THE IMPACT OF SAVING AND CREDIT COOPERATIVE SOCIETIES (SACCOS) PARTICIPATION ON MEMBERS’ LIVELIHOOD: A CASE OF AWACH SACCOS

Abstract

Saving and credit cooperative societies (SACCOs) are established to encourage saving by mobilizing pooled funds they provide loan service to its members at reasonable rate of interest and promoting financial literacy through training and consultancy service to enable members improve living condition. Thus, this study focused on the impact of saving and credit cooperative societies’ participation on improving the condition of members' or well-being in the case of Awach SACCOs. The determined sample size for the study was 382 Awach members (133 members for treatment group and 249 members for controlled group) were randomly selected to participate in the study. Both Quantitative and qualitative data were collected through structured questionnaire and focus group discussions respectively. Descriptive analysis and propensity score matching method were used to describe participant member characteristics and evaluate the impact of SACCOs participant on members living standard respectively. In this scenario, the study found that financial support through microcredit has significant and positive impacts on members’ average monthly income, consumption expenditure, Education, health care, employment generations and housing condition of participants of treated group in comparing with participants from controlled group. Therefore, based on the significant finding of the study, it can be recommended, all the stakeholders including the Federal Cooperative Agency (FCA) should cluster to persuade and accelerate the growth of micro-financing sector through expansion, accessibility and improvement to reach out and change the living standards of many poorer societies which are still excluded from any financial participation.