Examining the role of village savings and loan association on the improvement of family livelihoods in Moroto district. Case Study: selected ouseholds 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.