Abstract:
The objective of the study was to examine the extent to which member-based microfinance
institutions namely SACCOSsmobilize demand deposits from their members in Moshi district,
Kilimanjaro region. A sample of 60 respondents from 3 SACCOs was used and it constituted
employees, members and board members. Data were collected through questionnaires and
documentary review methods. Descriptive statistics were used in the data analysis. The study
revealed that SACCOs provide demand deposits services to their members who use it for
different purposes, however the amount deposited is relatively low. In both rural and urban
areas, SACCOs face competition from banks which provide more convenient services. It was
also found that training and participation in social events are the only techniques used to
mobilize demand deposits. Furthermore, SACCOs members expressed mistrust to their
institution and staff. SACCOs staffs were found to have loss work morale and lack motivation
to mobilize demand deposits. Successful mobilization of demand deposits in SACCOs can be
attained by involving members, employees and management and utilizing social and resource
mobilization techniques that can change their attitude. It is recommended that SACCOs should
employ competent staff and provide them with attractive incentives, allocate education fund to
provide training; use of current technology in service provision, use participatory mobilization
techniques and cooperative department should be strengthened so that demand deposit can be
mobilized.
