The Role of Financial Institutions in the Promotiom of Financial Literacy Among Women in Koboko District a Case Study of Koboko United Sacco in Koboko Municipality

Abstract

The development of a community, especially a poor community, hinges on interventions from development workers in government and non-government organizations. In the recent past, microfinance has been strongly recommended as an intervention that could assist poor people to improve their quality of life by providing small amounts of money to initiate development enterprises. Financial institutions in promoted financial literacy among women through SACCOs

This study aimed at the role of financial institution in the promotion of financial literacy among women in Koboko United SACCO Koboko Municipality. The Specific objectives of the study the researcher was guided on include: To determine the strategies employed by Koboko United SACCOs in promoting financial literacy of women. To find out why financial literacy has not improved among women in Koboko United SACCO, To establish the strategies that can be used by Koboko SACCOs in promoting financial literacy of women in Koboko Municipal

This study was carried out using both quantitative and qualitative approaches. One hundred respondents were interviewed and eight of these were employees of Koboko SACCO and two worked as technical staff from Koboko District Local Government. Questionnaires and interviews were used to collect the data that was presented in tables, graphs and numbers using statistical package for social scientists (SPSS) to show the role of financial institution in the promotion of financial literacy.

The findings of the study established that women who accessed the loans from Koboko United SACCO were able to improve their socio-economic status through taking loans (commercial loan asset Loans) to starting up and or expanding investments and enterprises, paying school fees for their children, purchase of household items like furniture, (Acquisition of land, building of houses,) and solar installation, confidence building, participation in leadership roles Salary loans and Agriculture Loans and Emergency Loans etc. The research also found out that women face some challenges in their access and utilization of Koboko United SACCO and these include; small amounts of money disbursed, diversion of funds, high interest rates, low returns on investment, short grace periods, unfavorable repayment schedules and risk of property confiscation by Koboko United SACCO

The study has conclusively confirmed that Koboko United SACCO plays a very big role in the promotion of Financial literacy Among Women in Koboko Municipal women should participate in controlling the interest rates on the loans and also for the beneficiaries to utilize the loan for its intended purposes. Koboko United SACCO have thereby been urged to be more flexible, reduce interest rates, increase the size of the loan and continuously train, supervise and monitor the progress of the projects of the customers.

These recommendations from the research findings are geared towards making policies at institution level to enable the provision of financial services to the clientele. This is because the financial institutions like Koboko United SACCO have been in existence in the area for over ten years and people have benefited from their services, therefore, it is important to address the needs and problem of the clients so as to harmonize operations for more impact in the community in particular and the country in general.

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