INFLUENCE OF COOPERATIVES POLICY FRAMEWORK ON MEMBERS’ INVESTMENT IN KENYA

Onchangwa Gilbert

School of Business and Public Management, Mount Kenya University, Kenya

Ongoncho Samuel

School of Business and Public Management, Mount Kenya University, Kenya

Onchonga Duncan

School of Human Resource Development, Jomo Kenyatta University of Agriculture and Technology, Kenya

Beth Njeri

School of Human Resource Development, Jomo Kenyatta University of Agriculture and Technology, Kenya

ABSTRACT

Cooperatives are effective vehicles for economic growth. Cooperatives, like other financial services providers, can be used to achieve Kenya’s vision 2030 on financial services. This is only possible if cooperatives can formulate good policy framework that can enhance their members’ investment. The investment culture is very low in Kenya. This study, therefore, sought to investigate into the influence of cooperatives policy framework on members’ investment in Kenya. A descriptive research design guided the study. Whereas Periodicals, internet and published SACCO reports enabled the collection of secondary data, closed and open ended questionnaires were used to collect primary data. Simple random sampling aided the selection of 379 respondents from a population of 25145 SACCO members. Editing and sorting of data was done. Analysis of data was carried out using percentages. The study concluded that a good cooperative policy framework lends in time, at low interest rates, provides members with education and training on viable investment opportunities, provides a diversity of loan products and gives attractive dividend payouts to their members. Based on the above findings, the following recommendations were proposed: cooperatives should formulate and embrace good policy framework as this was found to enhance cooperative members’ investment. This would accelerate the achievement of Kenya’s vision 2030 on financial services.

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