Abstract:
Several Microfinance Institution (MFIs) have established and have been operating towards resolving the
credit access problem of the poor. In light of this study this dissertation attempted to look at MFIs
performance in the country from outreach and financial sustainability angles using data obtained from
primary and secondary sources. The study sought to evaluate the sustainability of SACCOS in Tanzania.
The study was conducted in selected SACCOs namely Wazalendo, Kindi and TPC all located in Moshi
Urban and Moshi Rural District in Kilimanjaro region. The study found that SACCOs played a
fundamental role in providing financial services through mobilization of savings from members. Such
practice encourages members to save more so as to borrow more from their SACCOs. In this study
sustainability of SACCOs is measured by Return on Asset and Return on Equity while performance is
measured by financial viability, portfolio quality, profitability, coverage capital adequacy and outreach to
poor and welfare impact. The dissertation found that, from a development policy perspective there has
been some encouraging activity in the microfinancc industry over the past few years However according
to the definition of financial sustainability adopted in this report, it was found that all the selected
SACCOs in Kilimanjaro are not yet financially sustainable
