SACCOS AND HOUSEHOLD INCOME: A CASE OF KIRA MUNICIPALITY, WAKISO DISTRICT

introduction

This chapter presents the background of the study, statement of the problem, purpose, objectives, specific objectives, research questions, scope, significance, definition of key terms and conceptual framework.

1.1 Background of the study 

1.1.1 Historical perspective

The formation of the Savings and Credit Cooperatives in Uganda had three main influences according to Lubwama (1995): Campbell influence, church influence and the government influence. Mr. Campbell drafted Uganda’s cooperative ordinance 1946, together with the rules and bye laws. He had been a registrar of cooperatives in Sri-Lanka, his experience in that country influenced the formation of SACCOs in Uganda. He initiated a departure from general impression by the colonial government and other opinion leaders that debt didn’t constitute a serious problem in Uganda. It should be pointed out that, the title THRIFT and LOAN rather than Savings and Credit was originally used until the late 1960s (Kabuga and Batarinyebwa 1995). Lastly the Campbell influence led to the formation of first Savings and Credit Cooperative. This was the African Civil Servants Co-operatives Thrift and Loan Society Limited of Kampala.

The church influence; the growth and rapid expansion of SACCOs was by the efforts of church clergy especially the Catholics who got involved in encouraging their followers to actually participate in the Programme. The idea was to help people establish lasting socio-economic structure and to encourage self- help, self -reliance and initiative (Kabuga and Batarinyebwa, 1995). He further states that the government influence; when the department for cooperative development launched the Agricultural cooperative credit scheme in 1961, consideration was given to the introduction of the rural savings scheme. This was based on the rationale that credit without savings is of little value. It is like putting a cart before the horse.

1.1.2. Theoretical perspective

According to neoclassical growth theory by Harrods- Dom mar and Robert Solow, saving help to increase capital accumulation leading to investment hence economic growth and ultimately development. In addition, a high saving economy accumulates assets faster and thus grows faster than a low saving economy (Lipsey and Crystal 1995:634). Therefore given the undesirable situation in low income countries like Uganda for instance dominance of urban based commercial banks, under developed stock markets and non regulated microfinance institutions makes SACCOs offer an alternative to implore such situation.

1.1.3 Conceptual perspective

SACCOs is an acronym which stands for saving and credit cooperatives. According to Opio Ogal Moses- UCSU chairman (New vision on line); some countries in Europe simply call them credit unions, others popular or people’s banks. SACCOs are community membership- based financial institutions that are formed and owned by their members in promotion of their economic situations. These institutions mobilize and intermediate savings exclusively within their membership under the law. A SACCO is a cooperative society whose objective is to encourage its members to save, thereby creating or accumulating capital, which can then be lent to members at a reasonable rate of interest Davis, et al. (2005). As a source of credit facilities, these cooperatives have generally achieved their objectives. 

According to Kyendo, (2011), “a savings and credit cooperative (SACCO) is a democratic, unique member driven, self-help, not for profit financial cooperative. It is owned and governed by members who have the same common bond. A SACCO’s membership is open to all that belong to a group, regardless of race, religion, colour, creed, and gender or job status. These members agreed to save their money together in the SACCO and to make loans to one another at reasonable rates of interest. Interest is charged to cover the interest cost on saving and the cost of administration. The members are the owners and the members decided how their money should be used for the benefit of one another (Bailey, 2001:4). However, it should be noted that, in Uganda unlike South Africa where the Bailey hails, SACCOs often pays dividends to the members depending on the number of shares one has.

In Uganda SACCOs are recognized by law, which is the Uganda cooperative statute 1991 and cooperative societies’ regulation of 1992. SACCOs are under the supreme body of Uganda cooperative savings and credit union limited (UCSCU) responsible for regulating their work in the country. The SACCOs have gained popularity as accelerates of development in rural areas that the cabinet of Uganda in August 2009 passed the SACCO PLAN aimed at developing a financial infrastructure of savings and credit cooperatives for effective implementation of rural financial service program (RFSP). As a result, an agreement was signed between Uganda cooperative alliance limited (UCA) and government of Uganda (GoU) (Agency and GoU Agreement 2006). 

According to Kabuga and Batalinyebwa (1995), the growth and rapid expansion of SACCOs especially in Uganda was by the great work of church clergy especially the Catholics who got involved in encouraging their followers to actually participate in the program. The idea was to help people establish lasting social- economic structure and to encourage self-help self-reliance and initiative. When the department for cooperative development launched the agricultural cooperative credit scheme in 1961, consideration was put on the introduction of the rural saving scheme. This was based on the rationale that credit without saving is of little value.  However, Dr. Muhammad Venus, the founder of the Grameen bank, Bangladesh’s “Bank for the poor”, believes that “if we are looking for a single action which will enable the poor to overcome their poverty, would focus on credit” (Grameen Bank, 2001). The failure of credit scheme, and recognizing the important role SACCOs play in the mobilization of savings, government came up with a policy statement in 1962 like it did in 2006 about establishment of SACCOs especially at sub counties as a channel for prosperity for all funds (Bonna Bagaggawale).

1.1.4 Contextual perspective  

In Kira municipality savings schemes started with the major aim of providing loans which normally start at small amount and are linked to savings such that the more a client saves the more she can borrow. The normal loan period for the savings schemes in Kira municipality is four months and is repaid in 16 weekly installments. At the end of 2016, 95% of clients covered by a benchmark sample of 71 NGOs and institutions engaged in village saving lending members. To eliminate the need for collateral, village savings in Kira municipality rely on a variation of the solidarity lending methodology. It relies on a system of cross-guarantees, where each member of a village savings ensures the loan of every other member. Involvement in such developmental activities in the municipality is seen as a major strategy through which these lending members could improve on their economic and social statuses (Abu, 2011). Relatedly, the Uganda government on poverty eradication program report (2016), tried to diversify household income sources through Bonnabagagawale schemes, operational wealth creation, Naads programme, other agricultural NGO’s and joining other village saving groups. Despite all these strategies, many households in Kira municipality still have inadequate or poor shelters, inadequate food supply,  poor health conditions, unemployment and  high drop outs due  to lack of school fees.

1.2 Statement of the problem 

Savings and credits would lead to capital accumulations, investment, hence employment and finally increase people’s income to alleviate poverty. Saving being a key component in any development strategy and as it is believed to be the best way of increasing investment and boosting productivity in an attempt to break through the vicious cycle of poverty, people are still extravagant with the little they get by over drinking alcohol. Ideally, the recent rapid expansion in the number and services of credit and saving societies in Uganda would bridge the gap created by absence of full banking facilities especially in rural area and to provide financial credit and other services to the poor population that cannot be accessed from commercial banks but the gap seem to be worsened.

Despite the fact that the services  of SACCOs have been at the disposal of people  in Kira municipality as elsewhere in the county for more than 8 years, people seem to be stagnant in their income and development and some have become poorer and business  have collapsed worsening the situation of the poor (The Micro Finance Banking 2001). Therefore the study is intended to assess how SACCOs affect household income.

1.3 Objectives of the study

1.3.1 General objective 

To determine the effect of SACCOs on household income in Kira municipality.

1.3.2 Specific objectives 

• To investigate the contributions of savings with SACCOs on household income.
• To establish the contributions of credit from SACCOs on uplifting people’s income.
• To determine the contributions of training in savings uplifting people’s income.

1.4 Research Questions

• What are the contributions of savings with SACCOs on household income?
• What are the contributions of credit from SACCOs on uplifting people’s income?
• What are the contributions of training in savings uplifting people’s income?

1.5 Scope of the study

The study will be carried out in Wakiso district in Kira municipality. The study will involve respondents who own share capital and participate in SACCOs and those who do not attain SACCO services to act as control groups. Managers, loan recovers, group leaders and other active members will be the target groups of the study in the area. The respondents will be selected from three parishes, three villages and about four respondents from each village will be randomly selected. The study is expected to cover a period of four months and in this period; data collection and data analysis will be covered. The study will lay emphasis on the impact of SACCOs onto the household income in Kira municipality.  

1.6 Significance of the study 

It is the feeling of the researcher that the successful study of the impact of SACCOs on household income in Kira municipality shall be of great significance to various groups of people.

The successful study of SACCOs shall be of great significance to the local people of the area, mainly members of SACCOs. The study shall reveal whether it is the weakness of the people to have failed to utilize fully the available opportunity. If so, they will be guided to use the SACCOs which in turn shall lead to high household income. If not, the study shall reveal the extent to which the SACCOs have contributed to household income in the area.

The management of SACCOs and their supreme body- Uganda Cooperatives Savings and Credit Union Limited (UCSCU) will also benefit from the study. The study shall reveal their contribution towards people’s income in Kira municipality. If the existence of the SACCOs has no impact to the household income, then the services rendered to the people might have not  efficiently monitored and the researcher feels that if that could be the case, the management shall be advised to put in more effort to mobilize more savings and advise the people accordingly.

1.7. Conceptual framework

Saccos and household income

Independent variable Dependent variable

Intervening variable

Source: Researcher (2018)

The figure shows the linkage between SACCOs and household income. According to the figure, services offered by Saccos which includes credit savings, credit and training is related to household income. 

If they are administered effectively then household is likely to improve however, if they are poorly administered, household income may decline. The researcher also adopted some intervening variables which included government policies and household characteristics, which may affect household income. If these variables are not controlled they may interfere with the results of the study.

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction.

This chapter presented the review of related literature about the effect of SACCO on household income as put forward by different scholars. 

2.1. Theoretical review

2.1.1. Neoclassical Growth Theory

Growth can be based on endogenous growth theory or neo-classical growth model. The neo-classical growth theory argues that the rate of growth is exogenously determined using the Harrod Damar model or Solow model. Solow-Swan class growth theory which focuses on capital and labour indicates that capital is added when SACCOs invest but is lost due to depreciation. The indication is that there is capital growth in wealth only when the investment exceeds depreciation (Gartner, 2006). The investment should insist on keeping the capital growing to achieve capital growth. That increase in capital yields leads to an increase in growth of SACCOs’ Wealth. The theory explains growth as a factor of accumulation of capital. This model is strongly supported by Harrod Damar Model of development economics (1946) which explains the growth rate in terms of saving and productivity of capital. It explains that increase in investment leads to accumulation of capital.

According to neoclassical growth theory by Harrod-Dommar and Robert Solow’s Savings mobilization is not an end in itself, it plays an important role in sustaining growth and development. Through savings there will be capital accumulation leading to investments hence economic growth and ultimate development. A high saving economy accumulates assets faster, and thus grows faster, than does a low saving economy (Lipsey and Chrystal, 1995). SACCOs in Africa are intended to offer an alternative to improving the desirable situation in low income countries. SACCOs are community membership based financial institutions that are formed and owned by their members in promotion of their members economic interests. It can also contribute favorably to Human Integrated Development (Syed, 1991).

Growth theory has been typically concerned with the process of physical and human capital accumulation. More recently, much attention has been devoted to the role played for growth by social capital, i.e. by those accumulated productive resources that are incorporated in the social structure of a society (rather than in physical goods or in single individuals). By its own nature, the process of accumulation of social capital is quite different from that of other forms of capital, because a large part of its payoffs is not privately appropriable. Thus, individuals may not have an adequate incentive to accumulate it.

2.2. Related literature

2.2.1 The contributions of savings with SACCOs on household income.

According to Bailey, (2001), the most common form of products offered by SACCOs is savings. He notes that saving constitutes the key elements on which the development of the community depended. Local savings provide asset for the community’s investment in future. Without it, the community and the economy at large cannot grow and get out of poverty, unless the alternative sources of investment such as foreign capital from donors are injected in the community. 

Davis & Worthington, (2005) note that SACCOs offers the widest variety of specialized savings products, including a savings program for women. The customers have a choice between immediately accessible, liquid products, or semi-liquid accounts or time deposits with accordingly higher interest rates. Customer orientation is also reflected in the fact that simple savings products are often offered alongside more complex products which allows customers to graduate as their demands change. Simple and clear design of basic savings products enables depositors to easily select the product that best suits their needs. 

In line with the above, Pelrine & Kabatalya, (2005) report that the simple and transparent design of the savings products also enables staff to administer them with ease, reducing administrative costs. This is in line with Lipsey (1995) who reports that it is desirable that SACCOs’ membership embrace a saving culture so as to increase their low incomes, leading to improved quality of life. Further still, development is induced by saving in that, high levels of saving led to capital accumulation, later on investment lead to high income levels, ultimately breaking through the vicious cycle of poverty, hence, development in the long run.

Zaman (2000), states that participation in SACCOs reduces vulnerability by smoothening consumption, building assets, providing emergency assistance during natural disasters.  Nelly and Dunford (2009) also find a positive impact of SACCO on income of the households. They state that most of the members of SACCO have incomes increased greatly after joining SACCOs. This was also found by Arbunke (2001) who states that over 50% of members of SACCO had rapid increases in levels of income after joining such groups.

Dupas and Robinson (2009) noted that access to savings has substantial positive impact on investment levels and expenditure and leads to increase in levels of income. Amiyira Rwoth – treasurer of Can YaboYoo Village Savings and Loan association group said that 80% of women are actively involved in the village savings and loan association schemes which is improving their income and standard of living to an extent that members are becoming more self-reliant by the day. “Women are now able to interact freely with other members, they manage their finances and run their homes by meeting most of the basic needs including paying school fees, paying for medical, getting involved in the small-scale businesses which they were not doing before.” She added that it has also inculcated the culture of savings among the people at the same time improved on their socio-economic choices within the community. She said the scheme has widening the search for bigger business opportunities, for instance those involved in Bee keeping are searching for bigger markets for their Honey and that a number of people have learnt simple accounting in managing their money (Candia and Laker, 2009).

Abdul-Malik and Baharumshah (2007) reported that countries having higher savings rates are also enjoying the higher growth rate and per capita income. Pakistan is a low income developing country with weak capital market and highly dependent upon national savings for financing or investment in the country. Hulme and Mosley, (2006) demonstrates that savings and loan schemes better off the borrowers, the greater the increase in income from the borrower. The borrowers who already have the assets and skills are able to make better use of the credit, poorest are less able to take risks or use the credit to increase their household income.

According to UNDP, (2005), around 83% of the population in Bangladesh lived on less than $2 per day and 36% on less than $1 per day. The value of Human Development index for Bangladesh has been increasing at average rate of 8.8% per annum from the 1990s due to an increased availability of community village savings and loan association services for the poor household. In Sri Lanka, credit cooperatives and SACCOs provide loans to the farmers at affordable interest rates to improve their commercial plantations. This has solved the problems of rural credit and improved the livelihoods of a number of households and their income status (Mosley, 2006). Participation in micro finance therefore remains very crucial not only as a means of increasing household economic welfare but also in promoting enterprise stability or growth on a sustainable basis. Whereas Micro Finance is expected to increase incomes, and employment opportunities of the primary enterprises operated by the borrowers, current statistics show that only 5% of the Ugandan rural population has access to formal financing (PEAP, 2005). Hence the need for SACCOs to bridge that gap. 

2.2.2 Contributions of credit from SACCOs on uplifting people’s income.

Kirkpatrick (2002) report that the other most common product offered throughout the SACCO fraternity is the Credit and Loan services. Many of the Institutions have no Institutional capacity or capital base to offer other services. Services are also offered mainly to members of the SACCOs. He further reports that members are entitled to the following loans: Development loans, School fees loans, Emergency loans, Rural / agricultural loans, Normal loans, Special loans, Welfare loans, Working capital loans and Capital development loans. Kibanga and Mania, (2004) report that competition between SACCOS and other Financial Institutions is characteristic of a globalized economy in which the business environment is very dynamic and firms have adapt to such changes. 

The modern customer is empowered and very difficult to please. Marketers are contending with consumers who are very knowledgeable, smarter, more price conscious, more demanding and less forgiving .The consumers also a variety of firms that are promising to offer them better products and services than their competitors (Kotler, 2002). SACCOS like any other business firms have to contend with such customers. According to Hertog, (2007) a Saving and Credit Co-operative society accords members an opportunity for saving regularly, accumulating the savings and thereby creating a pool from which they can borrow exclusively for productive purposes at fair and reasonable rates of interest than would be obtained in other financial Institutions.

Gachara (1990) found that Saccos are seen as vehicles for resource mobilization and gateways to economic prosperity for families, communities and nations. These two studies are in agreement with the primary objectives of a Sacco which are: the creation of an opportunity to the members to save and later borrow. SACCO is a facility that makes it possible for the focused poor people to get a small loan to start a business, pay for school fees, procure housing or receive health care (Microfinance vital to economic growth 2005:15). Such an initiative is instrumental in changing the poverty patterns in view of improved facilities to lessen the challenge posed by startup capital.

According to UN, (2005), SACCOs have been changing people’s lives and revitalizing communities since the beginning of trade (United Nations 2005). The United Nations declared the year 2005 the year of micro-credit because since 1959, the UN has designated International Years in order to draw attention to major issues and to encourage international action to address concerns that have global importance and ramifications. Mudibo, (2005) argues that the SACCOs’ purpose is to encourage savings among members and using the pooled funds, to make loans to its members at reasonable rates of interest and providing related financial services to enable members improve their economic and social conditions.

According to Bottelberge, (2010), Savings and Credit Cooperatives (SACCOs) have found themselves commanding a large percentage of savings in the financial sector. This has driven the citizenry to trust the management of the SACCOs in not only safekeeping of their money but also to provide a good return on it. Mutugu and Mwarania (1986) argues that SACCOs are capable of developing a portfolio of investments that can achieve a desired rate of return for a given level of risk and desired maturity structure and to wipe out all diversifiable risks. These suggestions even though important cannot be fully relied on since the writers did not carry an empirical research to ascertain their allegations.

2.2.3. Contributions of training in savings uplifting people’s income.

Saccos unlike banks rely on members’ savings and shares as the main source of capital for lending out. Every time a prospect walks into a co-operative society seeking membership, one is often motivated by two factors to earn a dividend as return on savings and to access affordable loans leveraging on accumulated savings (Honda, 2009). As a universal rule in many local saccos, the member is eligible for a loan three times one’s savings.

Richard (2007) observes that education of SACCO members is an internally driven agenda and an absolute must for maintaining democracy, member control and transparency within the SACCO. Rather than government and donor policies for SACCO promotion and community education, this role is preferably handled by the organizations themselves. IBEC, 2010 argues that each employer who invests seriously in the area of Training and Development will reap the benefits of an enriched working environment with higher levels of staff retention as well as increased productivity and performance.

Training initiatives need to be strategically aligned to the overall company mission and goals. They need to be designed and delivered with the aim of helping staff to achieve their departmental as well as personal goals, so the trend of increased involvement by line managers and employees is a positive development in terms of ownership of the training and learning. By adopting a strategic approach to training and development rather than an unplanned and ad hoc one, training and development initiatives become more targeted, measurable and effective. 

According to Pelrine & Kabatalya, (2005) SACCOs members especially rural dwellers require more guidance, training and financial development assistance than the urban and semi-urban SACCO clients do. He noted that the  poor  are  eager  and  determined  to  save  if  the  opportunity  is  made available. They can be organized and take leadership, this is of great advantage since they can easily be mobilized into groups, that are able to give loans  to  people  in  their  own  communities  and  recover  the  money  with  interest.  Such intervention requires long-term institutional and financial support.  Small, poor communities  cannot  become  sustainable  in  a  short  period  due  to  their  small  size,  low absorptive  capacity,  high  illiteracy  and  lack  of  exposure  to  the  MFIs  best  practices, (Kishindo, 2001).

One way through which SACCOs can improve governance is through provision of financial education to their members. Broadly defined, financial education encompasses all aspects of our lives’ as it revolves around the ability and courage to enable us acquire logical wealth acquisition and management skills. If correctly applied, the knowledge can positively impact our lives and that of the global community and the reverse can have a negative impact. It therefore rouses our conscience to understand the life cycle of wealth creation and management and its relevance to the various stages of our lives (WOCCU, 2009).

Financial satisfaction being a benefit associated with financial literacy can be measured using multiple items including but not limited to satisfaction with money saved, amount of money owed, current financial situation, ability to meet long term goals, preparedness to meet emergencies, and one’s financial planning and management skills. Joo and Grable (2004) nonetheless, recommended that a single item measure of financial satisfaction should be as effective and efficient as a multi item measure with regard to their one item 10 point stair step question where the respondents gave their honest opinion on their satisfaction level based on five point likert scale that is, 1-very unsatisfied and 5-very satisfied as highlighted by Xiao, Tang and Shim, (2009) as part of their study on financial behavior and life satisfaction of college students.

A survey carried out amongst Minnesota employees on personal finances revealed that over 70% of the employees were not confident enough on their capacity and ability to make informed financial decisions both for themselves and their families when it came to investment decisions (MetLife, 2010). Moreover, the study further noted that about 64% of employees were worried about getting a reliable source to offer financial advice to propel them towards being able to realize their financial goals (MetLife, 2010). The study concluded that through that this process of acquiring new skills and knowledge in regard to personal finances, individuals are not only able to make smarter and more informed decisions but also increase their personal confidence on the ability to manage their personal finances which is a recipe to financial literacy associated with personal financial decision (MetLife, 2010). 

The use of financial tools to assist individuals maximizes their resources and thus increase the money at their disposal enables them to realize their financial goals. It is assumed that those individuals who thoroughly understand and benefit from programs associated with financial literacy attach a higher value on them (Office of Personnel Management, 2005). According to Delavande et al. (2008) financial literacy is captured in the production function of human capital. It assumes that the inventory of financial literacy contributes to the expected return a household receives on their investment into the risky assets and at large the informed personal financial decision made by members. Furthermore, the amount of wealth held in risky assets matters for the return on investment in financial literacy.

2.4. Summary of the literature review

The neo-classical growth theory argues that the rate of growth is exogenously determined using the Harrod Damar model or Solow model. Solow-Swan class growth theory which focuses on capital and labour indicates that capital is added when SACCOs invest but is lost due to depreciation, Keynes’s General Theory gives a central role to the investment decision in the determination of the aggregate level of effective demand, which in turn is the primary factor generating the equilibrium level of employment and output and Growth of wealth theory relates the Savings and Credit Co-operative Society (SACCOs) system encompasses a mutual membership organization involving pooling voluntary savings together from cooperators in form of shares.

Although the literature reviewed above presents finding of various studies carried out in different countries, and Uganda herself on SACCOs, little of this literature relates to current situation in Uganda and Kira municipality in particular. There is little literature on influence of SACCOs to savings and income of people and there is less empirical information linkage in the growing SACCOs and poverty state of the country and Kira municipality in particular. Therefore this study seeks to cover this gap.

CHAPTER THREE

METHODOLOGY

3.0 Introduction

This chapter will describe the process and procedures involved in conducting the research study. It will explain the research design, population, sampling selection techniques, sample size, data sources, data collection instruments, data processing, analysis and presentation.

3.1 Research design

The researcher will use descriptive, cross sectional and associational research designs. Descriptive research in describing the process and characteristics of accessing, managing and paying back the loans that is to say interest rates, payment and grace periods and collateral security. Associational design in establishing the contribution of savings and credit cooperative organisation to household income in Kira municipality from where the problem at hand will be answered and cross sectional in choosing the respondents from where data will be gathered within few days and research questions which will be answered.

3.2 Area of the study

The study will be carried out in Wakiso district in Kira municipality. The study will be focused on selected SACCOs, focusing particularly on how Sacco benefits its members economically, socially and accessibility of financial services.

3.3 Study population

The study population will constitute loan recovers, group leaders and other active members in selected SACCOs in Kira municipality. This population is selected because it is directly involved in the activities of SACCOs and have relevant information on the study under investigation.

3.4 Sample size 

The researcher will select 50 respondents as sample size to represent the whole population. The sample size will be selected using Cochran’s sample size formula. The formula is as shown below;

 no=Z2pqe2

Where;

no is the sample size

Z is the level of significance to be 95% (Z=1.96 from statistical tables)

e is the desired level of precision to be 13.86%

p is the estimated proportion is 0.5 since it is unknown and q is (1-p) which also results into 0.5.

The sample size will be calculated as follows;

no=Z2pqe2

no=1.962*0.5*0.50.13862

     =0.96040.0192

no=50

The contribution of each sample to the sample size is shown on the table 1 below using proportionate allocation.

Table 1: Sample size

The researcher will choose a bigger sample size so as to win confidence desired and make the study representative.

3.5 Sampling procedures

The researcher will use purposive sampling technique to choose specific respondents basing on their familiarity with the subject and their ability to give information readily since the study required specific information. The researcher will select managers, loan recovers, group leaders and other active members to constitute their respondents. This sampling technique will help the researcher to economize the little time she will have to carry out the research.

3.6 Data type and source

Data source will be from both primary and secondary 

3.6.1 Primary Data 

The researcher will be able to get original information from the respondents of SACCOs, in that structured questionnaires will be developed by the researcher and administered to the targeted respondent.

3.6.2 Secondary Data 

The researcher will access annual reports and books of accounts of SACCOs and other external sources which were established by scholars and academicians about variables under study

3.7 Data collection methods and procedures

3.7.1 Questionnaire 

The questionnaires will be used to self-administer the researcher and this will improve the capacity of the respondents to answer questions since some of the questions will be translated into vernacular.

3.7.2 Interview guide 

The researcher will record replies from respondents and the interview guide which will help in completing the work. This method will increase response rate, help to collect information from incapable people and getting information from people who will be reluctant to reply, help to go deeper in the conversation and there will be possibility to cross check whether information is correct.

3.8 Data presentation and analysis 

3.8.1. Data presentation

The findings will be presented in percentages, tables and frequencies. The data will be edited and coded which will ensure the completeness of the questionnaires

3.8.2. Data analysis

Data collected will be carefully edited, sorted and coded to eliminate the inconsistencies and errors that will be made during the data collection. After data processing, it will be subjected to descriptive analysis to create meaning of what will be collected from the field and find out the relationship that support or contradict original or new hypothesis by using statistical package for social scientists (SPSS) and Microsoft excel programs. Information will be presented in form of percentages, frequencies and tables.

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS

4.0 Introduction

This chapter presented the characteristics of the respondents, presentations of data and discusses/ analyzes and interpreted the findings of the study based on study objectives. The findings were presented in tables using figures, percentages and frequencies. 

4.1 Data presentation

Data was presented both qualitatively and quantitatively, qualitative data is presented in form of explanations whereas quantitative data is presented using illustrations such as tables and percentages. A sample of 50 respondents was selected using purposive sampling methods. Questionnaires, and interview guides were administered to them for data collection. Among the 50 respondents, 45 of them returned the questionnaires, giving a response rate of 90%.

4.1.1 Biographical information

This chapter presents general background about the respondents by age groups, gender, marital status, education levels and years spent in the SACCOS group.

Table 2: Showing respondents by age groups

Source: Primary data, 2018.

Table 2 above indicates that 30% of the respondents are in age bracket (30-50),35% in the age bracket (18-30), 15% of the respondent are in the age bracket of 50 and above and finally 20% those of below 18 years. A great number of people within the age of 30-50 are actively participating in the village savings and loan association due to commitment for future consumption as compared to those below 18 years who have no reliable source of money to save and also have poor attitude towards savings.

Table 3: Showing respondents by gender.

Source: Primary data, 2018

Table 3 shows that 70% of the respondents are females and 30% of the respondents are men. This indicates that females are more involved in SACCOS than the Men showing gender inequality in SACCOS. This is due to the fact most men said that saving in the SACCOS belongs to the whole household.

Table 4: Showing respondents by marital status

Source: Primary data, 2018

From table 4 above indicates that a marital status of respondents according to the data obtained, 40% were married, and 35% were windowed, 0% cohabiting, 15% single and lastly 10% divorced/separated. The study found out that the greatest numbers of respondents participating in the village savings and loan association were married due to joint contribution towards the pooling of savings to the SACCOS.

Table 5: Showing respondents by education

Source: Primary data, 2018

The table above shows the education level of the respondents, the study found out that percentage of 45% had reached the level of primary, 25% had reached the level of secondary, 15% had no education at all, and 10% had reached up to the tertiary level, finally 5% and had reached up to the university level. A majority of the respondents had only reached primary level constituting to a percentage of 45%, so therefore they utilized the village savings and loan association as their only source of income.

Table 6: Showing number of years spent in the SACCOS.

Source Primary data, 2018

Table 6 above indicates that 51% had spent 1-2 years in the village savings and loan association, 15% had spent 3-5 years, 25%had spent less than a year and finally 10% had spent more than 5 year in the village savings and loan association.

4.2 Contributions of savings with SACCOs on the household income.

To identify the contributions of savings and credit cooperation on household incomes in selected SACCOs in Kira municipality Wakiso district, the researcher administered questionnaires and oral interviews to SACCOs chairpersons and group members. The response of these categories of respondents is shown in the table below.

Table 7: Showing the contributions of savings with SACCOs on household incomes.

Source: Primary data, 2018

Table 7 above shows that, (80%) of the respondents strongly agree with loans are provided at a low interest, (20%) agree, while no respondents were not sure, disagree or strongly disagree. This implies that majority of the respondents agree. The study revealed that there are a number of contributions made by savings and credit cooperation towards improvement of household income. Studies have also found that savings and credit cooperation contribute towards increase in the level of household incomes. This adequately finds support of (Nelly M.K. and Dunford 1999) who stated that most of the members of savings and credit cooperation have incomes increasing greatly after joining the SACCOs. This was also found by (Arbunk 2001) who stated that over 50% of members of SACCOs had rapid increases of income after joining such groups and acquire loans at a low rate.

Results above also indicate that (66.7%) of the respondents strongly agree with there is voluntary membership, (22.2%) agree, (4.4%) disagree, (6.7%) of the respondents strongly disagree and no respondents were not sure. This implies that majority of the respondents agreed with (88.9%). This is because joining SACCOs is based on mutual agreement. 

Table above further shows that, (77.8%) of the respondents strongly agree with easy access to income, (17.8%) of them agree, no respondents were not sure, (2.2%) of them disagree and (2.2%) of the study respondents strongly disagree. This implies that majority of the respondents were positive with the statement. This is because SACCOs enable members to have easy access to income. According to UNDP, (2005), around 83% of the population in Bangladesh lived on less than $2 per day and 36% on less than $1 per day. The value of Human Development index for Bangladesh has been increasing at average rate of 8.8% per annum from the 1990s due to an increased availability of community village savings and loan association services for the poor households (Micro save Africa, 1991). This therefore shows that savings and credit cooperation lead to increase in the level of household income thus need for government and other stakeholders to facilitate their operations in order to improve on earning capacity and livelihoods of households.

Findings as presented above indicate that, (53.3%) of the respondents strongly agree with improves saving culture thus increased income, (35.6%) agree, (4.4%) of the respondents were not sure, (4.4%) of them disagree and (6.7%) strongly disagree. This implies majority of the respondents were positive with the statement because most households have a better saving culture since they are urged to save either daily, weekly or monthly. Robinson (2001) in a study of 16 different  credit and loan institution from all over the world shows that having access to microfinance services has led to an enhancement in the quality of life of clients, an increase in their self-confidence, and has helped them to diversify their livelihood security strategies and thereby increase their income. Hulme and mosley, (1996) reported that savings and loan schemes improve on members’ income since the borrowers who already have the assets and skills are able to make better use of the credit. In Sri Lanker, credit cooperatives and SACCOs provide loans to farmers at affordable interest rates to improve their commercial plantations. This has solved the problems of rural credit and improved the livelihoods of a number of households and their income status (Ibid).

Results in table 7 above reveal that (40%) of the respondents strongly agree with encouraged hard work thus increased earnings, (55.6%) agree, no respondents were not sure, (2.2%) of the respondents disagree and another (2.2%) of the respondents strongly disagree. This implies that majority of the respondents were positive. In this study it was found that SACCOs increased the levels of household income by earning interest on saving, Encouraging hard work thus increased earnings, encouraging friendship and cooperation which improves business through sharing ideas and interest free loans,  being source of investment income from savings made which generates more income, making it easy to access loans to increase earnings from business, enabling access to income from donors (GOV’T, NGOs, Politicians and well-wishers) to the group, Improves saving culture thus increased income and controlled expenditure, Increased food production through loans for farming thus surplus for sale. These find support of several scholars such as (Dupas and Robinson 2009) noted that access to savings has substantial positive impact on investment levels and expenditure which leads to increase in levels of income. 

4.3 The effect of credit from SACCOs on uplifting people’s income

In order to establish the effect of credit from SACCOs on uplifting people’s income. Their responses are presented in the table below.

Table 8: Showing the effect of savings and credit cooperation on asset accumulation.

Source: Primary data, 2018

Table 8 above shows that 95% of the respondents agree that savings and credit cooperation have a positive effect on household income by improving on education , 90% says it helped to established income generating activities, 85% says it improved on food production due to access to loan, 80% says it enabled purchase of live stocks like goats, cattle’s, 70% says it’s a source of emergency funds like paying for Hospital bill instead of selling assets, 60% says it helped in purchased of household items like bedding, clothing, phones etc, 55% says  it encourages hard work to get installment for saving, 70% says it improved welfare from saving and investment income and also it facilitate small business and sharing ideas and link with business partners.

The study revealed that there is a remarkable contribution made by SACCOs on household development in the area where the study was carried out. Studies have also shown that SACCOs contribute to the household development in various ways. The study found out SACCOS members was able to purchase the basic needs like beddings, clothing, and food among others. Besides that the village savings and loan association have made them purchase livestock like goats, cows, sheep among others but today at least each household has got one or two plus (members of SACCOs in depth interview). This is in line with scholars like gardian.co.uk, Monday 26th November 2012, in the Olocoi Emorikinos SACCOS group in Katine, 11 out of 25 members had a mobile phone and says they would be willing to use such a system. One of the members was quoted admitting that in the past few years her situation has considerably improved because of savings and borrowing from SACCOS, she has bought some goats and commercialized agriculture to improve on her income earnings through association. This means that with proper trainings of households and members of the SACCOS, savings can be made for investment and development of activities. 

The study results revealed that village savings and loan association have facilitated the establishment of projects that have helped to reduce on household poverty and hence development. It is also supported by Uganda national household survey 2009/2010 by UBOS, states that interest in microfinance and other financial services has increased in the recent decade with 12% of persons seeking credit from informal sources compared to only 4% from formal sources. SACCOS is now seen as one of the most promising tools to tackle poverty in the developing world. Empirical evidence shows that microfinance interventions have capacity to reduce poverty, contributes to food security and change social relations for the better by reducing vulnerability to economic risks, helping the poor to diversify their income sources and build up physical, human and social assets (Cohen 1997, 1999)

The study revealed that SACCOs have availed members with social fund for meeting emergency situations like sickness, people can access medical clinical services than when before joining SACCOS people depend on government services which is also so limited. Littlefield, Murduch and Hashemi (2003:3) also acknowledge the sparse specific evidence of the impact of microfinance on health but where studies have been conducted they conclude, “households of microfinance clients appear to have better nutrition, health practices and health education than comparable non-client households”. Among the examples they give is of FOCCAS, a Ugandan MFI whose clients were given health care instructions on breastfeeding and family planning. They were seen to have much better health care practices than non-clients, with 95% of clients engaged in improved health and nutrition practices for their children, as opposed to 72% for non-clients. Also (Robinson , 2001) in a study of 16 different  credit and loan institution from all over the world admitted that having access to microfinance services has led to an enhancement in the quality of life of clients, an increase in their self-confidence, and has helped them to diversify their livelihood security strategies and thereby increase their income.

In this study SACCOs are found to have led to household development in that they enabled households to run small businesses established using savings from the SACCOs and maintained using simple loans obtained from the associations. They also enabled members to pay school fees for their children through the savings made and the loans with low interest rates. This finds support of (Nelson, 1971) who stated that saving and loan association (ROSCAS) in Kenya helped Women in the Mathare Valley by availing credit facilities. With these credit services, women were able to invest in many ventures, send their children to school and either repaired or constructed new homesteads. It is obvious that in the context of the local economy, these women were above average income earners. 

Savings and credit cooperation were also found to enable the members to purchase household items, beddings, clothes, phones among others. They also reduced dependency burden on children by elderly parents and dependency on husbands by wives and vice versa. These was also pointed out by (Anyango et al, 2006) who pointed out that participation of household in SACCOS helps them perform well in terms of growth, sustainability, profitability, improved standards of living, improved housing and increased income. Allen and Hobane (2004) also concluded that SACCOS contributes to an increase in household productive and non-productive asset levels among the majority of participants as well as to some improvement in quality of housing. 

It was also found out that SACCOs enabled households to establish income generating projects through the savings made by members and also loans obtained from the associations. Similarly they encouraged hard work among members as they struggled to get installments for savings and loan repayments. SACCOs too brought members together where they shared ideas and got linked to each other as business partners where they could help one another with soft loans outside the SACCOS arrangement. In Kyamuhunga Sub County Bushenyi district in western Uganda, Women accessed credit facilities and improved their farms, started small enterprises and other income 15 generating projects. As a result, these women were able to buy most household necessities, which they used not to have (Kyogabirwe, 2005). In a similar way it was also found out in the study that SACCOs helped in improving agriculture by enabling members to borrow loans for farming activities such as weeding crops. 

SACCOs helped to improve on welfare of households and improved health services due to improved income inflows from established projects and investments as well as accessibility to loans in times of emergency and break in income inflow which also reduced unnecessary sale of household assets. This finds support of (Littlefield, Murduch and Hashemi 2003) who acknowledged the sparse specific evidence of the impact of microfinance on health but where studies have been conducted they conclude, “households of microfinance clients appear to have better nutrition, health practices and health education than comparable non-client households”. Among the examples they give is of FOCCAS, a Ugandan MFI whose clients were given health care instructions on breastfeeding and family planning. They were seen to have much better health care practices than non-clients, with 95% of clients engaged in improved health and nutrition practices for their children, as opposed to 72% for non-clients.

Noponen, (2005) recognizes that the programme was having a “positive impact on livelihoods, social status, treatment in the home and community, living conditions and consumption standards”. Compared with new members, some of the findings showed that long-term members were more likely to live in tile roofed and concrete houses, to have a higher percentage of their children in school, to have lower incidence of child labor, to be the largest income provider or joint provider in the home, and to make decisions on their own as regards major purchases and also Clients also reflected significant increases in ownership of livelihood assets such as livestock, equipment and land.

SACCOs were also discovered to have impact on household development by enabling members to purchase livestock and improve on food production due to access to loans for weeding and acquisition of oxen for ploughing. This increased both food security and inflow of income from sale of livestock, milk and surplus food. Montgomery, 1996 also stated that savings and credit cooperation are able to meet the very poor people from the household. For example, it was found out that easy access to savings and provision of loans by SANASA enabled the poor to cope better with seasonal income fluctuation. Dreze, sen, 1989 and Bennet and Cuevas, (1996), state that from the perspective of poverty reduction, access to facilities reliable monetized savings facilities from the SACCOs can help the poor smooth consumption over period of cyclical or unexpected crisis, thus greatly improving on the economic security that access to can help the move out of poverty by improving on the productivity or creating new sources of livelihood (Bennet and Cuevas, 1996) 

Chambers (1983) suggests that in order to realize development, the poor households must help themselves. SACCOs therefore are set up to create and increase financial services accessibility to poor households to increase the level of income and development (Ashe, 2000). Trapped as they are, the poor households have come together, created these savings and credit cooperation which are highly adaptable, easily accessible and very flexible with a form of insurance, to help them access financial services to cater for children’s education, health care and rebuild social networks.

4.4 Contributions of training in savings on uplifting household income

In order to establish the contributions of training in savings on uplifting household income, questionnaires and interviews were administered to the selected SACCOS group members.

Table 10: Showing the possible ways of improving the village saving s and loan associations

Source: Primary data, 2018

Table above indicates that, 20% of the respondents strongly agreed with trainings helps to better manage my personal finances. This is reflected as 80% who agreed however no respondents were sure, disagreed or strongly disagreed. The findings further indicated that, 88.9% of the respondents strongly agreed with clients are able to obtain substantial returns on their investment decisions due to financial training. This is in response to 6.7% who agreed, 4.4% of the respondents disagreed while no respondents were sure or strongly disagreed. This implied that majority of the respondents were supportive reflecting 95.6%. Also results in the table indicated that, 88.9% of the respondents strongly agreed with financial literacy enable members to effectively manage their money. However 4.4% of them agreed with the statement, other respondents were not sure or disagreed and 6.7% strongly disagreed with the statement. This implied that most respondents were positive with 93.3%. 

The findings further showed that, 42.2% of the respondents strongly agreed with financial education enables to better budget and maintain financial records. However, 55.6% agreed, other respondents were not sure or disagreed and 2.2% strongly disagreed. This implied that majority of the respondents were positive with 97.8%. The study findings in the table above indicated that, 11.1% of the respondents strongly agreed with members are able to manage debts better with some financial training, 77.8% of the respondents agreed while other respondents were not sure, 2.2% of the respondents disagreed and 8.9% strongly disagreed respectively. This implied that majority of the respondents were positive. Results as shown in table above indicate that most of respondents (77.8%) strongly agree with financial education helps to better understand financial markets and instruments, 11.1% of them agree. 0% were not sure, 2.2% of respondents disagreed while 8.9% strongly disagreed. 

According to Lauren (2011), one of the key strategies to safeguard the savings-led programs is to work on members’ financial education before linking them to financial institutions. This needs developing financial education curriculum contextual to the needs of different countries in Africa and preparing cadre trainers to provide financial education to the members of savings-led microfinance programs. Conner Brannen (2010) also noted that continued success of SACCOs depends on continuous support in form of training and business guidance which allows sustainability. Formation and development of new groups requires provision of necessary training and materials as well as some form of initial monitoring so that they may eventually operate more effectively on their own.  

According to CARE International Report (2009), the leaders of the SACCOs need to be carefully selected to ensure that they have sufficient literacy level to complete the necessary monitoring documents and ability to read and write. SACCOs are self-managing associations so it is necessary that the groups conduct proper monitoring in order to fully understand how much they are saving and lending and what problems may exist that need to be addressed. It was also stated that SACCOs should be linked with micro-finance institutions (MFIs) so that the SACCOS members are able to borrow larger amounts. It would be beneficial to SACCOS members if an increased number of SACCOs are linked to MFIs so that SACCOS members are able to access larger loans from MFIs. The study also revealed that there is need to link the SACCOs to commercial banks and MFIs to access loans at reduced interest rates so as to increase the amount to be borrowed. 

Katabarwa (2009), recommends that since SACCOs are the best tool for household poverty eradication especially in rural areas, government should fund them to increase the loan amounts, increase the repayment period and improve the credit terms for the expeditious eradication of household poverty.  She also recommended that training of the members and regular financial advice will help the SACCOs to overcome the challenges being faced in their effort to eradicate poverty. This was also revealed by the study where 89% of the respondents suggested that executives and members be given training on book keeping, 87% said that non-government organization should give donations and interest free loans to increase the amount to be borrowed by members and 62% suggested government should give grants and soft loans to the Savings and credit cooperation.

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.0 Introduction

This chapter discussed the general findings of the study, the topics were future research should be done, conclusion of the study based on the study findings and recommendations to the study. 

5.1 Summary of findings

The study found out that, SACCOs improves on education due to access to loan and money savings to pay school fees, it encourages hard work among households to get money for saving, improving agriculture due to access to loan for farming that is increasing food production to fight poverty, promoting also income generating project among households like market vendor, running small business to get income.

There is need for the government and NGOs to support SACCOs by giving them soft loans to increase their income, constant sensitization of the community about SACCOS through field visit, radio talk shows, seminars, giving capacity building to the community linking  SACCOs to commercial banks for the security of their money and credit at low interest rates and also households should be trained on entrepreneurship skills and SACCOS members t elect trust worthy leaders in their groups for transparency and accountability.

5.2 Conclusion 

Savings and credit cooperation (SACCOs) have positive impact on household income in Kira municipality. This is based on the positive impact on; household income, education and diversification/development of Income Generating Activities, that have been revealed in the findings. Therefore the government should intervene in by putting some financial budget for this program in the community to improve on savings culture to improve on household income. 

5.3 Recommendations

SACCOs are seen as one way the poor can come together to pool resources to reduce poverty and be productive rather than being dependent on aid based on the following recommendation.

The government and NGOs should support the SACCOs in terms of training for proper record keeping and management as well as proper use of the member’s savings. Also, business related trainings can be appropriate to strengthen the development of IGAs amongst the SACCOS participants.

The Government/NGOs should embark on community sensitization to enhance savings mobilization and providing capacity building to the community by use of awareness creation channel. Savings made by the SACCOS participants have impacted on the development of IGAs, Members of SACCOs can be encouraged to save more and sensitization of the general community is necessary about the importance of savings. The member’s savings are indeed helping to build their wealth or assets, pay for children’s education and support the development and diversification of Income Generating Activities. 

The Government and Non-government organizations should extend grants/donations and interest free loans to the SACCOs to increase the money that members can borrow. This should be accompanied by monitoring and constant training of the members on how to use the money borrowed.

The Government and NGOs together with Saving groups and financial institution should create Linkage of SACCOs to formal financial institutions like banks, MFIs or SACCO. This can help to further enhance household welfare positions through access to a wider range of financial services.

The research findings revealed that there is need for training of executives and members on bookkeeping, NGOs should give donations and interest free loans, Training members on entrepreneur skills by government and non-government organizations, Election of trust worthy leaders, Government to give grants and soft loans, Training on group dynamics by government  and NGOs, Constant sensitization through meetings and seminars, Organize exchange visits for members to learn from others in different areas, Link to commercial banks for credit at low interest rates and Strengthen bye-laws and implement them. Several studies also agree with the findings of the study. 

5.4 Area for further research

Further research should be taken on the following areas:

• The relationship between the savings culture and financial performance
• The causes of poor savings and the effect on attainments household’s incomes
• The effects of savings culture on business sustainability in private small business enterprises

REFERENCES

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Afroz, N. N. (2013). Credit Portfolio Management of Bangladesh Krishi Bank. Global Journal of Management and Business Research Administration and Management, 13(12), 15-20.

Ashe, J. R. (2012). An investigation into the Investment Practices of Reserve Funds in SACCO societies in Nairobi. MBA University of Nairobi.

Bailey, K. E. (2001). Presented at the 3rd Pan- Africa Consultative Forum on Corporate Governance, Dakar: Senegal.

Balunywa (2015). The impact of training on Performance of Micro and Small Enterprises Served by Microfinance Institutions in Tanzania. 

Chambers, T. (15). Applying International Best Practices to South Africa’s SACCOs: World Bank Working Paper No. 56.

Cole, M.M. (2007). Financial Markets and Institutions: An Introduction to a Risk Management Approach. 3rd Ed. New Delhi: Tata McGraw-Hill Publishing Company.

Davis, P. & Worthington, S. (2005).Continuity in Capital Accumulation the Case of the British Cooperative Bank. Journal of Business ethics, 12(1), 849-859

Deugd, B. (2012). Assessment Methodologies for Microfinance: Theory, 4th edition, 28 (1), 79  98. Daniels, Land. in Tanzania” Working Paper. 4th edition.

Ijaiya, W. (2012). Corporate Governance in Cooperatives: the East African Experience.  (4), 101-132. A Toll Box. London: Macmillan.

Johnson, L. (2011), “Increasing Returns and Long-run Growth,” Journal of Political. Oxford: Oxford University Press.

Kabataya, O. (2005). Urban Saving. Kampala: Macmillian LTD. 

Kirkpatrick, I. (2002). “The Implications of the Evolving SACCO Agenda for Regulatory and Supervisory Policy. Development Policy Review

Kyendo, M. (2011). The Growing Power of Savings and Credit Co-operative Societies in Kenya

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Wilson, N. (2011). Microfinance and Poverty in Bolivia, Journal of Development Studies, Vol. 37 

Zeller, I. (2011), Leading Change in Cooperatives and Member Based Organizations in East Africa: Findings of a Study on Leadership and Leadership Development. Swedish Cooperative Centre. East Africa

Zhang, A. (2011). the status of higher financial institutions and principles of lending in African Countries 2nd edition.

APPENDICES

APPENDIX I: QUESTIONNAIRE

Dear respondents,

I am Namata Sharon, a final year student pursuing a Bachelor’s Degree of Arts in Economics at Kyambogo University. This questionnaire serves to gather data concerning “SACCOS and Household Income”. I therefore request to offer a helping hand by either ticking of filling as need be. Data gathered shall be kept with utmost confidentiality for academic purposes and probably the betterment of our education system.

Thanks

Section A: Bio Data 

(Please tick the appropriate box)

1. (ii) Age (Tick) below   18                  18-30              30-50 50 and above

  (iii) Gender (Tick)      Male            Female

  (iv) Marital status (Tick)

            Married                Single              Divorced/Separated              

           Cohabiting           Widowed       

2. Highest level of education reached (Tick) 

 Primary                                           Secondary                       Tertiary Education         

 University                                       No Education   

3. For how long have you been in this SACCO? (Tick)

Less than one year                         1-2 years             3-5 years               

More than 5 years

4. Which position do you hold in this SACCO group? ……………………………………………..

SECTION B: CONTRIBUTIONS OF SAVINGS WITH SACCOS ON HOUSEHOLD INCOME

5. This section will examine the contributions of savings with SACCOs on household income. Tick the best option using a five point Likert scale; 1 – Strongly Agree (SA), 2- Agree (A), 3- Not Sure (NS), 4- Disagree (D), 5- Strongly Disagree (SD). 

6. Based on your own personal opinion, what are other benefits of savings on household income?

…………………………………………………………………………………………………

SECTION C: CONTRIBUTIONS OF CREDIT FROM SACCOS ON UPLIFTING PEOPLE’S INCOME

7. This section will examine the contributions of credit from SACCOs on uplifting people’s income. Tick the best option using a five point Likert scale; 1 – Strongly Agree (SA), 2- Agree (A), 3- Not Sure (NS), 4- Disagree (D), 5- Strongly Disagree (SD). 

8. Based on your own personal opinion, what are other benefits of credit from SACCOs on uplifting people’s income?

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

SECTION D: CONTRIBUTIONS OF TRAINING IN SAVINGS ON UPLIFTING HOUSEHOLD INCOME

9. This section will examine the contributions of training in saving on uplifting people’s income. Tick the best option using a five point Likert scale; 1 – Strongly Agree (SA), 2- Agree (A), 3- Not Sure (NS), 4- Disagree (D), 5- Strongly Disagree (SD). 

10. Based on your own personal opinion, what are other benefits of training in savings on personal financial decisions?

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

Thank you so much for your cooperation

APPENDIX II: INTERVIEW GUIDE

1. How old are you?
2. What is your marital status?
3. What is the name of your SACCO?
4. What is your highest level of education?
5. For how long have you been in this SACCO?
6. Which position do you hold in this SACCO?
7. What are the contributions of savings with SACCOs on household income?
8. What are the contributions of credit from SACCOs on uplifting people’s income?
9. What are the contributions of training in savings uplifting people’s income?
10. Based on your own personal opinion, what are other benefits of SACCOs on uplifting people’s income?

THANK YOU FOR YOUR COOPERATION