Thesis:

Effect of strategic decision making practices on Performance of savings and credit cooperative societies in Nairobi county, Kenya

Savings and Credit Co-operatives (SACCOs) are increasingly becoming key players in financial intermediation within Kenya’s dynamic financial sector. This study evaluated the effect of strategic decision-making practices on the performance of SACCOs in Nairobi County. The specific objectives were to examine the impact of rational, intuitive, adaptive, and crisis decision-making on SACCO performance. A descriptive research design was adopted, targeting 45 licensed SACCOs in Nairobi County. The units of analysis were the SACCOs, while 70 top management employees served as the units of observation. Given the manageable population size, a census approach was used. Primary data were collected using structured questionnaires. A pilot test was conducted on 5 respondents from Kiambu County SACCOs to ensure reliability and validity. Quantitative data were analyzed using SPSS Version 29, with descriptive statistics used to summarize findings and inferential statistics, including Pearson’s correlation and multiple regression analysis, applied to test relationships between variables. Qualitative responses were analyzed through thematic content analysis. The study found that SACCOs in Nairobi County demonstrated strong strategic decision-making practices. Rational decision- making was evident through the consideration of diverse alternatives (Mean = 4.33) and post-decision evaluations (Mean = 4.11), indicating a culture of continuous improvement. Intuitive decision-making was highly rated, with reliance on gut feeling and recognition of patterns scoring above 4.3. Adaptive decision-making showed high stakeholder involvement (Mean = 4.43), and frequent consultation with team members (Mean = 4.39), reflecting inclusive and participatory decision-making processes. Crisis decision-making practices were also well developed, with SACCOs maintaining structured emergency response protocols (Mean = 4.43) and scenario planning (Mean = 4.37). In conclusion, SACCOs in Nairobi County exhibit strong performance across various strategic decision- making dimensions. However, enhancements in leadership training, innovation translation, and crisis preparedness could further improve organizational resilience and effectiveness. The study recommends establishing standardized decision-making criteria, promoting innovation through structured feedback mechanisms, strengthening cross- functional collaboration, and institutionalizing crisis simulation exercises. Leadership capacity building is also encouraged to support strategic agility and build stakeholder confidence.