Browsing by Author "WINFRED CHEPKOECH BII"

Now showing 1 - 2 of 2
  • Thumbnail Image
    Item
    ANSOFF’s MODEL AND GROWTH OF DEPOSIT TAKING SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN NAIROBI COUNTY, KENYA.
    (THE CATHOLIC UNIVERSITY OF EASTERN AFRICA, 2025-09) WINFRED CHEPKOECH BII
    Savings and Credit Cooperative Societies (SACCOs) are a vital component of Kenya’s financial sector, contributing to economic growth, financial inclusion, and poverty reduction. However, their growth has been hampered by high dormancy rates, rising non-performing loans, limited product innovation, and weak strategic planning, raising concerns about their sustainability. This study examined the influence of Ansoff’s Growth Model, supported by Dynamic Capabilities Theory, Push and Pull Theory, Market Orientation Theory, and Innovation Diffusion Theory, on the growth of deposit-taking SACCOs in Nairobi County. The study focused on four strategies; diversification, market penetration, product development, and market development and their effect on growth indicators such as membership activity, revenue generation, loan portfolio performance, and financial sustainability. The target population comprised 144 departmental heads in credit, finance, and marketing from 48 licensed deposit-taking (Target Population) SACCOs in Nairobi. A sample of 105 respondents was selected using purposive sampling. Primary data were collected through structured questionnaires, while secondary data were obtained from regulatory reports and SACCO records. Instrument reliability was confirmed using Cronbach’s Alpha, and validity was ensured through expert review. Data were analyzed using descriptive and inferential statistics, including correlation, regression, and diagnostic tests in SPSS (Version 25), while qualitative data were subjected to content analysis. The findings revealed that all four strategies had a positive and significant influence on SACCO growth: diversification (β = 0.372, p = 0.004), market penetration (β = 0.472, p = 0.000), product development (β = 0.492, p = 0.012), and market development (β = 0.394, p = 0.000). The study concludes that Ansoff’s Growth Model, enriched by supporting theories, provides a robust framework for enhancing the growth and competitiveness of SACCOs. It recommends that SACCO leadership adopt structured diversification, market penetration, product development, and market development strategies to reduce member dormancy, lower non-performing loans, increase revenues, and sustain long-term competitiveness.
  • Thumbnail Image
    Item
    FINANCIAL DEEPENING AND THE SUSTAINABLE GROWTH OF MICRO, SMES IN KERICHO COUNTY, KENYA
    (THE CATHOLIC UNIVERSITY OF EASTERN AFRICA, 2025-09) WINFRED CHEPKOECH BII
    MSMEs are vital drivers of innovation, job creation, and poverty reduction, yet they often face challenges related to limited access to financial services, which hampers their ability to expand and thrive. Many studies proposed ways of ensuring these MSMEs at least survive up to their fifth year but still they remain contested. The main objective of the study was to investigate the effect of the financial deepening and sustainable growth of the MSMEs in Kericho County. The specific objectives of the study were to determine how financial literacy, financial innovation and financial access to credit have influenced the sustainable growth of the MSMEs in Kericho County, Kenya. The study was supported by three theories, The theory of Financial Innovation, The financial intermediation theory and Resource based view theory. Primary data was collected with the use of open-ended questionnaires and interviews. The research design implemented for this project consists of a descriptive approach. The target population of the study included all the 22,327 MSMEs owners from different industrial sectors operating in Kericho County. Stratified random sampling was used to arrive at a sample size that comprised 98 MSME owners. Quantitative Data collection method was used. Quantitative Analysis was used with the help of SPSS Version 22.0, where descriptive statistics were used to analyse survey responses regarding MSME growth and financial service utilization. Regression analysis was conducted to test the relationship between access to financial services and the growth indicators of MSMEs. The results revealed a positive and significant relationship between financial deepening as measured through financial innovation, credit accessibility, and financial literacy, and the sustainable growth of MSMEs in Kericho County. These results were supported by regression coefficients for financial innovation dimensions. The results for the study variables were; financial innovation (beta = 0.156596 with an associated P-value=0.0006), Credit Accessibility (beta= 0.502022 with an associated p-value=0.0002) and financial literacy (beta= 0.250965 with an associated p-value 0.0426). The results show that the four variables explain up to R Square 57.9% and adjusted R-Square 0.552. The results show that the variable explains a significant level of variation for MSME sustainability with an F-statistics value of 6.810 with an associated p-value of 0.000 which was significant. Based on the obtained results from the surveyed MSMEs in Kericho County, it was concluded that financial deepening significantly enhances MSME sustainability. The main recommendation is that policymakers and financial institutions should promote digital financial tools, improve credit access, and enhance financial literacy programs to facilitate MSME growth in Kericho County.