Information Technology Shared Services Adoption and Performance of Savings and Credit Cooperative Societies (SACCOS) in Kenya

Abstract

Savings and Credit Cooperative Organisations (SACCOS) to benefit from economies of scale, reduce costs, and enhance service delivery. This study assessed the adoption of IT shared services in Kenya and their impact on the financial performance of SACCOS, focusing on big data management software, core banking systems, and digital banking capabilities. It also explored the barriers, benefits, and costs of implementing IT shared services among Deposit-Taking SACCOS (DT-SACCOS) and the relationship between IT adoption and SACCOS performance. Utilizing a descriptive survey design and stratified random sampling, the study sampled 126 of the 174 registered DT-SACCOS. Primary data were gathered through an IT Needs Assessment Questionnaire, while secondary data came from audited financial reports submitted to the SACCOS Societies Regulatory Authority (SASRA). The analysis revealed that most SACCOS had adopted core banking systems (94.4%), big data management systems (87.1%), and digital banking capabilities (88.3%), with 88.0% of respondents reporting positive impacts on performance. Regression analysis showed significant positive effects of these IT systems, leading to recommendations for increased investment in IT and capacity building for SACCOS