Savings and credit cooperative societies and household income among Irish potato farmers in Kisoro district, Uganda. a case of Chahi farmers association.

Abstract

The study examined the effect of Savings and Credit Cooperative Societies (SACCOs) on Household Income among Irish Potato Farmers in Kisoro District, Uganda. A Case Study of Chahi Farmers Association. The objectives of the study were: to examine the effect of access to financial services of SACCOs on household income among Irish potato farmers in Chahi Farmers Association, to assess the effect of Loan services on household income among Irish potato farmers in Chahi Farmers Association, to establish the extent at which Member participation in decision making affects household income among Irish potato farmers in Chahi Farmers Association. A case study research design study design was exploited. Both quantitative and qualitative approaches were used. A sample of 191 respondents was considered. Purposive sampling and convenience sampling were used in selecting the respondents. Data was collected by use of a questionnaire, interview guide and document review checklist. Qualitative data was analyzed by thematic and content techniques while quantitative data was analyzed using descriptive and inferential statistics. A response rate of 94.2% was achieved. The correlation results indicated a significant positive effect of access to financial services of SACCOs on household income among Irish Potato Farmers in Chahi Farmers Association (r = 0.618 with probability value (p = 0.000); a significant positive effect of Loan services on household income among Irish Potato Farmers (r = 0.561 with probability value (p = 0.000); and a significant positive effect of Member participation in decision making on Household income among Irish Potato (r = .528 with probability value (p = 0.000). The study found that women empowerment programs account for 52.3% of the level of variations in household income among Irish potato farmers in Chahi Farmers Association. In view of the above findings, the researcher concluded that members of some SACCO could not equitably access loans that were adequate to guarantee and lessen their poverty conditions. From the findings it is concluded that despite enormous benefits of SACCOs, SACCO’s loans had not significantly contributed to improved household income among Irish Potato Farmers in Chahi Farmers Association, the SACCO had not improved member household livelihoods and decent incomes. And that Sacco members’ involvement in decision making has an impact on the organizational performance of the firm and vice versa. The study recommends that the government through the Ministry of Cooperatives should engage in training SACCO members for them to observe and comply with all the provisions of the SACCO policy, the SACCOs could reduce the interest rates, increase on the amount given as loans to the clients and assess repayment capabilities before loan provision. Management of SACCOs should enhanced control of loan default by having adequate financial analysis of the applicant and that management should try to involve other ordinary members in making decisions in SACCOs so as to make them have trust and faith in management actions. There is need to carry out a study of the kind in relation to inadequate entrepreneur skills and investigating factors for the variation in household income other than those covered in this study.