An investigation into the cash balance management challenges in saving and credit cooperative societies (SACCOs) in Nakuru County, Kenya

Kennedy Munyua Waweru

Abstract

Saving and Credit Cooperative Societies (SACCOs) are seen as vehicles for resources mobilization and gateways to economic prosperity for families especially those in the lower and middle income category. These enterprises handle large sums of member funds in the form of deposits, shares and interest. The management of SACCO funds is as such a topical issue in the cooperative movement and among policy makers. This study explores the cash balance management challenges in SACCOs given that; cash balance management is considered a core ingredient for any business survival, SACCOs inclusive. The population for this study consists of 143 SACCOs in Nakuru County. A sample of 38 SACCOs was selected through stratified random sampling. The study found a significant difference in the cash management challenges between employee based and association based SACCOs. Results indicate that there was no relationship between the cash balance management challenges and the presence or absence of a cash balance management policy in the SACCOs.