EFFECT OF CASH MANAGEMENT ON FINANCIAL PERFORMANCE OF DEPOSIT TAKING SACCOS IN KENYA

Abstract

SACCOs rely primarily on member deposits as a source of funding for their lending activities, making effective cash management essential for maintaining member confidence, meeting withdrawal demands, and sustaining operations. The objective of the study was to determine the effect of cash management on financial performance of tier one DT-SACCOs in Kenya. The trade-off theory reviewed was based on the key variable. A descriptive research design was adopted for this study. One hundred sixty-six people, including accountants, credit managers, risk managers, internal auditors, and compliance officers, made up the target audience. The stratified sampling strategy was employed in this investigation. In order to gather primary data, the questionnaire was used primarily. In addition to obtaining formal consent from the National Council for Research, Science and Technology, the researcher sought university clearance. The study showed that the independent objective namely cash management positively influenced financial performance of tier one DT- SACCOs. Managerial Recommendations: Enhance Cash Management. Policy Recommendations: Develop Comprehensive Cash Management Policies Key