Effect of Commercial Bank Loans on Financial Performance of Savings and Credit Co-Operative Societies in Kisumu, Kenya

Abstract

Savings and credit cooperative societies' core business is mobilizing savings from members, and then providing them with credit at affordable interest rates. However, SACCOs have received stiff competition from commercial banks, as a result, many SACCO members have moved to borrow from the commercial banks. If this trend continues unchecked, the SACCO societies might collapse. Hence, the need to find out how commercial bank loans have affected the financial performance of Savings and Credit Co- operative societies. The general objective of this study was to investigate the effect of personal loans offered by commercial banks on the financial performance of savings and credit cooperative. The specific objectives of the study were; to determine the effect of commercial bank loans on the savings and lending volumes of SACCOs, to investigate …