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

John Ndung'u Gachenga, Dennis Kamau Muthoni and Wilson Kipkemboi Metto
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John Ndung'u Gachenga: School of Co-operatives and Community Development, The Co-operative University of Kenya, Nairobi, Kenya
Dennis Kamau Muthoni: School of Business and Economics, The Co-operative University of Kenya, Nairobi, Kenya
Wilson Kipkemboi Metto: School of Co-operative and Community Development, The Co-operative University of Kenya, Nairobi, Kenya

Studii Financiare (Financial Studies), 2025, vol. 29, issue 2, 6-22

Abstract: 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.

Keywords: credit management practices; firm size; financial sustainability (search for similar items in EconPapers)
JEL-codes: G21 L25 P13 (search for similar items in EconPapers)
Date: 2025
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