Abstract:
This study sought to establish the relationship between stakeholder generic strategies and the
financial performance of deposit taking Savings and Credit Co-operatives societies in Kenya.
The SACCO subsector is part of the Kenyan Co-operative sector comprising of both financial
and non financial cooperatives. Saving and credit co-operative (SACCO) are the financial
cooperatives. They are an important part of the financial sector in Kenya, providing savings,
credit and insurance services to a large portion of the population. Stakeholder management is
paramount in creating trust and confidence to key stakeholder especially in deposit taking
SACCOs, and in keeping them satisfied. It has been argued that stakeholder management is
decisive in determining whether or not a company is or remain successful and that it has direct
environment and bottom line result of an organization. Systematic attention to all parties who
affect or may be affected by the organization’s behavior is critical to that organizations success.
Stakeholder management studies have mostly concentrated on normative branch of stakeholder
management theory. It is however important to extend the study to member - based cooperatives.
Descriptive research method was employed in this study. Questionnaires ware used to
collect primary data. To ensure that the research instrument yields valid data, the researcher
engaged expert in the relevant field in scrutinizing it. Pilot study was carried out to check on the
reliability and validity of the instrument and a Cronbach’s Alpha of 0.915 was obtained. Data
was collected from a sample of 64 Deposit taking SACCOs out of a population of 180 licensed
DTS. This made a sample of 130 respondents Data analysis was done using Statistical Package
of Social Science (SPSS) Version 20.
