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Volume 11, Issue 3, 2025

Abstract

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Savings and Credit Cooperative Organizations (SACCOs) play a pivotal role in promoting financial inclusion, reducing poverty, and supporting social welfare especially in rural and underserved areas. However, 21% of DT-SACCOs do not operate with prudent financing decisions exposing themselves to financial stress and economic shocks. Even among the SACCOs that met compliance requirements, a drop in the capital adequacy ratio from 16.4% in year 2022 to 16.1% in year 2023 signaled alarming financial strain posing a threat to the existing SACCOs. Alarmingly, 35% of DT-SACCOs have ceased operations attributable to improper financing decisions with three delicensed in January 2025, raising significant concerns over their long-term financial health. Thus, the current study aimed to assess the moderating effect of SACCO size on the relationship between financing decision practices and the financial sustainability of Deposit-Taking Savings and Credit Cooperative Organizations (DT-SACCOs) in Kenya. Anchored on the pecking order theory, the research adopted a positivist paradigm and a cross-sectional survey design. A total of 176 finance managers representing 176 licensed DT-SACCOs constituted the study population. Data were collected by structured questionnaires with a 98% response rate as a sample of 122 respondents was selected by Yamane’s formula. Results from a binary logistic regression indicated that introducing the moderator led to a slight increase in the Nagelkerke R², while the inclusion of the interaction terms further strengthened the relationship between predictor variables and financial sustainability. The findings confirmed that SACCO size had a statistically significant moderating effect on this relationship. This study recommends integrating scenario-based stress testing into financing decisions to assess their long-term impact on different funding structures, so as to facilitate their confrontation of different economic conditions.

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This case study evaluated the effectiveness of performance measurement framework (PMF) in elevating operational efficiency, with a primary focus on Simbisa Brands, the largest chain in Zimbabwe. The research on the fast food industry in this developing country investigated how the Balanced Scorecard (BSC) could be integrated to monitor the key performance indicators (KPIs) of an organization, in respect of financial performance, customer satisfaction, internal processes, and employee training. Using a mixed method approach, structured questionnaires were distributed to employees, and interviews were conducted with key employees and stakeholders at Simbisa Brands. Results indicated that while the PMF of Simbisa aligned with its strategic objectives, significant challenges and obstacles to operational effectiveness existed in data quality, employee engagement, and customer satisfaction. Moreover, the unstable economic environment in Zimbabwe further complicated financial reporting and cost management. The BSC framework, which aligned KPIs with strategic goals, could effectively track financial performance and customer loyalty in the industry to boost operational excellence and support sustainable growth. Recommendations to stakeholders were proposed to continuously improve data quality, enhance employee involvement, and refine performance metrics to deliver the best purchasing experiences. For Simbisa Brands and other similar organizations, this research offered valuable insights to assist them in gaining competitive advantages and long-term success in the face of challenging business environments.

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