Related party transactions and financial distress of Savings and Credit Cooperative Organizations (SACCOs) in Kenya

The widespread failure of DT SACCOs in Kenya is likely to lead a loss confidence among the current and potential members eventually threatens kill sector. study examined effect related party transactions on financial distress DT-SACCOs Kenya; adopted following theories as basis analyzing collected data; wrecker’s Agency theory. target population was 176 Deposit-Taking SACCOs. Secondary data obtained from records published by SASRA. used systematic sampling technique based formula Taro Yamane (1967) obtain appropriate sample size 68 Data were analyzed using STATA computer software. collection covered seven (7) year period 2008 -2014, this 7 years selected for because SASRA has enacted 2010 therefore justification choice period, that 3 before 4 after enactment. established had significant Kenya. implications findings are if do not manage then they will continue experiencing distress. government through should enact strict regulations directors borrowing expounded body knowledge measures finance introducing new relationships established. In terms contribution innovation, panel analysis while other studies OLS.