THE INFLUENCE OF STRATEGIC LEADERSHIP ON FINANCIAL PERFORMANCE OF SAVINGS AND CREDIT CO-OPERATIVE SOCIETIES IN NAIROBI CITY COUNTY, KENYA

Abstract

Purpose: There has been rapid growth and increase in number of SACCOs in Kenya. However, this has led to increased completion and the desire for small SACCOs to survive. This has led some if not all the SACCOs to find better ways of management. There has been a change in the management of SACCOs through the adoption of strategic leadership practices. This study set out to establish the influence of strategic leadership on financial performance of SACCOs in Nairobi.

Design/ Methodology/Approach: The study used a correlational descriptive design. The correlational descriptive design allowed the researcher to examine element at a given point in time. This design allowed analysis of respondents in producing insights into the effect of strategic leadership on the performance of SACCOs in Nairobi. Primary data was collected and used in this study. The data was collected through questionnaire. The questionnaire contained likert ratings. Drop and pick later method was used to administer the questionnaires.

Findings: The study concluded that all the five predictors of financial performance have significant positive effects on financial performance. It also concluded that corporate vision and mission exists in most firms and is therefore the most common strategic leadership measure. The study established that corporate vision and mission, developed human capital, effective organization culture, balanced organization controls and ethical practices, all had a significant influence on financial performance of SACCOs in Nairobi

Contribution to policy and practice: There is need for the SACCO’s to keenly identify talent and leadership skills in hiring competent leaders with strategic leadership capabilities

Originality/Value: The study extends the literature on strategıc leadershıp on fınancıal performance of savıngs and credıt co-operatıve socıetıes ın naırobı cıty county.