KENYAN SACCO SOCIETIES IN LIQUIDITY CRUNCH; EVIDENCE FROM CORONAVIRUS PANDEMIC SHOCK

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