Stakeholders’ Perception on the Effect of Savings and Credit Cooperative Societies on Performance of Matatu Businesses in Taita Taveta County in Kenya

Abstract

Cooperatives are formed and owned by a group of individuals for the purpose of improving their standard of living and enjoying the social services provided. The underlying philosophy of cooperative movement emphasizes on service and the well-being of members and governed by seven cooperative principles that have been universally accepted and adopted by the International Cooperative Alliance. The Cooperative movement in Kenya is an important player in the social economic development of this country. Cooperatives cut across all sectors of the economy and provide an important framework for mobilization of both human and capital resources. The general objective of this study was to establish the stakeholders’ perceptions on Savings and Credit Cooperative Societies (SACCOs) on matatu business in Taita Taveta County in Kenya. This study adopted a survey design while pursuing a descriptive structure. The target population of this study comprised of; matatu owners, local authority employees, route operators and matatu users within Taita Taveta County. Stratified random sampling was used to identify individual respondents. The study aimed to reach out to a sample of at least 384 respondents. Primary information was gathered by use of a questionnaire. The study used both quantitative and qualitative techniques in data analysis. The data was represented using graphs, tables and pie-charts. It can be concluded that the matatu owners perceived that SACCOs had good and effective policies in place hence increased performance. It can also be concluded that the local authority staff have helped in cutting out costs for the SACCOs to be given to other cartels as they are in charge of parking fees. It can therefore be concluded that SACCOs need to have good governance and short routes for making decisions regarding the operation of matatus. It is recommended to the SACCO management to ensure that all members of SACCO are bonded together and the policies are followed fully to maximize profitability and success of the business. It is recommended that the management conducts a market survey of other SACCOs performances in order to bring them to par with the other operators. It is recommended that the SACCOs and local staff authority should harmonize their relationship and ensure that the control of matatus is not a tag of war between them. This help the route operators have harmonized working conditions hence able to deliver the services well.