Abstract:
In Kenya, Sacco societies control 30 percent of the Gross Domestic Product (GDP) and account for
over Kshs. 600 billion in the form of assets and savings an amount equivalent to 35 per cent of our
national budget. Therefore, these non-bank financial institutions play a major role in alleviating
poverty and foster economic growth and development of the Kenyan economy. However, the Sacco
societies face a number of challenges such as weak internal control system which leads to financial
impropriety, societies' board incompetence and luck of transparency in the course of discharging
their duties as well as inadequate management decision making. Therefore, this paper was an
exploratory survey of the state of corporate governance among the Luo Nyanza Saccos in Kenya
with specific reference to management staff recruitment and selection as well as the kind of tools
used for the vital staffing function. The study found out that significant number of these Sacco
societies do not have appropriate interview tools hence exposing them to the risk of unverifiable, not
accountable as well as non-transparent recruitment and selection exercise. This may lead to getting
management staff which are incompetent, inexperience and less qualified hence contributing to
financial impropriety in the Sacco societies. The study also found out that majority of the Sacco
societies are still at their early years of establishment with most of them falling in the range of one to
five years of existence a period characterised by weak financial framework, structural establishment
gaps, low uptake of technology hence the need to recommend for the adaptation of tested interview
tools for these Sacco societies. A census study design was employed in the 26 Sacco societies with a
questionnaire as the primary tool for data collection. Fifty two respondents were obtained with each
Sacco society giving two key informants although only forty eight respondents filled and returned
the questionnaires. Data was descriptively analysed by use of percentages and frequencies while the
findings were presented by the use of tables, graphs and pie-charts. |
