Abstract

The purpose of this study investigated the effects of saving and credit cooperative credit policies on members saving mobilization in Turkana County, Kenya. It was guided by the following research questions: What are the effects of credit period on members saving mobilization? How are the effects of credit policies on members saving mobilization? And to what extent are the effects of collection policy on members saving mobilization? The study was guided by the following theories the 5 C’s Model and Neoclassical Growth Theory. The study employed a descriptive survey design. The study targeted 33 managers from 33 registered Sacco’s of Turkana County, 70 credit officers and 320 members of the SACCOs. To select the representative Sacco’s the researcher used a systematic sampling where each 2nd Sacco’s from the list of the 35 registered Sacco’s in Turkana County is sampled, further the researcher picked all Sacco managers through census methods while for simple random sampling was used to select the credit officers and customers. Questionnaires were used as the main tool for data collection. The inferential statistic multiple regressions were also used to analyze data. Data was then presented in form of tables with frequency and percentages. Credit period Sacco extends credit to customers it recognizes the possibility that customers will be unable to pay or unwilling to pay as his objective. The study found out that Sacco’s must establish policies for determining who will receive credit for how long and how much. On credit standards and members saving mobilization survival of most Sacco’s depends entirely on successful credit standards that revolves on funds and savings made to them by the members. Finally Collection policy the collection effort should, therefore aim at accelerating collections from slow payers and reducing bad debt losses. This study concludes that Saccos must understand not only the risk posed by each credit but also how the risks of individual loans and portfolios are interrelated. This study recommended that a further research to be replicated in the other SACCOs in other counties.