Strategy formulation in Matatu SACCOs in Kenya is important in setting short term, long term objectives and cost leadership and differentiation. In terms of absolute figures, the sector contributed to the country’s GDP about 3% in 2008, 3.5% in 2009 and 5.9% in 2010. The SACCO movement within the Matatu sector was introduced in 2010 and since then, the sector has witnessed decrease in growth. In 2011, the sector generated a GDP of 5.0%, 4.7% in 2012, 4.5% in 2013 and 4.2 % in 2014. The study focused on 635 registered Matatu SACCOs. The main objective of this study was to determine the influence of strategic formulation on performance of Matatu SACCOs in Kenya. This study adopted mixed research design . The target population for this study was all Matatu SACCOs in Kenya. The questionnaires were pilot tested to determine its validity and reliability. The study used primary data gathered from Matatu savings and credit co-operatives. Primary data was obtained through use of structured and semi structured questionnaires drawn from 245 Matatu SACCOs selected for the study. The results of the analysis indicated that strategic formulation had a positive relationship with performance of Matatu SACCOs. The study found that strategic formulation had significant influence on the performance of Matatu SACCOs which had coefficient of determination of 0.17.On the strategic formulation the study recommended that management of Matatu SACCOs to recruit qualified managers and provide adequate resources in formulation of strategy. Internal promotions of employees for succession planning and acquisition of management skills.
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