Influence of Employee Inclusivity in Budget Management on Organizational Performance of Savings and Credit Cooperatives (SACCO) in Kisii County

Abstract

Introduction: Savings and Credit Cooperative Societies (SACCOs) play a critical role in financial inclusion and local economic development in Kenya. However, their performance has recently declined, as reflected in increasing non-performing loans and deteriorating portfolio quality. Despite this, the role of employee inclusivity in budget management on organizational performance remains insufficiently explored. This study examined the influence of employee inclusivity in budget planning, implementation, and monitoring on the performance of SACCOs in Kisii County.

Methods: A descriptive research design was adopted. The study targeted 531 employees across selected SACCOs, from which a sample of 228 respondents was determined using the Yamane formula. Data were collected using structured questionnaires and analyzed using SPSS version 24. Both descriptive and inferential statistics, including correlation and regression analyses, were employed.

Results: The joint regression model was statistically significant (F = 16.316, p < 0.001) and explained 36.0% of the variation in organizational performance (R² = 0.360; Adjusted R² = 0.338). Employee inclusivity in budget implementation had a positive and significant effect on performance (β = 0.534, p < 0.001), making it the strongest predictor. Budget monitoring and evaluation showed a positive but insignificant effect (β = 0.126, p = 0.209), while budget planning had a negative and insignificant effect (β = -0.192, p = 0.103). Correlation results also indicated a moderate positive association between implementation and performance (r = 0.569, p < 0.001).

Conclusion: Employee inclusivity in budget management significantly influences organizational performance, primarily through effective involvement in budget implementation. SACCOs should therefore prioritize participatory execution strategies, strengthen employee engagement in financial processes, and institutionalize inclusive budgeting practices to enhance performance and sustainability.

Keywords: Employee Inclusivity, Budget Management

DOI: 10.7176/EJBM/18-6-02

Publication date: June 30^th 2026