4200 20000000

30490 Assets 52000000

28208 Savings 2700 15000000

20390 Dividends 7500 744680.85


2007 28304 Membership 12000

20895 Loan 5000 22500000

30490 Assets 60000000

28208 Savings 4000 20000000

20390 Dividends 8000 851063.83


2008 28304 Membership 1400

20895 Loan 5300 25000000

30490 Assets 80000000

28208 Savings 5200 25000000

20390 Dividends 9300 1000000


42

GITHUNGURI DAIRY FARMERS CO-OPERATIVE SAVINGS AND

CREDIT SOCIETY LTD

THIKA ROAD

RUIRU WAY

NAIROBI

P.O. BOX 20211-00200

TEL: 254-02-300102

Year Ref. No. Description No. of

members

Amount (Kshs)

2001 100100 Membership 100

100105 Assets 900000

100102 Savings 200 1000000

123104 Investments 9000000

110101 Loan 250 1500000

102100 Sales 1000000

102202 G. Expenses 500000

2002 100100 Membership 1200

100105 Assets 920000

100102 Savings 300 1200000


110101 Loan 300 2000000

102100 Sales 1500000

102202 G. Expenses 650000

2003 100100 Membership 2000

43

100105 Assets 1000000

100102 Savings 600 1500000


110101 Loan 420 2500000

102100 Sales 2000000

102202 G. Expenses 700000

2004 100100 Membership 3500

100105 Assets 1100000

100102 Savings 1200 2500000


110101 Loan 480 500000

102100 Sales 2200000

102202 G. Expenses 720000

2005 100100 Membership 4000

100105 Assets 1300000

100102 Savings 2000 5000000


110101 Loan 670 7500000

102100 Sales 2500000

102202 G. Expenses 8000000

2006 100100 Membership 6000

100105 Assets 1500000

100102 Savings 4000 10000000

44


110101 Loan 800 10000000

102100 Sales 3000000

102202 G. Expenses 830000

2007 100100 Membership 6000

100105 Assets 1700000

100102 Savings 4000 10000000


110101 Loan 800 10000000

102100 Sales 3500000

102202 G. Expenses 9000000

2008 100100 Membership 4000

100105 Assets 1300000

100102 Savings 2000 5000000


110101 Loan 670 7500000

102100 Sales 4000000

102202 G. Expenses 910000

45

TOPIC: INVESTIGATING THE EFFECTS OF AFFLIATION TO KENYA UNION

OF SAVINGS AND CREDIT CO-OPERATIVE ON PRIMARY SOCIETIES

PERFORMANCE.

QUESTIONNAIRES.

Affiliation is a situation whereby primary co-operative societies officially connects itself or

be a member of Kenya union of savings and credit co-operative (KUSCCO)

This questionnaire consists of two parts (A and BP) part A consists of personal information

while part B consists of information and details pertaining the area of study.

Tick where appropriate.

PART A:

1. Gender

Male ( )

Female ( )

2. Age group in year

21-30 years ( )

31-40 years ( )

41-50 years ( )

51-60 years ( )

Above 60 years ( )

3. Years of services in Kipsigis teachers Sacco

1-5 years ( )

6-10 years ( )

11-15 years ( )

Above 15 years ( )

4. Department ( )

Administration ( )

Marketing ( )

Accounting and Finance ( )

FOSA ( )

5. Qualification

High School ( )

College certificate /Diploma ( )

Graduate ( )

Post Graduate ( )

Others (Specify) ( )

46

PART B

1. Is your Sacco affiliated?

If No

Why_______________________________________________________________________

2. What are the b benefits of Affiliation to your Sacco?

___________________________________________________________________________

3. Do you think Affiliation is the best for your Sacco?

___________________________________________________________________________

4. What are the services offered by KUSCCO to your Sacco?

___________________________________________________________________________

5. Is there any relationship between affiliation and growth in your Sacco?

___________________________________________________________________________

6. What are the effects of Affiliation to the Sacco?

___________________________________________________________________________

7. How is affiliation affecting the performance of the school?

___________________________________________________________________________

8. To what extent does affiliation affect employees, members morels or society at large?

___________________________________________________________________________

9. What are your suggestions and recommendations about Affiliation in your Sacco and other

Saccos?

TABLE TO BE IN DESK RESEARCH

YEAR 2003 2004 2005 2006 2007 2008

Loans to members

Investments

Assets

Membership

Dividends

Members savings

Sales

Profit

Documents

Final Copy Josphine Project