In Kenya, Sacco societies control 30 percent of the Gross Domestic Product (GDP) and account for over Kshs. 600 billion in the form of assets and savings an amount equivalent to 35 per cent of our national budget. Therefore, these non-bank financial institutions play a major role in alleviating poverty and foster economic growth and development of the Kenyan economy. However, the Sacco societies face a number of challenges such as weak internal control system which leads to financial impropriety, societies' board incompetence and luck of transparency in the course of discharging their duties as well as inadequate management decision making. Therefore, this paper was an exploratory survey of the state of corporate governance among the Luo Nyanza Saccos in Kenya with specific reference to management staff recruitment and selection as well as the kind of tools used for the vital staffing function. The study found out that significant number of these Sacco societies do not have appropriate interview tools hence exposing them to the risk of unverifiable, not accountable as well as non-transparent recruitment and selection exercise. This may lead to getting management staff which are incompetent, inexperience and less qualified hence contributing to financial impropriety in the Sacco societies. The study also found out that majority of the Sacco societies are still at their early years of establishment with most of them falling in the range of one to five years of existence a period characterised by weak financial framework, structural establishment gaps, low uptake of technology hence the need to recommend for the adaptation of tested interview tools for these Sacco societies. A census study design was employed in the 26 Sacco societies with a questionnaire as the primary tool for data collection. Fifty two respondents were obtained with each Sacco society giving two key informants although only forty eight respondents filled and returned the questionnaires. Data was descriptively analysed by use of percentages and frequencies while the findings were presented by the use of tables, graphs and pie-charts.

<p>The coronavirus pandemic shock has attenuated economic activity decline in various sectors of the economy across the globe. Financial service providers such as; banks, insurance firms and Sacco societies among others have been impacted by the pandemic shock as livelihoods of the people have been disrupted by the first spreading virus leading to job losses as well as weak demand and supply forces in the market. The unique model of Sacco societies’ business puts them in an even more complex situation which threatens their going concern concept. The uniqueness of the Sacco societies is that they depend on their members’ cumulated savings deposits and shares for financing rather than external borrowings from other financial institutions to conduct their business. Therefore, the study investigated the impact of the coronavirus pandemic shock on the liquidity of Sacco societies in Kenya and specifically, the study examined the covid-19 pandemic shock causal factors, institutional organizations` gaps, exclusion of Sacco societies by the national government in its mitigation measures against covid-19 pandemic shock as well as determining the response strategic interventions by the Sacco societies to stay afloat. The study found out that the majority of the Sacco societies are facing liquidity challenges more especially community, farmer and private-based Sacco societies. The loan demand has declined with long-term loans significantly impacted on by the pandemic shock. In addition, loan default has increased and non-remittance of Sacco deductions as well as withdrawal notices have also spiked up in some Sacco societies. The study discovered that the government has categorically excluded Sacco societies in its mitigation strategies to protect businesses across different sectors and in particular exclusion of Sacco societies from the credit guarantee scheme and non-classification of Sacco societies as essential service providers were cited as some of the evidence towards the exclusion concern. Besides, the Tax Laws (Amendment) Act, 2020 and Finance Bill, 2020 had very little if any touching on the plight of the Sacco societies in the wake of covid-19 pandemic shock. The response strategies instituted by Sacco societies are restructuring of loans, loan rationing, developing of new Sacco packages and recapitalization of returns as well as restricted external borrowings. An exploratory study covering four months from March to June 2020 was conducted among 120 Sacco societies from 11 counties across the country with interview schedules guiding the collection of primary data via telephone calls to the Chief Executive Officers of the targeted Sacco societies. Secondary data was obtained through document analysis of the financial reports of those societies. Judgmental techniques were employed in picking on the Sacco societies which constituted a sample size of 120 Sacco societies although only 75 responded. Data was analysed descriptively with the study findings being presented by the use of tables, graphs and pie charts. The paper recommends that the vulnerability of the Sacco societies in the wake of covid-19 pandemic shock requires immediate external interventions such as the credit guarantee schemes to cushion Sacco societies from the risk of loan default and at the same time improve their liquidity position. The perennial non-remittance of Sacco deductions by institutional organizations needs to be addressed urgently by developing new regulations to deter government organizations and private employers from unnecessarily holding members’ savings and other dues. The community, private and farmer-based Sacco societies seemed to be adversely affected by the covid-19 pandemic shock compared to the teacher and government clusters of Sacco societies. This may be due to the differential livelihoods sectoral impact of covid-19 and the weak financial framework of those Sacco societies to withstand any shock hence consolidation of Sacco societies should be seriously discussed to form entities which are strong enough to withstand shocks.</p><p>JEL: G21; G22; G32</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0537/a.php" alt="Hit counter" /></p>

Background: Among the most commonly used social safety net programs across the globe is the cash transfer program. While developed economies have successfully applied the strategic social intervention appropriately, very little if any can be talked of in Sub-Saharan African including Kenya. In Kenya, many challenges such as inadequate funds, ghost beneficiaries, dwindling sustainability issues among others hamper effective implementation. Purpose: The main purpose of the paper was to evaluate the effectiveness of the cash transfer program in the wake of covid-19 pandemic having unmatched social-economic impact on the people but more so on the vulnerable groups. Methodology: The paper adopted descriptive survey research design, target population were all beneficiaries of the social welfare benefits. Sample population 163 respondents chosen in the clusters of 35 County Commissioners, 5 key informant from the state Department of Social Protection and 123 beneficiaries from 41 counties with 3 benefactors chosen from each of the 41 counties studied163. Data collection was conducted by use of questionnaires and interview schedules for primary data while secondary data relied on documents analysis from the respective ministries, departments and government agencies. Analysis of data was done by use of descriptive statistics and findings presented through tables, graphs and pie-charts. Findings: The study found out that a number of eligible people are not benefiting due to insufficient funds, the administrative system and structures are equally not fit for purpose as significant number of respondents opting for alternative measures such as establishment of National Vulnerability Insurance Fund, Special Interest Group Co-operatives, and subsidized micro-insurance packages. Recommendations: The study recommended an overhaul of the current social safety programmes of cash transfer stipend to make it more effective and efficient. It was recommended that alternative programs be explored and monthly stipend to be improved from Kshs. 2,000 to at least Kshs. 3,000