Influence of Leaders Risk Taking and the Sustainability of Savings and Credit Co-Operatives in Kenya

Purpose: The purpose of the study was to explore the influence of risk taking by leaders on the sustainability of SACCOs in Kenya. The study sought to provide insights on the key focus areas, which contribute towards the sustainability of SACCOs in Kenya. The study was confined to SACCOs within 5 Counties of Nairobi, Kiambu, Machakos, Muranga and Kajiado A sample size of 174 SACCOs was taken. Methodology: Descriptive research design was adopted for this study. The use of objective and quantifiable data enabled the researcher to generalize the results of the study to the entire population. The correlation coefficient between SACCO sustainability and risk taking is 0.488 with a p-value of 0.000 for a 5% 2-tail test. Findings: The study concludes that leaders risk taking positively influence sustainability of SACCOs in Kenya.The results of the study also imply that if the SACCOs leaders take risk and venture into unexploited area, they are swift to abandon unprofitable products and also are experienced in risk management; they will be able to guarantee sustainability of their SACCOs. Unique Contribution to Theory, Practice and Policy: From the findings of the study, it can be noted that government regulations moderates the variable resulting to possibility of the sustainability of such SACCO. The study has important implications on the appropriate conceptualization of sustainable business models in the context of SACCOs. This study encourages management committees, to take risk by venturing into new areas, take credit to introduce new products and abandon those products that are unprofitable for their SACCO sustainability.