Title:
Dividend Decisions and Financial Performance of Savings and Credit Cooperatives in Kisii Central Sub- County

Authors:
Nyasani Gilborne Nyaigoti, Dr. Julius Miroga, Dr. Gilbert Ochangwa, Kenya

Abstract:

The financial performance of Savings and Credit Cooperatives (SACCOs) plays a critical role in ensuring their sustainability and capacity to meet members’ financial needs. This study sought to examine the influence of dividend decisions on the financial performance of SACCOs in Kisii Central Sub-County, Kenya. The study adopted a descriptive research design and targeted registered SACCOs operating within Kisii Central Sub-County. Data was collected using secondary data. Descriptive and inferential statistics, including regression analysis, were used to analyze the data. The findings revealed that dividend decisions, particularly consistent dividend payout policies, significantly impact financial performance indicators such as profitability, liquidity, and member retention. SACCOs that maintained stable and well-structured dividend policies showed better financial performance compared to those with irregular or unsustainable dividend practices. The study concluded that prudent dividend decision-making is vital for improving SACCOs' financial outcomes and enhancing member satisfaction. The study recommends that SACCO management should adopt clear and sustainable dividend policies, strike a balance between dividend payouts and reinvestment, and ensure transparency in dividend decision-making. These measures would enhance financial performance.

DOI: https://doi.org/10.51505/IJEBMR.2025.9520