The Impact of Saccos on the Livelihoods of Rural Dwellers Case Study: Kabale District

Abstract

The purpose of this study was to examine the impact of SACCOs on the livelihoods of rural dwellers. The study was guided by the following research objectives: Explore the nature of Savings and Credit Cooperatives, Assess the contribution of SACCOs in addressing social economic challenges faced by the cooperative members and the community at large, Identify the limitations faced by SACCOs in an attempt to address the socio economic challenges faced by rural dwellers.

A sample of 40 members of SACCOs was selected from Kabale district. The respondents were purposively selected from each sub-county. A cross sectional design was adopted which involved univariate and cross tabulation analysis. The findings from cross tabulation analysis using chi-square tests revealed there was no significant relationship between some variables like diet before and after joining the SACCO, length of membership and welfare, length of membership and poverty reduction and many others. This shows that SACCOs did not make a significant impact on the livelihoods of rural dwellers.

It was recommended that government should put in place a regulatory framework that enable Bank of Uganda to supervise SACCOs to ensure that members get value for money. Another recommendation was that growth in membership should be accompanied with growth in savings to improve the capital base and avail funds for borrowing.

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