Influence of Strategic Implementation on Performance of Matatu Savings and Credit Co-operatives in Kenya

Abstract

Strategy implementation in Matatu SACCOs in Kenya is a key driver of the economy that keeps recording significant positive contributions but decline in growth. In terms of absolute figures, the sector contributed to the country's GDP about 3% in 2008, 3.5% in 2009 and 5.9% in 2010. The SACCO movement within the Matatu sector was introduced in 2010 and since then, the sector has witnessed decrease in growth. In 2011, the sector generated a GDP of 5.0%, 4.7% in 2012, 4.5% in 2013 and 4.2 % in 2014. The study focused on 635 registered Matatu SACCOs. The main objective of this study was to determine the influence of strategic implementation on performance of Matatu SACCOs in Kenya. This study adopted mixed research design which included cross-sectional survey, causal and descriptive designs. The target population for this study was all Matatu SACCOs in Kenya. The questionnaires were pilot tested to determine its validity and reliability. The study used primary data gathered from Matatu savings and credit co-operatives from the Ministry of Industrialization and Enterprise Development. Primary data was obtained through use of structured and semi structured questionnaires drawn from 245 Matatu SACCOs selected for the study. The results of the analysis indicated that strategic implementation had a positive relationship with performance of Matatu SACCOs. The study found that strategic implementation had significant influence on the performance of Matatu SACCOs which was 0.704. On the strategic implementation the study recommended that management of Matatu SACCOs should recruit qualified employees and provide adequate resources to make them efficient and effective in their operations. Adoption of cashless mode of payment to reduce wastage on revenue collection.