Analysis of factors motivating people to join SACCOS

This thesis provides an analysis of the factors motivating people to join Savings and Credit C0-operatives (SACCOs) the results of this indicate that SACCOS are not as successful as they should be and an attempt is made to explain the underlying causes for this, despite the fact that many members and other stakeholder like the idea. The results also indicate that many of the people do not trust the management of their own cooperatives. The work undertaken was of a phenomenological nature and most of the data were obtained through oral interviews and a few respondents were ready to fill in the questionnaires. The main reason for lack of success that the research found out is that most of the members are not very well educated. The research found out that SACCOs members are from low income households. This has hindered progress as, in order for loans to be disbursed, the society should have enough capital in its account, but few attain this. The resultant knowledge developed through this study will not only benefit the Dar es Salaam Savings and Credit Co-operative Societies but will also benefit other microfinance initiatives in developing countries elsewhere in the world. This study should also give rise to further studies that will explore this subject in an attempt to address the international problem of poverty and provide social uplift. Study recommends the development of a stable pol icy on microfinance, as the current policies were formulated as a quick measure. Giving COASCO the mandate of auditing the cash books of the SACCOs will also assist in controlling money laundering and fraud. It should be noted that these SACCOs are accumulating more financial wealth which should be closely monitored, so as to perform its pre-determined job of poverty alleviation.