IDEAS home Printed from https://ideas.repec.org/a/vls/finstu/v29y2025i2p6-22.html
   My bibliography  Save this article

Credit Management Practices, Firm Size And Financial Sustainability Of Deposit-Taking Savings And Credit Cooperative Societies In Kenya

Author

Listed:
  • GACHENGA, John Ndung'u

    (School of Co-operatives and Community Development, The Co-operative University of Kenya, Nairobi, Kenya)

  • MUTHONI, Dennis Kamau

    (School of Business and Economics, The Co-operative University of Kenya, Nairobi, Kenya)

  • METTO, Wilson Kipkemboi

    (School of Co-operative and Community Development, The Co-operative University of Kenya, Nairobi, Kenya)

Abstract

The study examined the moderating effect of firm size on the relationship between credit management practices and the financial sustainability of DT-SACCOs in Kenya. The study was grounded in information asymmetry theory, utilising a positivist paradigm and an exploratory research design. The target population consisted of 176 finance managers from 176 DT-SACCOs, providing a robust framework for analysis. The sample size was obtained using Yamane's formula, which resulted in 122 respondents, with a high response rate of 98 per cent for the structured questionnaires administered. Data was analysed using descriptive and inferential statistics. The inferential statistics revealed a strong positive association between credit management practices and financial sustainability, with p-values of 0.013. Notably, the Nagelkerke R-squared change demonstrated that firm size moderates the connection between credit management practices and financial sustainability. The study recommends enhancing financial sustainability through credit information sharing and establishing a deposit guarantee fund to protect members' funds in the event of license revocation or closure.

Suggested Citation

  • GACHENGA, John Ndung'u & MUTHONI, Dennis Kamau & METTO, Wilson Kipkemboi, 2025. "Credit Management Practices, Firm Size And Financial Sustainability Of Deposit-Taking Savings And Credit Cooperative Societies In Kenya," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 29(2), pages 6-22, June.
    • Handle: RePEc:vls:finstu:v:29:y:2025:i:2:p:6-22
    as

    Download full text from publisher

    File URL: http://www.icfm.ro/RePEc/vls/vls_pdf/vol29i2p6-22.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    credit management practices; firm size; financial sustainability;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • P13 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Cooperative Enterprises
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vls:finstu:v:29:y:2025:i:2:p:6-22. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Daniel Mateescu (email available below). General contact details of provider: https://edirc.repec.org/data/cfiarro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.