Global Journal of Commerce & Management Perspective
Open Access

Abstract

Leadership Styles and Performance of SACCOS in Kirinyaga County, Kenya

Evans Kibiwot Ngetich & Dr. Anne Wambui Muchemi

Leadership style is a key determinant of the success or failure of any organization. The banking industry in Kenya has witnessed tremendous changes brought about by globalization, liberalization, intense competition among rivals, changing regulatory guidelines, technology, and more demanding customers. These changes in the dynamic business environment require leadership that can enable both the people and the organization to adapt and be successful. The most common leadership styles and frameworks include autocratic leadership, bureaucratic leadership, charismatic leadership, transactional leadership, and transformational leadership. Despite all of the headlines about banking profitability, Sacco’s and financial institutions are still not making enough returns on investment based on shareholders expectations. The Sacco’s are also not meeting consumer expectations. Today, the customer experience is key , and many Sacco’s are facing a challenge of their inability to deliver the level of service that cunsumers are demanding especially in regards to technology. The aim of this study was to establish the relationship between leadership styles and performance of Sacco’s in Kenya. The study was guided by the following objectives; to examine out the effect of transactional leadership, transformational leadership, bureaucratic leadership and democratic leadership style in performance of Sacco’s in Kenya.The study recommended Sacco’s that the need to transform their leadership styles to enable them turn around their performance and remain competitive in the financial sector. Future researchers should consider other leadership styles such autocratic, laisse-faire and also undertake a study in different contexts.