CREDIT MANAGEMENT PRACTICES, FIRM SIZE AND FINANCIAL SUSTAINABILITY OF DEPOSIT TAKING SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN KENYA

The study examined the moderating effect of firm size on the relationship between credit management practices and the financial sustainability of DT-SACCOs in Kenya. The study was grounded in information asymmetry theory, utilising a positivist paradigm and an exploratory research design. Th...

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Main Authors: John Ndung'u GACHENGA, Dennis Kamau MUTHONI, Wilson Kipkemboi METTO
Format: Article
Language:English
Published: “Victor Slăvescu” Centre for Financial and Monetary Research 2025-06-01
Series:Financial Studies
Subjects:
Online Access:http://fs.icfm.ro/Paper01.FS2.2025.pdf
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author John Ndung'u GACHENGA
Dennis Kamau MUTHONI
Wilson Kipkemboi METTO
author_facet John Ndung'u GACHENGA
Dennis Kamau MUTHONI
Wilson Kipkemboi METTO
author_sort John Ndung'u GACHENGA
collection DOAJ
description The study examined the moderating effect of firm size on the relationship between credit management practices and the financial sustainability of DT-SACCOs in Kenya. The study was grounded in information asymmetry theory, utilising a positivist paradigm and an exploratory research design. The target population consisted of 176 finance managers from 176 DT-SACCOs, providing a robust framework for analysis. The sample size was obtained using Yamane's formula, which resulted in 122 respondents, with a high response rate of 98 per cent for the structured questionnaires administered. Data was analysed using descriptive and inferential statistics. The inferential statistics revealed a strong positive association between credit management practices and financial sustainability, with p-values of 0.013. Notably, the Nagelkerke R-squared change demonstrated that firm size moderates the connection between credit management practices and financial sustainability. The study recommends enhancing financial sustainability through credit information sharing and establishing a deposit guarantee fund to protect members' funds in the event of license revocation or closure.
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publisher “Victor Slăvescu” Centre for Financial and Monetary Research
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spelling doaj-art-045a6f29b1be45628d6ee8a31cf6d9c62025-08-20T03:16:52Zeng“Victor Slăvescu” Centre for Financial and Monetary ResearchFinancial Studies2066-60712025-06-01292622CREDIT MANAGEMENT PRACTICES, FIRM SIZE AND FINANCIAL SUSTAINABILITY OF DEPOSIT TAKING SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN KENYAJohn Ndung'u GACHENGA0Dennis Kamau MUTHONI1Wilson Kipkemboi METTO2School of Co-operatives and Community Development, The Co-operative University of Kenya, Nairobi, Kenya School of Business and Economics, The Co-operative University of Kenya, Nairobi, KenyaSchool of Co-operative and Community Development, The Co-operative University of Kenya, Nairobi, KenyaThe study examined the moderating effect of firm size on the relationship between credit management practices and the financial sustainability of DT-SACCOs in Kenya. The study was grounded in information asymmetry theory, utilising a positivist paradigm and an exploratory research design. The target population consisted of 176 finance managers from 176 DT-SACCOs, providing a robust framework for analysis. The sample size was obtained using Yamane's formula, which resulted in 122 respondents, with a high response rate of 98 per cent for the structured questionnaires administered. Data was analysed using descriptive and inferential statistics. The inferential statistics revealed a strong positive association between credit management practices and financial sustainability, with p-values of 0.013. Notably, the Nagelkerke R-squared change demonstrated that firm size moderates the connection between credit management practices and financial sustainability. The study recommends enhancing financial sustainability through credit information sharing and establishing a deposit guarantee fund to protect members' funds in the event of license revocation or closure. http://fs.icfm.ro/Paper01.FS2.2025.pdfcredit management practicesfirm sizefinancial sustainability
spellingShingle John Ndung'u GACHENGA
Dennis Kamau MUTHONI
Wilson Kipkemboi METTO
CREDIT MANAGEMENT PRACTICES, FIRM SIZE AND FINANCIAL SUSTAINABILITY OF DEPOSIT TAKING SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN KENYA
Financial Studies
credit management practices
firm size
financial sustainability
title CREDIT MANAGEMENT PRACTICES, FIRM SIZE AND FINANCIAL SUSTAINABILITY OF DEPOSIT TAKING SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN KENYA
title_full CREDIT MANAGEMENT PRACTICES, FIRM SIZE AND FINANCIAL SUSTAINABILITY OF DEPOSIT TAKING SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN KENYA
title_fullStr CREDIT MANAGEMENT PRACTICES, FIRM SIZE AND FINANCIAL SUSTAINABILITY OF DEPOSIT TAKING SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN KENYA
title_full_unstemmed CREDIT MANAGEMENT PRACTICES, FIRM SIZE AND FINANCIAL SUSTAINABILITY OF DEPOSIT TAKING SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN KENYA
title_short CREDIT MANAGEMENT PRACTICES, FIRM SIZE AND FINANCIAL SUSTAINABILITY OF DEPOSIT TAKING SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN KENYA
title_sort credit management practices firm size and financial sustainability of deposit taking savings and credit cooperative societies in kenya
topic credit management practices
firm size
financial sustainability
url http://fs.icfm.ro/Paper01.FS2.2025.pdf
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