iarjbmIARJBMIARJBM2708-5147https://doi.org/10.47310/iarjbm.2023.v04i02.008Control Environment on Financial Performance of Deposit Taking of Savings and Credit Co-Operative Societies in North Rift Region of KenyaGilbertJumaCheshariRashidFwambaAbrahamMalenyaMaster’s Students, School of Business and Economics, Kibabii University, Bungoma, KenyaSenior Lecturer, School of Business and Economics, Kibabii University, Bungoma, KenyaLecturer, School of Business and Economics, Kibabii University, Bungoma, KenyaInternal control plays a major role in preventing and detecting fraud and protecting the organization's resources, both physical and intangible thereby leading to improved financial performance. At the organizational level, internal control objectives relate to the reliability of financial reporting, timely feedback on the achievement of operational or strategic goals and compliance with laws and regulations. Internal control systems give guidance for management regarding its evaluation and control over financial reporting. The main objective of the study was to determine the effects of control environment on financial performance of deposit taking SACCOs in North Rift Region of Kenya. Three theories underpinned this study, namely accounting, agency and resource dependence theories. The study employed explanatory research design. Census study was used during the study to select 177 respondents (CEOs, managers, accountants, finance officers, internal auditors and credit officers) from a the ten (10) licensed Deposit-Taking SACCOs in the North Rift of Kenya as provided by SASRA, 2022. Questionnaires were used to collect data. Data collected was analyzed using both descriptive and inferential statistics with the help of Statistical Package for Social Sciences (SPSS) versiono25. Results of the study signposted that control environment had positive effects on the financial performance of deposit taking Saccos in North Rift Region of Kenya. Based on these findings, it was therefore concluded that a stronger control environment had a positive effect on the financial performance of Deposit Taking Saccos in the North Rift Region of Kenya. A higher control environment, which includes factors such as management integrity, governance, ethical standards and effective communication, is associated with improved financial performance. This also meant that attention to and investment in strengthening the control environment can potentially lead to better financial outcomes for Deposit Taking Saccos in the North Rift Region of Kenya. The recommendations of the study illustrated that Deposit Taking Saccos should focus on enhancing their internal control systems. This includes implementing robust control mechanisms, establishing effective risk management practices and ensuring compliance with relevant regulations and ethical standards and strengthening their board of directors, ensuring independence, expertise and diversity within the board. Deposit Taking Saccos should establish a system for ongoing monitoring and assessment of their internal control systems. The study would also assist the researcher and scholars to broaden knowledge and skills in the area of control environment on financial performance of saccos in North Rift Region of Kenya.