Savings and Credit Co-Operative Societies (Saccos) and Poverty Reduction in Kabale District.
The study was conducted to establish the contribution of SACCOs on poverty reduction in Kabale District and 200 respondents were involved in the study. The study was guided by the following objectives; to find out the services offered by SACCOs that reduce poverty in households, to investigate the contribution of SACCOs on level of household income, to establish the impact of SACCOs on asset accumulation at household level and to assess the challenges faced by SACCOs in reducing poverty in households. The researcher used a cross section research design and both quantitative and qualitative data approaches and analysis were used. The majority of the respondents (77.7%) agreed that there are services offered by SACCOs that eradicate poverty in households of Kabale District while the minority (22.3%) disagreed. It was also found out that majority of the respondents (81%) agreed that SACCOs influence the level of income in Rural Households while the minority (19%) disagreed. It was further found out from the majority of the respondents (77.7%) that SACCOs increase asset accumulation in rural households while the minority (22.3%) disagreed. The study concluded that SACCOs should encourage rural households to have access to products and services in order to boost their income generating activities and hence improve on the level of income to alleviate poverty. It was concluded that rural households who access and use SACCO products effectively were able to accumulate greater savings from the invested activities thus increasing their asset accumulation and reducing poverty as well. Findings revealed that SACCOs helped to build financial and business management capacity of rural households hence improving their asset holdings, SACCOs mitigate income fluctuations, minimizes unexpected expenditures and emergencies which builds a small asset base over time among rural households, they enhance savings and investment which later promotes greater asset accumulation. The study concluded that SACCOs should inform the shareholders of the services available and should sensitize them on the better ways how to utilize the products in order to alleviate poverty in the community. The researcher recommended that SACCOs should encourage rural households to have access to products and services in order to boost their businesses and hence improve on the level of income to alleviate poverty. The study further recommended that SACCOs should opt for alternative means of considering people without collateral securities like; group members acting as collateral security so as to hedge against the credit risk and ensure that they serve all people without segregation thus alleviating poverty.
Savings and Credit Co-Operative Societies, Poverty Reduction