Examining the role of village savings and loan association on the improvement of family livelihoods in Moroto district. Case Study: Selected Households in Rupa Sub-County.
Abstract
The study was aimed at examining the Role of Village Savings
and Loan Association’s on the improvement of family
livelihoods using a case study of the two VSLA groups of
Loreeng and Morunyang in Rupa Sub-county in Moroto district.
Challenges faced by the VSLAs towards effective service
delivery to the members and community at large.
In a case study both qualitative and quantitative methods were
used to collect, present and interpret data. The study had a
sample size of 70 respondents. Questionnaires were used for
twenty (20) key informants, and interview guide fifty used for
(50) VSLA members who were interviewed in the Focus group
Discussions as distributed in the groupings of men and women
for purpose easy articulation of issues without being affected
by cultural values between men and women in karamoja .
Documents on VSLAs roles, contribution, and challenges were
read and scrutinized.
The study findings revealed that VSLAs have contributed to the
improvement of the family livelihoods through availing the
community with Access to credit, Share out Interests, Access
to Savings and insurance which has increased on household
income and assets acquisition, it has also empowered group
members as well as brought in social cohesion. It has also
enabled members to engage in small businesses and developed
their capacity to at least be able to own and acquire capital
assets and even provide for basic needs in the family. Women
have been earmarked on this development for they are even the
majority in number in all VSLA groups.
However there are a number of challenges VSLAs are facing and
these are: Dependency on support from partners and when they
withdraw it equally marks the end of that particular group.
Limited market access, lack of permanent income source,
Drought that destroys crops that partly would have helped
bring more incomes to the group and more so poor loan
utilization and recovery hindered by prolonged famine
affecting the communities, unemployment and Illiteracy by all
or most of the group members making record keeping a problem
and expensive since they have to hire a writer. Like in the
two groups nobody was learnt to at least beyond P.2.
It is recommendable to have the groups engaged in financial
literacy, so that the ambitious admirable efforts are not
frustrated in the long run.
VSLA groups should always be started by the community
themselves but not as a requirement by partners as attached to
mostly cash for work activities while clearing roads, building
of ponds or boreholes.