CREDIT ACCESS AND POVERTY REDUCTION IN KABALE DISTRICT A CASE STUDY OF UNIQUE SACCO

Abstract

The study was conducted to establish the relationship between credit access and poverty reduction in Kabale District using UNIQUE SACCO as a case study. The study was guided by the following objectives; to assess the nature of credit accessed from SACCOs to reduce poverty amongst the members, to establish the impact of loans on education among the members, to establish the contribution of savings towards house hold asset accumulation among the members and to find out the relationship between credit access and house hold income among the member. The researcher used a cross section research design where both quantitative and qualitative data approaches and analysis were used. Out of the total sample of 207 respondents, 202 respondents participated in the study with the response rate of 97.5%. Of these, the findings of the study revealed an acceptance rate above 70% that indeed SACCOS play a crucial role in helping members’ access credit at low interest rates to boost their fortunes at household level, start-up small business initiatives, invest in agricultural enterprises, take their children to school and acquire household assets. Besides this, the study revealed that 72% of the members had been trained, and a culture of saving, which is crucial to investment, had been inculcated in them because this is one sure, clear and fast way to access credit from SACCOs. From the study, it is recommended that community members need to embrace the culture of saving and investment, utilize the opportunity to access credit at low interest rates to ably support their holistic lifestyles at household and community levels. And since this initiative has been proved to be effective as revealed from the study, it is recommended that government increases the support to train stakeholders and sensitize members on how better to run these SACCOs and as well as challenge to others to, despite the failures in some SACCOs, take up the initiative to join these engagements. Conclusively, SACCOs should be able to help members appreciate their present position and look in the future with optimism through encouraging savings and giving credible loans at low interest rates. Secondly, crucial time needs to be taken by the SACCOs to train and sensitize members and the community on the procedures of saving and equip them with business and financial management skills to fully realize the benefits of SACCOs.