Relationship between Liquidity Management and Performance of Savings and Credit Cooperative Societies

Abstract

The purpose of the study was to determine the relationship between liquidity management and performance of savings and cooperative societies. The study was conducted through a cross – sectional, descriptive and correlational survey designs. Primary data collection was conducted using self-administered structured questionnaires. The study considered five (5) Matatu saving and Credit Cooperatives societies operating in Kitale town main stage with a total of 79 employees. The study concluded that there was a very strong positive significant relationship between liquidity management and performance of SACCOs. The study recommended that SACCOs management to ensure that specific loan processing and recovery period is observed to meet its obligations whenever they fall due in order to maintains adequate liquidity for its day-to-day operations. The study also recommended that SACCOs to provide regular training to its members before advancing loans to them. The study also recommended that SACCO’s managements should be keen on improving its liquidity and strengthen liquidity management for their respective SACCOs to be competitive and investors get value for their money.