The influence of governance on the performance of SACCOS: a case study of Lumumba SACCOS

The study set out to investigate whether good corporate governance has influence in the performance of SACCOs; Governance has influence in the performance of SACCOSs. Governance is a key component in any success endeavor as it puts structures in place to ensure transparency, accountability and sound management practices for the benefit of members. To achieve objective the study used a sample of 26 members. 5 staff and 4 members of the probe committee board who were randomly selected. Data collected by use of questionnaire instrument and interviews, observation and focus group discussions were computed and analyzed to determine the impact of the variables on performance. The findings established that good corporate governance practices positively influence the performance of SACCOs. Based on the findings, it was therefore concluded that a balanced and well constituted governance structure will lead to attainment of objectives. The followings major recommendations were made, the government should review the legal framework and strengthen supervision of SACCOs. SACCOs should embark on the provision of financial education to their members to stimulate awareness. SACCOs should implement proper guidelines and safe governance principles for them to become financial institutions of choice.