Influence of Savings and Credit Cooperative Societies’ Products on Members Livelihoods: a Case of Imarisha Sacco
Abstract
Members’ livelihood is paramount factor for financial institution in ensuring its
prosperity. Imarisha SACCO investment programmes are some of the major financial
innovations that are in place to advance and cater for livelihoods of its members. The
purpose of this study was to establish the influence of SACCCO investment
programmes on Imarisha members’ livelihoods. The objectives of the study were to
determine how loans influenced the livelihood of Imarisha members; to establish the
extent at which shares influenced the livelihoods of Imarisha SACCO members; to
establish how educational and training programmes have influenced the livelihoods of
the members; and to assess how welfare funds influences Imarisha SACCO members.
A descriptive survey study was used during the study. Agency theory as advanced by
Jensen and Meckling (1976) was adopted. The target population was 8452 members
of Imarisha SACCO Kericho branch who subscribed for different investments
programmes. A sample size of 381 members were selected from target population.
Data was collected using structured questionnaires having both open-ended and closeended
items. Pilot testing of the data collection tool was done prior to actual data
collection to validate the tool and a Cronbach alpha reliability index of 0.73 was
obtained. Quantitative data was analysed using descriptive statistics in form of
frequency and percentages tables with assistance of Statistical Package of Social
Sciences (SPSS) Version 20. On the other hand, qualitative data was organized into
relevant thematic areas. The study revealed that majority of the members (87.2%) had
an easy access to loan facilities from the SACCO. Majority of the respondents
(91.6%) improved on their saving culture and more than a half (57.5%) had their
sources of income increased by investing in shares. However, a considerable number
of members (43.4%) were not aware of training and educational programmes offered
by the Sacco. The study also found out that most of the respondents 55.6 % attributed
their improvement in livelihoods to the social protection measures provided by the
sacco . Imarisha sacco investments products have influenced livelihoods of its
members greatly by availing shares , education and training, easy access to loans etc It
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was recommended that the Sacco to make members to be aware of other FOSA
products such as standing order services and provision of safe custody of assets and
valuables of the members. Welfare fund was found to have improve the livelihoods of
the members whereby it provided the members with relevant social protection
measures. However the measures put in place were not comprehensive enough to
adequately meet members social needs .Need assessment should be undertaken by the
Sacco regarding members educational needs so that the product are tailored to meet
their needs the Sacco should also enhance guidance given before loans are advanced
to members especially the new members
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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