Strategic change management and performance of deposit taking Savings and Credit Co-operative Societies in Nairobi City County, Kenya

Abstract

The failure of numerous deposit taking Savings and Credit Cooperative, most notably Tena Savings and Credit Cooperative, as well as the suspension of 13 more from specific activities and the loss of three more licenses, are all the result of Deposit Taking Savings and Credit Cooperatives' incapacity to withstand the new game features. The majority of shareholders attribute the inability of many Deposit Taking Savings and Credit Cooperatives in Nairobi County to cover operational costs, increase market share, pay dividends, or expand into new regions to Deposit Taking Savings and Credit Cooperatives' change management practices. The purpose of the study was to establish the effect of change management strategies on performance of DT-SACCOs in Nairobi City County, Kenya. The objectives of the study were to determine the influence of organizational learning, communication strategies, leadership change, and stakeholder’s involvement on performance of DT-SACCOs in Nairobi City County, Kenya. The study was guided by Lippit Phases of Change Theory, Organizational Learning Theory and Resource Based View Theory. Descriptive research design was used. The 42 registered DT-SACCOs in Nairobi County, Kenya, served as the study's unit of analysis. The unit of observation was four respondents from each SACCO totaling to 168 respondents. Stratified and simple random sampling was used. A sample of 118 was arrived at using Stratek formula. A questionnaire was used to collect data. Analysis of data was through the use of Statistical Package for Social Sciences. Both descriptive and inferential analysis was used. Data was presented in tables and figures. The findings study found that leadership change, organizational learning, stakeholder involvement and communication significantly affect performance of DT-SACCOs (p<0.05). The study recommends that SACCO leadership should demonstrate a strong commitment to the process of change management. The study also recommends that involving all employees and stakeholders in the strategic change process is crucial.