The contributions of village saving and associations to the socio-economic growth of agro-pastoral communities

Abstract

This study was to conducted on the contributions of village savings and loan associations to socio- economic growth of agro-pastoral communities in Ngoleriet Sub County, Napak district. The main objective of study was to establish the contributions of Village savings and loan associations to socio-economic growth of the agro-pastoral communities in Ngoleriet sub-county – Napak district. The specific objectives were; To assess economic situation of agro pastoral communities, to understand the nature and service offered by VSLAs and establish the relationship between economic growth and VSLAs. The sample size of 55 respondents was used to obtain the data. The study adopted a case study design. Data was collected using self-administered questionnaires, focus group discussions, interviews/observation guides and document reviews, and were analyzed using descriptive statistics for qualitative data and correlation for quantitative data. The findings revealed that increased participation in Village Savings and Loan Associations positively contributed towards socio-economic growth of agro-pastoral communities namely it leads to increased household asset ownership as well as improved educational attainment. Findings for each objective showed that the communities economically rely on agriculture and raring of livestock. VSLAs are self-selected groups of people from the same village who agree to be meeting weekly to pool their money into a fund. There is a positive relation between participation in VSLAs and improved socio-economic growth of agro-pastoral communities. The study made the following recommendations: - continuous support towards VSLA formation and development in agro-pastoral communities through trainings and provision of entrepreneurial skills; the development of legislation governing the operation of VSLAs in the communities and linking VSLAs to formal financial institutions.