The role of microfinance institutions on poverty eradication on the rural poor in Uganda. a case study of Nangabo sub county under Wekembe SACCO in Wakiso district

Abstract

The study looked at “The role of microfinance institutions on poverty eradication on the rural poor in Uganda a case study of Nangabo Sub County under Wekembe SACCO in Wakiso District”. The research has been carried out with the following objectives: ▪ To assess the impact of loans on poverty eradication in Wakiso District. ▪ To examine the effect of advisory services on poverty in Wakiso District ▪ To assess the effect of keeping people’s savings on poverty e eradication in Wakiso District. The data collected was aided by documentary review that guided the design of the questionnaire and the brief interviews carried out during the process. There was a high response rate of where 69% of Wekembe members who were issued questionnaires while the non response rate was 31%. 68% of the espondents were males and 32% were female. Most of the members were mature enough with 48% of the members aged between 36-45years, 20% aged between 25-35 years, and 24% aged between 46 and above years. Most the respondents were educated 24% with certificates 56% diploma, 19% with degree and non with masters. 29% of the respondents had stayed in Wekembe SACCO for 2-5 years, 62%, 5-10 years and 9%, for more than 10 years. In conclusion credit and saving schemes have contributed to the improvement of member’s welfare this is evidenced where most of the respondents 67% revealed that it has positively impacted their wellbeing and improved their financial positions in communities and families. xii Therefore, the researcher recommended that in the poverty strategy, there has to be vigorous efforts to bring the poor on board, by their nature as SACCOs grow they need to recruit services of professional management and in most cases conflicts arise on whether they maximize their own utility or value for the owners.