Ethical Values Education and Loans Repayment Performance in Savings and Credit Cooperative Societies
Evidence from Uasin Gishu County, Kenya.
DOI:
https://doi.org/10.58547/4f0wx195Keywords:
Ethical Values, Education, SACCOS' SustainabilityAbstract
Non-Performing Loans (NPLs) continue to threaten the sustainability of Savings and Credit Co-operative Societies (SACCOs) a concern highlighted by both the International Labour Organization (ILO) and the International Co-operative Alliance (ICA). Although various solutions have been proposed, evidence on what works best remains limited. This study explored how educating SACCO members’ education on ethical values and its influence on loan performance and the long-term sustainability of SACCOs in Uasin Gishu County, Kenya. The study targeted all 238 registered SACCOs in the county, from which 24 were selected for the study. Data were gathered through questionnaires and interviews with SACCO members and managers. Before analysis, quantitative data were cleaned, coded, and checked for accuracy, then analyzed using binary logistic regression. Qualitative data were analyzed using content analysis. The results show that ethical-values education—particularly training centered on honesty, openness, social responsibility, and caring for others—significantly improves loan sustainability (p < 0.05). The study concludes that when members develop stronger ethical awareness, their commitment to loan repayment improves, ultimately strengthening SACCO sustainability. It recommends that SACCO managers and the Ministry of Co-operatives adopt continuous, well-structured ethical-values training programs, supported by clear budgets and policies, to enhance loan management and overall institutional performance.
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