Evaluating the Impact of Income-Generating Strategies on Interest Payments in Non-Withdrawable Deposit Taking Saccos in Kenya

Samwel Ngugi, Dr. Anita Wachira

Abstract: Non-Withdrawable Deposit Taking Sacco?s (NWDT?s) play a vital role in promoting financial inclusion and socio-economic development in a Country. This study examines the effect of income generating practices on interest payment among NWDT Saccos in Kenya. Utilizing a cross-sectional descriptive research design and targeting 280 managers from 56 SACCOs, data was collected using a structured questionnaire and secondary records. The data was tested for Gaussian distribution, linearity and autocorrelation. Ordinary Least Squares was used for testing hypothesis. The study found that 17.7% of the variations in interest payment could be explained by income generating practices and that therefore concluded that there is a statistically significant influence of these practices on interest payment among NWDT Saccos. As such, the study further infers that measures of income generating practices of could be deemed as one of the strategic determinants on interest payment among these Saccos in Kenya. Despite the challenges within the Sacco sector and the wider external environment influencing its performance, a policy on income generating practices should emphasize focused attention and effective management and the Board should sustain best practices among NWDT Saccos in Kenya.

Keywords: interest payment, NWDT SACCOs, income generating strategies, financial performance

How to Cite?: Samwel Ngugi, Dr. Anita Wachira, "Evaluating the Impact of Income-Generating Strategies on Interest Payments in Non-Withdrawable Deposit Taking Saccos in Kenya", Volume 14 Issue 8, August 2025, International Journal of Science and Research (IJSR), Pages: 1413-1419, https://www.ijsr.net/getabstract.php?paperid=SR25823112915, DOI: https://dx.doi.org/10.21275/SR25823112915