Government supported SACCOs and the delivery of rural financial services in Wakiso District: A case study of Kiteezi SACCO
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This study investigated the impact of government supported SACCOs on the delivery of rural financial services in Nangabo Sub-county using Kiteezi SACCO as a case study. The study sought to find out the savings and loans products offered by Kiteezi SACCO and their requirements; the achievements of this SACCO; the support offered to this SACCO by government and the challenges it faces in the provision of rural financial services. This was in view of the fact that government has been revitalizing the SACCOs at local government levels but it was not yet clear whether these have increased opportunities for receiving rural financial services by the people at the grassroots. The study was conducted through a descriptive survey. Data was collected between December 2012-March 2013 using questionnaires, key informant interviews, focus group discussion and observation from 100 respondents who were randomly and purposively selected from the accessible population. These included: members of Kiteezi SACCO, management of this SACCO, Sub-county technocrats and political leaders; and officers of Uganda Cooperative Savings and Credit Union. The study was analyzed using a content analysis for qualitative data. While for quantitative data the researcher employed both univariate and bivariate analyses. The study found out that Kiteezi SACCO offers fixed deposits, group, individual and institution savings which require full membership for one to save. It was also established that agricultural, commercial, school fees, emergence and consumption loans are given out to members with the requisite collateral. The study further revealed that government offered support to this SACCO in form of capital, computers, office furniture, stationery and training of both management staff and SACCO members. The major challenges faced by this SACCO were poor loan recovery, politicization of SACCO activities, leadership challenge, high labor turnover, inadequate supervision and inability of staff to manage credit. The study concludes that Kiteezi SACCO has had little impact in the provision of rural financial services in Nangabo Sub-county due to poor loan recovery mechanism and politicization of SACCO activities by councilors and other politicians. It recommends that a National SACCO policy be formulated and a SACCO Act be enacted to provide clear policy and legal framework for SACCO operations. Intensive education and training should also be provided to SACCO members and management staff.