Factors Affecting the Financial Performance of Savings and Credit Cooperative Societies in the Agricultural Communities in Morogoro District: A Case of Kinole SACCOS

Financial

This article examines factors affecting the financial performance of SACCOS in the agricultural communities in Morogoro district, at Kinole SACCOS, Tanzania. The study involved 100 respondents who possessed membership of Kinole SACCOS and key informants such as SACCOS leaders, district cooperative officers, and extension workers who were selected through simple random sampling and purposive sampling, respectively. Primary data were collected through questionnaires and key informants’ interviews. Quantitative data were analysed through SPSS version 20, and content analysis was used for analysing qualitative data. The findings reveal that the gender of respondents, education status, financial stability of SACCOS, managerial capacity of SACCOS’ leaders, and members’ capacity to pay loans were significant, implying their positive relationships with SACCOS’ financial performance. The paper concludes that the financial performance of SACCOS determines the quality of services being provided to their members. The paper recommends that the respective public agencies have to provide technical services to the available SACCOS in order to improve their policies, by-laws and financial regulations for the sake of improving the quality of financial services and boosting rural productive sectors.

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