THE EFFECTS OF PORTFOLIO DIVERSIFICATION ON PERFOMERMANCE OF SACCOS; A CASE STUDY OF NANDI HEKIMA SACCO.
This study is to determine the effects of portfolio diversification on the performance of Nandi Hekima Sacco Ltd. The study put into consideration the following research questions; Does credit services diversification influence SACCOs loan sales? What are the types of credit services offered by SACCOs? Does credit services diversification directly affect SACCOs’ financial performance? Do the customers have any significant influence on types of credit services to be offered? Does credit services diversification influence the SACCOs membership? For a Sacco to be able to effectively compete with other upcoming banking institutions it must among other things introduce a variety of services so as to improve its financial goals achievement for both members and management. This may not work well until an optimal level of the operational portfolio is reached. The study employed a case study research design which is believed to be an intensive descriptive and holistic analysis of the single entity. The study will target a population of 107 which will consist of junior employees and management level employees . From the target a population the researcher will use stratified sampling to pick the sample size for the study. The researcher will use questionnaires and interviews as data collection instruments
1.1 Background of the study
Co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, cultural needs and aspirations through a jointly owned and democratically controlled enterprise ( Ouma, 1978). A cooperative society is a business entity geared towards the promotion of the Welfare and economic interact of their members and this is turn will contribute towards the attainment of the overall national development goals of poverty alleviation and wealth creation (Murangu K. Manyara)....