Influence of Savings and Credit Cooperative Societies Services on Members' Livelihoods: A Case of Hazina Sacco in Siaya, Kenya
Abstract
Livelihoods constitute the means and strategies through which individuals and households sustain themselves economically, socially, and culturally. While Hazina SACCO provides various financial services aimed at improving members’ livelihoods, the extent to which these services contribute to the economic stability and growth of members’ livelihoods remains unclear. This study aimed to investigate the influence of Hazina SACCO services on the livelihoods of its members. Specifically, the study explores the effects of Hazina SACCO’s financial loan products on the livelihood of its members, the effects of Hazina SACCO’s interest rates on the livelihood of its members, the effects of the loan repayment period of Hazina SACCO on the livelihood of its members, and the effect of training by Hazina SACCO on the livelihood of its members. The study adopted a descriptive cross-sectional research design, involving both quantitative and qualitative data. The study's target population was 1775 ordinary Hazina SACCO members, 30 delegates, and 2 technical staff in Siaya County, giving a total of 1807 people. The study employed simple random sampling to select 256 ordinary SACCO members for participation. Subsequently, random sampling was used to identify key informants that are 15 delegates and 2 technical staff at the Siaya branch. Structured questionnaires and interviews were used to collect information from the selected respondents, with questionnaires providing quantitative data and interviews collecting qualitative data. A pilot study was conducted in Vihiga, and face-to-face and content validity were used to ensure the validity and reliability of the study. Data was analyzed qualitatively and quantitatively. Quantitative data was analyzed using SPSS Software Version 28.0, using both descriptive and inferential statistics, while qualitative data was analyzed thematically. From the results, the study established that there exists a positive and significant relationship (r = .264, P = 0.000) between financial loan products and the livelihood of members. Further to that, there was a positive and significant relationship (r = .194, P = 0.003) between interest rates and the livelihood of members. The finding indicates that there exists a negative and significant relationship (r = -.196, P = 0.003) between loan repayment period and livelihood of members. Finally, the study established that there exists a positive and non-significant relationship (r = .090, P = 0.510) between financial literacy training and the livelihood of members. The conclusion of this finding is that the combination of loan products, interest rates, repayment periods, and training provides a statistically valid effect on improvements in member livelihood. The study recommends that Hazina SACCO enhance loan product diversity, prioritize interest rate management, and lastly revitalize financial literacy programs so as to enhance members’ livelihood.
Keywords: Savings and Credit Cooperative (SACCO), Financial Loan Products, Interest Rates, Loan Repayment Period, Training, Members, Livelihood
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