Academic literature on the topic 'Performance and SACCO'

Savings and Credit Cooperative Societies (SACCOs) in Uganda face persistent survival challenges, often associated with governance limitations and board effectiveness issues. This study investigates the association between board capital, which encompasses both human and social capital, and SACCO survival—measured through liquidity and gearing—with board role performance as a potential mediator. Data were collected from 311 participants across 60 SACCOs in a cross-sectional survey. Structural equation modeling analysis indicates that although board capital does not directly influence SACCO survival, it positively correlates with board role performance, which in turn is significantly associated with SACCO survival outcomes of liquidity and gearing. These findings underscore the importance of board engagement in translating board members’ collective expertise, knowledge, and external connections into enhanced liquidity and balanced gearing for SACCOs. Practical implications suggest that SACCOs could benefit from initiatives to strengthen board members' skills and networking capabilities through targeted training, mentorship, and structured networking opportunities. Establishing clear board roles, strengthening accountability mechanisms, and implementing regular performance evaluations are essential practices to bolster SACCO survival. This study contributes a novel perspective by integrating Role Theory with Agency and Resource Dependency Theories, providing a multi-theoretical framework to better understand SACCO survival in a developing economy context. This integration enriches the theoretical landscape and provides actionable insights for strengthening SACCO survival in Uganda’s challenging economic context.

<strong>ABSTRACT: </strong>The goal of this study was to evaluate the effect of corporate governance on the performance of SACCOs, in Rukiga District. SACCO governance was a predictor variable and performance of SACCOs was the study&#39;s outcome variables. A cross-sectional survey was the precursor to the study. Quantitative and qualitative analysis were combined with the collection and analysis of data from 109 respondents. Descriptive, bivariate, and multivariate analyses were used in the analysis, which was done on three different levels. Frequency tables were employed to portray the data as descriptive analysis required presentation of a single variable and its characteristics. A Pearson correlation matrix was used to determine the correlations between the predictor factors and the dependent variable at the bivariate level. The modified predictor variables for corporate governance were regressed against the dependent variable at the multivariate level (performance of SACCOs). To fit the data, a linear regression model was employed. Corporate governance (coef. = 0. 532) has a positive influence on the performance of SACCO in Rukiga District, according to research results from the regression model. The key finding of this study is that corporate governance significantly affects SACCOS performance. The study therefore suggests that in order to ensure the sustainability of SACCO performance in Rubanda District, greater emphasis should be placed on implementing corporate governance.

<em>Evidence from studies on SACCOs shows that majority of them have failed to focus on loan collection policies and financial performance of the SACCOs. This signifies existence of a gap in empirical literature. In Kenya, current reports indicate that they are on the brink of collapse as a result of liquidity problems. Government efforts through legislations to safeguard Saccos have hit a snag. Experts have observed that Saccos sector remains fragile. Evidently, SASRA recently gave strict licenses to Saccos that had failed to meet capital requirement of Kshs 10 million. Likewise, unscrupulous Saccos have also colluded among themselves to fleece members of their deposits and investments. Further, parliament recently passed a bill that made mandatory university qualification a requirement for one to hold leadership in Sacco. Though effort by all stakeholders to save troubled Sacco sector is commendable, dynamism of Sacco sector and unending desperate effort to revamp it has now put to question and left most stakeholders in a dilemma on whether loan policies have influence, if any on financial performance of Saccos. This study will therefore investigate the influence of loan collection policies on financial performance SACCOs in Kakamega County, Kenya. This study is supported by Modern portfolio theory.A descriptive survey was adopted and targeted 143 senior management staff from 13 SACCOs located in Kakamega County with a sample size of 105 selected using stratified random sampling technique. A structured questionnaire was used as instrument. A pilot study was conducted among 20 senior</em><em> management staff of SACCOs in Bungoma County, Kenya, so as to check validity and reliability. </em><em>The data was coded for completeness and accuracy and stored. Computer software- Statistical Package for Social Sciences (SPSS) version 24 was used in analysis. Descriptive statistics which include percentages, frequencies, mean, and standard deviations will be computed. For variable relationships, correlation analysis, linear and multiple regression analysis was computed. This study will aid &nbsp;SACCO management committees, staff and relevant shareholders in understanding the importance of loan &nbsp;collection policy that enables them seek solutions to the loan defaults. </em><em>The study findings showed a positive correlation between Loan Collection Policies and financial performance (R= 0.758 with ROA). It was evident from results that adherence to Loan Collection Policies positively contributes to financial performance of Sacco&rsquo;s in Kenya and there was variation on financial performance due to changes in loan collection policies. The study recommends that Saccos should adhere to loan collection policies to ensure increased financial performance and increased volume of business. It also recommends Stakeholders should management on toes and ensure they practice good corporate governance. The study concluded that Loan collection policies influence the financial performance of Saccos.</em>

A regulatory framework is regulation, law, rule or other orders prescribed by authority, especially to regulate the conduct of SACCO in Rwanda. Hence, the study sought to examine the impact of the regulatory framework on the performance of SACCOs in Rwanda with specific reference to the Survey of selected SACCOs in the Gasabo District. The research used a descriptive research design. The study targeted 110 drawn from two categories SACCO staff /employees and SACCO members. The study used both primary data and secondary data. The primary data was collected using structured questionnaires both open and closed. The data was analyzed using a qualitative and quantitative method using MS excel SPSS. Research findings showed there is a very high correlation (r=0.943) between internal control and performance. In addition, the study findings indicated a very high correlation (r=0.823) between saving mobilization and the performance of Sacco. It was revealed there is a very high correlation (r=0.749) between credit risk management and the performance of Sacco. The study reported the correlations between liquidity requirements and performance of SACCO is very high (r=0.923). Moreover, the results established that the regulatory framework is satisfactory in determining the performance. The adjusted R square was found to be 0.887. This implied that the regulatory framework could explain 88.7% of the variations in the performance. All four variables of the regulatory framework: Internal control, saving mobilization, credit risk management and liquidity requirement, were positively correlated to the performance. Furthermore, regression indicates that any change (increase) would have a significant change in the performance of Selected SACCO in the GASABO District. The recommendation is that the RCA and other policymakers of saving and credit cooperatives in Rwanda should clear that internal control, saving mobilization, credit risk management and liquidity requirement, and performance of selected Saccos in Gasabo District, Rwanda. There should be structuralization of permanent internal audit control and verification for all income and expenses of SACCOs and should set the boundaries for some members who ask for loans to limit payment loans. Keywords: Internal control, Saving mobilization, Credit risk management, Liquidity requirement, Performance