| dc.description.abstract | The purpose of the study was to find out the contribution of savings and credit societies in alleviating poverty among women groups in Kinango District. The objectives of the study were to find out how savings and credit societies can contribute to employment, training of members in financial management, pooling of resources and enhancing savings among their members thereby contributing towards poverty alleviation among their members.
A survey research design was used to carry out the study because it allows for flexibility when deciding how the questions are administered on the respondents as many forms of questions can be used at the same time depending on the convenience of the respondents. The survey method was also used because it allows large samples to be feasible, making the results statistically significant even when analyzing multiple variables.
Questionnaires were used to collect primary data from the respondents. A total of 10 savings and credit societies with a total population of 256 members were studied. Out of these, a sample of 250 members was selected using simple random sampling technique. 250 questionnaires were distributed out of which 200 were returned duly completed. The study therefore achieved 800/0 response rate.
According to the literature that was reviewed, savings and credit societies have contributed to employment creation the word over.
In America, India and South Africa, the cooperative movement started more than three decades ago and has contributed immensely towards employment creation, pooling of resources, training of members in financial management as well as mobilization of resources for further investment. The study found out that majority of SACCO members (67.5%) borrowed money to start business related ventures which crate self employment for the members as well as salaried employment to individuals hired to assist in the businesses.
According to the study, 95% of the members had attended various categories of training in financial management ranging from duration of one day to one month. Those who reported not to bave attended any training were new members who had stayed in their SACCOS for less than six months. Savings and credit societies have succeeded in encouraging a savings culture among heir members and mobilizing (POOling) of resources from which loans given to members are accessed. All (100%) of the members contributed various amounts ranging from 500 shillings to ISOO shillings per month to their SACCOS. From his pool of resources, 95% of the members interviewed had borrowed various amounts of loans.
The study found out that all the SACCOS experience many challenges. Members reported that some of the challenges they face are: long periods of loan processing, difficulty in finding loan guarantors, unfavorably high interest rates as well as inability to repay the loans due to low incomes from their businesses. The study recommended that more research still needs to be done with a view to find out how to reduce the long durations that loan processing takes as well as reducing the interest rates so as to assist members access more loans within short periods of time. | en_US |
