Contribution of Savings and Credit Co-operative Societies in Reducing Income Poverty in Moshi Municipality, Tanzania

Abstract

This study was undertaken to analyze the contribution of savings and credit cooperative societies in reducing income poverty in Moshi municipality, Tanzania. In Tanzania there has been a different strategy in fighting poverty, among which is the National Poverty reduction strategies and the millennium development goals 2025. In fighting poverty microfinance institutions has come as an alternative for the people who cannot be covered by the commercial banks. SACCOs as among types of microfinance has been found as best institution for all kind of people who are in rural areas and also in urban areas. SACCOs are institutions which are member based; thereby members are the one who amend regulations to administer their society. This study pays concentration of urban SACCOs in finding out the contribution of SACCOsin reducing income poverty. The studied sample comprised of 92 respondents. Purposive sampling was used to select participants which are SACCOs' leaders. Simple random sampling was used for members of the SACCOs. To establish the findings, questionnaires, personal interviews, and focus group discussions were applied to collect data from active participants of selected societies. Data analysis was done by using SPSS, while the findings were presented by charts, tables and figures. Major findings revealed that people who had joined SACCOs their life had improved, that means SACCOs contribute in reducing income poverty. The study recommended for many Tanzanians who are in urban and in rural areas to join/ establish SACCOs in their locality so as to fight poverty especially income poverty. Also, the Government should continue support credit cooperative societies.