Effect of risk retention techniques on theft in SACCOs in Embu County, Kenya

Abstract

Majority of Kenyans receive financial services from SACCO’s. As a result, there is a need then to ensure that personal and SACCO properties are fully protected from theft. To guarantee this protection, SACCO’s have adopted risk retention techniques aimed at reducing the severity of theft incidences. Unfortunately theft in SACCO’s has become a common problem with statistics showing that theft stands at 61% compared to other crimes in Kenya. The study sought to determine the effect of risk retention techniques on theft in SACCO’s in Embu County, Kenya. The study adopted a descriptive research design. The target population of the study comprised of the 65 SACCOs in Embu County, Kenya that were operationally active. Data was collected using questionnaires. Validity of the research instruments was ensured through opinions and expert judgments. A pre-test study was done in Sacco’s operating in Tharaka Nithi County and reliability of the instruments tested using split half technique. The pre-test results yielded a correlation coefficient of 0.766 implying the instrument was good. Data was analyzed using frequencies and percentages and the results presented in cross tabulations. Chi-square was used to test the hypothesis. The results revealed that most SACCO’s had adopted various techniques aimed at reducing theft severity. The results further revealed that there was a significant association of risk retention technique with theft in SACCO’s since results obtained had a p-value of 0.046<0.05 and chi-square value of 20.00 at 5% significance level. The study forms a basis of policy formulation on risk retention and theft matters in SACCO’s in Kenya and provides a basis for further research in the field of retention techniques on theft in SACCO’s cooperatives