The effect of savings and credit co-operatives (SACCOs) services on members' saving culture. A case of Wakiso District
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The study examined the effect of Savings and Credit Co-operatives (SACCOs) services on members' saving culture in Wakiso district. The study set to establish the nature of SACCO’s services in Uganda, to establish the challenges faced by members in saving with SACCOs in Uganda, to assess the effects of SACCOs on members' saving culture, and to examine strategies used by SACCOs to enhance members’ saving culture The researcher gathered primary data using questionnaires and interviews and secondary data, which was obtained through analyzing the available literature from books, reports and journals. The study consisted of 50 respondents who were selected using both stratified and purposive sampling techniques. The study established that quick and emergency loans, business loan, shares and agriculture loans depict the nature of services offered by SACCO. On challenges faced by members saving with Saccos, limited capital, lack of community awareness, unfavorable credit terms, poor management styles, and unfavorable credit terms. On the effect of SACCOs, improved standard of living, fund mobilization, business management, advisory services, business skills were cited as some of the findings while on strategies used by SACCOs to enhance members’ saving culture, loan committees, evaluation credit history, provision of information, constant visits were cited as some of the findings. The study concluded that there is a need to broadly understand and appreciate the importance of SACCOs in promoting members’ saving culture. It is important that members be empowered, fully facilitated if they are to produce desirable results and lead to performance in their business. Further, from the discussion it came out clearly that loan committees are central in financial institutions. This should be addressed by the SACCO managers to help the members realize its objectives in the required targets. Sensitization and mobilization of the members should be emphasized so that they can come to understand and appreciate the programs offered by the SACCOs. It is important to note that for any programme to be successful, mobilization and awareness creation are paramount.