Abstract:
Gusii Mwalimu SACCO Society is a member owned and controlled Savings and Credit Society. It offers a
diversity of financial services which include loaning; members’ welfare fund; risk management fund; credit
facilities; and savings facilities. Reports from Kenya Union of Savings and Credit Cooperative Society indicated
that membership in the SACCO was declining due to: delay in loan disbursement, poor ATM services,
inadequate variety of FOSA services, inefficient BOSA services, and inadequate credit facilities. If this trend
continued, it could impair the financial position of the SACCO, cause redundancy of workers, and suffering of
clients. The main objective of the study was to assess the effect of performance management practices on
provision of financial services by SACCOs. The study adopted a descriptive research design. The target
population comprised 1012 members of the SACCO. The study used stratified and random sampling criteria
to obtain a sample of 152 respondents. Semi-structured questionnaires were used to collect both
quantitative data and qualitative data. Data were analyzed using descriptive statistics such as frequencies
and percentages. Regression analysis and Pearson Correlation were used to establish the strength, direction
and significance of the relationship between performance management practices and provision of financial
services. Data were presented using tables and charts. The study concluded that SACCO management should
put specialization into practice for efficiency and effectiveness. These research findings can provide useful
knowledge to academicians, researchers, and SACCOs to improve their management practices.
