Performance Of Saccos In Uganda: An Analysis Of The Dataset From Uganda

Abstract

The government of Uganda created an enabling environment for the establishment of self-help SACCOs as one way to reduce poverty in the country. In Uganda, only 14% of the population is part of the formal banking sector and only 10 million possess bank accounts. This paper investigated the relationship between the loan portfolio size of SACCOs and the income generated from loans by the borrowers in Uganda, assessed the relationship between the loan portfolio size of SACCOs and the number of accounts of the borrowers in Uganda and examined the effect of the number of accounts for the borrowers from SACCOs in the income generated from loans by the bors in Uganda. The results indicated that there is no significant association between the loan portfolio size of SACCOs and the income generated from loans by the borrowers in Uganda as shown by a Probability value (0.171). There is no significant relationship between the loan portfolio size of SACCOs and the number of accounts for the borrowers as indicated by a P-value (0.130). There is a positive significant effect of the number of loan accounts for the borrowers from SACCOs on the income generated from loans (P-value<0.05). The study recommends that there should be financial literature education to the borrowers from SACCOs such that they invest their loans effectively and efficiently into productive activities.