Using agency and economies of scale theories, this study investigates the influence of size and outreach factors on agency-related costs (ARCs) in the management of deposit-taking (DT) savings and credit co-op societies (SACCOs) in Kenya. Data are retrieved from 160 DT SACCOs in Kenya over the period 2014–2021. Both panel ordinary least squares and 2-step generalized method of moments are utilized to address the objectives of the study. The results depict that ARC levels within the global standard between 0.040 and 0.046 of the average assets with a significant decline during the Covid-19 pandemic period. We further note that as DT SACCOs scale up (in terms of the peer group), the resultant economies of scale lead to lower ARCs. More specifically, smaller DT SACCOs seem to exhibit weaker expense efficiency compared to larger ones. Finally, the results reveal that SACCOs with more members and branch offices are associated with higher ARCs. The study calls for a cautious and prudent expense management strategy by the DT SACCOs to assure solvency and self-sufficiency of the financial cooperatives in Kenya.

中文翻译：

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肯尼亚存款金融合作社管理中规模和覆盖范围对机构相关成本的影响

本研究利用代理和规模经济理论，调查了肯尼亚吸收存款 (DT) 储蓄和信用合作社 (SACCO) 管理中规模和外展因素对代理相关成本 (ARC) 的影响。数据取自 2014 年至 2021 年期间肯尼亚的 160 个 DT SACCO。利用面板普通最小二乘法和两步广义矩法来实现研究目标。结果显示，在 Covid-19 大流行期间，平均资产的 ARC 水平在 0.040 至 0.046 之间，处于全球标准范围内，并显着下降。我们进一步注意到，随着 DT SACCO 规模的扩大（就同行而言），由此产生的规模经济导致 ARC 降低。更具体地说，与较大的 DT SACCO 相比，较小的 DT SACCO 似乎表现出较弱的费用效率。最后，结果表明，拥有更多成员和分支机构的 SACCO 与更高的 ARC 相关。该研究呼吁 DT SACCO 采取谨慎和审慎的费用管理策略，以确保肯尼亚金融合作社的偿付能力和自给自足。