The EXCHANGE RATE RISK AND FINANCIAL PERFORMANCE OF DEPOSIT TAKING SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN KENYA

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Published Jun 15, 2026

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CHARLES KIURA NYAGA
Master of Business Administration (Finance), Jomo Kenyatta University of Agriculture and Technology, Kenya
ISAAC L. OCHIENG', PhD
Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
CHARLES ROCHE, PhD
Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya

Abstract

In Kenya's financial system, Deposit-Taking Savings and Credit Cooperative Societies (DT-Saccos), are of key importance because they offer their members essential financial services. This study looked at how DT-Saccos' financial performance is affected by exchange rate risk. The study is anchored on deflation theory. A sample of 122 DT-Saccos was chosen from the target population, which consisted of 175 DT-Saccos. The study made use of secondary data that was gathered using a data extraction tool from DT-Saccos's annual audited financial reports for the years 2020 to 2024. Panel multiple regression analysis was used to analyse the collected data with the help of SPSS Version 30. The findings revealed that DT-Saccos's financial performance in Kenya was significantly affected by exchange rate risk. Therefore, the study suggests that in order to reduce exchange rate risk, the government should implement appropriate fiscal and monetary policies nationwide. The DT-Saccos CEOs should employ mechanisms of identifying exchange rate risk to enable them to put necessary measures to mitigate them. This study contributes to the growing body of literature on financial risk management and provides actionable insights for DT-Sacco managers, and Stakeholders seeking to improve the sustainability and profitability of financial cooperatives in developing economies.

Article Details

Issue
Vol 7 No 1 (2026)
Section
Articles
Author Biographies

CHARLES KIURA NYAGA, Master of Business Administration (Finance), Jomo Kenyatta University of Agriculture and Technology, Kenya

Master of Business Administration (Finance), Jomo Kenyatta University of Agriculture and Technology, Kenya

ISAAC L. OCHIENG', PhD, Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya

Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya

CHARLES ROCHE, PhD, Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya

Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya

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