FACTORS INFLUENCING FINANCIAL PERFORMANE OF SAVINGS AND CREDIT COOPERATIVE SOCIAETIES. A CASE STUDY OF CAPITAL SACCO, MERU COUNTY, KENYA.
ANN KARWITHA KIBITI
A RESEARCH REPORT SUBMITED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF BACHELOR'S DEGREE IN BUSINESS MANAGEMENT AND ADMINISTRATION OF THE UNIVERSITY OF KABIANGA
This research report is my own original work and has not been presented for a ward of degree or Diploma in any other university or institution.
Signature ''''' Date ''''.
This research report has been submitted for examination purpose with my approval as the
supervisor at the University.
TABLE OF CONTENTS
LIST OF TABLES vii
LIST OF FIGURES viii
ABBREVIATIONS AND ACRONYMS ix
CHAPTER ONE 11
1.1Background of the study 11
1.2Statement of the problem 13
1.3 Purpose of the study 13
1.4Objectives of the study 14
1.5 Research questions 14
1.6 Significance of the study 14
1.7Basic assumption of the study 15
1.8Limitation of the study 15
1.9Delimitation of the study 16
1.10Definition of significant terms used in the study 16
1.11Organization of the study 17
CHAPTER TWO 18
LITERATURE REVIEW 18
2.1. Introduction 18
2.2. The concept of financial performance of savings and credit cooperative societies 18
2.2.1 Evolution of SACCOs in Kenya 19
2.3. Loan repayment and financial performance of SACCOs. 19
2.4. Interest rate charged and financial performance of SACCOs 20
2.5. Membership enrollment on financial performance of savings and credit cooperatives. 22
2.5.1. Major challenges leading to poor enrollment in SACCO societies 23
2.5.2. SACCO Society Act 24
2.6. Duration of loan processing on financial performance of SACCOs 24
2.6.1. Factors influencing duration of loan processing 25
2.7. Management of loan defaulters and financial performance of SACCOs 26
2.8. Theoretical frame work 27
2.8.1 The theory of human motivation. 28
2.8.2. Theory on the importance of capital and property rights 29
2.9. Conceptual frame work 30
2.10. Knowledge gap 32
2.11. Summary of the study 32
CHAPTER THREE 34
RESEARCH DESIGN AND METHODOLOGY 34
3.1 Introduction 34
3.2. Research design 34
3.3. Target population 34
3.4. Sample size and sampling procedure 35
3.4.1 Sample Size 35
3.4.2 Sampling Procedure 35
3.5 Research instruments 36
3.5.2 Validity of instruments 37
3.5.3 Reliability of instruments 37
3.6Data collection procedure 37
3.7. Data analysis procedure 37
3.8 Ethical considerations 38
Apendix 1: letter of transmital 40
Apendix 2: Questionnaires 41
LIST OF TABLES
Table 3.3 Target population 35
Table 3.4 Sampling frame 36
LIST OF FIGURES
Figure 1 conceptual frame work 32
ABBREVIATIONS AND ACRONYMS
SASRA SACCO Society Regulatory Authority
SACCO Savings and credit cooperative society
KNFC Kenya National Federation of Cooperatives
ACCOSCA African confederation of cooperative savings and credit association
MCFCU Meru central farmers cooperative union
MFIs Microfinance institutions
KUSSCO Kenya union of savings and credit societies
IJBMR International journal of business and management research
FOSA Front office SACCO activity
AGM Annual general meeting
SME Small and micro-enterprises
Savings and credit cooperative societies have been present in Kenya for decades but this sector has not been able to impact positively on the lives of people. Access to finance has been cited as one of the factors hampering economic growth and poverty alleviations. Savings and credit cooperative societies have lagged behind other financial institutions by performing below the members' expectations therefore causing dissatisfaction among the members. The purpose of this study was to establish the factors influencing financial performance of saving s and credit cooperative societies. The study was guided by the following objectives, to establish how loan repayment influence financial performance of SACCOs, to determine how interest rates influence financial performance of SACCOS, to assess how member ship enrolment influence financial performance of SACCOs, to establish how duration of loan processing influence financial performance of SACCOS, to identify how management of loan defaulters influence financial performance of SACCOS. Descriptive research design was used in this study where information was collected without changing the environment. The population was drawn from capital SACCO, meru branch staff, management committee and members. Capital SACCO meru branch has 25 staff, 7 directors and 4800 members. A sample of 298 respondents which consist of 5 staff,3 directors and 290 SACCO members was considered . Questionnaires were administered and collected later for data analysis and presentation through tables and summarized percentages and proportions.
1.1Background of the study
Savings and credit cooperatives (SACCOs) are association of people who have come together with common goals geared at improving their livelihood economically. They are an important part of the financial sector in Kenya proving savings, credit and insurance services to a large portion of the population. Microfinance house, (2006). The first cooperative society in the world was formed in 1944 in a village in England known as Rochdale, by a group of people referred to as the Rochdale pioneers, when Britain was undergoing the industrial revolution (KNFC Website). SACCOs first appeared in South Germany in 1846 when there was Agricultural crisis and drought in Europe (Birchall, 2004).
The first modern SACCO was started in Germany around 1850. A quick review of developed world shows that not many big firms were born that big, most of them began as small medium enterprise. SACCOs in Africa have a role in transforming the continent considering that most entrepreneurs are in need of financial support. In Africa Ghana was the first county to start SACCO in 1952, ACCOSCA (2009). In Kenya cooperative movement dates back to 1931 when the first ordinance to regularize the operation of the cooperatives in the country was enacted. The following decade witnessed increased intervention in the sector with the eventual enactment of the Cooperative Ordinance Act of 1945, the predecessor of the current cooperative Societies Act Cap 490 of the law of Kenya as amended in 1977. SACCOs are registered and regulated under the Cooperative Societies Act. For registration the Act requires a primary society to consist of at least ten persons. The vast numbers of SACCOs in Kenya have been formed over the years with some being created as early as 1968. These SACCOs target a specific segment of population with similar orientation. These are mainly low income earners and the society has the objective of uplifting their financial status. There are some SACCOs that target community members in general because of the virtue that they belong to that particular community whereas there are others who are more specific their members have to come from a certain group. The main requirement across all SACCOs is that their members have some source of income before qualifying to join the SACCO. The SACCOs mobilize funds from them and give them access to financial services like loans, savings facility, front office services which is otherwise inaccessible to them through the main banks that are either unaffordable or physically inaccessible. Some SACCOs were directly started as SACCOs while others were changed into SACCOs later of which they were initially set out as other financial associations without being registered as SACCOs (Microfinance house ltd, 2006).
Capital SACCO originated from the Union Banking Section of the giant Meru Central Farmers Cooperative Union (MCFCU) in 1974 offering savings and credit services to its members. The MCFCU drew its members from farmers belonging to various primary marketing societies who were mostly from coffee and tea farmers. It was started on 3rd February 2005 following a split of the giant Meru Central Farmers Cooperative Union (MCFCU) into independent business units. The Union Banking Section was transformed into a rural SACCO and was dully registered under the Cooperative Societies Act as a legal entity. During registration it was called Meru Farmers SACCO but the name was later changed to Capital SACCO in the year 2012 after rebranding. As a result of rebranding Capital SACCO now draws its member from people of various sectors of the economy all over the country. As a result the SACCO has grown tremendously by building a share capital of over 285 million and 32100 fully registered shareholders and extending its roots to all parts of Kenya. It has over 140,000 savings account holders including members.
Capital SACCO is run by 7 directors elected directly by members at the grass root levels. The society uses delegate system whereby 50 delegates attend general meetings. There is a supervisory committee of three members elected from the three regions. Currently the SACCO has twelve branches all of them in Meru County (Capital SACCO Society Annual Report).
Savings and credit cooperative societies are established to help the marginalized poor access financial services, but they have not been able to meet their demands satisfactorily because of various challenges facing them. Among the challenges is the interest rate charged on their products. Interest rate is the amount of interest paid per unit of time expressed as a percentage of the amount borrowed. The cost of borrowing money measured in shillings per year per amount borrowed is the interest rate. Interest rates differ mainly in terms of maturity. When maturity and liquidity together with other factors are considered, many different financial instruments and so many different interest rates will emerge, Anyanwu (1997). Interest rates can either be nominal or real. Nominal interest rate can be measured on monetary terms not in terms of goods. The nominal interest rate measures the yield in money per year per the amount invested while the real interest rate is calculated as the nominal interest rate minus the rate of inflations (Pandey, 1999).
1.2Statement of the problem
Although SACCOs has been present in Kenya since 1970s, this sector has not been able to impact positively on the lives of people. In light of this, the existence and flourishing of SACCOS in Kenya have not been able to perform well as compared to the other mainstream financial institutions like commercial banks. SACCOS are formed to serve the special needs of its members, but this has not been possible because of the various challenges that impacts on their financial performance. One of the justifications of the advancement of a financial institution is one that is profitable and has financial sustainability. Mvula (2013) presented a report on common issues affecting performance of SACCOs in Malawi and pointed out that the issues affecting performance of SACCOs are inadequate capital, poor asset quality, poor governance, poor profitability, poor liquidity and noncompliance. On the other hand Mudibo, (2005) discussed some of the factors affecting performance of SACCOs as weak regulation, limited product and services, low marketing and poor image. However the effect of interest rate charged and the rate of loan repayment on Sacco performance is yet to be established. Further the management of loan defaulters with the local SACCOs is very poor. This is because SACCOs finance people of low income and unreliable employments hence the chances of default are very high. Fredrick Wanyama (2008) pointed out that SACCOs are formed from mostly the producers of cash crops and basic products hence there are market risk in their marketing but in this research membership enrolment and the duration of loan processing that have affected the financial performance of SACCOs have not been identified. There has been no sufficient literature about how and to what extent the rate of loan repayment interest rates, membership enrolment and management of loan defaulters have affected the financial performance of savings and credit cooperative societies.
1.3 Purpose of the study
The purpose of this study was to establish the factors influencing financial performance of savings and credit cooperative societies.
1.4Objectives of the study
The study was guided by the following objectives.
i. To establish how loan repayment influence financial performance of Capital SACCO in Meru County, Kenya.
ii. To determine how interest rate charged influence financial performance of Capital SACCO in Meru County, Kenya.
iii. To assess how membership enrollment influence financial performance of Capital SACCO in Meru County, Kenya.
iv. To establish how duration of loan processing influence financial performance of Capital SACCO in Meru County, Kenya.
v. To identify how management of loan defaulters influence financial performance of Capital SACCO in Meru County, Kenya.
1.5 Research questions
The study answered the following research questions.
i. How do loan repayment influence financial performance of Capital SACCO in Meru County?
ii. How does interest rate charged influence financial performance of Capital SACCO in Meru County?
iii. How does membership enrollment influence financial performance of Capital SACCO in Meru County?
iv. How do duration of loan processing influence financial performance of Capital SACCO in Meru County?
v. How does management of loan defaulters influence financial performance of Capital SACCO in Meru County?
1.6 Significance of the study
Kenya is among the developing countries and is characterized by slow economic growth, high levels of unemployment, disease pandemics and poverty. Kenya has not yet been industrialized, it relies on small scale farming practices and all this category of people relies on rural SACCOs and microfinance institution to finance their activities. The probabilities of SACCOs to succeed in transforming SME are quite high if they realize some of the challenges that affect their financial performance. SACCOs should engage with policy makers in identifying these challenges so that they can address Kenyan problems of poverty eradication and achieve vision 2030 objectives (ACCOSCA, 2009).
It is hopeful that this research has helped identify some critical factors that affect financial performance of savings and credit cooperative societies which will be helpful to this sector to assist in poverty alleviation. It is hoped that the findings of this study will help Capital SACCO and other SACCOS that will make use of it, to develop the management and control of SACCOs, and this is hoped to result in increased wealth for both the SACCO and its members. The general living standards of the people accessing financial services from SACCOS will hopefully improve because of the ability of the SACCOs to finance the economic activities of their members. It is also hoped that it will help SACCOs service providers, policy makers and regulators in formulating workable procedures to help SACCO have the capacity to assist its members who are otherwise not able to access financial services from the main stream banks. For this study Capital SACCO in Meru County, Kenya has been studied.
1.7Basic assumption of the study
The assumptions of this study are that the information collected through the questionnaires is accurate and a representative of all SACCOs and the respondents has given the necessary cooperation by responding to all the questions in the questionnaire.
1.8Limitation of the study
There were some limitations experienced in this study. Because of the sensitivity of banking information some respondents were expected to give biased information to conceal sensitive data. Also it was expected that some respondents will not allow giving information in fear to leak to their competitors. However the researcher assured the respondents that this study is only for academic purpose and that the information will be treated with confidentiality and for no other purpose.
Also this study had time constrains because a lot of time was needed to meet all the respondents. But the researcher overcame this constrains by working overtime to be able to compile all the reports and get all information required.
1.9Delimitation of the study
This study was aimed at establishing how and to what extent does loan repayment, interest rate and management of loan defaulters affect financial performance of savings and credit cooperative societies. Capital SACCO draws its members from people of various sectors of economy all over the country. Capital SACCO has been chosen for this study because of its outreach in Meru County. It is the only SACCO with branches in all the eight sub-counties in Meru County. Meru region is one of the leading County in agricultural activities and most farmers are members of a SACCO hence making the region a good place for microfinance business. This SACCO is a very good representative of the SACCOs in the country and hence the research findings are representative of the other SACCOs in the country.
1.10Definition of significant terms used in the study
SACCO 'it is an acronym name for savings and credit cooperative and is an association of people who come together with common goals geared at improving their livelihood economically. They are owned and managed by its members who have the same common bond.
Management of Loan defaulters'a loan defaulter is a person or group of persons who have missed or have been late on payments on any of their loan obligation. Management of loan defaulters is the institutional policies on how to reduce loan default and how to deal with defaulters.
Interest rate 'an interest rate is the rate at which interest is paid by the borrower (debtor) for the use of the money that they borrow from a lender (creditor).
Membership enrolment 'membership is the state of being a member or the total number of members in a group. A member is a person who belongs to a social group or an entity such as a company or nation. Membership enrolment entails the number of enrolled and the deferent categories of these member ranging from the employment status, age and level of education.
SACCO financial performance 'this is the SACCOs financial operation measured in monetary form.
Duration of Loan processing 'this is the period taken by a financial institution to process a loan application and disbursement. A process by which a borrower applies for a loan from a lender and all the steps taken from taking the application form, appraising applicants up to disbursed of funds.
Loan repayment 'this is to pay back a loan given by a lender. This includes the principle loan given and the interest charged on the loan.
1.11Organization of the study
The study is organized into five chapters where Chapter one is the introduction of the study. The theoretical review and empirical review of related literature are covered in chapter two. Chapter three covers the research methodology while chapter four presents the analysis of data, presentation and interpretation. Chapter five presents the summary of findings, discussion, conclusion and recommendations.
The introduction covers, background of the study, statement of the problem, purpose of the study, objectives, research questions, significance of the study, basic assumptions, limitations of the study, delimitations of the study and definition of significant terms used in the study.
Chapter two presents a brief introduction of the chapter, the concept of financial performance of SACCOs, theoretical framework, conceptual framework, knowledge gap and a review of literature related to all the independent and dependent variable in the study. Chapter three entail an introduction of the chapter, research design, target population, sampling procedure, data collection methods and instruments, pilot study, data analysis and summary. Chapter four presents a brief introduction of the chapter, the profile of the respondents and a report on the findings on how the independent variables of the study affect the dependent variable. Chapter five presents the summary of the study, summary of the findings, discussions, conclusions and recommendations.
This chapter represents a review of literature that is related to loan repayments, interest rate charged, and membership enrolment, duration of loan processing and management of loan defaulters in relation to financial performance of SACCOs. It also describes the conceptual framework highlighting the variables under consideration.
2.2. The concept of financial performance of savings and credit cooperative societies
The financial services sector is very significant sector in today's modern economies. SACCOs like other financial institutions play a great role in the economy by mobilizing savings and allocating credit for investment thereby helping to improve people's living standards.
Cooperatives can provide financial services to their members through existing products and the members also have the opportunity of saving with the cooperative but this is possible if the cooperatives are financially sustainable. The financial performance of a SACCO is measured through the ability of the institution to meet the financial demands of its members taking consideration of economic status of the members. SACCO is expected to give better and cheaper services to its members as compared to the main stream banks because SACCO understands the needs of the members because they are the owners of the SACCO (Wanyama 2008).
Through mobilization of funds the SACCOs in Kenya offer loan services, deposits, front office services and cheque clearance services. The most common product offered through the SACCO fraternity is the credit and loan services. Many of the institutions have no institutional capacity or capital base to offer other services. Depending on what kind of loan a member is applying for, the size of the loan and period of the payment of the loan, the loan interest of the most savings and credit cooperative societies varies from 10% to 18% p.a. Once a member applies for a loan, approval is ideally supposed to take between 14 to 30 days but this is not always the case because of cash liquidity problems that makes them take longer. The loans are screened and approved by credit committee. A SACCO is said to be performing well financially if it is able to process members' loans timely and at appropriate rates, Microfinance House Ltd, (2006).
SACCO s experience a wide range of problems partly owing to the fact that they target low income earners and have to establish a balance between serving them adequately and also meeting their operation cost. Majority of the people in Kenya measure the financial performance of SACCOs by the rate of dividends that they pay to its members which is not true. Some SACCOs pay dividends even if institution did not make any profit which is against the law. All SACCOs should pay dividends out of profits. A SACCO is said to be performing well financially if it has the capacity to expand their products range, has sufficient funds to provide services and the client base is growing (Microfinance house ltd, 2006)
2.2.1 Evolution of SACCOs in Kenya
The cooperative movements in Kenya dates back to 1931 but the first SACCOs in Kenya were registered in 1964. Kenya Union of Savings and Credit Cooperatives (KUSCCO) were started in 1973 initially as an umbrella organization for urban savings and credit societies in Kenya, Akide (2005). SACCOs have faced several challenges over the years making it difficult for them to operate to their full capacity. Common challenges facing SACCOs include inadequate capital, poor asset quality, poor governance, poor profitability, poor liquidity and noncompliance (Mvula, 2013).
2.3. Loan repayment and financial performance of SACCOs.
The role of credit is to bridge the gap between enterprise owners' financial assets and the required financial assets of the enterprises. Due to persistence of this imbalance enterprises are forced to demand credit. With the growth of the number of SACCOs in Kenya, access to credit is not difficult but repayment is never100%, Besley and Coate (2005).Lenders of funds in the formal financial sector use the deposits of their clients while lenders operating in the informal financial sector use mainly their own funds to advance money to borrowers. The lender is expected to recoup the financial capital after the agreed period of time otherwise the borrowers will benefit at the expense of lenders. If loan repayment fails and this continues, then bankrupt will be ultimate result.
In Africa loan repayment performance has been poor. In his study, Bagachwa (1997) found that in Africa loan repayment has been poor. For example, 14% to 20% for commercial banks in Tanzania and about 45% for small agricultural loan in Ghana. Besley (2003) asserted that enforcement of loan repayment constitutes a major difference between rural credit markets in developing countries and credit markets in developed countries. Most lending institutions do not have experienced personal capable of developing appraisal procedures for different category of borrowers. The repayment of loans by the poor and SMEs is recognized as one of the most troublesome problem facing rural SACCOs in Africa. Collateral, access to basic information and appropriate loan mechanism to enforce loan repayment are important tools.
2.4. Interest rate charged and financial performance of SACCOs
Interest rate is the amount of interest paid per unit of time expressed as a percentage of the amount borrowed. The cost of borrowing money measured in shillings per year per amount borrowed is the interest rate. Interest rates differ mainly in terms of maturity. When maturity and liquidity together with other factors are considered, many different financial instruments and so many different interest rates will emerge, Anyanwu (1997). Interest rates can either be nominal or real. Nominal interest rate can be measured on monetary terms not in terms of goods. The nominal interest rate measures the yield in money per year per the amount invested while the real interest rate is calculated as the nominal interest rate minus the rate of inflations (Pandey 1999).
A lot has been reviewed in terms of lending activities of various deposit money banks. Some opinions deliberated on the factors responsible for banks willingness to extend much credit to some sector of the economy, while some discussed effect of such extension of credit on productivity and output. Felicia (2011) used regression analysis to investigate the determinants of commercial banks lending behavior in Nigeria. The study discovered that interest rates charged has the greatest impact on the lending behavior. Individuals are motivated by low interest rate charged to take more loans. Rasheed (2010) used error correction model to investigate interest rates, determinants and the study found out that as the financial sector integrates more with global markets, returns on foreign assets will play a significant role in determination of domestic interest rate.
Financial institutions decisions to lend out money are influenced by a lot of factors such as the prevailing interest rate, the volume of deposit, the level of their domestic and foreign investment, liquidity ratio, prestige and public recognition. Lending practiced in the world can be traced to the period of industrial revolution which increased the pace of commercial and production activities thereby bringing about the need for large capital outlays for projects. Interest rates play a significant role in enhancing economic activities and such monetary authorities should ensure appropriate determination of interest rate level that will break the double edge effect of interest rate on savers and local investors (IJBMR 2013).
Financial systems of the most of developing nations have come under stress as a result of the economic shocks of the 1980s. the economic shocks largely manifested through indiscriminate distortions of financial pricing which include interest has tended to reduce the real rate of growth and real size of financial systems relative to nonfinancial magnitudes. The preferential interest rates based on the assumptions that the market rate, if universally applied would exclude some of the priority sectors. Interest should therefore be adjusted periodically with visible hands to promote increase in the level of investment in the different sectors of the economy. For example agricultural and the manufacturing sector should be accorded priority and financial institutions to be directed by the Central Bank to charge a preferential interest rate on all loans and advances to small scale industries (Adebiyi and Babatope-obesa 2004).
Interest rate risk is the risk to earnings or capital arising from movement of interest rates. It arises from differences between the timing of rate changes and the timing of cash flows from changing rate relationship among yield curves that affect banks activities, from changing rate relationship across the spectrum of maturities and from interest rate related options embedded in bank products. The movement of interest rates affects the financial institutions reported earnings and book capital by changing net interest income, market value of trading accounts and other interest sensitive income and expenses. Changes in interest rate also affect banks underlying economic value. The value of banks assets, liabilities and interest related, off balance sheet contracts is affected by a change in interest rate because the present value of the future cash flow themselves is changed. In financial institutions that manage trading activities separately, exposure of earnings and capital to those activities because of changes in market factors is price risk. This risk arises from market, making dealing and position taking activities for interest rate, foreign exchange equity and commodity markets. Each financial transaction that a bank completes may affect its interest rate risk profile. Financial institutions however, differ in their level and degree of interest rate risk exposure by changing investment, lending, funding and pricing strategies and by managing the maturities and reprising of these portfolios to achieve a desired risk profile. A bank should also consider how interest rate risk may act jointly with other risk facing the banks (Interest Rate Risk Comptrollers' Hand Book 2012).
The era of cheap loans that about two million Kenyan workers currently enjoy from SACCOs is gradually coming to an end as high businesses cost and new regulation exert pressure on the managing of cooperative societies. Several savings and credit cooperative societies have increased their lending rates for back-Office products, the loan offered on the strength of members' savings from an average of one percent per month to between 1.5 and two percent per month.
Facilities offered through the banking wings of the SACCOs known as front office services activity (fosa) are now attracting interest at between 2% and 3% compared to between 1.25% and 1.5% previously. Generally the cost of borrowing has gone up for all financial institutions but the advantage with SACCOs is that they are allowed by law to lend up to three times their deposit and can borrow from other sources including commercial banks up to 25% of their capital base for onward lending. Although KUSCCO has a lending facility that SACCOs can use to bridge shortfalls, the rate at which members borrow is determined on a case by case basis while commercial banks loans have more than doubled in the last two years, increasing the waited cost of capital for SACCOs. Many SACCOs, especially in the public sector have revised interest rate upwards and this has affected the financial performance of SACCOs (Business Daily, 2004).
2.5. Membership enrollment on financial performance of savings and credit cooperatives.
A SACCO member is a person who belongs to that SACCO willingly by filling in the membership form and paying the required membership fees. Most SACCO members have a common bond either of occupational or production nature. This characteristic makes a SACCO to be an association of people who have come together with common goal geared at improving their livelihood economically (Sacco's operations report, 2006).
The apex is the Kenya National Federation of Cooperatives which was formed in 1964 to be the spokesman for the cooperative movement, custodian of cooperative principles, control of membership, promote development of the movement and promotes collaborations both locally and internationally, Wanyama(2009). The national cooperative organizations comprise secondary and primary cooperatives that offer specialized services to affiliates such as commercial and financial services and represents union and society at international levels. Under the current law most of the SACCOs in Kenya may close their doors if they do not meet the minimum threshold. For a SACCO to be registered, it must have a minimum of 30 people. The members must also meet the ksh.10 million capital adequacy requirements. Investment of SACCO funds in non core business must not be more than 10% of its total assets. In addition some 15% of SACCO assets must be in cash form to adequately provide for its liquidity requirements. SACCOs will also be expected to make adequate provision for loan losses as is done by the commercial banks and other financial institutions (SASRA, 2012).
2.5.1. Major challenges leading to poor enrollment in SACCO societies
The major challenges inherent in the SACCOs in Kenya are the poor governance and limited transparency in the management of cooperatives. Most cooperative leaders are elected politically without the required qualification required to manage a financial institution. These leaders will only employ staff from their political line up disregarding the necessary skills for management of cooperatives. Because of this poor governance the membership will fall because the members will not gain confidence with management, International Monetary Fund (2007). There is also limited infrastructure, high deployment and maintenance cost, inadequate financing, lack of awareness in the rural areas (Okello, 2006).
According to JCC study (2006) it is possible to reach many of the economically active people but this requires adequate funding. Funding would generally be required to cover the cost of reaching the rural areas where poverty is prevalent. The aspect of funding however poses a challenge especially for SACCOs without strong capital base. In this case lack of adequate outreach exposes SACCOs to slow growth.
SACCOs were developed with the aim of enhancing social and economic conditions of the poor. Impact assessment in line with intended outcome need to be conducted to ascertain the effectiveness of a SACCO.
In a survey carried out by KIPPRA (2006) it emerged that savings through SACCOs stood at ksh.29 million and outstanding loan amounted to ksh.22 million. The loan to deposit ratio were 74% which demonstrate the effectiveness of a SACCO as financial intermediary. SACCO operations report (2006) reported that there are different SACCO entry requirements. They consist of acquisition of minimum number of shares that varies from SACCO to SACCO. They are between ksh.100 to ksh.6000. The membership is characterized by monthly contribution which is either through check off system for the employment based institution, percentage deduction from sale of goods or direct cash deposit. Membership in SACCO varies depending on outreach of the SACCOs. They range between about 158 to 3700 members. There is however a big variance between potential members and the actual members. This show poor outreach in the SACCO to its target membership. Few SACCOs have managed to minimize their outreach which gains strong financial performance. The capital in the SACCOs is raised through members' contribution. There is minimum share capital raised and maintained before loans can be disbursed to members. Share capital range from ksh.66000 to ksh.160 million (Microfinance house ltd, 2006).
2.5.2. SACCO Society Act
Savings and credit cooperative societies play a pivotal role in any country's economic growth. In the recent past the savings and credit cooperative societies have grown tremendously promoting the body overseeing their operation to come up with strict guidelines to regulate. The SACCO Societies Regulatory Authority (SASRA) is the national body overseeing the operations of savings and credit cooperatives and has given a report that they have registered and licensed 73 deposit taking SACCO as per the law which requires that such SACCOs offering front office services reapply to the authority to be allowed to continue with the business. According to the Act, those SACCOs that will fail to meet all the license requirements will be encouraged to merge their operations especially those operating within the same geographical areas. The authority can give financial sanctions to any SACCO that does not submit periodic reports to the authority (Standard Financial Report, 2011).
2.6. Duration of loan processing on financial performance of SACCOs
Several reasons may cause delay in loan processing in a financial institution and this delays may cause impatience to the client because the loan has taken longer period than expected. If you submit your loan application two weeks ago and you have not heard back from your lender you may begin wondering, Blakley (2013). According to Blakley (2013), internal coordination is one of the causes of loan delay. During loan processing the application form passes through the hands of several professionals and for this reason it is easy for the processing to get backlogged. These processes involve the checking of your files by the processing team. Another cause of delay in loan processing is the effect of influx of loan applications. When interest rates are almost to go down the lender may consider locking in some new loan terms. Several financial institutions in the industry have the same thought and hence when the rate drops, the volume of borrowers goes up. This will certainly equate to a longer processing time for your loan. Verification is also another big cause of loan processing delays. Lenders need to fully assess the borrowers risk before choosing to approve or deny a loan request. Among other things this means verifying employment with managers, obtaining credit history from credit bureaus and acquiring rental records from previous landlords. Confirming this information can take long time especially if your references are difficult to contact.
The performance of SACCOs depends on their operational efficiency, Nyanjwa (2008) and is greatly hampered by low capacity to operate and manage their activities. It is important to remove all the bottle necks that cause inefficiency hence affecting the overall performance of SACCOs. There is no standardized performance measurement tool to evaluate the status of a SACCO. According to Dan Green (2013) many loan factors are beyond the control of borrowers who want to close quickly. For example you cannot control how fast an appraisal is performed because the appraisal requires the cooperation of the seller nor can you control how quickly a title deed search is performed by a title company. Dan Green (2013) in his report, blogs on mortgage, market and other items of interest established that there are steps one can take to make sure that he/she gets loans approved as fast as humanly possible. The first step according to Dan Green (2013) is proper preparation of paper work including application forms and all relevant documents that the lender must require for loan approval. Then do not keep secrets from your lender for the reasons that withholding information can constitute loan fraud, which is far worse outcome than not getting a loan approved.
2.6.1. Factors influencing duration of loan processing
In some countries like Japan, obtaining loans from financial institutions is a very complicated process involving many necessary steps for which certain documentation require to be submitted. In obtaining for example a mortgage loans using the English version of the mortgage loan document in Japan, all customers are required to complete the pre-application risk agreement form prior to processing. The financial institution reserves the right to discontinue the application process depending on your answers to the pre-application risks agreement form. It is very common for finance institutions to require loan borrowers to obtain mortgage guarantee offered by a mortgage guarantee company. All these processes makes the duration of loan processing complex and complicated (HSBC Mortgages, 2010).
SACCO design study for sunflower producers financial report (2006) established that, in order to create a superior performing SACCO, there are some critical elements that must exist, the time needed to offer services and create governance system can be relatively short, and a good functional system of governance and a strong accounting and financial management system should be in place. There is mounting pressure from the market for SACCOs to reform. Competition and internal pressure from members demanding sophisticated products and services and delivered in time means SACCOs must be managed in a more professional manner in tandem with trends in the market (Hoffmann 2009). The performance of SACCOs depends on their operational efficiency, Nyanjwa (2006). Performance of SACCOs is greatly hampered by low capacity to operate and manage their activities. There is no standardized performance measure tool to evaluate the status of SACCO. Measurements using certain indicators such as profitability, assets, quality and rate of return can be found. High rate of these indicators are achievable if customer royalty is built. Today's customers are busy people because of the existing competition hence they require timely services and less complicated processes and procedures in receiving funding.
2.7. Management of loan defaulters and financial performance of SACCOs
Defaulting on payment is a serious offence and should be avoided at all cost. Most of the time defaulting on payments is temporary in nature caused by clients loss of jobs, a temporary extra expenditure that left no money to make the pay or prolonged illness which may cause the client financial distress or keep him in hospital for few months. In very rare cases people default because of permanent failure or sudden death of individual who wasn't insured or did not have enough resources left for his or her family. Temporary causes can be managed through close super vision and monitoring and evaluating the projects financed by the loan. Proper training of loan applicant is necessary before loan disbursement. In developed countries like Germany loan default is not frequent because of the mechanism they use to control and manage loan default. They offer loan management tips to their clients who have multiple loans with multiple service providers. They offer training, advice and counseling to borrowers to ensure that they remain in the path of repayment. Managing default takes a solid game plan (TG'S Default a version consultants, 2011).
When the bank manager is evaluating your loan application, he wants to know whether by lending you money he can get his money back and earn some profit on it from you. Before institution approves a loan application they need to evaluate if the business can repay the loan with interest for the period in question to avoid loan default. Debt collection is an expensive operation and is an expense to the finance institution. The banks not only assess the clients ability to pay but also would want to know how risk your business might be, and these shows the bank its chances of losing money, Rukunga(2000).Loan defaults have caused a lot of nonperforming assets (NPAs) in SACCOs and other financial institutions in India. Banks especially those in public sector are in a mess owing to the mounting nonperforming assets. Public sector banks hold 95% of these defaulting loan accounts. The net nonperforming assets of the 26 public sector banks in India rose to 2.02 percent during the year 2012-2013 from the 1.53 in the previous year. That means loan worth big amounts of money are at the risk of default. Even borrowers who are in a position to pay back the loan are not doing it. This shows a weakness in the governance of the public sector banks in India. The willful defaulters are not treated the same way with the genuine defaulters. There are adequate provisions to deal with willful defaulters although the public sector banks have not been aggressive in implementing (India Weekly Journal, 2014). In his report Yashwant (2014) he was particularly concerned about the mounting non-performing assets in the corporate lending segment as compared to other sectors. A number of finance institutions have been attributed to have managerial failures because of their inability to arrest the rising non-performing assets. A number of business entities have been lining up for restructuring their debt to escape bank action on nonpayment. In restructuring, the terms of the loan are eased up and borrowers get more time to get his house in order. As at September 2013 there were 431 cases of debt restructuring in the corporate debt restructuring cell. The majority of the restructuring requests are from the infrastructure sectors.
2.8. Theoretical frame work
The first SACCO society in Africa was introduced in Ghana in 1959. The SACCO was intended to assist villagers improve their economic conditions, Ng'ombe&M'Kwamba (2004). In Kenya the first cooperative society was Lumbwa Cooperative Society formed in 1908 by the European farmers with the main objective of supporting Agriculture activities and products to take advantage of economies of scale, KUSCCO (2006).After independence the government of Kenya recognized cooperatives as suitable vehicles to achieve the aspiration and participate in the economic development of the nation. The SACCO movement is today considered by the government as one of the economic pillar of the nation. By the year 2010 Kenya had over 5000 registered SACCOs with a membership of about 7million and they had mobilized savings of over ksh.200 billion (Ndungu,2010).
2.8.1 The theory of human motivation.
Abraham Maslow presented this theory in 1943 in his paper inform of a pyramid with the more basic needs like food, sleep and breathing at the bottom. These are the physiological need which are the physical requirements for human survival and are thought to be the most important and should be met first. SACCOs were first formed because of the rising shortage of basic human needs for the poor. There was need to empower the people to be able to meet their basic desires through small and medium enterprise. Empowerment is a transformative process within human existence from the state of powerlessness to the state of relative control over ones overall existence by taking control over his destiny and making use of his immediate environment for sustainable improvement in their livelihood and better standards of living. SACCO emerging as a tool of community empowerment and poverty alleviation surrounds the discussion of empowerment theory. Empowerment theory is an alternative development approach as a result of the failures of mainstream development theories in addressing the poverty situation in third world countries due to their emphasis on growth, pursuit of industrialization and urban bias on holding unfulfilled small promises of better life for the excluded and downtrodden majority. This situation pushed the poor people in downward spiral of resources deficit trapped in a vicious life cycle of poverty. Empowerment has become a buzzword in most development and international agencies with most of its discussion centering on power relations, awareness, control, poverty alleviation, development and empowerment (Fagha, 2010).
The contribution of motivation theory on development cannot be over emphasized taking into consideration the numerous emergences of microfinance and microcredit initiatives all around the world and their impact on the local community at large. A good example of success of this theory is from the Grameen Bank in Bangladesh and how its message has been transformed throughout the developing world leading to the emergence of self help groups as is the case in the India, the Susu's of Ghana, the SACCOs of Tanzania and all aimed at providing microcredit initiatives to the rural poor. Hence microfinance has emerged as a paradigm changed in alternative development despites its challenges. This makes motivation theory a perfect bottom-up approach on development in its manifestation on the convergence of power relation from top-bottom to bottom-up autonomy there by giving power and wider opportunities to the powerless so that they could use their initiatives, rights and capabilities for the common good of their social settings not only to better their lifestyles and improve their standards of living but gradually moving themselves out the deprivations of poverty in a sustainable manner (Perkins et al,1995).
2.8.2. Theory on the importance of capital and property rights
Adam Smith who was a Scottish political economist made a publication in 1776 (an inquiry into the nature and causes of the wealth of nations). He said that within a given stable system of commerce and evaluation, individuals would respond to the incentives of earning more by specializing their production. These individuals would naturally without specific state intervention direct that industry in such a manner that its produce may be of greatest value. In his study of microfinance as a development paradigm Robert D. Fagha (2010) agreed with Adams Smith's inquiry into the nature and causes of the wealth of nations in which he saw people as economic agents guided by invisible hands, thereby creating the basis of understanding modern capitalism and the political economy. According to Smith capital is the source of economic activities and specialization in the division of labour. It is the source of increased productivity that sum up to the wealth of nations. He defined capital as a stock of assets accumulated for productive purpose geared towards increased specialization and output emphasizing on the conversion of accumulated assets to active capital referring to the potential of capital. SACCOs and other microfinance institutions have been used as a tool for wealth creation for members and capital provider for clients. Desoto (2009) further advocated for a system of credit financing from financial institutions which could not only boast the entrepreneurial spirit of the poor people but could create self-employment. He recommends compulsory land registration so that financial institution will be willing to lend the poor people money as their assets can be used as collaterals. This will in turn act as a catalyst to the productive power of the poor people in order to work hard and keep up with their repayments because of the fear of seizures by financial institutions in case of default payments. He lavished his praises to governments around the world that has welcome microfinance initiative in assisting sweetshops that are transforming residential areas into industrial zones throughout the world quoting the capital city of Dhaka. In this study investigation will be done to establish what can stimulate the country's economy to increase capital accumulation. Apart from the ideals of Smith about the need to have a stable system of commerce the nation can stimulate the economy through strengthening the microfinance industry so that every individual can access credit to finance the economic activities.
2.9. Conceptual frame work
The conceptual frame work hinged on the Teece (2007) constructs shows the relationship between the independent variables and dependent variable.
Figure 1 conceptual frame work
2.10. Knowledge gap
SACCOs in Kenya are currently a leading source of the cooperative credit for social economic development. The existing SACCOs have experienced a wide range of problems partly owing to the fact that they target low income earners. A lot of research has been done on problems experienced by SACCOs in Kenya and the research has reviewed governance, level of education and market risk as factors affecting SACCO performance. Little research has been carried out about the effect of duration of loan processing, management of loan defaulters and interest rate charged on performance of SACCOs. This research will investigate the influence of these factors on financial performance of SACCOs and for the purpose of achieving this goal, Capital SACCO located in Meru County, Kenya will be studied.
2.11. Summary of the study
The views from the literature review indicate mixed results with regard to the financial performance of SACCOs. Even though SACCOs are regarded as one of the tools that contribute to poverty alleviation, there are numerous constraints impacting on their performance and sustainability. The review has established that the interest charged on loans determines the cost of the loan. A great percentage of SACCO members are low income earners therefore they cannot afford pay high interests on loans. The literature review has shown that for SACCOs to charge affordable interest rate on their loans so that they can achieve the goal of poverty reduction. Poor Loan repayment has been observed as a great challenge to the growth and expansion of SACCOs in Africa and other continents. Long term loans become very expensive to borrowers hence most people prefer to get short term loans to finance recurrent expenditure. It has been reviewed that if borrower can be able to repay their loans in time it can give the SACCO the financial strength to finance all its loan applicants. SACCOs and other microfinance institution are mostly formed to meet the financial demands of the marginalized poor who cannot afford to access financial services to the main stream banks. SACCOs having this type of membership enrolment have been found to have difficulties in growth and financial sustainability. With the current regulations SACCOs are allowed to take deposit from its members. The review has established that for a SACCO to perform properly financially it is necessary to have a large number of memberships with stable sources of income.
Several financial institutions have been observe to take a very long time to process the applicants loan and this has been found that it can cause impatience to borrowers. Delays in loan processing sometimes are caused by several internal coordination activities like checking of applicant files by the processing team and obtaining credit history of the borrower. Loan default has been established to be greatest obstacle to the financial performance of most financial institutions especially in the developing countries like Kenya. Of late proper systems have been put in place to help in management of loan default but still the loan repayment is never 100%. The review has established that financial institutions have embarked on offering training, advice and counseling to borrowers to ensure that they remain in the path of repayment.
RESEARCH DESIGN AND METHODOLOGY
This chapter describes the research design, target population, sample and sampling procedure which were used to carry out the study. The chapter also describes the instruments of data collection, data collection procedure, data analysis techniques, ethical consideration and operational definition of variables.
3.2. Research design
Descriptive research design was used in this study. Information was collected without changing the environment using questionnaires to collect primary data. Descriptive research design was chosen because it ensured that large amount of data was collected within a very short time. This method does not offer the researcher control over the data collected in terms of manipulation of the variables of the study, Kerlinger (2005). Through this design the researcher was able to acquire factual, accurate and systematic data that can be used in averages, frequencies and similar statistical calculations
3.3. Target population
The population was drawn from Capital SACCO, staff, management committee and SACCO members. Capital SACCO has 7 directors, 114 staff in all the 14 branches and 32100 members from which a sample was drawn. A sample was drawn only from the Meru branch which is the head office of the Capital SACCO situated in Meru town. It has 25 staff, 4800 members and 7 directors who manage all the branches from there.
Table 3.3 Target population
Population Target population
Staff members 25
Source Author 2018
3.4. Sample size and sampling procedure
This section describes the sample size and sampling procedure that was used in the study.
3.4.1 Sample Size
Since it was not be possible to interview all the population under consideration, a sample size of 298 respondents which consist of 5 staff, 3 directors and 290 SACCO members was selected randomly to ensure that all the units of the sampling frame has equal chances.
3.4.2 Sampling Procedure
According to Gay (1981) 10% of the accessible population in a description study is enough samples. In this research 25% of the population was tested for employees and director. Stratified random sampling was used for SACCO members whereby there were 3 strata. 40 members were selected from SACCO members with over 100,000 worth of shares, 40 members were selected from SACCO members with 50,000 worth of shares and 200 members selected from SACCO members with shares less than 50,000. All these members were selected randomly from each stratum.
Table 3.4 Sampling frame
Type of sample Target population Sample size
Directors 7 3
Staff members 25 5
Member 4800 290
Total 4832 298
Source Author 2018
3.5 Research instruments
Data was collected using questionnaires. In formulating research instruments the researcher considered the objectives of the study and the research questions. The questionnaires were administered to employees, directors and SACCO members. The questionnaire method was mainly employed in primary data collection although observation method was also used. The instruments were organized into six sections, where by section A solicited data on demographic information of the respondents. Section B of the questionnaire was used to collect data about the effects of loan repayment on financial performance of capital SACCO. Section C of the questionnaire was used to solicit data on the effects of interest rate on financial performance of capital SACCO while section D was on the effect of membership enrollment on financial performance of SACCOs. Section E collected data on the effects of duration of loan processing on financial performance of SACCOs and section F was used to solicit data on the effects of loan defaulter on financial performance of SACCOs. Observation method was also useful to compare and verify the answers given by the informants to establish their correctness. Any secondary data needed was collected from SACCO annual reports published magazines and any other available literature.
Piloting is the study carried out before the actual study as a way of testing the effectiveness of researchers' data collection instruments and the procedures used (Mugenda and Mugenda 2003). This pilot study was done to a similar sample size selected for Yetu SACCO located in the same Meru County. Before administering the questionnaire the researcher presented an introduction letter from the University of Kabianga to the Yetu SACCO manager to acquire a permit to conduct pilot study. This piloting tested the reliability of the research instruments. Reliability is the ability of a research instrument to yield consistent results after repeated trials (Mugenda and Mugenda 2003). The pilot also tested the validity of the research instruments. Validity is that which makes sense or is persuasive and seems right to the reader (Mugenda and Mugenda 2003). Polkinghorne (1988) defined validity of a theory as those results that have the appearance of truth or reality.
3.5.2 Validity of instruments
Lacity and Jansen (1994) defined validity as that which makes sense, is persuasive and seems right to the reader. The results of this study were validated in consultation with the supervisor and since the researcher randomly selected the respondents, it is believed that the results of the study were valid and without any ambiguities.
3.5.3 Reliability of instruments
Reliability is the measure to which a research instrument yields consistent results after repeated trials (Mugenda and Mugenda, 2003). The researcher used split half technique of assessing reliability. Scores from one part were correlated with scores from the second part thus eliminating chance of error due to differing test conditions.
3.6Data collection procedure
Before administering the questionnaire the researcher gave an introduction letter to the respondent. The introduction letter was certified by the university to ensure that the respondent gets the confidence to give correct information. Once the respondent was confident and ready to give information, questionnaires were administered but the respondents were not required to give their names. The researcher and the informant made arrangements on the appropriate time to collect back the questionnaires. To ensure that the informant gives as much information as possible, the questionnaires had open and close'ended questions.
3.7. Data analysis procedure
Data collected was analyzed and presented by use of tables and the use of summarized percentages and proportions. Data was first subjected through a sequence of operations which includes editing, coding, classification and analysis using statistical package for social science. Analysis was done through descriptive statistics such as percentages, averages and inferential statistics.
3.8 Ethical considerations
The researcher enhanced ethics by keeping the information shared by the respondents confidential and assuring them of the same. The study avoided asking personal questions that may invade into the respondents' privacy. After successful completion of the study, questionnaires were kept in a safe archive for future reference should there be need.
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Apendix 1: letter of transmital
ANN KARWITHA KIBITI
P.O BOX 3129
REF: TRANSMITTAL LETTER
I am a degree student at the University of Kabianga. I am required to do a project research as part of my course work in partial; fulfillment for the award of Bachelor's Degree in Business Management and Administartion. In the line with this, I am carrying out a research titled FACTORS INFLUENCING FINANCIAL PERFORMANCE OF SACCOs. Kindly assist by responding to the questions availed with utmost honesty. The response will be used purely for academic purposes and will be treated with absolute confidentially. Your corporation will be highly appreciated.
Thanks in advance.
Insert Admission number
Ann karwitha kibiti
Apendix 2: Questionnaires
The questionnaire will be presented for answering to staff, SACCO members and management of
i) Please tick the appropriate box
ii) Where there are lines please give your views as per the question
iii) Do not write your name in the questionnaire
1. Gender Male
2. Age 20-29 30-39
40-49 50-59 60 and above
3. Marital status: Married Single
4. Nature of duty
Staff Member Management
Effects of loan repayment on financial performance of Capital SACCO
1. What system do you apply to your members to repay their loan?
Check off system Monthly cash installment Both
2. Do you face any challenges in using your system?
3. If yes what can you suggest as the possible solution to these challenges?
4. What is the maximum period given to borrowers to repay their loan?
Six months One year Two years Three years
Any other specify
5. How does the period given affect the cash flow of the SACCO?
Effect of interest rate on financial performance of Capital SACCO.
1. How would you rate the level of inflation in your country for the last two years?
Very high Moderate Low
2. Has the level of inflation affected the interest rate in your SACCO?
3. If yes in what ways? Please indicate
4. What has been the average rate of interest charged on loan to your members for the last two years?
5. How can you rate the interest you charge as compared to other financial institutions in the
High Competitive Low
6. Does the interest rate charged by your SACCO affect its financial performance?
7. If yes how? Please specify
Effect of membership enrollment on financial performance of Capital SACCO
1. What is the trend of membership enrollment for the last 2 years?
Increasing Decreasing No change
2. If the membership has been increasing what strategy has been used?
Increased marketing Good quality of services
High dividends paid Good management
3. In your opinions can the members' shares sustain the SACCO operation without sourcing any credit from the commercial banks?
4. If no please suggest what can be done to acquire financial sustainability?
5. Do you pay dividends to your members?
6. What has been the average rate of dividend in the last 2years?
7. Are there any dividends in arrears not paid to the members?
8. If yes what are the reasons of not paying?
9. Have you sourced any credit from the commercial banks?
10. If yes are you satisfied by the rate at which the bank charges you?
11. What is your position in the SACCO?
Member Staff Management
12. What prompted you to join the SACCO society?
13. How much do you contribute as shares per month?
1000-3000 3000-5000 5000 and above
14. What is your view about the minimum monthly compulsory contribution?
Effect of duration of loan processing on the financial performance of capital SACCO
1. According to the SACCO policy how long should a loan take to be disbursed to the borrower? Please specify
2. Does the SACCO meet the specified period?
3. If no what are the reasons?
Lack of enough funds Inadequate credit staff Poor management
4. What effort has the SACCO management put in place to mitigate this problem?
5. Do members come to complain about delays in processing loans in this SACCO?
6. If yes, what is the main problem complained about?
Bad attitude of credit staff Incompetent staff
Long process of loan processing
Effects of loan defaulters on financial performance of capital SACCO
1. Are there any loan defaulters in your SACCO?
2. If yes how would you rate the level of default?
Very high High Moderate Low
3. What do you think are the reasons for loan defaulting?
4. In your own views what is the main solution to loan defaulting?
5. How do you deal with loan default in your SACCO?
Attach guarantees shares
Attach borrower's assets
Take legal action
Give more periods to the borrower to pay the loan
6. Do you insure your loans against default?
7. If yes what percentage do the insurers charge you?
8. Do you think it is economical to insure loans against default?
9. If no which is the best way to deal with loan defaulters?
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