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The ever changing and turbulent competitive business environment pose major challenges to Saccos like any other organization in Kenya and managers have been struggling to compete favorably. Porter argue that superior performance can be achieved through pursuit of a competitive generic Strategy. This has made identification and pursuit of the right competitive strategies as a source of superior performance to become a predominant priority in all organizations. Nevertheless the application of the right strategies is still a concern in many Saccos which have made little effort to comprehend how Generic Strategies can give them a performance advantage over their rivals. Thus, the purpose of this study was to assess the effects of Porter’s generic competitive strategies adopted by Saccos in Murang’a County on their performance. An explanatory research design was used to help identify the causes and reasons of the current status of the variables of study, targeting 384 employees of all the 8 Saccos registered by the Ministry of Cooperative Development in Murang’a County. Simple random sampling technique was used to select a sample of 116 employees. Data was then be collected using questionnaires and document analysis then analyzed using correlational and regression analysis. The study found significant positive effects of cost leadership, differentiation and focus strategies on performance of Saccos and concluded that Saccos that pursue generic strategies can achieve superior performance compared to those that do not.

Effects of Porter’s Generic Competitive Strategies on the Performance of Savings and Credit Cooperatives (Saccos) in Murang’a County, Kenya