Abstract:
Saving and Credit Cooperatives (SACCOs) are the main financial solution of the people who have low income level. Savings and Credit Cooperative are a form of a cooperative society aimed to provide financial services to its member’s .It is owned by its members through payment of share capital and membership fees to the institution. To study the practices and the problem faced by such cooperatives a descriptive research design was employed.
Five sample SACCOs were taken as a sample and 120 respondents were surveyed proportionally. The variables that influence Operational performance of SACCOs are : Annual savings, credit beneficiaries, savings interest, safety/security, positive returns, amount of loan borrowed, access to training, distance to SACCOS office; accountability, transparency, education level, annual income and family size. Based on the findings the study concluded that majority of members have poor saving habit, lack of training, less awareness about SACCOs are appropriate options for the households, which are providing services to improve operational performance of saving in sustainable way. Major recommendations were made, SACCOs should develop varied products that meet various membership needs, Reward for regular savers by payment of interest on savings deposits, government and non-Government organizations should create on saving mobilization, provide skill and knowledge though problem based trainings to improve operational performance of SACCOs.
