Asian Journal of Economics, Finance and Management

Financial management practices remain critical to organizational decision-making and long-term sustainability. Although prior studies have examined financial management in cooperatives, limited empirical evidence exists on how specific practices jointly influence SACCO growth in Kenya over recent periods of economic volatility. This study therefore examined how cash management, capital budgeting, and financing practices influence the growth of Savings and Credit Cooperative Societies (SACCOs) in Kenya for the period 2019 to 2023. Growth was measured using return on assets (ROA). The Kenyan government, through the Ministry of Industrialization, Trade and Cooperatives and guided by Vision 2030, has promoted the cooperative movement to enhance national savings and economic participation. However, despite rapid expansion, many SACCOs continue to experience challenges related to ineffective cash management, inappropriate budgeting techniques, and weak financing strategies. These challenges have contributed to declining profitability and asset growth between 2019 and 2023, raising concerns about the sector’s sustainability and exposing a clear gap in evidence-based financial management interventions for SACCOs. The study was grounded on the funding priority theory, principal–agent theory, and goal attainment theory, with the funding priority theory serving as the anchor due to its relevance in explaining inconsistencies in financial decisions within cooperatives. A descriptive research design was adopted, targeting a population of 144 SACCOs. Data were collected from 42 senior officers, specifically finance and operations managers, using structured questionnaires. Multiple regression analysis was used to determine the relationships between the variables. The findings indicated that cash management practices, capital budgeting practices, and financing practices all positively influence SACCO growth. Capital budgeting was identified as particularly crucial, given its requirement for substantial cash outflows and its potential impact on future financial stability. Practically, the study provides SACCO managers and regulators with actionable insights on strengthening liquidity controls, improving investment appraisal techniques, and optimizing financing structures to enhance ROA and asset growth. The findings further inform policymakers and the SACCO Societies Regulatory Authority (SASRA) on the need to develop capacity-building programs and financial governance guidelines tailored to cooperative institutions. Strengthening these financial management practices is essential for improving market share, sustaining asset growth, and maintaining long-term stakeholder confidence.