Co-operative ethical values and sustainability: evidence from Uasin-Gishu county, Kenya

Abstract

The purpose of this study was to examine the effect of member ethical values’ education on loans of SACCOS and sustainability. The study was carried out in Uasin-Gishu County where there is persisting cases of non-performing loans. Cross-sectional research design was used. The target population was all SACCOS in Uasin-Gishu County. Twenty-four SACCOS were picked whereby non-performing loans were analysed before a SACCOS taking member ethical values sensitization education and after. Further, member ethical values educational sensitization was measured using co-operative ethical values of honesty, openness, social responsibility and caring for others. Both quantitative and qualitative data were collected through questionnaires and in-depth interviews. Qualitative data were analysed using content technique while quantitative data were measured using binary logistic regression. The findings indicate that member ethical values education on loans has a positive significant relationship with SACCOS’ sustainability; p-values were less than 0.05. The study concluded that member’s ethical values education plays a critical role on SACCOS’ sustainability. The behaviour of an individual towards a loan taken was determined by the personal ego; that is, the mindset which dictates individual consciousness on behaviour; hence, commitment to repay. The study recommends to SACCOS’ Managers, Ministry of Fisheries, Livestock and Co-operative Development to provide continuous SACCOS’ ethical values’ sensitization education so as to improve co-operative performance on loans