Abstract:
Management of an organization can be a complex exercise
requiring relevant resources including human and monetary.
The operationalization of these resources needs proper
structures anchored in well documented formats thus the
necessitation of policy frameworks. Management of Co operative Unions in Kenya has experienced several
modifications over the years. Currently as per the Co operative Societies Act Chapter 490 2012 section 27; the
duties of the Committee (1) indicates that the Committee of
a co-operative society shall be the governing authority of the
society and subject to any direction from a general meeting
of the society and the by-laws of the society, it shall direct
the affairs of the society with powers. The Kenya Subsidiary
Legislation, 2004 (2) facilitated the Co-operative Societies
rules, which came into effect in Nov 2004. These Rules
provided for the election of Board of directors, the
supervisory committee and the appointment of managers for
Co-operatives. Before 1997 the government was heavily
involved in the management of Co-operatives but due to the
introduction of the free-market economy Cap 490 Co operative Societies rules was replaced by the 1997 Act
which minimized the governments influence and allowed for
autonomy in the Co-operative movement free from the
government’s involvement in its day-to-day life. This paper
analyses the impact of management practices on co operative Unions growth since 1988 in Kenya. In particular
it compares this growth in their financial positions, member
enrolment and Co-operative Unions registration for three
periods with distinct management styles using a weighted
multivariate cost of return model. The cost of return
financial indicator/detector is applicable to the shares and
savings per period since the Credit Unions pay dividends on
them as a cost while the risk measure is applicable since the
loan portfolio is a risky venture. The research determines
that there has been a general upward trend in the member
enrolment and registration of Co-operative unions
irrespective of the management style and not a major
difference in their weighted trend in financial growth.
