Effect of Strategic Planning on the Performance of Savings and Credit Co-Operative Societies in Kakamega County, Kenya

Dorice Lilungu, Wilfred N. Marangu, Titus Wanyama Masungo


The SACCOs in Kenya have experienced problems in their operations resulting from poor planning. The SACCOs have therefore resorted to doing strategic planning in order to guide its operations.  This study was designed to investigate the effects of strategic planning on the performance of SACCOS in Kakamega County.  The study was guided by specific objective to establish the effect of strategic planning on the performance of SACCOs. The study based on the assumption that the SACCOs in Kakamega County engage in strategic planning.  This was a census study that included all the 33 SACCOs in Kakamega County.  The study utilized a descriptive, and survey research design.  The data was collected from customers and employees who were the SACCO managers. This study employed simple random sampling technique on the customers and used purposive sampling on the managers.   To establish the relationship between strategic planning and organizational performance the researcher used simple regression analysis. The study found statistically significant linear relationship between strategic planning and organizational performance in SACCOs.  The research data was analyzed using descriptive and inferential statistics.  Basing on the results of this study the researcher concludes that strategic planning affects the performance of SACCOs.  The researcher recommends that SACCOs are operating in a changing environment and therefore the managers of these organizations need to stick to strategic planning that has shown to be positively related to organizational performance.  The researcher also recommends that the Ministry of Cooperative puts in place sensitization programs to educate the managers of the SACCOs on the benefits of strategic planning.  Lastly the researcher recommends that the ministry of cooperatives should hire managers of SACCOs that have knowledge in strategic planning since this is only when they can put it in practice and realize the effect it has on organizational performance.  For further research future studies should consider using larger and broader samples which will be more representative of the population of study, and should also examine other performance indicators.  Future studies should also do similar studies done in other economic sectors apart from the cooperative sector.  The study provides knowledge on SACCOs to scholars in related areas of study and also contributes to the knowledge body and adds value to the current literature on involvement in strategic planning and also stimulates a further research on strategic planning and performance in SACCOs.  It is hoped that the findings will be of value to the Ministry of Cooperatives in terms of strategic planning and will also form a basis for improving performance of SACCAs.

Keywords: Strategic planning, performance, Savings and Credit Co-operative societies, Kakamega County and Kenya


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