Analysis of Effects of Financial Stewardship Skills on Performance of Motor Cycle Transporter's Saving and Credit Cooperative Societies in Migori County, Kenya

Abstract

This study paper examines   the influence of financial stewardship skills on performance of Motor cycle transporters SACCO societies in Migori county, Kenya. Although the motor cycle transport business provides most of Migori County's public transport services and contributes considerably to Kenyan economy, these businesses are facing serious financial management practice challenges, which have adversely affected their businesses. Accordingly, most motor cycle transport SACCOs have become financially incapacitated a situation that is adversely affecting their daily operation and growth negatively. The insignificant growth of the SACCOs is attributable to; incompetence and lack of proficiency of management team, low profitability, poor capital investment, and ineffective institutional strengths of the motor cycle transporter's SACCOs. This status of affairs has lot of implications on the economy of the county and achievement of the core objective of development as the grassroots level. When this insignificant growth of motor cycle transporter's SACCOs is not reversed, the county would find it difficult to eradicate poverty as envisaged in the vision 2030. Further, it would be harder to fully experience the county devolution in all counties as explained in the Kenyan constitution. Although studies have been conducted on Para transit vehicles business and growth of SACCOs, there is lack of sufficient information relating to the growth of motor cycle transporter's SACCOs' in Migori County on; proficiency of management team,. It is against this status of affairs that the present study was  conducted to fill the knowledge gap with a view to making recommendation to ensure that proper financial practice on stewardship is used to lead to growth of motor cycle transporters' SACCOs, hence sustainability of the transport. This study used a descriptive survey in soliciting information on the growth of motor cycle transporter's SACCO societies in Migori county. The study was conducted on 8 Sub-county saccos with a target population of 136 respondents. The entire population was taken for census; thus the whole population formed the sample size. This study used questionnaires for collecting data from primary source.  Data was analysed using quantitative statistical mean such as computational techniques after numerical analysis. The research found out that the saccos were not performing well in terms of profitability as dependent variable. The independent variable, stewardship skills, had direct impact on the profitability of the saccos. The saccos had poor stewardship skills from their management committees, hence no or lower profits. The researcher recommended that the saccos to employ staffs who have financial background to help management committees' members in running the saccos. The researcher also recommended enhance training for the management committees and only academically and professionally qualified person s to be elected into office. Members who have at least diploma training as qualification. The researcher suggested further research in future on the same topic' the effects of financial management performance on Motor cycle transporters saccos' elsewhere in the country.