Factors influencing the performance of Kibara Biashara and Zinduka Saccos in Bunda District Tanzania

This study evaluates the factors that influence performance of SACCOs in Bunda district by making a comparative analysis of the two established SACCOS namely, Kibara Biashara and Zinduka. Specifically the study investigates the processes employed in the implementation of the two SACCOS, analyse the strategies which govern the two SACCOS and lastly assess the sustainability of the kibara Biashara and Zinduka SACCOS. Both quantitative and qualitative research design are employed in gathering, processing and analysing data. The sample used included 103 SACCOS members and 24 people from the management Team. T he study did also employ the use of questionnaire, interviews, observation and documentary review in data collection. The analysis of quantitative data was conducted by using the IBM Statistical Product and Service Solution (SPSS) version 20 whereas qualitative data were subjected to content analysis. The findings from the study show that establishment of Kibara Biashara and Zinduka SACCOS has significantly contributed to improvement of smallholders livelihoods in the study area. Effective management of the SACCOS has been an essential factor for performance of the SACCOS. The findings show that the major challenges of performance in the two SACCOS include among others poor loan recovery, inadequate banking and financial management skills among SACCOS members, competition from other financial institutions, low capital and low profitability. The studydid also advocate for a number of strategies to overcome the challenges in the SACCOS. The study recommends for training of management and members of staff to enable loan repayment, establishment of new business as a means to diversify income base and to empower the two SACCOS in order to remain with their role poverty alleviation.