Fraud is a global issue that impacts society overall. It touches every aspect of life. Fraud has
existed for a long time. It is a complicated problem because the criminals often try to cover their
tracks. Fraud affects organizations by causing financial losses, which can reduce the funds
available for business. It can also harm customer trust and lead to wasted time during
investigations. This study aimed to find out how different types of fraud affect the financial
performance of deposit-taking SACCOs in Kenya.
The study used a descriptive design and focused on deposit-taking SACCOs in Kenya that
operated between 2020 to 2025. The sample included 5 SACCOs chosen from each sector:
Agricultural, Government and Teacher. Data collection included both primary and secondary
sources. Primary information was gathered using self-administered questionnaires, while
secondary data came from financial statements sourced from SASRA records. For analysis,
SPSS was used to compute descriptive statistics: frequencies, percentages, means, and standard
deviations. This helped examine the impact of financial fraud on the financial performance of
SACCOs.
The study used a Multiple Regression analysis model to examine the effect of independent
variables on the dependent variable. The correlation coefficient helped investigate how the
independent variables relate to the dependent variable. Analysis of Variance (ANOVA) was
conducted to assess the impact of the independent variables on the dependent variable in the
multiple regression analysis.
The results showed that several factors affect the financial performance of deposit-taking
SACCOs in Kenya. These factors include frequency of fraud incident, type of fraud, internal

control in place and effectiveness of fraud risk management. The four independent variables
studied account for a significant 70.9% of the financial performance of deposit-taking SACCOs
in Kenya, as indicated by an adjusted R2 of 0.709. The study concludes that fraud influences the
financial performance of deposit-taking SACCOs in Kenya.