Effect of Savings and Credit Cooperative Societies Products on Economic Wellbeing of Members’ Households in Nandi County, Kenya

Abstract

Deposits taking SACCOs were developed to meet the basic human needs of deposits and borrowing methods without taking risks. Today, deposit taking SACCOs have important objective of empowering their depositors‟ socio-economic status all over the world. The purpose of the study was to determine the influence of SACCO products on socio-economic wellbeing of member‟s households in Nandi County Kenya. The study was guided by the following objectives: to analyse differences in uptake of SACCO products by male and female members in Nandi County; to determine impact of SACCO credit products on the economic wellbeing of male and female members‟ households in Nandi County; and, to determine the determine impact of SACCO members savings/ deposits on the economic well being. The study was anchored on Growth of Wealth Theory and neoclassical theory. The study adopted a descriptive research design. This study targeted all the four licensed Deposit Taking SACCOs in the Nandi County as at the period ending 31st December, 2017. The target population comprised of 3250 respondents. Primary data was obtained using self administered questionnaires and interview guide. All the questionnaires and interview guides received were referenced and items were pre-coded to facilitate data entry. Descriptive statistics were used to analyse the collected data. Results indicated that SACCO provided emergency loans to its members, most members had sought emergency loan from the SACCO Several times(81.2%), credit facilities offered by Sacco had improved social economic livelihoods of lives of Nandi residents(84.1%), majority of members interviewed had bought plots in nearby towns(86.2%), others had built a rental house or running business enterprises. Findings indicated that members had sought FOSA advance loans from the SACCO several times ; SACCO provided jitegemee, jijenge, jinue products or scholar plus loans to its members. The study concludes that credit facilities extended by SACCO to its members had positive influence on social economic welfare of families in Nandi County. It is therefore recommended that SACCOs in Nandi County should develop investment sensitization programs. Results show low level of awareness of some of the credit products offered by Sacco, therefore this study recommends that Sacco in Nandi County should heavily advertise its products in all parts of the County and also encourage potential farmers and entrepreneurs to join the SACCO.