| dc.description.abstract | Saccos' dividend payment strategy varies as to what determines the amount of dividend to pay to
its shareholders, how?, and when? While working in the same market climate, some Saccos pay
more, while others pay less. The problems regarding the dividend payout in Kenya arise because
of the concerns about how the commercial Saccos institutions set their dividend and why Saccos
pay dividends. Therefore, among the aspects of corporate finance, the strategy of dividend payout
is not coherent and attracts a lot of debate among Saccos. The study's general objective was to
establish the financial determinants for the dividend payout scheme among Saccos in Kenya. The
study-specific objectives were to: determine the influence of profitability, establish the influence
of investment opportunities, assess the influence of Sacco size, and evaluate the influence of nonperforming loans on dividend payout in Kenyan DT-SACCOs. The research design adopted for
this study was descriptive. All 166 Saccos in Kenya were targeted by the researchers. Taro Yamane
was used to sample 62 DT-Saccos. Secondary data was obtained using a secondary data disk.
Descriptive statistics included the use of mean, standard deviation, frequency, and percentages.
Besides, inferential analysis including correlation and linear regression analysis were used. Data
was presented on tables and narratively. The study also revealed on profitability a β= 0.889,
t=6.217 and associated p-value of 0.001. The study also revealed on investment opportunities a β=
0.895, t=3.653 and associated p-value of 0.001. The study revealed on asset size a β= 0.802,
t=3.783 and associated p-value of 0.001. The study finally, revealed on non-performing loans a β=
-0.911, t=3.438, and associated p-value of 0.001. The study concluded that profitability investment
base and asset size have a positive and significant influence on the dividend payout in deposittaking Saccos in Kenya. The study however concluded that non-performing loans have a negative
and significant influence on the dividend payout in Kenyan deposit-taking Saccos. The study
recommended for measures to be put in place that ensure that profits increases to have a higher
payout of dividends in the DT- SACCOs in Kenya such as reduction in the costs of operations and
costs of production to increase in profits. The study also recommended for the DT-SACCOs to
diversify more into many projects because with more projects and higher investments there is more
dividend payout among SACCOs in Kenya. The study also recommended for the SACCOs to
acquire more property, recruit more members into the SACCOs which would mean more asset
base and ultimately more dividend payout because dividend and asset size had a positive
relationship. Finally, the study also recommended for measures and controls to be taken on nonperforming loans such as loan risk controls, appraisal before awarding loans, robust measures to
be taken on loans recovery to reduce non-performing loans because higher non-performing loans
would lead to lower dividend payouts among deposit taking SACCOs in Kenya. | en_US |
