International Journal of Social Science & Economic Research
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Peter Simotwo

Volume - 2 Issue - 8, Pages - 4088-4102

Savings and Credit Cooperative Societies (SACCOs) in Kenya like any other financial institution face major challenges that are posed by ever-changing and the turbulent competitive business environment. SACCOs in Kenya are realizing that intense competition within the movement necessitates the design of competitive strategies to guarantee their performance. This study focused on the establishment of differentiation strategies on member satisfaction in Kenya Police Savings and Credit Co-operative Society. The rationale was that the problems facing members of the Kenya Police SACCO have not been appropriately documented in the existing empirical studies in Kenya. The present study sought to generate baseline data that can be used to establish the products and services that can be differentiated so as to satisfy Kenya Police SACCO members with the help of three objectives: To identify the strategic core competence levels, differentiated technology and to explore the relationship of member service and member satisfaction in Kenya Police SACCO. The study employed a cross sectional descriptive survey design to establish strategic differentiation on member satisfaction. Stratified random sampling technique was used to draw a sample size of 120 (10%) from the target population of 1200 members from both police and non-police SACCOs. Descriptive and inferential statistics (General Linear Model) was used to make comparisons between police and non-police SACCOs. Using the methodology proposed, the study successfully achieved the stated objectives of the study. To be more competitive, the police SACCO must embark on strategies aimed at offering quality services which can attract clients across the entire social spectrum. A stepping up of technology in accessing the services was a move in the right direction. Most financial institutions have adopted mobile and internet banking which the high end clients find attractive and this can be used as a basis to attract more clients. It was observed from the study that part of the group of respondents who reported the services were differentiated and quoted lower cost of interest at about 10% compared to other financial institutions at over 20%. Most individuals who purchase products do so with cost consideration. This means that the police SACCO has an advantage but fails to leverage it. To counter this, police SACCO should embark on advertisement campaigns on popular media such as radio, news papers, internet, and television which though expensive can bear fruit in terms of more members. The study concluded that the results were as reliable as any other known study on perception of member satisfaction.

Cite this Article:

[Simotwo, Peter. "DIFFERENTIATION STRATEGIES AND MEMBER SATISFACTION IN KENYA POLICE SAVINGS AND CREDIT CO-OPERATIVE SOCIETY." International Journal of Social Science and Economic Research, vol. 2, no. 8, 2017, pp. 4088-4102.]

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