FACTORS AFFECTING COMPETITIVENESS AND GROWTH OF SACCOS

(A CASE STUDY OF THIKA MURAMATI SACCO SOCIETY LTD)

BY

CHEGE KIMANI

Research project proposal submitted in partial fulfillment of the requirement for the award of a bachelors degree in economics and statistics of Kenyatta University

© 2011

Declaration

I declare that this research study is my original work

Name…………………………………………..sign………………………………………date………………………………………

Declaration by the supervisor

This research has been submitted for defense with my approval as the Kenyatta University supervisor.

Name…………………………………..sign………………………………..date……………………………………………….

Lecturer Kenyatta University

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ACKNOWLEDGMENT

I have learnt a few choice lessons in the completion a project as this one. Most important is how much we need others in doing anything substantial in academics.

I want to thank God for this far He has brought me. I want to express my gratitude to our family for their continuous support to this far.

Special thanks to my supervisor Mr.…………………………….for his critical and humble manner he painstakingly guided me eventually to come with this work. I would sincerely thank Meru central for availing this information.

My heartfelt appreciation to anyone who has contributed to my education from the beginning to this far I have come, may God bless you abundantly.

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DEDICATION

I dedicate this work to my family: - mum dad, brothers and sisters who have patiently stood with me. May you live to enjoy the fruits of your patience and loyalty.

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TABLE OF CONTENTS PAGE NO.

Declaration…………………………………………………………………………………………………………………………..

Dedication……………………………………………………………………………………………………………………………..

Acknowledgement………………………………………………………………………………………………………………….

Table of contents……………………………………………………………………………………………………………………

List of tables…………………………………………………………………………………………………………………………..

List of figures………………………………………………………………………………………………………………………….

Definition of terms……………………………………………………………………………………………………………………………

Abbreviation and Acronym………………………………………………………………………………………………………..

Abstract………………………………………………………………………………………………………………………………………..

CHAPTER ONE: INTRODUCTION

Introduction……………………………………………………………………………………………………………………..1

1.1 Background of the study…………………………………………………………………………………………………….1

1.2 Statement of the problem…………………………………………………………………………………………………..5

1.3 Objective of the study…………………………………………………………………………………………………………..5

1.4 Research Question…………………………………………………………………………………………………………………6

1.5 Significance of the study………………………………………………………………………………………………………….6

1.6 Limitation of the study……………………………………………………………………………………………………………..6

1.7 Scope of the study………………………………………………………………………………………………………………………6

1.8 Conceptual Framework…………………………………………………………………………7

CHAPTER TWO: LITERATURE REVIEW

2.0 Introduction………………………………………………………………………………9

2.1 Introduction to literaturereview…………………………………………………………………………………………….9

2.2 Theoretical Review……………………………………………………………………………………………………………………..9

2.3 Critical Review of major issues……………………………………………………………………………………………………17

2.4 Gaps to be filled…………………………………………………………………………………………………………………………..17

CHAPTER THREE: RESESARCH METHODOLOGY

3.0 Research Design…………………………………………………………………………………………………………………………….18

3.1 Introduction…………………………………………………………………………………………………………………………………….18

3.2 Design of the study…………………………………………………………………………………………………………………………18

3.3 Targetpopulation…………………………………………………………………………………………………………………………18

3.4 Sample design………………………………………………………………………………………………………………………………..18

3.5 Data collection………………………………………………………………………………………………………………………………19

3.6 Data collection instruments………………………………………………………………………………………………………….19

3.7 Data analysis procedure…………………………………………………………………………………………………………………19

CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION OF FINDINGS

4.0 Data Analysis and Presentation……………………………………………………………………………………………………..20

4.1 Introduction ……………………………………………………………………………………………………………………………………20

4.2 Quantitative Analysis……………………………………………………………………………………………………………………….20

4.3 Qualitative Analysis……………………………………………………………………………………………………………………31

CHAPTER FIVE: SUMMARY OF FINDINGS, DISCUSSIONS, CONCLUSION AND RECOMMENDATIONS

5.0 Summaries of findings, Conclusion, Recommendations and implications for further research……32

5.1 Summary of major findings……………………………………………………………………………………………………………32

5.2 Answers to research questions…………………………………………………………………………………………………..33

5.3 Conclusion……………………………………………………………………………………………………………………………………..34

5.4 Recommendations………………………………………………………………………………………………………………………..35

5.5 Suggestion for further research……………………………………………………………………………………………………..36

References…………………………………………………………………………………………………………………………………………37

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APPENDIX

Work plan………………………………………………………………………………………………………………………………38

Budget……………………………………………………………………………………………………………………………………39

Introduction letter………………………………………………………………………………………………………………..40

Questionnaire…………………………………………………………………………………………………………………………41

List of tables

Table 3.1 target population………………………………………………………………………………………………………..18

Table 3.2 Classification of employees……………………………………………………………………………………….19

Table 4.1 Resultant population description……………………………………………………………………………..20

Table 4.2 Gender response rate………………………………………………………………………………………………..21

Table 4.3 Ages of respondents………………………………………………………………………………………………….22

Table 4.4 Level of education…………………………………………………………………………………………………………22

Table 4.5 Rating of services………………………………………………………………………………………………………23

Table 4.6 Effect of service on competitiveness………………………………………………………………………….24

Table 4.7 Areas of improvement………………………………………………………………………………………………25

Table 4.8 Are there customer complaints………………………………………………………………………………………26

Table 4.9 Response to customer complaints………………………………………………………………………………27

Table 4.10 Effect on retention of customers………………………………………………………………………………….27

Table 4.11 is there competition……………………………………………………………………………………………………..28

Table 4.12 Competition ……………………………………………………………………………………………………………….29

Table 4.13 Do rewards play a role in Sacco’s growth………………………………………………………………………30

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List of figures

Fig 4.1 Resultant population description……………………………………………………………………………………………..20

Fig 4.2 Gender response rate…………………………………………………………………………………………………………………21

Fig 4.3 Ages of respondents………………………………………………………………………………………………………………22

Fig 4.4 Level of education…………………………………………………………………………………………………………………..23

Fig 4.5 Rating of services……………………………………………………………………………………………………………………24

Fig 4.6 Effect of service on competitiveness………………………………………………………………………………………24

Fig 4.7 Areas of improvement……………………………………………………………………………………………………………...25

Fig 4.8 Are there customer complaints………………………………………………………………………………………………….26

Fig 4.9 Response to customer complaints……………………………………………………………………………………………27

Fig 4.10 Effect on retention of customers……………………………………………………………………………………………..28

Fig 4.11 Is there competition………………………………………………………………………………………………………………..28

Fig 4.12 Competition………………………………………………………………………………………………………………………29

Fig 4.13 Do rewards play a role in Sacco’s growth………………………………………………………………………………..30

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DEFINITION OF TERMS

Competitiveness:-Refers to the existence of more than one provider of a given product targeting one market group,hence trying to outdo each other in product/service delivery .It may exist in different sizes. In business, the competition between the two local stores may be considered small compared to the competition between several mega stores. The consequences of the competition would also vary-they can also be informal and be more for pride and or fun. Other competition can be fierce and extreme e.g. fight for market for market share or sales turf.

Growth: - Growth embodies the continuity of the firm. The performance of an organization is an incremental way is what is referred to as growth in an organization involved in trade issues.

Customer relationship:-McCarthy (2003) puts it that there is a high co-relation between customers `s satisfaction and the rate of customer retention. He further indicates that the loyalty of the customer I along –term process that has to be built and watched over the top management .The loyalty of the customer is through the relationship maintained by the organization to its customers.

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ABBREVIATIONS AND ACRONYM

C.E.O Chief Executive officer

SACCO: Saving and Credit Association

ROSCAS: Rotating and Credit association

ASCAS: Accumulating savings and Credit Association

MESPT: Micro and small enterprises

NGO: Non governmental organizations

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ABSTRACT

This survey is studying the factors affecting growth and competitiveness in Meru Central Farmers Sacco. It took the form of a descriptive research in which the populations of managers, employees of Meru central Farmers sacco were enumerated and their perception sought about customer relationship management, competition reward management and service delivery.

Suganthi (2006) notes that customer’s relationship management affect the retention of the customers thus contributing to the growth of the organization. He notes further that the customers are final determinants to the growth of the organization.

A questionnaire, designed by the researcher based on a review of the literature of factors, growth and competitiveness was employed for data collection. The collected data was analyzed using simple frequencies and percentages and reported in tables and graphs.

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CHAPTER ONE

1.0 Introduction

1.1 Background of the study

Saccos are established under the cooperative societies Act and are an important form of financial intermediary , which over the years has played vital role in provision of financial services to their members .The societies accept monthly payment for shares from which members may borrow an amount equivalent to two or three times their own savings if they can get other members to guarantee them.

Growth in saccos over the last twenty five years has been spectacular. Saccos are offshoots of cooperative societies. The modern cooperative societies in Kenya started in 1908 when the European farmers in the highlands formed Lumbwa cooperative society ltd. Through this cooperative society ,the Europeans farmers were able to purchase agriculture inputs in a collective effort.Later in 1931,Kenya Farmers association was registered as a cooperative and it took over the role hitherto played by Lumbwa cooperative society.

After the 1945,war in the world ,Britain started encouraging her colonies her colonies to start their own cooperatives.This is because it could not continue offering assistance to its colonies. In 1931,the cooperative ordinance was enacted as a law in Kenya.The second ordinance of 1945 created a development cooperative in Kenya and gave the registrars office power to guide cooperatives in Kenya.

Recently the act have been revised , the last one being the cooperative Act of (1997)which spell out explicitly the objectives of cooperatives , which are :-

Promotion of welfare and economic interests of members Voluntary and open membership Economic participation of members Education , training and information Democratic members control Concern for community for community in general

If any sacco has the above objectives , the registrar of societies hold no objections to its registration and operation.

The members of saccos has risen from 630 in 1978 to 4500 by December 31st 2004.Over the same period savings and share capital rose from Kshs 375 million to Kshs 150 billion by December 2004.Sacco membership numbered over three million by December 2004 having risen from 387,500 members in 1978.The rapid growth indicates that they are filling aneed,which has not been by other financial institutions.

Kenya has a relatively well developed financial sector.

It comprises organization,which can be categorized in `subsystem`

A.The informal system

B. The formal subsidized system

c. The formal non-subsidized system

To be able to differentiate the saccos from other forms of financial product providers its good we first have a brief overview of the above categories

A The informal system

We absolutely no access to formal financial system in Kenya,thre are economically active people who rely on a variety of traditional and informal financial system.

These are striking facilities of these informal system: -

They are not regulated Most of them involve savings transactions They tend to be a member based They are not subsidized

There are three distinct informal financial subsystem

A.1 Financial arrangement among relatives , neighbours and friends .Various credits from friends and relatives constitute an important source of start up capital for many micro-enterprises in urban areas and for small holder farmers in the rural areas.This culture is deeply rooted to the hearts of many Kenyans.These mutual families based , self help schemes are essential social obligations.Another factors is the geographical proximity between lenders and borrowers which because it allows the financial interaction to be made on a more personal basis, facilities the extension and repayment of credit. Finally, credit terms are popular as many of these loans are interest free or change very low interest rates and do not require collateral; their repayments arrangements tend to be opening ended and are based on reciprocity.

A.1.1.2 Traditional Money Lenders

They are many commercially oriented, moneylenders in both the rural and urban areas. Property owners or farmer’s lenders are reported to exist in the rural areas.

A.1.1.3 Rotating saving and credit Association (ROSCAS) and accumulating saving and credit associations (ASCAS) Non financial institution.Kenya has thousands of no financial institution which are a source of credit to millions of low-

income people. Non financial institutions are found in both the rural and urban areas, either as

registered social welfare groups or as unregistered groups of friends and family members.

Studies have shown that more than 80% of the non financial institution in Kenya comprises of 5

to 10 members, but some group comprise of up to 60 members .

Non financial institution provides credit to those who would likely be ineligible to borrow from

formal sources. They also mobilize savings, serve as social functions, and provide a form of

insurance (e.g. in personal emergencies, members contribute to their needy colleague, who may

also borrow from the groups savings).

B. formal subsidized system

It comprises of organizations or institutions, which provide financial services and receive

subsidies in different forms.The origin of formal subsidized microfinance institutional in Kenya

can be traced to the mid 1950`s with the establishment of the joint loan board scheme by the then

colonial government.Since then the government has established many targeted and subsidized

rural credit programs to help the development process.The main institutional actors today are

microfinance NGO`S with credit programs for micro and small enterprises (MSEPT`S)who

benefit from foreign aid agencies.They receive grants from donors to meet operational costs.As

institutions , they are formal.Their financial operations are however not regulated despite being

formal institutions. They normall target their services at people with low incomes.

In the 1980`s a number of NGO`s introduced alternative credit delivery mechanisms for the poor

that consisted of small amounts of loans without the requirement of tangible collateral. These

micro credit programs unlike previous efforts by the government have developed over time and

succeeded in accessing financial services to the poor and achieving high repayment rates.

C the formal, Non –subsidized System

Kenya as of now has a relative well developed banking and formal financial sectors. This consist

of 1 Central Bank , 47 Commercial Banks, 16 Non-Bank financial institutions , 2 mortgage

finance companies, 4 building societies, 8 development financial institution, a post office savings

bank,4500 savings and credit cooperative societies,38 insurance companies , the Nairobi stock

exchange , and several venture capital companies. General low –income groups and MSE

operators still find it difficult to access financial assistance through mainstream formal

commercial financial markets even through the demand for the services in the immense.

The saving and credit cooperative societies belong to this class of the formal non – subsidized

system. Sacco`s are established under the cooperative societies act. And are an important form of

financial intermediary, which over the years has played a vital role in provision of financial

services to their members.The societies accepts monthly repayment for shares from which

members may borrow an amount equivalent to two or three times their own savings if they can

get other members to guarantee them.

Growth of Sacco`s over the last twenty five years has been spectacular and has had its own share

of impediments . In terms of members the sacco growth can only be reffered as splendid but in

other areas such as management new product developed governance,withstanding encronchment

by banks it has been a struggle.

Sacco`s are currently organized as workplace or cash crop based savings and credit association

whereby people with a common bond for example by working together in the same company or

institution, save regularly thus building enough deposits for lending within the group.Some of

these savings and credit societies are actually larger (in terms of asset)than some of the small

commercial banks.These include the harambee Posta and Mwalimu Sacco`s

We should not forget that there are others on the lower end that are struggling due to limited

resources,inability to market themselves and lack of clear definite products that can attract loyal

members.

1.2 Problem statement.

Each company is looking for the new frontiers that would open up another window or chapter of

competitiveness and growth.Every day there is talk of efficient. ,lean companies.However ,no

organization can achieve prosperity unless they walk the talk.Management and the employees

are a key resource to the growth and the competitiveness of the organization. The

implementation of the strategies like total quality management , Customer relationship

management ,competetitiveness strategies and reward management for the employees

determines the growth and performance of the Sacco`s

Therefore this research seeks to investigate those factors affecting the growth and

competitiveness of Sacco’s.

1.3 Objective of the study

The overall objective of this research study is to investigate the factors influencing the growth

and the competitiveness of Sacco`s .This is so because many have shunned them just to be

disappointed by other financial institution. With time, the rule of the game has changed thus

opening the environment such that their protected customers are up for grabs by the tens of banks

in Kenya and hundred of the microfinance institution in this nation. Thus , paper reviews the

impediments to growth of saccos need to achieve their intended objectives.

Other specific objectives

1. To investigate whether customers relationship management is a factor affecting the

growth and competitivenesss os Saccos

2. To determine whether the management of quality in service delivery is a factors that

affects the growth and competitiveness of saccos

3. To find out whether the strategies used in warding off competition whether they have

affected the growth and competitiveness of saccos.

4. To investigate whether the reward management system withinthe saccos has hampered its

growth and competitivenss.

1.4 Research question

This research was bound to nswer the following questions.

Is customer relationship management a factor affecting the growth and competiveness

of Sacco’s?

Is management of quality in service delivery a factor that affects that growth and

competitive of Sacco’s?

Are the strategies used in warding of competition a factor affecting the growth and

competitiveness of Sacco’s?

Is reward management system within the Sacco has hampered its growth and

competitiveness?

1.5 Justification of the study

This study is intended to help organizations whether corporate or public in nurturing growth

and competitiveness. This study goes out to help employees to redefine their roles in

organizations. It will help them to find a foothold in the organization not only as labor

providers but also as policy makers. It will help researchers look at the competitiveness and

growth of Sacco’s in the light of the liberalized economy.

Many organizations have witnessed spatial growth and times slow downs. This study would

help the management of such kind of organizations on how to withstand lean times and

continue growing.

1.6 Limitations of the study

The researchers encountered problems in terms of limited time output. The time stipulated to

complete the research was never enough. This may have been due to pressure from the

employer.

Some respondents that were uncooperative who delayed with the questionnaire until the last

days of data analysis. Some respondents were also very hard to locate in their offices.

1.7 scope of the study

This study was conducted in meru central Sacco. It included the seven branches scattered in

the various Meru Districts.

1.8Conceptual framework

Below is a schematic diagram that showsthe independent and variable of the research study.

Fig:conceptual framework

(Independent variables) (Dependent

variables)

(Source:

Researcher 2008)

Customer relationship management

In the past, efforts to gain customer satisfactions have attempted to influence the attitude of

the customer. A loyal customer has specific bias about what to buy and from whom Loyalty

connotes a

condition of some duration and requires that the acts of the purchase occur no less than twice.

Two important conditions associated with loyalty are customer retention and total share of

customer. Acustomerr retention rate is the percentage of customers who have met a specified

number of repurchases over a finite period.

Management of quality services:

Leornard(2001)notes that the important stepnof a sevice providing organization is nurturing

the development of servive leardershjip values and skillks.There is need to have a learedeship

that inspires achievements. He puts further that service providers need a vision of work that

challenges them,provides emotional energy, generates commitment,and creates a sense of

teamwork and belonging.There is need for service leadershipto provide for creativity and an

environment that allows the service providers who need to expererience the stimulation of

forward motion progress, and achievement personally and in the orgization.

Competitive strategies:

Bennet(1998) acknowledges that competition has both intrinsic and extrinsic rewards>Some

results in our context such as resources or territory may be biologically motivated because

they provide survival advantage . According to Bennet (1998) competition may exist in

different sites.Some competition may be between two members of the society.In business ,

the competition between the two local stores may be considered small compared to the

competition between several mega giants.

Reward management

Lawler (1999)emphasized that when developing reward policies it is necessary to think and

act strategically about reward.Reward policies should take into account of the organization

goals, value and culture and of the challenges of a more competitive blobal economy.Pay

policies and practices must flow from the overall strategy and they should emphasize

important objectives such as customers satisfaction and retention and product or service

quality.

8

CHAPTR TWO

2.0 LITERATURE REVIEW

2.1 Introduction

This chapter deals with the pastr studies conducted on the problem at hand.It includes various

studies on the independent and the dependent variables.This sets the base of establishing the

relationship between the independent and the dependent variables.This chapter will contain the

critical review of the study.

2.2 studies

Building financial institutions and system that serve all segment of the population is already

widely shared goal among policy makers in Kenya.Strong financial system have helped deliver

rapid growth overall, as well as direct and indirect benefits , across income distribution (Honoher

2007). Moreover , across Kenya access to finance is the key to unlocking growth for poor

farming ,as much as for expanding export.

The economy o f East Africa have shown that putting national savings to work in productivity-

increasing investments can sustain rapid growth . By bonding the gap between savers and

entrepreneurs, financial institutions cannot only reduce the risks, but also open up opportunities

to both sides.This can reduce the barriers to entry for entrepreneurs, allowing the economy at

large to benefit in terms of improvinfg the price and quality of the services, reducing the stifling

influence of established monopolies and employment creation.

Saccos have been able to step in and playthe role of financial provision to the entrepreneur in

Kenya. They had gotten the hold of the rural areas and some urban centers, providing loans to

those considered by the banks unviable and unprofitable segments.With time , this has changed

due to the result generated by the saccos thus attracting the banks back to the same market

segment.The literature reviewed is on how the Saccos could still maintain their market segments

and how they can become growth oriented.

2.2.1 Growth of Sacco`s

The cornerstone to growth is embedded on goal setting, organization development,system

approach and sometimes having a holistic approach towards performance assistance.To achieve

growth the organization has to be managed through principle of management by agreement

rather than management by command.

According to Armstrong (2003) management by agreement could be defined as the strategic and

intergrated approach to deliver sustained success to organizationas by improving the

performance of the people who work in them and by developing the capabilities of the individual

contributions. It is concerned with the the broader issue that face the business for it to function

effectively in the environment and with the general direction in which it intends to go to achieve

long term goals.

It should be taken into account that in a Sacco the overall growth of it will depend on the intere\

action of the organization with the external environment.The external environment will include

the Sacco`s interaction with customers and issue related to customer retention loss of customers

and competition within the market.

Fowler (2003) states that the growth of an organization concerns everyone in the business,not

just managers.He rejects the cultural assumptions that only managers are accountable for the

growth of their organization and replaces it with the belief that responsibility is shared between

the managers an dthe team members. He further continues to state that it is always vital for the

organizations to enter into performance agreements that define the expectations and the results to

be achieved and the competence required to attain these results.The performance measures or

growth indicators should be incooperated within the organizations. This helps in assessing the

objective and standards of performance to be achieved . It ensures that the employees are always

committed to achieve the goals in hand.

The factors discussed below are considered the basis of the sacco growth in Kenya.

2.2.2 Customer Relationship management.

McCarthy (2003) puts it that there is a high co-relation between customers satisfaction and that

the rate customers retention .He further indicates that the loyalty of the customer is a long – term

process that has to be built and watched over the top management.

Altfield (2002) attributes to the ability of a company to survive to be embedded in their ability to

customize its capability to market their products .He point out that satisfaction is not enough to

build loyalty and minimize the frequent migration of the customers.

Most managers assume that there is a high positive existing correlation between the customer

satisfaction scores and customer buying behavior.Out of research conducted by Altifield

(20020,satisfaction level does not necessarily translate into higher sales and profits.The research

indicated that more than 70% of the businesses studied,price score first second as the feature

with which the customers were least satisfied . When nearly the entire customer who had started

sending to competing suppliers they all settled on the values accrued after a purchase of

commodity.

Strivers (1998) further notes that customers loyalty can only be built on customer retentionand

total share of customer. These two factors ensure that the firm does not loose its customers. A

customer retention rate is the number of customers who have met a specified numbered of

repurchases over an infinite period.He warns that a retained is not always a loyal

customer.Statistics repeatedly in American business show that that they spend seven times more

money attracting new business than trying to keep existing ones.In his writing ,he clarifies

explicitly that pursuing market sharecan actually go against personal loyalty.Why? Because

substantial gain in the market share can increase the diversity of the customer base,because of

which the company is forced to serve an increasingly heterogeneous customers base with a

homogeneous set of products and services.

This disparity usually creates a dangerous dynamic within the company, the services and

attention once available to high and potential customers are undercut and diluted to cater for an

increasing assortment of less-promising customer.

According to Spangeberg (1994)today`s compny must manage a strange paradox, in the race to

win the market and its promise of a profit , a company risks (and often loses) the highest margin

customers and I going so worsen profitability rather thn improving it.

Thus, a compny interested in building a solid loyal customer base usually uses an approach

different from that of a company interested in simply bulding a market share.Loyalty building

requires the company to emphasize the value of its product and services and to its interest build

a relationship with its customers.

According to Kotler(2003) the company must recognize that its business is to build a stable

customer base rather than making a single sale.This can only happen if the first encounter leaves

a long lasting impression.

According to Fredrick (2002) he concurs that most C.E.O`s do not have the insight into the caise

of customers defections,let alone the cures , because they do not measure customer defection ,

make little effort to prevent them , fail to use defections as a guide for improvement .Yet

customers defections are one of the illuminating measures in business.First it’s the the clearest

possible sign that customers see a deteriorating stream of value from the company.Second,a

climbing rate of defection is a sure indicator of dimininshing cash flow from customers to the

company-even if the company replaces the lost customers,because new customers cost money to

acquire and because older customers tend to to produce more greater cash flow and profit s than

newer ones.By searching for the root cause of customer departures,companies with the desire

and capacity to learn can identify business practices that need fixing and sometimes can win the

customer back and re-eatablish the relationhip on firmer ground.

Companies with the desire and capacity to learn can identify business practices that need fixing

and sometimes can win the customer back and re-establish the relationship on firmer ground.

1.2.3 Managing quality of service

According to L.Sunganthi (2005) he defines quality as the conformance to the requairements.The

ability for features and characteristics of a product or a service that are basd on its ability to

satisfy stated or implied need.

Quality and service are terms that have been intriguing the business world.These terms are in

much focus today after most organizations having advanced in terms os production.Thus, the

platforms of competition have moved from the tangibility characteristics of the the product to the

intangibility characteristics of the product.

According to Kottler 2003) service is any intangible product offered to a customer . A service

can be defined according to its characteristics i.e features, forms and its flexibility.Kottler

encourages and emphasizes leadership learning on a continual basis .New learning,new thinking

and new approaches results from new situations and call for higher level of leadership.

1.2.4 Competition

According to Bennet (1998) competition is the term that is commonly used in numerous fields

including business,ecology, economics, music,politics and sports.He defines competition as the

act of striving against others for achieving dominance.It may be between two or more

forces,systems,individuals,or groups,depending on the context in which the term is used.

Bennet acknowledges that competition has both intrinsic and extrinsic rewards.Some result in

our context such as resources or territory may be biologically motivated because they provide

survival advantage . According to Bennet , competition may exist in different sites.Some

competition may be between two or members of the society.In business , the competition

between the two local stores may be considered small compared to the competition between

several mega stores.The consequences of the competition would also vary-they can also be

informal and be more for pride and or fun.However , other competitions can be fierce and

extream,e.g fights for market share or sales turf.

Kohn Alfie (1986) defines competition in the bisiness s the effort of two or more parties acting

independently to secure business of a third party by offering the most favourable terms.Seen as

the pillar of capitalism s it may stimulate innovations,encourage efficiency or drive down

prices.According to Kohn , competition is touted as the foundation upon which capitalism is

founded and justified.According to the microeconomic theory,no system or resource allocation is

more efficient than pure competition.Competition according to the theory causes commercial

firms to develop new products , services and technologies.This gives consumers greater selection

and better products.The greater selection generally causes lower prices for the product compared

to what the prices would be there if there was noo competition(monopoly) or little

competition(oligopoly)

Kohn cites that competition may lead to wasted (duplicated)efforts and to increase costs (and

prices) in some circumstances . Sometimes the intense competition leads to substancial

investoments that may never be recouped similarly, the psychological effects nmay result to

harm of those involved.

Kohn acknowledges that there are three levels of competition

The narrowest form is the brand competition where products that perform the same function

compete against each other.The next form of competition is substitute competition where

products that are close substitutes of each other compete.The broadest form of competition is the

budget competetition .Included in this category is anything the consumer might want to spend

their available money on.

Sloan of General Motors in the 1920`s put it forward that competition need not to be between

companies . He created areas of overlap within the company so that the division would be

competing each other. In this type of competition ,every division in the organization competes

with each other.

Kottler puts it that competition is sometimes regulated or restricted under the laws of an

economy.For example , competition may be legally prohibited as is in the case with a

government monopoly or a government granted monopoly.

Tarrifs , subsidies, and other protectionist bis paid in full.Forms of unsecured loans are personal

loans , banks overdrafts , credit card debts,lines of credit and cooperative bonds.

Measures may also be instituted by the government in order to prevent or reduce

competition.Porter(1998) warns business against sitting on their achievements.He advises the

business to continue performing competitor analysis to define their strategies.Changes in the

competition advertising messages can reveal new products offering new production processes , a

new branding strategy, a new positioning strategy,line extension and contractions.It might also

indicate a new pricing strategy such as price discrimination,price-skimming product building

among others.

2.2.5 Reward management

According to Armstrong(2005) reward management can be explained as those policies that aim

to reward people and especially employees fairly,equitably and consistently in accordance with

their values to the organization.

Reward management is broad as it deals with the design implementation and maintainancre of

reward practices that are geared to the improvement of organization,team and individual

performance.

Nzuve(1999) puts forward that reward management is the core principles of the organization that

tends to impact on all participants of the organization that is, it not only affects the human

resource department but also the other departmentin the organizations. The guiding principles of

reward management may be sometimes being based on the output of the employees or the staff`s

qualification of the employees.

Reward management based on a set of beliefs and guiding principles that are consistent with the

values of the organization and help to enact them.A. organization may decide to follow a partial

reward system or a total reward approach and in this case the reward system or a total reward

approach and inthis case the reward system consist of both financial and non-financial rewards.

It is noted from the work of the two authors that reward management tends to address long term

issues relating to to how people should be valued . Many people when they think of rewards tend

to associate it with only pay packages but this goes beyond as reward management reciprocating

all types of incentives that are focused on appreciating the employee contribution.Reward

management tend to to develop a positive employment relationship and psychological contract

that is the employee(people) feel the sense of attachment and a sense of being secure.

Psychologist all over the world have advocated a sense of recognition being a way of developing

and retaining the employees within the organizations.

Duncan Brown(2001) emphasizes, the alignment of reward practices with employee values and

needs in every bit as importanta s alignment with business goals and critical to the realization of

the latter.Employees are the grease that oils the organization and the aim of the employees must

be in cohesion with those of the organization.That is the goals must be met whereas at the same

time they meet the organizational goals.In most cases ,reward management is always aligned

with the organizations mission and objectives.Reward management is very vital in any

organization ,it can be taken as a process of motivating people and gaining their commitment and

engagement.To bring the employees to identify with their company needs a skillfull plan of

reward management.

It should be able to develop a culture of performance an instance on a situation whereby total

loyalty and performance is to the company issues first.What thisactually means is that the

employees want to be identified with the organization . Rather than there exists a symbiotic

relationship between the organization and the employees.

Lawler(1999) emphasized that when developing reward policies it is necessary to think and act

strategically about reward . Reward policies should take into account of the organizational

goals ,values and cultures and of the challenges of a more competitive global economy.

Pay policies and practices must flow from the overall strategy and they should emphasize

important objectives such as customers satisfaction and retention and product or service

quality.Schuster(1992 ) described new pay as a fundermental principle of reward management.It

should emphasize on the individual reward as well as the teamthus sharing in the organization s

success.Flannery et al (1996) who suggested about dynamic pay that should be able to align

compensation with the organization`s culture, values and strategic business goals

developed .Another concept of reward management ,he suggested that pay process should be

democratozedf and demystified from the wrong perceptions usually held by many employees.

2.3 Critical review of major issues and gaps to be filled.

The literature discussed above Is not the only attributed factor that may affect the growth and

competitiveness os Sacco`s.If the overall management is overlooked and information system

given a back seat , the Saccos would definitely tumble in the present competitive

environment.Other issues that may affect the growth of a sacco is the type of leadership within it

and the criteria of promotion. We would not also rule out the product development and their

branding before the customer i.e what they portend within the customer`s mind.There has been at

present a tough war between the commercial banks and Sacco`s.The banks have developed in

such a way that they offer the same product with the Sacco`s.

CHAPTER THREE

3.0 RESEARCH DESIGN AND METHODOLOGY

3.1 Introduction.

In this chapter , the researcher brings out clearly the methods used to collect unbiased data.The

process of sampling to arrive at unbiased data defined in this chapter.Methods of data collection

and analysis are illustrated to ensure efficiency and effectiveness of the research process.

3.2 Design of the study

The research mad use of the descriptive research design.The study design helps the researcher to

analyse the data in more depth and to present it in a way that it can be understood by the

organization under study.

3.3 Target population

The target population of this study is the Meru Central Farmers Sacco.This Sacco spans the four

Meru Districts.It has seven branches .Due to the limit of time .the researcher narrows down his

target population to the employees and the management of the Sacco

Table 3.1 Target population

Sacco`s Branches Population

Meru branch 33

Timau 14

Gatimbi 16

Kanyakine 14

Githongo 22

Kinoro 15

Nkubu 26

Total 140

Source:Author (2008)

3.4 Sample design method

The total numbers of employees within the Sacco adds up to 140.The researcher therefore

decided to perform a census instead of sampling. The employees were classified according to the

role they played in the organization. Thus the table below was developed.

Table 3.2 Classification of employees

Categories of employees Frequency

Management 14

Technocrats 38

Supervisors 25

Subordinates 63

Total 140

Source : Author (2008)

3.5 Data collection instruments

The researcher used questionnaires to collect data. The questionnaires were distributed to the respective branches. After duration of time, the researcher collected the questionnaires for data analysis purpose.

3.6 Data analysis and presentation

The data collected was first coded, then classified and arranged in tabular form. Analysis involved tabulation of the data using statistics methods .This included tables, graphs and charts.

The researcher used graphs, charts and tables to bring out the various relationships in the research study.

CHAPTER FOUR

4.0 Data Analysis and Presentation

4.1 Introduction

This research was collected att Meru Central Sacco. A target population of 140 respondents , which included employees of the organization.were used for this study.The researcher selected the whole population to conduct the study.

4.2 Quantitative Analysis and Results.

The researcher distributed 140 questionanaires to the respondents , 120 of the questionnaires were returned and considered useful for data analysis.This represented 85.7%response rate , which was considered acceptable and representative of the population.Table 4.1 below represents a demographic description of this representative sample.

Table 4.1 Resultant population description.

Current position Participant invited No. of respondents

Management 14 10

Technocrats 38 35

Supervisor 25 20

Subordinates 63 55

Total 140 120

Source : Author 2008

The resultant respondent population is represented in the chart below.

Fig. 4.1 Current position of the respondents.

Position of the corespondents

Management Technocratssupervisorssurbodinates

Source: Author 2008

Majority of the respondents were the subordinates ,which had 46% representation.Technocrats were 29%,17% were supervisors and 8%were management.

4.2.1 Gender response rate

One of the aims of the research was to establish the demographic characteristic of the staff.The results are as represented in table 4.2

Table 4.2 Gender response rate

Gender Sample size Response Population

Male 77 65 84.4%

Female 63 55 87.3%

Total 140 120 85.7%

Source : Author 2008

Fig 4.2 Gender response rate

Male female82.00%

83.00%

84.00%

85.00%

86.00%

87.00%

88.00%

Series 1Column1Column2

Source: Author 2008

A sample size of 120 returned the questionnaires and of the males only 84.4% returned questionnaires while it was only 87.3% of the females returned.

4.2.2 Age bracket for respondents.The researcher studied the ages of the respondents and the result were as shown below.

Table 4.3 Ages of respondents

Age bracket No. of respondents

20-30 23

31-40 25

41-50 45

51-60 27

Total 120

Source : Author 2008

Fig.4.3 Ages of Respondents

Ages of respondents

20-3031-4041-5051-60

Source ; Author 2008

Table 4.3 clearly indicates the ages for the respondents . 14% were 20-30,16% were 31-40%, 41-50 were 42% and 51-60 were 28%

4.2.3 Level of education

Education level was also studied and the results were shown in table 4.4 and fig. 4.4

Table 4.4 level of education

Education level No. of respondents

Primary 20

Secondary 34

College 53

University 14

Total 120

Source : Author 2008

Fig. 4.4 Level of education

Level of Education

PrimarySecondaryCollegeUniversity

Source : Author 2008

From the fig.4.4 indicates that University level graduates was 12%,Primary 17%,Secondary 28% while College graduates were 43%.

4.2.4 Quality of service

The researcher also looked at the relationship between the competetitiveness of the Sacco and the service offered . Table 4.5 shows the rating of the service by the respondents.

Table 4.5 Rating of services

Nature of services Frequency

Very good 72

Good 33

poor 15

total 120

Source: Author 2008

Fig.4.5 Rating of services

Nature of services

Very goodGoodPoor

Source: Author 2008

From the table 4.5 and Fig. the majority of the respondents concurred that the services provided were very good.This was 59% while 28% concurred that the services were average while 18% put it that the services were poor.

The researcher wanted to know whether the nature of the services provided affected the growth and competitiveness of the sacco.The table 4.6 and fig. 4.6 depict this.

Table 4.6 Effect of services on competitiveness of sacco

Option No. of respondents

Yes 98

No 22

Total 120

Source: Author 2008

Fig.4.6 Effect of services on competitiveness of Sacco

Yes No 0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

Series 1

Source : Author 2008

From the fig.4.6 , 81.7%of the respondent concurred that the nature and quality of the services dictated the growth and level of competitiveness of the Sacco1s while 18.3% said no.

The researcher went further and asked the correspondents to state the areas of their services that they felt needed improvement. The table 4.7 and fig. indicates this.

Table 4.7 areas of improvement.

Option Mangt. Technocrats

Supervisors Subordinates Total Proportion

Delivery 8 23 12 42 85(70.8%)

Interaction with customers

4 31 14 45 94(78.33%)

Knowledge of products

6 24 16 50 96(80%)

Handling of complaints

5 24 17 25 71(59.16%)

Total 23 102 59 162 100%

Source : Author 2008

Fig 4.7 Areas of improvement

Delivery Interaction with customers

knowledge of products

Handling of complaints

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

Series 1

Source: Author 2008

From the table 4.7 there is an indication that 70. Of the respondent`s would like improvement on

service delivery, 78.33 % on customer interaction, 80% on the knowledge of the product by the

employees, while 59.16% of the total respondenta agreed it should be on compolaints handling.

4.2.5 Customer complaints

Respondents were also asked to rate how the sacco handled the customer complaints.This section

looks onto whether there are customer complaints and how they are handled.

Respondents were requested to state whether they handled customer complaints.The result were

ass hown in the table 4.8

Table 4.8 Are there customers complaints

Option Frequency

Yes 102

No 18

Total 120

Source : Author 2008

Fig. 4.8 Customer complaints

Frequency of customer complaints

noyes

Source : Author 2008

From the Fig. 4.8 there were 85% incidences of customers complaints whereas 15% of the respondent had not witnessed customer copmplaints.

The reseacher was also concerned with the reaction of the Sacco to the complaints

The table 4.9 and fig. 4.9 brings this out very cleary.

Table 4.9 response to customer complaints

Response Frequency

Immediately 87

After sometime 22

Not at all 11

Total 120

Source: Author 2008

From the fig.4.9 73% of the respondent indicated that they respond to the customer immediately whereas 18% of the respondent responded after sometime and 9% of the respondent had not responded at all.

The researcher was also concerned with the creation of the customers on how their complaints related to their loyalty and retention to the Sacco. The table 4.10 and fig. 4.10 bring this out very clearly.

Table 4.10 effect on retention of customers

Option Frequency

Yes 78

No 42

Total 120

Source: Author2008

Fig.4.11Is there presence of competition?

Frequency

YesNo

Source: Author 2008

According to the answers that were given by the respondents, 82% of the respondents concurred that there was competition while 18% denied any sort of competition.

Respondent were asked whom did they perceive to be their competitors. The table 4.12 and fig.4.12 illustrates these results.

Table 4.12 Competition

Competitor No. of respondents Proportion

Banks 56 47%

Meru mwalimu Sacco 72 60%

North Imenti Sacco 75 63%

Ntimanyakiru Sacco 45 38%

Micro finances 80 67%

Source: Author 2008

Fig.4.12 Competition

Banks Meru Mwalimu Sacco

North Imenti Sacco

Ntimanyakiru Sacco

microfinances0%

10%

20%

30%

40%

50%

60%

70%

80%

Series 1

Source: Author 2008

From the fig. 4.12 and table 4.12 much evidence on the perception of the employee on whom their competitor is indicated. The respondents perceive that much of the competition they are experiencing is from the microfinance`s at 67% it is followed closely by North Imenti Sacco at 63%.Competition from banks is at 47% and from Ntimanyakiru Sacco is at 38%.

4.2.6 Reward Management.

Another question asked to the respondent is whether the reward programs he organization affected its performance and growth .The respondents` answers are illustrated in the table that follows.

Table 4.13 Do rewards play a role in growth of the Sacco.

Opinion Frequency

Yes 89

No 31

Total 120

Source: Author 2008

Fig. 4.13 Do rewards play a role in Growth of the Sacco

Reward versus Growth

YesNo

Source: Author 2008

Table 4.13 and fig.4.13 shows observation of the effect of growth and competitiveness by the reward management policies of the Sacco. 74% of the respondents feel that the reward management policies affect the growth of the Sacco while 26% of the respondents think otherwise.

4.3 Qualitative Analysis

In this section, the researcher analyzed the effects of reward management, service delivery, competition and handling of customer complaints on the growth and competitiveness of the Sacco.

4.3.1 Response on the way the organization has been able to reinvent the service delivery to continue winning more customers.

Through frequent communication with the customers, the Sacco has been able to understand the changing needs of the customers. The respondents cited that this has been a costly affair.

The Organization has been losing some of their customers due to lack of communication with some disgruntled customers. The speed and accuracy to which the organization responds to the customers complaints dictates the retention and conversion rate of normal customers to become loyal customers. Majority of the respondents indicate that the Sacco’s reward policy is not equivalent to that competitors thus influencing negatively to the company’s growth and competitiveness.

CHAPTER FIVE

SUMMARIES OF FINDINGS, CONCLUSION, RECOMMENDATIONS AND IMPLICATIONS FOR FURTHER RESEARCH

5.0 Introduction

The chapter summaries the major findings of the same time it answers the research questions.

5.1 Summary of findings

The research study reveals that the Sacco system is a mutual membership organization

It involves pooling of voluntary savings from members in form of shares. The savings or shares form the basis for extending credit to members. Credit is usually based on tree times the level of savings/shares. Sacco’s are regulated by the co-operative societies Act. Sacco societies respond to the people’s need for food and food production, housing, Education, small enterprise, transport, medical care, clothing and expenses in marriage, birth and death. Additionally they instill thrift, self –reliance, democratic principles, social/concern, leadership and management.

This study notes the growth of Sacco’s in numbers have tremendously increased over the years. A number of Sacco’s are increasingly getting interested in offering a limited range of banking services e.g selling of cheques, fixed deposits, salary advances e.t.c What is clear from the study is that Sacco’s have become a major source of financial services in Kenya. It is perhaps for this reason that some observers consider this as the segment of the industry with the highest hope for reaching the larger numbers of the poor in currently served area of the country.

This study has found out that the most common kind of “saving” in Sacco’ is compulsory. Its function is to act as a security (or collateral) for loans. A set sum has to be deposited at a set interval and there are penalties for failing to do so. The saving are held for a given period (or succession of periods) because savings cannot normally be drawn down until a loan is fully paid. These saving The Sacco’s can use them for on lending or buying stock in investments projects instead of letting the finances lie idle. Each savings should generate an income for the Sacco.

The Co-operative Act of 1977 gave co-operation greater Autonomy with the main responsibility for regulation and supervision vested in the members. The absence of a competent national or regional regulatory and supervisory framework and authority leaves Sacco to a highly vulnerable mismanagement and corruption

5.2 Answers to research questions

I Is customer relationship management a factor affecting the growth and competitiveness of Sacco`s

The study reveals that the way the customers are managed contributes a lot to the growth and competitiveness of the Sacco.Good customer relationship management has a greater impact to the image of the organization.The study reveals thatloyalty of the customer is all about the relationship management.The sacco need to maintain a mutual and trusted relationship with customer.This ensures that the customer feels more an owner than an external element of the organization

Ii Is management of quality in service delivery a factor that affects the growth and competitiveness of Sacco`s,

The study shows that the organization continues to be affected bypoor delivery of the service.The respondents are not comfortable with the present status quo of service delivery.They cite that the way they communicate with their customers should be improved.Some of the respondent suggested that they should be taken for further training on how to deliver services to the customers.Thus, the management of the service delivery chain affects the competitiveness and growth of the Sacco

Iii Are the strategies used in warding off competition a factor affecting the growth and competitiveness of Sacco`s?

The researcher through this study found out that the organization accepts that there is competition.The only intriguing part is that the organization lacks a definite way to counter this kind of competition.The respondents are not so much sure who their major competitors are . Some of the respondents are citing the other home-grown Sacco`s others are citing the microfinance`s . It would be a major milestone if the Sacco would identify their major competitor as this would help them in developing lasting strategies to outwit them and safeguard their share market.

iv.Is reward management system within the Sacco has hampered its growth and competitiveness?

This study reveals that the work force is the driving force to the prosperity of the organization.The employees of the organization would like to be renumerated just like their comrades in the same competing sector.The study reveals that for an organization to be competitive in the market .It must be able to renumerate and compensate its employees considerably well and within the prevailing market rates.

5.3Discussion and conclusion

In a stable political environment and enbling micro economy.Sacco`s are important in providing savings,credit,funds,transfer and other financial intermediation facilities to low-income households,micro-enterprises and marginal small-scale enterprises.Effective long-term provision of these facilities occurs through Sacco`s that adhere to the key principles of Sacco`s endowed by cooperative societies Act(2007)

It is to the public knowledge and in the public domain that the line between the Sacco`s product and microfinance products in the recent years has been blurred.Thus,there is need for the Sacco

that is purist to the shape themselves and move towards micro-finance products.This would rope in new clientele base leading to the growth – oriented organization.

Many syrveys that focus on low-income households or enterprises (micro or otherwise)continue to report that access to financial services is a constraining factors inhibiting their development and growth.This has led to efforts to address the gap that exists between the supply and demand of Sacco`s in Kenya.This perceived gap in Sacco`s could be due to issues arising on the supply or demand side.

On the demand side , some argue that Sacco`s target group is not financially sophiscated enough to participate in the formal financial sector or cannot afford market interests rates and therefore require government or donor fundend credit subsidies.On the supply side, some argue that profitable provision is not possible due to high transaction costs and institutional risks arising from asymmetric information between borrowers and lenders , the inability of the Sacco`s clients to generate sufficient volume of business to attract formal financial institutions,sparsely distributed populations or in adequate enabling infrastructure in rural areas.Whether valid or invalid , these are some of the reason why a gap continues to exist in the provision of Sacco products to loe-income households ,micro-enterprises and marginal small-scale enterprises in Kenya.

Therefore , for the growth of Kenya Sacco`s there is need to find an equitable ground or a point of reference and commonality of both the supply and the demand sides.In short,the Sacco sector has remained largely shallow , narrow and full efficient.

Rather the pontentiality of the Sacco`s has not been fully exploited in this nation.As a consequence there is a glaring gaps,development finance and I n financing for agriculture and medium and small enterprises.

The Sacco`s are supposed to mobilize resourcesand one of the core problems of domestic resource mobilization and channeling them to small- scale enterprises production activities through strengthening links between formal and informal financial sectors(market)

5.4 Recommendations

There should be deliberate effort on the Sacco`s to encourage their savers to save more.Effort should be made to assist sacco`s to acquire and develop the capacity to admonster savings.This is not just legality.It is about developing programmes,systems and bureaucracies that can effectively deliver savings services.

Most Sacco`s according to Sacco report of 2007 have found the transformation process hard for them.They have related this to costs and cultural orientation or change of the attitude of the employer.

This hurdle can be overcome by looking and embracing these opportunities.This canbe done through the sharing ,for a fee of distributing networks currently owned by disperateSacco1s and microfinance`s players to reduce transaction costs of loan disbursement,collection of repayments and savings mobilization.Other ways that the costs can be reduced include the separation of financial from non-financial service provision in the auditing of Sacco`s performance , the incorporation of strategies to reduce the risk exposure from social factors in the Sacco`s institutional model,such as HIV/AIDS,embracing of technological innovations to further reduce

transaction costs,incliding credit and risk management tools,and the development and use of cost-friendly enabling infrastructure to promote financial sustainability.

Apart from the structure,ownership and control , another key criterion of good governance is public timely and full reporting of an institution activity and results

From this perspect the quality objection information in Kenya`s Sacco`s sectors need to be improved before policy intervention can be considered.Professional auditing firm can be a useful provider of financial capturing and reporting services for a fee,under their corporate social responsibilitymandates.Based on reliable information,an accurate snapshot of the complete picture of Sacco`s in Kenya can be represented periodically,which will also enable the tracking of dynamics overtime.

An appropriate legal framework that envisiage a role for private institutions in the regulation and supervision of Sacco is based on commercial/incentives such as access to external capital during peak demand for credit will contribute immensely to the development of this sub sector.State regulation and supervision is on the other hand more likely to diminish these organizations energy without guaranteeing greater efficiency,transparency or facilitating innovation in their operations.

5.5 Suggestions for further research

This study was based on the competitiveness and growth of Sacco`s.The researcher concentrated on Meru Farmers Central Sacco.This study would be interesting and of more depthif it roped in all the Sacco`s within the region.

This would bring out the wide knowledge and information held up by various finance institutions within the area.This would form much of the bulk of information and strategies needed to revitalize the minded Sacco`s like Meru Central Farmers Sacco.

REFERENCES

1. Armstrong(2003),Human Resource Management:Prentice Hall New Jersey2. Altfield (2002)Customer Loyalty;Houghton Muffin;N.Y3. Fowler a.(1990):Programme Management;The MBOs of 1990`s Prentice Hall N.J4. Fredrick F (2000) Learninf from the Customer:HBS Boston U.S.A5. McCarthy(1990) Basic Marketing;McGrawhill Publishers U.S.A6. Michael E. Porter (1998) Competition strategy,Techniques for Analyzing Industries and

Competitions.Prentice Hall N.J7. Strivers(1998) How non financial measures are used , strategic finance wall street journal

New York.8. Spangeberg(1994) Understanding and Implementing Performance Management;Ojuta

and Company LTD,London9. Suganthi l.(2005) Total Quality Management :Prentice Hall New Delhi.10. Leonard Burry(2001)Great Service : A framework for action Houghton Muffin

publishers.New York11. LOln Alfie(1986)The case against competition;Houghton Muffin Publishers.N York12. Kortler P(2003);Marketing Management:Prentice Hall Publishers N.York13. Government of Kenya (1997) The cooperative Act Societies Act. Cap 490 Government

Printers Nairobi.14. MUdibo,EK(2005)Highlights of the Sacco movement and current trends in

KUSSCO.Nairobi15. Nzuve N.M (1999) Organization Behaviour,University of Nairobi Press,Nairobi16. Zeller, M and M Sharma(2000)”May borrow,more save, and all insure implication for

food and microfinance policy” , Number 25;IFPRT.

APPENDIX

WORK PLAN

This chart below depicts the activities conducted by the researcher during the researcher study.

The researcher embarked on the following activities.

ACTIVITIES JULY SEPTEMBER OCTOBER DECEMBER

Development of the research problem

***

Pilot study ***

Proposal development and presentation

** **

Field Survey ***

Data Analysis and report writing

***

Project Presentation **

Source:Author 2008

BUDGET

The expenditure that the researcher incurred was as follow

ITEMS QUANTITY COST PER UNIT TOTAL COST

Stationery 4 Rims of Foolscaps and typing papers

@Sh.300 Sh.1200

Typsetting services One Sh.6000 Sh.6000

Transport to Library

Sh.3000 Sh.3000

The web Sh.3500 Sh.3500

Miscellaneous Sh.5000 Sh.5000

TOTAL Ksh.18700