Towards an Improved Resilient Business Model for Cooperative Financial Institutions in Kenya

Developing countries whose economies are supported mostly by small, medium enterprises need a resilient and sustainable financial ecosystem including CFIs that will resist systemic shocks and disruptions from pandemics such as the COVID-19 pandemic. This article investigates the post COVID-19 pandemic resilience of Cooperative Financial Institutions (CFIs) in Kenya with the purpose of formulating and proposing an improved resilient business model for CFIs during times of systemic economic shocks and crises. This study utilizes an exploratory descriptive mixed cross-sectional study design with a mixed methods approach. The researcher interviewed 44 respondents consisting of operations, finance, and marketing officers and Chief Executive Officers in Nairobi County. Secondary data was generated from the existing documents in the respective institutions. Pearson’s Chi-square test and logistic regression aided in showing the associations between the dependent and independent variables using Statistical Package for Social Sciences version 23 for quantitative data. A confidence interval of 95% was considered statistically significant. Interpretative Phenomenological Analysis (IPA) of the participant’s responses identified five critical success factors that facilitated the CFIs resilience and success during the pandemic, namely technology, status of membership, quick adaptability, open mindedness and effective communication. This study’s contribution to the body of knowledge forms the basis for re-planning to concur the effects of pandemics in the future as well as repositioning in resource mobilization, adopting workable technology, context-specific mechanisms to enhance continuity regardless of the pandemic or any other eventualities that may influence the operation of businesses negatively.