Abstract:
This study focuses on the role played by budgeting in performance of Cooperative Society. Specifically the study aimed at examining the extent at which budgeting contribute to the performance of Cooperative Societies. In process of conducting the research, several methods were applied in data collection. These methods included questionnaire, observation, documentary review and the use of library sources. These were used purposely to obtain information on how budget impact on performance of Cooperative Societies.
In examining the role of budget in performance three variables were used to test this relationship which were Portfolio size, Average loan disbursed and number of clients served by these societies. The study found that budget has no positive relationship on performance of Cooperative Societies. The study concludes that budgeting contributes to performance of cooperative societies if other factors like good governance, integrity, financial skills of the accountants and assured access to obtaining capital are available. Therefore, budgeting alone is insufficient factors but requiring other specified factors to realize performance of cooperative societies.
The study gives recommendations to the ministry of cooperative and marketing to ensure that budgeting skills should go hand in hand with management skills so as to administer performance of cooperatives. The study added that the department of cooperatives should provide sufficient ground for the SACCOS to obtain links for networks related to trainings that promote performance. The stakeholders like financial institutions giving loan to the SACCOS are recommended to add SACCOS with more capital so as to solve the problem of capital that hinders performance despite the presence of good budget.
