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Abstract:
Co-operative societies sector in Kenya play a very important role in improving the livelihoods of its members and the development of the country at large. However, these co-operative societies suffer common problems associated with poor financial management, and governance. The purpose of this study was to advance an understanding on the effects of AC characteristics and the performance Sacco Societies in Kericho County. The research design for this study was descriptive survey design employing multiple regression analysis. The target population comprised of all 83registered deposit taking Sacco societies operating in Kericho. The questionnaires were administered to the CEO of the respective Saccos. The study established that there was a significant relationship between the size of the AC (r=.414;p<0.05); independence of AC (r=.437:p<0.01); female representation in the AC (.526;p<0.01), professionalism of AC (r=.199;p<0.05) and the dependent variable, firm performance. Collectively, variations in independent variables significantly determine the variations in performance of the firm as shown (R-square 0.607;p<0.01). The study therefore concludes that professionalism, size of the AC, female representation and independence of the AC are important variables that can be manipulated to enhance governance among Saccos and ultimately improve firm performance.
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