Saving and Credit Cooperative and Poverty Reduction in Mayuge District

Abstract

The study assessed the effect of SACCOs on poverty reduction in Mayuge district. The aim of the study was categorically to; establish the effect of financial access on poverty reduction, examine the effect of financial literacy and how and examine the effect of saving mobilization on poverty reduction in Mayuge District. The study applied a correlational descriptive design where qualitative and quantitative ways of both analysis and collection of data were used. Data was collected using questionnaire and interview guide. Both descriptive and inferential statistical techniques of analyses were used. The study revealed and indicated a strong positive correlation between financial access, financial literacy and saving mobilization and poverty reduction. In view of the above findings, the researcher concluded that members of SACCO could not equitably access loans that were adequate to guarantee and lessen their poverty conditions, SACCOs had not improved member household livelihoods and their incomes. Member savings are the source of SACCO income and are extremely important in determining SACCO continuity. The study recommends among others things that: government through the Ministry of Cooperatives helps SACCOs to carryout member training about SACCOs operations, management of SACCOs enhanced control of loan default, management of SACCOs involve other ordinary members in making decisions, management sensitizes the public about the benefits and impact of SACCOs on people’s livelihoods and that members be trained on entrepreneurial skills. SACCOs should also promote members’ welfare and prosperity to encourage more savings.