| dc.description.abstract | Savings and Credit Cooperatives (SACCOs) have become a popular strategy for poverty eradication and promotion of financial inclusion in low- and middle-income countries. In Uganda, the government is committed to establishing a SACCO in each sub-county. Under the Tier 4 microfinance institutions Act 2016 key position was the establishment of the Uganda Microfinance Regulatory Authority. UMRA has the mandate to license, regulate and supervise all Tier 4 financial institutions including SACCOs. The importance of this is to have a sound and sustainable non-banking financial institutions sector under the guidance of UMRA’s laws, policies, rules and regulations. This study was conducted to investigate SACCOs response to the new rules and regulations by UMRA in Mbarara District. A mixed method approach of data collection was used to collect qualitative and quantitative data. Quantitatively, 140 questionnaires were administered to respondents. Qualitatively, 14 key informants were interviewed and 4 focus group discussions were conducted in the 2 city divisions and 2 sub-counties. Quantitative data was analyzed using SPSS for descriptive statistics whereas qualitative data was analyzed using thematic approach of analysis in order to capture the overall views of different respondents. The study findings revealed that SACCOs have shown a slow response towards the new rules and regulations by UMRA. This is due to inadequate sensitization and awareness programs, different perceptions and attitudes, uninformed membership and weak institutional support for SACCOs. In line with state interventions, the state has supported SACCOs through Microfinance Support Centre (MSC) where SACCOs have been able to get loans at a low interest rate. With regard to the standard procedures put in place to promote fair and transparent business practices, SACCOs have credit policies, do loan audits and keep records. These have been of a great importance in monitoring and evaluating SACCOs performance. In conclusion, SACCOs have shown a slow response towards the new rules and regulations by UMRA, due to inadequate sensitization and awareness programs. Members and management of SACCOs cannot respond to rules and guidelines they do not understand. Hence, there is a need for more sensitization and awareness programs so that SACCOs members can be able to understand the pros and cons of the new rules and regulations by the Uganda Microfinance Regulatory Authority. | en_US |
