Assessment of the Effect of Cost Leadership Strategies on Organizational Performance of Deposit Taking Saccos in Meru County


  • Ronny Gitobu Gikunda Master of Education, Mount Kenya University, Kenya
  • Christine Jeptoo Sawe School of Education, Mount Kenya University, Kenya



Cost Leadership, Resource Based Theory, Strategies


A recent study conducted in Meru County, Kenya, aimed to investigate the impact of cost leadership strategies on the performance of deposit-taking Savings and Credit Cooperative Societies (SACCOs). The study, which was based on insights from resource-based theory, utilized a descriptive survey design targeting 96 top management personnel across 12 active deposit-taking SACCOs in the region. Primary data for the study was collected through questionnaires distributed to CEOs, accountants, credit managers, marketing managers, and executive board members of the selected SACCOs. Secondary data, on the other hand, was sourced from the yearly financial statements and other reports of these SACCOs. Both primary and secondary data were analyzed using correlation and regression analysis, alongside descriptive and inferential statistics. The findings of the study highlighted the significant impact of cost leadership strategies on the performance of SACCOs in Meru County. These strategies collectively explained a substantial portion (76.30%) of the variations in SACCOs’ performance. Specifically, an increased adoption of the cost leadership strategy resulted in notable performance improvements. In light of these findings, the study recommended initiatives aimed at enhancing capacity building within SACCOs and fostering greater stakeholder engagement to facilitate their growth and overall performance.


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How to Cite

Gikunda, R. G., & Sawe, C. J. (2024). Assessment of the Effect of Cost Leadership Strategies on Organizational Performance of Deposit Taking Saccos in Meru County. American Journal of Economics and Business Innovation, 3(2), 122–132.