Significance of Microfinance Institutions on the Economic Development of Kabale Municipality: A Case Study of Kihanga Mparo SACCO.
The study assessed the significance of Microfinance institutions on the economic development of Kaba le Municipality a case study of Kihanga Mparo SACCO Kabale branch. The objectives of the study were to examine the services provided by Kihanga Mparo SACCO to its members, the effect of Kihanga Mparo SACCO on economic development, and the challenges faced by Kihanga Mparo SACCO on economic development, a case study design was used and a sample size of 40 respondents was used, purposive sampling technique and simple random sampling were used to collect data and data was collected using questionnaires and interviews from the field. From the study findings on services provided by Kihanga Mparo SACCO to its members, the responses were got from the statements which included savings services, opening and running of savings accounts, terms of interest on savings and credit services terms, the study results on effects of Kihanga Mparo SACCO on economic development also showed that the responses were got on increased income among the members, women empowerment through owning their independent accounts and savings, provision of agricultural loans which leads to increased food security, the SACCO has provided employment opportunities to many people, It has improved peoples standards of living by providing loans to their clients and provides financial advice on resource allocation through making follow-up activities to the borrowers and the study results further indicated that the responses were also got on challenges faced by Kihanga Mparo SACCO on economic development on the statements; poor infrastructure, dependency syndrome, fear of collateral being auctioned, loan defaulters, poor government policy on sacco s, embezzlement by managers and poor officers and poor service delivery due to poor IT. The researcher recommends that the community members join co-operative unions or associations to acquire certain services or help from the SACCOs and this will help them to get loans at lower interest, Kihanga Mparo SACCO should employ skilled employees to reduce the operating costs if the SACCO is to achieve and grow, in addition, the government should also take concern on repairing and constructing roads in the area in so as to ease transportation of agricultural products which is the most source of income to increase the saving capacity of the people and the loans managers should be vigilant in sensitization to their clients on loan repayments.
Katungi, Robert (2022). Significance of Microfinance Institutions on the Economic Development of Kabale Municipality: A Case Study of Kihanga Mparo SACCO. Kabale: Kabalr University.