FACTORS AFFECTING GROWTH IN RURAL BASED COOPERATIVE SOCIETIES IN KENYA: A CASE STUDY OF K-UNITY SACCO

Abstract

K-Unity Sacco served as a case study for this research to pinpoint factors that affect the growth of cooperative societies in rural Kenya. The research aimed to figure out how interest rates IT, staff skills, and management abilities shape the expansion of rural cooperative societies in Kenya. I did this study to find answers to problems like corruption waste of resources bad management and not enough workers in rural Kenyan cooperative societies. This way, I could come up with fixes. The study will help K-Unity Sacco's leaders other saccos, and researchers. The study used a descriptive approach. It looked at 178 people from top, middle, and support staff levels. We picked 89 respondents, half the total group using stratified random sampling. We gathered data through surveys with both open and closed questions. Both qualitative and quantitative analyses of the data were conducted. While quantitative data was displayed as tables and figures, qualitative data was displayed as content analysis and descriptive annotations. From investigations findings it was recognized 80% of the respondents noted that managerial skills affects growth in rural based cooperative societies in Kenya while 20% said it has no effect, 84% staff competence while 16% said it has no effect, interest rate affects by 72%, while 28% said it has no effect, interest rate affects by 82% while 18% said it has no effect, information technology affects by 79% while 21% said it has no effect and finally80% of the respondents noted that organization policy affects while 20% said it has no effect. Investigator recommends that organizations need to implement regular training programs to improve the managerial skills of cooperative leaders. This should include financial management, strategic planning, and decision-making skills. Effective leadership is crucial for guiding the cooperative’s growth and ensuring sustainable development. Organizations need to invest in continuous professional development for staff, including certifications in cooperative management, customer service, and financial literacy. Organizations need to regularly review and adjust interest rates on loans and savings to remain competitive. Offering attractive rates can encourage more members to save and borrow, leading to increased capital circulation within the cooperative. Develop flexible loan products that cater to the specific needs of rural members, such as agricultural loans with seasonal repayment plans. Organizations need to invest in digital financial services, such as mobile banking and online platforms, to improve accessibility for members, especially in remote areas. This can facilitate savings, loan disbursements, and repayments, making the cooperative more efficient and member friendly. Implement robust data management systems to enhance record-keeping, track member contributions, and analyze financial breakthrough.