Abstract:
Achieving financial inclusion has remained a dream for many countries especially in sub Saharan Africa where over 80% of the adult population is excluded from the financial services. This has devastating effects on economic growth and development (Pias, 2011). Governments and financial institutions including SACCOs have implemented change strategies aimed at bridging the gap of financial exclusion. SACCOs in recent past have faced turbulence and stiff competition from Microfinance and Commercial Banks thereby threatening their existence. The objective of this study was to investigate the effects of change strategies specifically open bond, rebranding and new products adopted by teacher-based SACCOs in Kenya on financial inclusion of their members. An explanatory survey design was used, where Metropolitan Teachers SACCO, being largest and pioneer in implementing change strategies such as opening of the common bond and re-branding was purposively sampled and systematic random sampling was used to select 363 respondents out of 6,721 non-teachers for the study. The study relied on primary data collected using a structured questionnaire. The data was analyzed using both descriptive and inferential statistics (regression analysis) using Statistical Package for Social Sciences (SPSS). The demographic characteristics of the population are presented using tables of percentages, means, frequencies and standard deviations. The findings showed a strong positive correlation between Open bond, rebranding and Financial Inclusion, while there was a weak negative correlation between new products and Financial Inclusion. The Regression analysis revealed a strong positive relationship (R = 0.658) where a combination of Open bond, Rebranding and new products strategies together contributed 43.3% of the increase in financial inclusion and hence the study concluded that open bond and rebranding strategies increased financial inclusion while introduction of new products alone reduced financial inclusion. The study recommends policy shift from closed common bonds to open bonds in SACCO‘s and systematic rebranding of products and services to attract and appeal to all members of the surrounding community in which they operate irrespective of their occupation, geographical and administrative boundaries to improve on financial inclusion.
