ABSTRACT
Introduction: Wazalendo Savings and Credit Cooperative
Society (WSACCO), is a savings and credit co-operative society found in Uganda
with the headquarters located in Kiwatule.The combination of simple and stratified
random sampling techniques was to obtained 50 respondents. These involved 35
members and 15 employees from WAZALENDO
Methods of Analysis:
Data was analyzed using univariate, bivariate and multivariate analysis. A
linear regression model was carried out. The following results were obtained; Since
P=0.01 was less than 0.05, we accepted the null hypothesis and concluded that
WAZALENDO SACCO has had an effect on household poverty reduction. Since p=0.02
was less than 0.05 we accepted the null hypothesis and concluded that household participation has had an effect
on SACCO and since p=0.04 was less than 0.05 we accepted the null hypothesis
and concluded that Wazalendo SACCO has
had an effect on household asset accumulation.
Conclusion and recommendations
Members
of WAZALENDO should take and endeavor to consult where necessary since these
errors have the potential to harm patientsWazalendo had done much on
household poverty reduction in Kiwatule. SACCO members should
take WAZALENDO very seriously and endeavor to consult where necessary since
these errors have the potential to harm patients and the government and private
should set up more projects from where they can generate income. There is need
for Wazalendo SACCO to promote access to safe water through piped water and
avoid residents from accessing water from springs or wells
CHAPTER ONE
INTRODUCTION
1.1 Background to the study
Wazalendo
Savings and Credit Cooperative Society (WSACCO), is a savings and credit
co-operative society in Uganda. It is an institutional SACCO composed of Uganda
People’s Defence Forces (UPDF) personnel and their families, UPDF Reserve
Forces, and staff of Uganda's Ministry of Defense. It is also affiliated to the Uganda Co-operative
Savings and Credit Union Limited and to the Uganda Co-operative Alliance.
Membership is
restricted to persons in active service with the UPDF and their families, UPDF
veterans and their families, and staff of the Ministry of Defence in Uganda and
their families. The main objective of Wazalendo is to mobilize savings and make
loans to members at reasonable interest rates to improve their welfare. It adopted “Save for the Future Development”
as its slogan and by 30 June 2011, 61,482 members had joined.
By December 2014,
the Wazalendo SACCO's membership had increased to over 73,000. Shareholders
equity stood at USh67.4 billion (US$23.4 million). Total assets were valued at
USh131.1 billion (US$45.5 million). The total loan book stood at USh116.3
billion (US$40.4 million). It had made
after-tax profits of USh9.5 billion (US$3.3 million), for the calendar year
ending 31 December 2014.
SACCOS have been established in various countries in the
world as a means to reduce poverty. The development of SACCOS
can be attributed to efforts made by Muhammad Yunus an economics
Professor, who began an experimental research project in Bangladesh during the
1970s (Katsushi et al, 2010).
SACCOS play a significant role on poverty reduction
throughout the world. They provide credit and insurance facilities to enable
the poor to smooth their consumption, enhance their income earning capacity and
enjoy an improved quality of life. It has proved its value in many countries as
a weapon against poverty and poor life.
1.2 Statement of the Problem
For some time, most households in Kiwatule have been
involved in activities of Savings through a number of SACCOS such as Wazalendo
SACCO with the aim of improving their household welfare and increasing their
incomes as well. Despite of the household participation
in the SACCOS, incomes in most households have still remained very low. In
general terms, the households’ incomes are still low. To some households, there
has been deterioration in the indices of welfare.
1.3 Objectives of the Study
1.3.1 Main Objective
- To assess the effect of Wazalendo on poverty reduction in Kiwatule.
1.3.2 Specific Objectives
The specific objective of this
study were the following;
i)
To investigate the effect of households’ participation in Wazalendo SACCO
in Kiwatule
ii)
To assess the effect
of Wazalendo SACCO on household asset accumulation in Kiwatule
iii)
To analyze the factors for the success or failure of
Wazalendo SACCO performance.
1.4 Research Questions
i)
What
is the effect of households’
participation in Wazalendo in Kiwatule?
ii)
What is the effect of Wazalendo on household asset
accumulation in Kiwatule?
iii)
What are the factors for the success or failure of
Wazalendo SACCO performance?
1.5 Significance of the study
The study is of greater importance to the UPDF members who are the major
people who compose Wazalendo SACCOS. It will show the usefulness and the part
played by the Wazalendo SACCOS to reduce poverty in Kiwatule.
Through the study people can become sensitized that
economic crisis can be solved without much dependency on external aids and hence
can change their attitude and forecast in better way by creating a spirit of self reliance since
SACCOS are self initiated
The study benefit decision markers especially in SACCOS
to understand the strength, weakness, opportunity and threat toward the
development of SACCOS.
1.6 Scope of the study
1.6.1 Geographical Scope
The
study was carried out in Kiwatule where Wazalendo SACCOS is found. Kiwatule is
found in Kampala district
1.6.2 Content Scope
The study concentrated on assessing the effect of Wazalendo on poverty reduction in Kiwatule.
Specifically, the research sought to investigate
the effect of households’ participation in Wazalendo SACCO in Kiwatule,
assess the effect of Wazalendo
SACCO on household asset accumulation in Kiwatule and analyze the factors for
the success or failure of Wazalendo SACCO performance.
1.6.3 Time Scope
The study covered the period from
2012-2017. This time period was chosen because it was expected to be having
enough information about effect
of Wazalendo on poverty reduction in Kiwatule
|
||||
 |
||||
 |
||||
Source: Adopted
from Getaneh Gobezie, (2004).
The figure above presents the conceptual framework used
in the present study. It shows the independent variable that influence
dependent variables. SACCOS provide soft loans to income earners to enable them
to invest in either the income generating activities like business, agriculture
and livestock.
By increased income of members the ability to incur
various livelihood costs with respect to households‟ basic necessities and they can also repay their loans as
shown in fourth part. It also reveals the improvement in standard of living
resulting to household poverty reduction.
The background information, are the factors which has
direct influence to member’s income generating activities and SACCOS
performance. In view of the above context, all the procedures of the SACCOS in
saving, processing the loans and the accompanied policies as well as the loans
themselves considered as the independent variables. All variables involving any
kind of results from the money obtained is
considered as dependent variables
and these includes improvement in
income generating activities, productivity, consumption, investments and
household poverty reduction.
LITERATURE REVIEW
2.1 Introduction
This chapter discusses
the related literature that has been reviewed concerning SACCOS. It looks at
the historical background of SACCOS, the Role of SACCOS in poverty
reduction, and house hold welfare.
2.2 Historical Background of SACCOS
SACCOS are defined as a legal entity established by the
voluntary membership of private or public for the purpose of depositing their
savings and providing credits to its members (URT, 2004).
SACCOS emerged during the mid of 1800s by Hermann
Schulze- Delitzsch and Friedrich Raiffeisen as a means to reduce poverty and
over indebtedness among small farmers and craftsmen in urban and rural areas.
One of the rural SACCOS Bank formed in Germany to unite poor people and
organized them for self help, mutual help and to help small farmers who could
not accessed credit facilities easily (URT, 2004).
In Africa, the idea was brought by a
Roman Catholic priest, in Jirapa, a town in Ghana, in 1955. Father John McNulty
from Ireland had studied in Canada where he learnt about savings and credit
co-operative societies. Father McNulty helped the Jirapa villagers to form a
Savings and Credit Co-operative. The co-operative assisted the members to
address their financial problems which they couldn't individually. Father
McNulty trained about 60 people, who were the first successful savings and
credit co-operative pioneers on the African continent (Alila & Obado, 1990).
The success of Jirapa savings and credit
co-operative spread throughout Ghana and by 1968, the savings and credit
co-operatives throughout the country came together to form the Credit Union of
Ghana , which was set up to promote, organize, service and co-ordinate the
activities of savings and credit co-operative in Ghana (Alila & Obado,
1990).
According to the World
Council of Credit Unions (WOCCU) 2011 statistical report, there are 51,013
credit unions in the world, having a total of 196,498,738 members and a total
penetration of 7.8% Penetration rate which is calculated by dividing the total
number of reported credit union members by the economically active population
age 15-64 years old (World Council of Credit Unions (WOCCU, 2012)
2.3 The Role of SACCOS in Poverty Reduction
SACCOS play an important role in the fight against
poverty. It enables member to generation income which helps not only the
business activity expand but also contributes to household income and its
attendant benefits on food security and children’s education. SACCOS also generate employment (Katsushi et
al., 2010). According to Robinson, 2001
SACCOS help in decreasing unemployment, alleviating poverty and increasing
economic growth of the country.
SACCOS in developing countries are established to provide
means of overcoming problems facing most of low income consumers, who are not
able to pay approximately US$ 10 to 30 per unit of useful lighting service.
They are normally unable to make such a onetime investment up front, due to
nature of their available cash flows, as well as real and perceived risks of
investing in a potentially sub standard products (Mills & Jacobson, 2008).
SACCOS can provide a range of financial services
including credit, savings and insurance to poor enterprises and households. It
offers the potential for growth and helps safeguard poor households against
extreme vulnerability. Loans, savings, and insurance help even out income
fluctuations and maintain consumption levels (Bikki & Joselito, 2003).
Ted, (2001) pointed out
that SACCOS helps the poor to increase income, build viable businesses and
reduce their vulnerability to external shocks. It can also be a powerful
instrument for self-empowerment by enabling the poor, especially women to become
economic agents of change
Nalyaali (1998) also
was able to find a number of people had increased income and properties from
their financial associations. When used properly, the funds obtained from the
group can change income levels and lives of many people.
Provision of trainings
the recipients as advocated by IFAD (2005) can prioritize the intention of the
funds, as also observed by Hendricks (2011), who noted that the funds when used
properly can increase the skills of the recipients in investment and savings.
2.4 Household welfare
Phusit (2006), points
out methods of assessing household welfare through socio-economic status
position. He points out that this can be categorized in two major groups which
are; money and alternative approaches. Money – metric measures (income or
expenditure) is a category which is traditionally used by economists because it
is easy to measure in a monetary definition which is well understood by the
public.
Sahn
and Stifel, (2002),there are a variety of difficulties involved in measuring
income in developing countries .These include among others; seasonal
variability in earnings, large shares of income are from self employment both
in and outside of agriculture, poor quality of income and expenditure.
Phusit and Sahn (2006) assert that both the asset index and current consumption
expenditures are proxies for a household’s true, but unobserved, long run
wealth or economic status.
2.5 Poverty as a concept
Van Lierop et al, (1991) looks at poverty is being
a wider concept and it is measured differently by different people. It remains
to be a local and international socio economic problem in both developed and
developing countries. Poverty is a historical phenomenon affecting people in
different areas. Poverty also refers to being powerlessness and hopelessness
(Marburg, 1996).
Misana,(1995)
defines poverty as lack of education, skills or tools to acquire income and
assets as well as lack of access to power to modify the situation (Poverty
should be seen as the process leading to deprivation and vulnerability
On the other
hand Mtatifikolo, (1994) looks at poverty as being conceptualized as a standard
of living whereby one lives below a minimum acceptable level). Indicators of
nutritional and non nutritional requirements like shelter and clothing are used
to draw the minimum requirements level or the poverty line. Poverty line is the
amount of income necessary to purchase the minimum food and non food
requirements. In relating poverty to gender and social groups,
Mwaipopo, (1994)
argues that within gender analysis, manifestation of poverty are largely
associated with inequalities in gender as well as within social class. This
view is widely accepted. For example the World Bank, in outlining the
strategies for incorporating women in economic development, suggests among
other strategies, the need of studying and considering gender relations in as
far as access to and control of resources for alleviation of poverty are
concerned.
Hazell and
Haddad (2001) pointed out that poverty consists of two interacting
deprivations- physiological and social. Physiological deprivation describes the
inability of individuals to meet or achieve basic material and physiological
needs which can be measured either as a lack of income, which limits access to
food and to education, health, housing, water and sanitation services or by the
failure to achieve desired outcomes, such as a high quality diet rich in
micronutrients and health status.
2.6 Conclusion
SACCOs have the
great role in poverty reduction, however due to lack and inadequate usage of
business plan, lack of entrepreneurship and business development skills,
ignorance among the members; most people have still remained very poor.
Therefore the accomplishment of this research will create community awareness
towards the effect of SACCOS on household poverty reduction
CHAPTER THREE
METHODOLOGY
3.0 Introduction
This chapter gives details of the methodology and
procedures that was used to adopt in the process of conducting this study. It is
further subdivided into the following components which include; the study,
research design, data collection methods (which is further subdivided into
primary and secondary data), study population, sampling techniques sample size
and data analysis
3.1 Research Area
The research was conducted in Kampala district at Wazalendo SACCOS.
Wazalendo’s Head office is located in Kiwatule in Kampala Uganda.
3.2 Research Design
Qualitative and Quantitative research was used in this
study. A cross-sectional research design was used in the present study. It has
the advantage of saving time and collecting data at a single point in time
(Bailey, 1994). The design provides useful information for simple statistical
description and interpretation (Babbie, 1995).It allows determination of
relationship between different variables that are focused in the study.
3.3 Sample size
Sampling refers to the
selection of a particular unit from the population to represent the entire
population (Brick et.al, 1995). The sample size was selected basing on Krejcie
and Morgan (1970) sample size determination. The researcher targeted a
population of 100 from which 50 using simple random and purposive sampling This was used to select 35 respondents
from 15 households in Kiwatule and 15 employees of Wazelendo
SACCO.
3.4 Sampling techniques
The combination of simple stratified random sampling
techniques was used at different points in time to obtain a sample size of 50
respondents.
3.5 Data collection methods
This presents the different methodologies to collect qualitative and
quantitative information from primary and secondary sources.
3.5.1 Primary source
Primary information was collected using interview,
questionnaires, observation and focus groups to some of the Wazalendo members.
These were obtained in Wazalendo SACCOS. The questionnaire composed of both open and closed questions. These were
used to get information. Open ended and close ended questionnaires were
administered to members of Wazalendo SACCOS.The questionnaire consisted of a
number of questions which were printed. The method was preferred because it
involved low cost even when the universe is large (Kothari, 2004).The
respondents were required to answer the questions prepared in the paper either
on their own or by responding to an enumerator. The study applied observation
method to collect information related to the topic by observing different
activities carried out by SACCO’s members.
3.6 Data Processing and Analysis
Processing and analysis involved editing, coding, classification, and
tabulation of collected data (Kothari, 2004). In the present study, the unit of
analysis used was Wazalendo SACCO members and household members in Kiwatule.
Data from the respondents were be verified, compiled, coded and summarized by
using Microsoft word or manually, SPSS, Excel and simple descriptive methods
such as frequencies, percentages and cross tables were used to
explain the existing situation of the institution.
3.7 Statistical model
In
order to test the hypothesis the chi-square statistic was used to test the
statistical significant and took the form
2 =
(
)2
Where
i=1……………….r and i=1 for variable c
Oij
is observed frequency and Eij is the expected frequency, r is the
number of categories of the independent variables, C is the number of
categories of dependent variables. The P value is to be 95% confidence interval
which is normally used unless otherwise. Its defined as the probability of
mistakenly rejecting the null hypothesis (Ho) when in actual fact it is true,
A”P” value smaller than 0.05 will indicate that the statistical association
between the two variables such that if
one of them is changed the other is more
likely to change. A value of “P” lying outside the limits of confidence would
suggest no relationship between the variable that will be studied.
3.8 Regression analysis
A
regression model of the form in 3.1 was adopted by the data
Where:
constant term 
household
participation 
indicators of poverty reduction 
household asset accumulation 
= error term
constant term household
participation indicators of poverty reduction household asset accumulation = error term3.9 Testing for Research Hypotheses
The
analysis of data was necessary for hypotheses testing. Hypothesis testing was
carried out using spearman’s rank and the hypothesis which were;
Hypotheses one
Ho1:
WAZALWNDO SACCO has had an effect on household
poverty reduction
Ha1: WAZALWNDO SACCO has had no effect on household
poverty reduction
Hypotheses two
Ho2:
The participation of households’ has had an effect on Wazalendo
SACCO
Ha2: The participation of households’ has had no effect on Wazalendo
SACCO
Hypotheses three
Ho3:
Wazalendo SACCO has had an effect on household
asset accumulation
Ha3: Wazalendo SACCO has had no effect on household
asset accumulation
Rejection criteria
H0 is rejected if p-value is
greater than 0.05 and we conclude that there is no significant relationship between
the study variables.
3.10 Study limitations
During the study it was difficult to find some of the
respondents due to the nature of their economic activities; they woke up and
left very early in the morning and came back in the evening. Therefore, in the
study extra efforts were used to ensure that the respondents are e found.
The researcher anticipates to be faced by the problem of
financial resources. Furthermore it was difficult for respondents to give
accurate information about their annual income and the value of their assets;
because the researcher anticipates to be faced by lack of records.
CHAPTER FOUR
RESULTS
4.0 Introduction
This
chapter presents the quantitative and qualitative results according to the
study objectives; which included; assessing the effect of Wazalendo on poverty reduction in Kiwatule as the
major objective. The specific objectives of the study included; investigating
the effect of households’ participation
in Wazalendo SACCO in Kiwatule, assessing the effect of Wazalendo SACCO on
household asset accumulation in Kiwatule and analyzing the factors for the
success or failure of Wazalendo SACCO performance.
4.1 Univariate Analysis
This section provides Univariate
analysis (frequencies and percentages) of a sample of 50 respondents and these
were selected from 35 respondents
who were household members in Kiwatule while 15 members were employees of
Wazalendo SACCOs.
4.1.1 Sex of respondents
Variable
|
Frequency
(N=50)
|
Percentage
(%)
|
Sex
|
||
Male
|
32
|
64
|
Female
|
18
|
36
|
Total
|
50
|
100
|
Source:
Primary data from the field
From
the study which was carried out in to
assess the effect of Wazalendo on poverty reduction in Kiwatule, 32(64%) of the
where males while 18(36%) of the respondents were females. This therefore
implies that there are more males than females in Wazalendo SACCO. This was
because the SACCO belongs to the members of UPDF who are mainly males.
4.1.2 Marital Status
Marital
Status
|
Frequency
(N=50)
|
Percentage
(%)
|
Married
|
35
|
70
|
Widowed
|
10
|
20
|
Divorced/separated
|
2
|
4
|
Single
|
3
|
6
|
Total
|
50
|
100
|
Source:
Primary data from the field
Table 2: above shows the marital status
of respondents. It was established during the research that 70 percent of the
respondents were married. It was interpreted to mean that most of the members
of UPDF are married couples. Other
categories included; widowed who were 20 percent, divorced/separated 4
percent and 6 percent of the respondents were singles. These singles were
mostly women who were found to be leaving a single life in their homesteads.
4.1.3 Education Level
Variable
|
Frequency
(N=50)
|
Percentage
(%)
|
Educational
level
|
||
None
|
1
|
2
|
Primary
|
11
|
22
|
Secondary
|
20
|
40
|
Tertiary.
|
18
|
36
|
Total
|
50
|
100
|
Source:
Primary data from the field
Table 3: above, shows that most of the respondents
had attained some education, with the highest having attained secondary education
constituting 40 percent of the respondents. Those who had attained tertiary
education were 36 percent while primary were 22 percent. The least number of
respondents had no education and these were 2 percent.
Source:
Primary data from the field
4.1.3 Household members
15 households were
selected and out of the 15 households, 2 members were got from each household
making them to be 30 respondents. It was establishes that in most households,
there were more than 2 house hold members who were living in each household.
4.2 The effect of households’ participation in Wazalendo SACCO in Kiwatule
The first objective of this study was to assess the
effect of households’ participation in Wazalendo
SACCO in Kiwatule. In an attempt to answer this question, the researcher
established information which included; establishing the household income by source, establishing weather there
was an increase in income levels and weather there was an increased income
since they joined WAZALENDO. The following respondents were obtained as seen in
tables 5, 6 and 7 above.
In a personal dialogue with some of the local
community, it was established that public sanitation has been introduced to
help households without toilets. For one to access and use these toilets, you
must be in position to pay a fee of at least 200/=. However, cleanliness is the
key feature of a toilet and many foster a negative hygiene behavior.
Variable
|
Frequency
(N=50)
|
Percentage
(%)
|
Rental
|
10
|
20
|
Land
|
16
|
32
|
Animal
hire
|
4
|
8
|
Wazalendo
SACCO
|
20
|
40
|
Total
|
50
|
100
|
Source:
Primary data from the field
During the field
study, 20 (40%) of the respondents pointed out that there source of income is
Wazalendo SACCO, 16(32%) pointed out that land was their source of income, 10
(20%) pointed out that there source of income is rental houses and 4(8%)
pointed out that they obtained their income from animal hire. In this regard
therefore, the people of Kiwatule have obtained enough from Wazalendo SACCO
Variable
|
Frequency
(N=50)
|
Percentage
(%)
|
Increased
|
35
|
70
|
Decreased
|
10
|
20
|
Remained
the same
|
5
|
10
|
Total
|
50
|
100
|
Source:
Primary data from the field
Table
6: above shows weather household income increased, decreased or remained the
same to most households in Kiwatule. The following results as seen in table 6
above clearly shows the results. 35 (70%) pointed out that their income
significantly increased, 10(20%) pointed out that it decreased while 5(10%)
pointed out that it remained the same.
Variable
|
Frequency
(N=50)
|
Percentage
(%)
|
Yes
|
45
|
90
|
No
|
5
|
10
|
Total
|
50
|
100
|
Source:
Primary data from the field
Respondent
were asked to give their option on whether
their incomes increased by
pointing out yes or no. It was established during the survey that 45(90%)
pointed out that their incomes increased by pointing out yes, while only 5(10%)
pointed out that their incomes did not increase as a result of their
involvement in Wazalendo.
4.3 The effect of Wazalendo SACCO on household asset accumulation in Kiwatule
Variable
|
Frequency
(N=50)
|
Percentage
(%)
|
Land
|
20
|
6
|
Sponge mattress
|
50
|
14
|
Sofas
(sofa set)
|
30
|
8
|
Other
chairs e.g plastic chairs
|
42
|
12
|
Tables
|
30
|
8
|
Bed
|
50
|
14
|
Radio
|
20
|
5
|
Motorcycle
|
23
|
6
|
Television
|
35
|
9
|
Car
|
20
|
5
|
Breakable
plates
|
36
|
9
|
Total
|
356
|
100
|
Source:
Primary data from the field
From the research, the study established that as a result of WAZALENDO
SACCO, most households have obtained; land, Sponge mattress, Sofas
(sofa set), chairs, Tables, Bed, Radio,
In Kiwatule, almost 80 percent of the household in informal settlements
were found not to be having individual toilets. Majority of the toilets are
shared up to 10 households sharing one individual. Less than 20 percent have
access to an individual toilet, 75 percent use shared toilets and 15 percent
support to use public toilets among whom 3 percent practice some open
defecation
The shared toilets when found to be existing under two categories namely;
the landlord sharing with his/her tenant and that with only tenants sharing
among themselves. The biggest issue of shared toilet is the uncleanliness as 30
percent of the community members stated that and too many users with 29 percent
of surveyed community members dissatisfied.
The issues regarding sanitation
facilities construction services and products range from lack of appropriate
latrine technologies, especially in flood prone areas to expensive facilities.
Current facilities are unaffordable for the urban poor.
In a personal dialogue with one member of Wazalendo, he had this to say “Access of financial services is related to growth of the institutions in terms of capital, governance, branches, and level of operation in the vertical hierarchy.
4.4 Bivariate Analysis
To analyze the factors for the success or failure of Wazalendo SACCO performance, the chi square method was used. The variable were significant at p-values less than 0.05. 95 confidential interval for the factors was set.
Variable
|
Mean
|
Std. Deviation
|
Bought
Land
|
1.96
|
0.979
|
Bought
Sponge mattress
|
3.00
|
0.782
|
Bought
Sofas (sofa set)
|
3.21
|
0.754
|
Bought other
chairs e.g. plastic chairs
|
3.13
|
0.376
|
Bought
tables
|
3.13
|
0.376
|
Bought
a Bed
|
2.82
|
0.817
|
Bought
a Radio
|
3.04
|
0.319
|
Bought
a Motorcycle
|
3.21
|
0.754
|
Bought
a Television (TV)
|
3.13
|
0.376
|
Bought
a Telephone
|
3.00
|
0.782
|
Bought
a Car.
|
1.96
|
0.979
|
Bought
a Breakable plates
|
3.21
|
0.754
|
Source: Research findings from the
field
Table
8: shows the uses of money obtained from WAZALENDO SACCO. Buying land less important
and buying a bed was considered to be less important. This is seen by their
large standard deviation of 0.979 and 0.817 respectively. Items which appeared
important according to the findings included buying the following household
items; sponge mattress, Sofa sets, other chairs e.g. plastic chairs, table,
Radio, table, Motorcycle and Television (TV).
4.5 Correlation, Regression Analysis and Hypothesis Testing
Table 4. 3: Regression on household poverty reduction,
household asset accumulation and participation of household
Variable
|
Unstandardized
Coefficients
|
Standardized
Coefficients
|
Sig.
|
||
B
|
Std. Error
|
Beta
|
|||
|
|
|
|
|
|
|
1)
House hold poverty
reduction
|
.237
|
.148
|
.233
|
0.01
|
|
2)
Household asset
accumulation
|
.066
|
.149
|
.068
|
0.02
|
|
3)
Participation of
household's
|
.313
|
.199
|
.237
|
0.04
|
|
a. Dependent Variable: Income by source
|
|
|
|
||
A
linear regression was run to correlate between the study variables and the
following results as seen in the table were obtained.
Relationship between
household poverty reduction, household asset
accumulation and participation of household in WAZALENDO
From
the objectives of the study the aim of the researcher was to establish the
relationship between household poverty reduction, household asset accumulation and
participation of household in WAZALENDO.
4.6 Hypothesis Testing
This section presents the hypotheses
which were done to obtain inferential statistics about the study variables
according to the study objectives and the p values used in the rejection
criteria were obtained
Hypotheses one
Ho1:
WAZALWNDO SACCO has had an effect on household
poverty reduction
Ha1: WAZALWNDO SACCO has had no effect on household
poverty reduction
Since
P=0.01 which is less than 0.05, we accept the null hypothesis and conclude that
WAZALENDO SACCO has had an effect on household poverty reduction. This in line
with the findings of Katsushi et al.,
(2010) who found out that SACCOS help in poverty reduction by decreasing unemployment and increasing
economic.
Hypothesis two
Ho2:
The participation of households’ has had an effect on Wazalendo
SACCO
Ha2: The participation of households’ has had no effect on Wazalendo
SACCO
Since
p=0.02 is less than 0.05 we accept the null hypothesis and conclude that
household participation has had an effect on SACCO. This is in agreement with
Katsushi et
al., (2010) who found out that SACCOS help in poverty
reduction by decreasing unemployment and increasing economic.
Hypothesis three
Ho3:
Wazalendo SACCO has had an effect on household
asset accumulation
Ha3: Wazalendo SACCO has had no effect on household
asset accumulation
Since
p=0.04 is less than 0.05 we accept the null hypothesis and conclude that
Wazalendo SACCO has had an effect on household asset accumulation. This in line with Phusit
(2006), who pointed out that SACCOS help in increasing household welfare through
socio-economic such as increase in income.
CHAPTER FIVE
DISCUSSION OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.0 Introduction
This chapter discusses the study findings, compares
and contrasts them with the findings of related studies done before according
to the study objectives; effect of households’ participation
in Wazalendo in Kiwatule, effect of Wazalendo on household asset accumulation
in Kiwatule and factors for the success or failure of Wazalendo SACCO
performance. This chapter includes the research as per the posed
research questions (what is the effect of households’ participation in
Wazalendo in Kiwatule? What is the effect of Wazalendo on household asset
accumulation in Kiwatule? And what are the factors for the success or failure
of Wazalendo SACCO performance). Several
recommendations to the respective bodies are also included in this chapter.
5.1 Discussion of Findings
5.1.1 The effect of households’ participation in Wazalendo SACCO in Kiwatule
Robinson, (2001) pointed out that SACCOS help in
decreasing unemployment, alleviating poverty and increasing economic growth of
the country. In the same line, Katsushi (2010) pointed out that SACCOS play an important role in the fight
against poverty. 20 (40%) of the respondents pointed out
that there source of income is Wazalendo SACCO, 16(32%) pointed out that they,
10 (20%) pointed out that there source of income is rental houses and 4(8%)
pointed out that they obtained their income from animal hire. In this regard
therefore, the people of Kiwatule have obtained enough from Wazalendo SACCO.
Therefore, SACCOS are very beneficial to household
welfare as they are a source of income directly through employment and money
obtained from Wazalendo and indirectly through animal hire and rental houses by
money obtained from Wazalendo.
5.1.2 The effect of Wazalendo SACCO on household asset accumulation in Kiwatule
Sahn
and Stifel, (2002), pointed that there are difficulties involved in measuring
income accumulation. This is because there are differences in earnings, large
shares of income, self employment both in and outside of agriculture, poor
quality of income and expenditure.
5.1.3 The factors for the success or failure of Wazalendo
SACCO performance
5.2 Conclusion
Wazalendo SACCO had done much
on household poverty reduction. This was seen through the highest percentage 20
(40%).16(32%) pointed out that land was their source of income was land, 10
(20%) pointed out that there source of income is rental houses and 4(8%) and
pointed out that they obtained their income from animal hire. To most
households, their incomes greatly increased by (70%) after they had joined
Wazalendo as opposed to (20%) who pointed out that their incomes decreased when
they joined wazalendo SACCO. We accepted the null hypothesis since P=0.01 was less
than 0.05 and concluded that WAZALENDO SACCO has had an effect It was also
established that since p=0.02 is less
than 0.05 we accept the null hypothesis and conclude that household
participation has had an effect on SACCO. We also accepted the null hypothesis
and concluded that Wazalendo SACCO has had an effect on household asset
accumulation since p=0.04.
5.3 Recommendations
From my observation and
perspective, individuals acquiring adequate financial services would be able to
improve their household welfare through increase in income.
SACCO members should take
WAZALENDO very seriously and endeavor to consult where necessary since these
errors have the potential to harm patients.
1.
The government and private sector should
set up more projects from where they can generate income.
2.
There is need for Wazalendo SACCO to
promote access to safe water
through piped water and avoid residents
from accessing water from springs or
wells
3.
There is need for households to monitor
and promote positive sanitation and hygiene behavior among residents of informal settlements
4.
Wazalendo should conduct door to door visits for all
households
5.
Landlords in Kiwantule should be encouraged to promote KCCA toll free lines
Lastly,
across the board, many SACCOS are still facing governance challenges more so
given the big influence of politically inclined institutions that were created
with government support.
5.4 Areas of further research
Research
has to be carried out about the comparisons between formal and informal
institutions in poverty reduction in Uganda.
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