Abstract:
SACCOS is a significant organization that provides financial assistance to the poor who are
not covered by formal financial institutions. However, they also face a number of challenges
which do affect their performance. Most of the previous studies in SACCOS did not
concentrate on their performance. The aim of this study therefore, was to assess the factors
influencing the financial performance of Saving and Credit Co-operative Societies in Meru
District, Tanzania. The study utilized a cross-sectional research design, collecting data from a
single point in time, with a sample size of 133 respondents selected through a census survey.
However, the study involved randomly selecting respondents from individual SACCOS and
analyzing their financial performance using Statistical Package for Social Science software.
The data was presented in tables, revealing that all independent variables significantly
influenced the financial performance of SACCOS in Meru District. The study concluded that
loan security is a viable measure in ensuring loan repayment and reduction in loan delinquency
ratio which then boosts financial performance of SACCOS. In addition, the core capital
management significantly influences financial performance of SACCOS by ensuring that it
adheres to core capital requirements. The study recommended that SACCOS should formulate
feasible loan security policies that limit loan delinquency ratios while at the same time
attracting new customers so as to boost SACCOS’ share capital. Further, SACCOS should
adhere to core capital management requirements so as to avoid liquidation risks and three;
SACCOS should enact feasible dividend policies that guarantee consistent dividend payouts
and reinvestments so as to attract new and retain old customers
