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

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
ii

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

iii

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

: ________________________

iv

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.

ACKNOWLEDGEMENT
The process of writing this project was not an individual affair. This was the results of cooperative 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.

vi

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.

vii

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

viii

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

ix

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.

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

2

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.

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

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 cooperative 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

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.
6

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.
7

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

Services offered by Kuscco

Performance indicators
Education and training
-Staff
-Management committee

Employees performance improves

Membership
-Membership increased

Risk management

-Loan cover

-No loss to deceased members loan

Research and consultancy

-Increase loan to members

-Advisory services

Central finance program

Investments
-Advice on investment

-Provide loan to the society

Loans to members

Business development and marketing

Dividends
-Rate of dividends increase

-Provide various products to members

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
8

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.

CHAPTER TWO
2.0 Introduction
This chapter discusses the literature related to the effects of affiliation of primary cooperative 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
10

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

11

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 cooperative 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
12

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.

13

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.
14

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.

15

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.

16

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.

17

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

18

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

Frequency

Percentage

groups(years)

Kipsigis

Githunguri

Kipsigis

Githunguri

21-30

15

10

30

20

31-40

14

18

28

36

41-50

11

12

22

24

51-60

16

12

Above 60

Total

50

50

100

100

19

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 610 years 50% for 1-15 years 10% and above 15 years 10%.
Table 3: years of services
Years

of Frequency

Percentage

services

Kipsigis

Githunguri

Kipsigis

Githunguri

1-5

15

20

30

40

6-10

25

15

50

30

11-15

10

10

20

Above 15

10

10

Total

50

50

100

100

20

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

Kipsigis

Githunguri

Kipsigis

Githunguri

Administration

10

20

10

Accounting and finance

10

18

20

Marketing

25

30

50

60

FOSA

12

10

Total

50

50

100

100

21

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

Kipsigis

Githunguri

Kipsigis

Githunguri

High school

10

10

20

College

10

15

20

30

Graduate

25

22

50

44

Post graduate

10

20

Total

50

50

100

100

certificate/diploma

22

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 cooperatives 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
23

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.

24

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

2002

2003

2004

2005

2006

2007

2008

10

25

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

26

Year
Growth

Kipsigis

rate

Sacco

2003

2004

2005

2006

2007

2008

20%

30%

40%

50%

60%

70%

58.33%

66.69%

100%

100%

66.67%

Githunguri 33.33%
Sacco

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.

27

Table 8: membership saving

Year
Growth

Kipsigis

rate

Sacco

2003

2004

2005

2006

2007

2008

5%

10%

20%

30%

40%

50%

25%

50%

100%

100%

50%

Githunguri 15%
Sacco

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.

28

Year
Growth

Kipsigis

rate

Sacco(000)
Githunguri

2003

2004

2005

2006

2007

2008

30000

40000

44000

52000

60000

80000

1000

1100

1300

1500

1700

1300

Sacco(1000)

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
Growth

Kipsigis

rate

Sacco(000)
Githunguri

2003

2004

2005

2006

2007

2008

16.67%

33.33%

50L5

66.67%

755

83.33%

25%

50%

75%

100%

100%

75%

Sacco(1000)

29

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 1.8%

2.9%

3.2%

3.5%

4%

4.7%

dividends

30

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
affiliation

between Frequency

Percentage

and

performance
Very positive

35

70

Positive

15

30

Total

50

100

31

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 Frequency

Percentage

employee morale
Very large extent

35

70

Large extent

10

20

Moderate

10

Total

50

100

32

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.

33

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:
34

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

5.3

Membership

Members savings

Loan to members

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

35

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.
36

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.

37

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. 35The SACCO star Sept. 10th 2002 issue No 40The 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.

38

KIPSIGIS TEACHERS CO-OPERATIVE SAVINGS AND

CREDIT SOCIETY LTD
KIPSIGIS TEACHERS SACCO BLD

BRANCH OFFICE

BRANCH OFFICE

MOI HIGHWAY

BOMET FOSA BRANCH

KAPKATET BRANCH

KERICHO/NAKURU ROAD

KIPSIGIS TEACHERS SACCO BLD

KIPSIGIS TEACHERS SACCO BLD

TEL/FAX. NO 052-22422

TEL/FAX. NO 052

BOMET

BURETI

SACCO BLD
NEXT TO MOBIL PETROL STATION
54072
P.O. BOX 682-20200
TEL: 254-052-21028/30229

Year
Ref. No. Description
FAX 052-21329,
KERICHO

No. ofEmail:kipsacco@africaonline.co.ke
Amount (Kshs)
members

FOSA TEL. NO: 052-21341 KERICHO

2000

2001

2002

28304

Membership

2000

20895

Loan

300

30490

Assets

28208

Savings

500

1200000

20390

Dividends

1200

112011.87

40101

Investment

28304

Membership

2700

20895

Loan

1200

30490

Assets

28208

Savings

400

1500000

20390

Dividends

1300

198890.67

40101

Investment

28304

Membership

3200

20895

Loan

1350

1000000
20000000

1000000

2200000
24000000

1200000

39

4000000

2003

2004

2005

2006

30490

Assets

26000000

28208

Savings

400

2000000

20390

Dividends

1000

287820.23

40101

Investment

28304

Membership

4000

20895

Loan

2600

30490

Assets

28208

Savings

1000

2500000

20390

Dividends

2200

382978.72

40101

Investment

28304

Membership

6000

20895

Loan

3300

30490

Assets

28208

Savings

1200

5000000

20390

Dividends

5000

617021.28

40101

Investment

28304

Membership

8000

20895

Loan

3500

30490

Assets

28208

Savings

1500

10000000

20390

Dividends

6200

680851.06

40101

Investment

28304

Membership

1600000

5000000
30000000

2000000

10000000
40000000

2500000

15000000
44000000

2800000
10000

40

2007

2008

20895

Loan

4200

20000000

30490

Assets

28208

Savings

2700

15000000

20390

Dividends

7500

744680.85

40101

Investment

28304

Membership

12000

20895

Loan

5000

30490

Assets

28208

Savings

4000

20000000

20390

Dividends

8000

851063.83

40101

Investment

28304

Membership

1400

20895

Loan

5300

30490

Assets

28208

Savings

5200

25000000

20390

Dividends

9300

1000000

40101

Investment

52000000

3200000

22500000
60000000

3500000

25000000
80000000

4000000

41

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

Amount (Kshs)

members
2001

2002

2003

100100

Membership

100

100105

Assets

100102

Savings

123104

Investments

110101

Loan

102100

Sales

1000000

102202

G. Expenses

500000

100100

Membership

100105

Assets

100102

Savings

123104

Investments

110101

Loan

102100

Sales

1500000

102202

G. Expenses

650000

100100

Membership

900000
200

1000000
9000000

250

1500000

1200
920000
300

1200000
950000

300

2000

42

2000000

2004

2005

2006

100105

Assets

1000000

100102

Savings

123104

Investments

110101

Loan

102100

Sales

2000000

102202

G. Expenses

700000

100100

Membership

100105

Assets

100102

Savings

123104

Investments

110101

Loan

102100

Sales

2200000

102202

G. Expenses

720000

100100

Membership

100105

Assets

100102

Savings

123104

Investments

110101

Loan

102100

Sales

2500000

102202

G. Expenses

8000000

100100

Membership

100105

Assets

100102

Savings

600

1500000
1000000

420

2500000

3500
1100000
1200

2500000
1300000

480

500000

4000
1300000
2000

5000000
1500000

670

7500000

6000
1500000
4000

43

10000000

2007

2008

123104

Investments

2300000

110101

Loan

102100

Sales

3000000

102202

G. Expenses

830000

100100

Membership

100105

Assets

100102

Savings

123104

Investments

110101

Loan

102100

Sales

3500000

102202

G. Expenses

9000000

100100

Membership

100105

Assets

100102

Savings

123104

Investments

110101

Loan

102100

Sales

4000000

102202

G. Expenses

910000

800

10000000

6000
1700000
4000

10000000
2400000

800

10000000

4000
1300000
2000

5000000
2700000

670

44

7500000

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)

45

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
Loans to members
Investments
Assets
Membership
Dividends
Members savings
Sales
Profit

46

2006

2007

2008