Rural Cooperative Case Study

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1.1 Background The modern co-operative concept began in 1844 in Rochdale village, Manchester in England. It has since developed globally as a socio-economic movement with its own distinct identity, history and purpose. In 1864 the first rural credit union was established by Raiffeisen in German to cater for the needs of the rural people. The rural communities were deemed nonbank able owing to very small, seasonal flows of cash and shortages of human resources (WOCCU, 2008). Since this period there has been a rapid growth in the cooperative movement worldwide premised upon the organizational methods of Raiffeisen. The cooperative movement spread all over Europe, Northern America, Latin America and Asia from 1900 to 1930 and thereafter…show more content…
Financial services also offered by SACCOs include ATM, Mobile money transfer and custody of valuable documents. The SACCO generates income by providing these services which it uses to meet the related costs. Any income that remains after these costs is paid out to members as dividends and interest based on their shares or deposits. The Sacco industry is part of the cooperative sector in Kenya, which has impacted on lives of many disadvantaged Kenyans over the years. The sector may be categorized into financial and non-financial cooperatives. Non-financial cooperatives deal with the marketing of members’ produce and services such as dairy, livestock coffee, tea, handicrafts and many more similar cooperatives. On the other hand financial cooperatives comprise Saccos, housing and investment cooperatives (Gardeklint,…show more content…
A case study of Kenya Highlands SACCO, Kericho County. The specific objectives of the study will be: i. To examine effect of internal capital on growth of Tea SACCOs in Kenya. ii. To determine the effect of technology on growth of Tea SACCOs in Kenya. iii. To evaluate the effect of managerial abilities on growth of Tea SACCOS in Kenya. iv. To establish how competition from commercial banks and other financial Institutions affect the growth of Tea SACCOs in Kenya 1.4 Value of the Study The finding of the study are essential to many Institutions since the societies have a big role to play as the country struggles to turnaround the economy, of particular interest the study will benefit the management of Tea SACCOs who will use it to understand the factors that affect growth of SACCOs within the sector in Kenya and what areas to concentrate on in order to gain competitive advantages. The Members of the society will use the report to understand SACCO’s dynamics and especially in electing leaders who will steer the society mission in future. Other organisations will use the report so as to give strategic guideline and understand their role in developing such societies. The Government through the Commissioner will have an interest in the report for policy decisions and improve regulations of societies. Other researchers will find it useful as a point

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