Title:
DETERMINANTS OF FINANCIAL SUSTAINABILITY OF SAVINGS AND CREDIT COOPERATIVES OF MATATU INDUSTRY SECTOR IN NAKURU COUNTY, KENYA

Authors:
King angi Ruth Murugi and Ngahu Solomon Thuo

Abstract:
The study examined cash management as one of the determinants of financial sustainability of Saccos in the matatu industry in Nakuru County, Kenya. The study was guided by the static trade-off theory of capital structure and agency cost theory. A descriptive survey research design was adopted. A total of 116 employees working with such Saccos in Nakuru County constituted the study population. A simple random sampling technique was adopted to draw 54 respondents from the study population. A structured questionnaire was used to facilitate data collection. The research questionnaire was subjected to a pilot testto determine its validity and reliability. The data were analyzed with the facilitation of the Statistical Package for Social Sciences software. Data analysis was subjected to both descriptive statistics and inferential statistics. The null hypothesis was tested using the t-statistics at 95% confidence level. The results of the study were presented in form of tables and were accompanied by relevant interpretations and discussions. The study established that cash management significantly influenced (p < 0.05) financial sustainability of Saccos in the matatu industry. The aforementioned determinant was found to explain 17.4% of variance in financial sustainability of the stated Saccos. It was concluded that cash management impacted on financial sustainability of matatu Saccos in Kenya. The study recommended that the management should balance the cash management levels with the frequent needs of the Saccos. Moreover, it is recommended for the Saccos to diversify their sources of income in order to boost their financial sustainability