Post-coronavirus disease resilience of cooperative financial institutions in Kenya.

Abstract

Globally, Cooperative Financial Institutions (CFIs) suffered enormously from the unprecedented havoc and disruptions of the coronavirus disease 2019, which resulted in insurmountable and unimaginable public health, social and economic impacts and has continued three years postpandemic. The CFIs are grappling with rebuilding and bouncing back from the negative impact of the pandemic that resulted in unpredictable cash flows, reduced fixed deposits through continued withdrawals, dormant membership, massive layoffs, and a decline in profits and savings. This study aimed to investigate the resilience of CFIs post the pandemic in Kenya to formulate an improved resilient business model for systemic economic shocks and crises. The study was conducted in Nairobi Metropolis and Nairobi City County. An exploratory, descriptive cross-sectional study design was applied with a mixed methods approach—the study population comprised operations, finance, marketing, and chief executive officers. Probability and non-probability approaches were employed. Multi-stage sampling was used to select the study population and study area. Data collection tools included a semi-structured questionnaire distributed among 35 respondents and a Key Informant Interview schedule among 11 executives. Secondary data was generated from the existing documents in the respective institutions. Pearson’s Chi-square test and logistic regression showed the associations between the dependent and independent variables using Statistical Package for Social Sciences version 23 for quantitative data and content analysis using themes in NVivo version 12 for qualitative data. The study recommends an all-inclusive model to inform better planning and implementation by stakeholders in the cooperative movement in the face of the next pandemic. This model for the future should anchor risk-based leadership and organizational culture with sustainability at the core of people, profit formula, key processes, and resources within CFIs. Cooperative financial institutions must adopt a broad-based liquidity avenue, including exploring alternatives for equity. This should include private sector capital mobilization in addition to informing global, regional and national in synergy while preparing for the next pandemic. Finally, the government, executive and legislature are challenged to rethink the policies and laws governing CFIs to enable them to become future-fit institutions.