Impact of village savings and loans associations on the livelihood of households in urban areas of selected Sub-counties in Kyenjojo district

Abstract

This study was conducted with the aim of assessing the impact of village savings and loans associations on the livelihood of households in urban areas of selected sub counties in Kyenjojo district. The study specifically sought to identify the factors for the formation of village savings and loan associations, the impact of village savings and loan associations on household food security and also to outline the challenges faced by the village savings and loan associations. The study was conducted in urban areas of selected sub counties in Kyenjojo district between the months of February 2012 and was completed by 1st March 2021. The study involved both households who were members of VSLAs and also non-participants. The study relied on both primary and secondary data. The secondary data was collected from articles, journals, reports and books. Primary data was the raw data collected from the field with the help of questions which comprised of both open and closed-ended questions. Interview guides were also used during data collection as this help to collect information from respondents who weren’t able to read and write. The raw data collected was coded using excel computer package and was later analyzed using descriptive statistics of statistical package for social scientists (SPSS 16th Edition). The study found that there was equal participation in village savings and loan associations where the males were (50%) just like the female counterparts (50%). Majority of the respondnets (20%) were aged 25, 29, 32 and 43 years and had attained atleast secondary education level of education (50%). The responses provided indicated that majority of the village savings and loan associations were started in order to enable members save some money (67.5%), while others had the aim of developing youths (50%), increasing access to credit (40%) and also enabling members acquire simple loans (32.5%). These village savings and loan associations were however found to have challenges that included; delayed loan repayment (60%), loan defaulting (55%), embezzlement of funds (50%), lack of a stable income source (40%) and lack of cooperation. Basing on the objectives and these findings, the study therefore highlighted a need to further the studies to cover other geographical areas if more accurate recommendations are to be made, a need to train the members of the village savings and loan associations to increase their efficiency, and also a need of the government to inject money the village savings and loan associations as some of the recommendations.