The aim of this study was to determine whether commercial bank services had an effect on Saving and Credit Cooperative Societies (SACCO) in Murang’a town. SACCOs are financial institutions which offer similar products like banks. SACCOs had a ready market for their services but financial institutions are beginning to target these markets that pre-dominantly belonged to the SACCO sectorThe commercial banks proactive policy of offering easy access transaction and services has attracted the SACCO customers.This has led to reduced SACCOs market share.
The objective of the study is to determine the effect of unsecured commercial bank loans on SACCOs’ membership.
Data on the effect of commercial bank services was from two sources namely primary and secondary data. Secondary data was from existing research findings, ministry of cooperative, journals and textbooks in the library on issues related to the subject matter of the study. Primary data was gotten from questionnaires issued to SACCOs and selected commercial banks in Murang’a town.
Primary data was collected using questionnaires which was distributed to employees of SACCOs and commercial banks by the researcher in Murang’a town. Secondary data was collected through reading the existing research findings; journals, published SACCO reports, internet and textbooks.
The data was analyzed using statistical techniques with the help of Statistical Package for Social Scientists (SPSS) version 18.0 computer software. Since there is one independent variables inferential statistics was used to establish the effect of independent variable on the dependent variable.The findings from research show that unsecured commercial bank loans have an effect on SACCOS membership which is in line with FinAccess study of 2009.
The study recommends that SACCOs should offer unsecured loans because most of SACCOs customers are switching to commercial banks where this service is offered.
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
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