Authors: Egondi Obinga Patrick, Dr. Mwenda Paul, Dr. Ongalo Thomas
Abstract: This study examined the influence of financial transparency on the financial performance of Deposit-Taking Savings and Credit Cooperative Societies (DT-SACCOs) in Kenya, with a particular focus on the moderating role of SACCO size. Drawing on Agency Theory, Stakeholder Theory, and Resource Dependence Theory, the study adopted a mixed-method explanatory design involving 221 respondents drawn from 123 DT-SACCOs regulated by the SACCO Societies Regulatory Authority (SASRA). Quantitative data were analysed using correlation and regression techniques, while qualitative insights were used to contextualise statistical outcomes. Findings revealed that financial transparency has a strong and statistically significant positive effect on financial performance (r = 0.844, p < 0.001), explaining 71.1% of performance variation (R² = 0.711). However, interaction analysis indicated that SACCO size significantly moderates this relationship, with larger SACCOs exhibiting reduced marginal benefits from transparency due to increased structural complexity. The study concludes that financial transparency is a critical governance driver of financial performance, but its effectiveness depends on institutional scale. Policy implications emphasise differentiated governance frameworks based on SACCO size to enhance efficiency, accountability, and sustainability in Kenya’s cooperative financial sector.
