Savings and credit cooperative organization services and members welfare in Uganda, a case study of Wazalendo SACCO, Katabi branch in Katabi town council.

Abstract

The study was about relationship between SACCOs services and members’ welfare in Uganda with Wazalendo SACCO, Katabi Town Council as the case study. The study was guided by the following objectives; to find out the effect of saving services by SACCOs on members’ welfare in Katabi Town Council, to determine the effect of credit services by SACCOs on members’ welfare in Katabi Town Council and to examine the effect of financial literacy servicess by SACCOs on members’ welfare in Katabi Town Council. The study adopted a cross sectional survey research design. Both qualitative and quantitative approaches were used to reduce bias. The study was cross-sectional. Cross-sectional studies are carried out at one time point or over a short period. . Out of the possible 171 target population, a total of 120 were arrived at using Yamane (1967) formula. Data for the research was collected using two methods i.e. self administered questionnaires and interviews. The researcher used a structured questionnaire with a Likert scale to collect anonymous quantitative data from many respondents. Additionally, interview guides were used with departmental heads to gather in-depth qualitative insights through flexible, probing questions. Data was analysed using descriptive statistics in order to summarize data in a meaningful manner using SPSS, 20 versions. Qualitative data responses were transcribed into themes and categories, in order to support hypotheses tested. Detailed information was collected, analysed and presented inform of paraphrases or quoted up on permission of the respondents. The study found that saving services had a weak but significant positive effect on members' welfare (R = 0.259, R² = 0.067, p = 0.004), indicating they explain 6.7% of welfare variation. Credit services showed a moderate and significant impact (R = 0.312, B = 0.145, p = 0.001), contributing more meaningfully to welfare outcomes. Financial literacy also had a moderate positive effect (R = 0.287, B = 0.198, p = 0.002), suggesting its role is important but should be complemented by other interventions. The study concluded that saving services, credit access, and financial literacy provided by Wazalendo SACCOs each play a significant role in improving members’ welfare in Katabi Town Council. While their individual effects are modest to moderate, their combined impact offers greater potential for sustainable welfare enhancement. The study recommended that strengthening savings, credit accessibility, and financial literacy through collaborative efforts among SACCOs, government, CBOs, educators, and development partners. A multi-stakeholder, integrated approach is vital for maximizing welfare improvements among SACCO members.