Browsing by Author "Nekesa, Hope Anita"

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    Liquidity risk management and financial performance of SACCOS a study of selected savings and credit cooperative societies in Kampala
    (Kyambogo University, 2021-05) Nekesa, Hope Anita
    Effective and efficient liquidity risk management is essential in boosting the financial performance of SACCOs globally. The purpose of the study was to examine the relationship between liquidity risk management and financial performance of SACCOs in Kampala. The study objectively; examined the relationship between capital adequacy and financial performance of SACCOs in Kampala, established the relationship between financial gap ratio and financial performance of SACCOs in Kampala, established the relationship between cash generation and financial performance of SACCOs in Kampala, and established the effect of credit policy on financial performance of SACCOs in Kampala. The study employed a correlation research design incorporating both quantitative and qualitative approaches. The study used a sample size of 157 SACCOs in the divisions of Kampala. The study used both probability and non-probability sampling methods in selecting respondents which acted as units of inquiry. The findings revealed a statistically significant relationship between capital adequacy and financial performance of SACCOs in Kampala (r=0.211, P<0.05). The findings show that financial gap ratio had a positive and significant relationship with financial performance of SACCOs in Kampala (r=0.396, P-value<0.05). The study found that there was a moderate positive and significant relationship between cash generation and financial performance of SACCOs in Kampala (r=0.6, P-value<0.01). The findings indicated that credit policy had a positive and significant effect on the financial performance of SACCOs in Kampala (B=.772, P value<0.05). In conclusion, the study proved that effective capital adequacy, financial gap ratio, cash generation, and credit policy play a crucial role in enhancing financial performance of SACCOs in Kampala. In recommendation, there is need by SACCOs in Kampala to ensure that there is enough funds available to support their continued operation. The SACCOs should continue charging small interest rates on borrowed funds to increase on the proportion of borrowers and also reduce on loan defaulters. Lastly, there should be continued regular cash budgeting in SACCOs since it eliminates liquidity issues and enhances financial performance.