Assessing the relationship between memberships to SACCOS and access to real estate.

Abstract

This research investigates the impact of Savings and Credit Cooperative Societies (SACCOs) membership on individual access to real estate, focusing on the perceptions, experiences, and needs of SACCO members in the realm of real estate transactions and investments. Through a comprehensive analysis of survey data collected from SACCO members, the study examines the utilization of SACCO services for real estate purposes, perceptions of accessibility and satisfaction with real estate financing through SACCOs compared to traditional banks, the perceived impact of SACCO membership on real estate acquisition, and member suggestions for enhancing SACCO real estate initiatives. The study was based on both primary and secondary data. Primary data was gathered through questionnaires and interviews with the selected respondents. In-depth interviews were held with SACCO officials of Wazalendo, Y-Save, Steadfin and Franciscan to evaluate the real estate portfolio holding of the SACCOs. Questionnaire surveys were administered to SACCO members of the selected saccos to assess the impact of SACCO membership on individual access to real estate. Laws, Acts, reports, websites, online journals, and earlier research papers were used to gather the secondary data which added more context and guide on the reliability of primary data. Key findings reveal a high level of engagement with SACCO services for real estate purposes, with members utilizing services such as mortgage, real estate financing, and property investment advice. SACCO members overwhelmingly perceive real estate financing through SACCOs to be more accessible than traditional banks, attributing this accessibility to factors such as lower interest rates and flexible repayment terms. Furthermore, SACCO membership is reported to have a positive impact on individuals' ability to acquire real estate, with members citing benefits such as financial education and guidance. However, areas for improvement include the structure of SACCO real estate portfolios, risk management practices, and communication on real estate opportunities. Recommendations to enhance SACCO's effectiveness in facilitating real estate access include diversifying real estate financing options, increasing financial education programs, improving communication channels, promoting member participation, and implementing robust monitoring and evaluation mechanisms. Overall, the research underscores the crucial role of SACCOs as financial intermediaries in facilitating real estate access and ownership among members, while also highlighting opportunities for SACCOs and stakeholders to further enhance their real estate initiatives.