Management Controls and Financial Performance: Insights from Transport Industry SACCOs in Kenya
Year: 2025
Type: article
Abstract: This study examined the effect of management controls on the financial performance of SACCOs in Kenya's transport industry. While the sector plays a crucial role in the economy, many transport sector SACCOs have faced financial inefficiencies due to managerial control and compliance issues. The study assessed how administrative and normative controls influenced financial performance, focusing on transport SACCOs operating in Murang'a Central Kenya, a county with a well-established SACCO network. Guided by contingency theory, the study adopted a descriptive research design and utilized both primary and secondary data. Data analysis involved descriptive and inferential statistical techniques to establish relationships between management controls and financial performance. Contrary to the conventional expectation, the study found management controls had no significant effect on financial performance in transport industry SACCOs. This outcome was attributed to overriding factors with a greater influence on financial outcomes, such as market dynamics, operational peculiarities, and inefficiencies. The findings suggest the need for strengthened regulatory oversight in addition to the internal controls; hence, the recommendation that to enhance financial performance in transport industry SACCOs, a more holistic approach to management should be adopted: One that goes beyond internal controls to address external market dynamics and operational inefficiencies. Regulatory bodies should integrate strategic oversight mechanisms that consider industry-specific challenges, including competition, policy frameworks, and economic fluctuations, for better financial outcomes.
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4413505047