Title:
Loan Diversification Strategies and Financial Performance of Deposit-Taking Savings and Credit Cooperative Societies in Mombasa County

Authors:
Dr. Shukrani Kenga & Dr. Banafa Abdulkadir Ali, Kenya

Abstract:

The objective of the study was to investigate the influence of Loan Diversification Strategies on the financial performance of Deposit-Taking Saving and Credit Cooperative Societies in Mombasa County. The study adopted the descriptive research design. The target population included 109 participants from six-Deposit-Taking Saving and Credit Cooperative Societies in Mombasa County. The stratified random sampling technique used resulted into having 86 units of analysis. The study used primary data which was collected using questionnaires. The gathered data was analysed using the Statistical Package for the Social Sciences version. The study used the simple linear regression model in data analysis. The hypothesis testing led to the rejection of H₀₁. The rejection of H₀₁ confirmed that Loan Diversification Strategies have a positive and significant influence on the financial performance of Deposit-Taking Saving and Credit Cooperative Societies in Mombasa County. The study concludes that Loan Diversification Strategies have a significant role in enhancing the financial performance of Deposit-Taking Saving and Credit Cooperative Societies in Mombasa County. The study recommends that Deposit-Taking Saving and Credit Cooperative Societies in Mombasa County should prioritize the implementation of robust Loan Diversification Strategies in order to enhance their financial performance. The study also recommends that policy formulating and regulatory bodies should devise mechanisms and enforce policies which are geared towards enabling Deposit-Taking Saving and Credit Cooperative Societies to develop strategies which will enable them monitor their credit.

DOI: https://doi.org/10.51505/IJEBMR.2024.81111