Title:
Income Statement and Financial Performance of Registered Saccos in Kisii County, Kenya

Authors:
Andrew Nyangau, Kenya

Abstract:

Income statement is the core financial statement that shows the company's revenues, cost and expenses, net income or loss and other comprehensive income for a period of time used in accounting The general objective of the study was to assess the effect of income statement on financial performance of registered SACCOs in Kisii County. A descriptive research design was adopted, using secondary data collected from audited financial statements of selected SACCOS over a five-year period from 2020 to 2024.A sample of 12 SACCOS was drawn from a target population of 13 registered institutions. Data analysis involved both descriptive statistics and inferential techniques, including simple and multiple linear regression models to establish relationships between financial reporting practices and performance indicators. The study was grounded on agency theory. Further the study identified that; Income statement had strong positive and highly significant correlation with financial performance of deposit taking savings and credit cooperative societies (SACCOS) in Kisii county. r=.560(**) P=.000<0.01 as measured by net profit. Additionally, the study revealed that income statement had a positive and significant effect of deposit taking savings and credit cooperative societies (SACCOS) in Kenya. B= .545, t=11.762, P=.000< 0.05. Additionally, the study noted that, a change in income statement led to 54.9% change in financial performance of deposit taking savings and credit cooperative societies (SACCOS) in Kenya. Thus, variation in income statement as measured by net profit led to significant increase in of deposit taking savings and credit cooperative societies (SACCOS) in Kisii county. Further the study concluded that Income statement had strong positive and highly significant correlation with financial performance of deposit taking savings and credit cooperative societies (SACCOS) in Kisii county. r=.560(**) P=.000<0.01 as measured by net profit. Additionally, the study concluded that income statement had a positive and significant effect of deposit taking savings and credit cooperative societies (SACCOS) in Kenya. B= .545, t=11.762, P=.000< 0.05.Moreover, the study concluded that, a change in income statement led to 54.9% change in financial performance of deposit taking savings and credit cooperative societies (SACCOS) in Kenya. Thus, variation in income statement as measured by net profit led to significant increase in of deposit taking savings and credit cooperative societies (SACCOS) in Kisii county. The study recommended that, Saccos with low net profit  it should increase income by giving more  loans and investment in more revenue generations investments, while reducing costs through better efficiency and expense control. Strengthening loan recovery to minimize defaults and lowering borrowing costs will further improve profitability, leading to a stronger income statement and overall increase in financial performance.

DOI: https://doi.org/10.51505/IJEBMR.2026.11014