The Role of Saccos to the Development of Small Scale Farmers Case Study: Gomba District

Abstract

The main objective of this study was to examine the contribution of SACCOs to the development of small scale farmers in Gomba District. The specific objectives were to examine the contribution of savings mobilization on the development of small scale farmers; to evaluate the influence loan access has on the development of small scale farmers and to analyze the role training has on the development of small scale farmers. The study design comprised of a combination of both case study and cross sectional research designs and both quantitative and qualitative data were employed. Stratified sampling was used to determine the sample size where a sample size of 70 respondents was considered. Primary data was collected by use of questionnaires. Secondary data was picked from journal reports and internet which are in relation with the study objectives. The findings of the study revealed that Gomba SACCOs have contributed positively to the development of small scale farmers in Gomba district. The study showed that SACCO loans, savings mobilization and SACCO trainings have significantly contributed to the development of small scale farmers by encouraging asset/capital accumulation, technology improvement, agricultural productivity and investments. Finally, the study recommended that in order to attain full development of small scale farmers in Gomba district, SACCOs should monitor the borrowers/ loan holders regularly so that they ensure that loans are used for the intended purpose, SACCOs should undertake awareness and sensitization campaigns in order to create awareness among small scale farmers on the benefits of savings and SACCOs should consider the possibility of investing in other seasonal farm projects in order to widen their income base so that they get enough money to give out for loans.

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