Knowledge Management Capabilities and Performance of Tier 1 Deposit-Taking SACCOs in Kenya

The main objective of this study was to determine the influence of knowledge management capabilities on the performance of Tier 1 Deposit-Taking SACCOs (DT-SACCOs) in Kenya. Knowledge management capabilities were conceptualized as a second-order dynamic capability comprising knowledge acquisition, knowledge sharing and knowledge application. A mixed methods approach was applied, drawing data from finance, audit, credit, Front Office Service Activity (FOSA), marketing, and Information and Communication Technology (ICT) management staff across the 42 Tier 1 DT-SACCOs licensed by the Sacco Societies Regulatory Authority (SASRA) in Kenya. A census approach was adopted, and data were collected using structured questionnaires and analyzed using the Statistical Package for the Social Sciences (SPSS), with descriptive statistics and simple linear regression guiding interpretation. The descriptive findings indicated moderate adoption of knowledge management practices, with item means ranging from 2.09 to 3.46. Knowledge management capabilities were found to enhance collaboration, information sharing and decision-making, although limited knowledge application and weak knowledge-tracking mechanisms restricted optimal performance gains. Simple linear regression established that knowledge management capabilities had a statistically significant and positive influence on performance, explaining 56.8% of the variance in performance (R² = .568, Adjusted R² = .566, F(1, 249) = 327.248, p < .001; B = .719, β = .754, t = 18.090, p < .001), leading to rejection of the null hypothesis. The study recommends strategic prioritisation of knowledge management systems, particularly knowledge application and knowledge-tracking mechanisms, to improve competitiveness, operational resilience and sustainable performance among Tier 1 DT-SACCOs.