Abstract:
This study analysed the determinants of community-based SACCOs' members saving behaviour
in Moshi Municipality. In this study, a cross-sectional research design was adopted whereby
simple random sampling technique was used to select a sample of 125 respondents from ELCT
Karanga SACCOs. Questionnaire was used to collect data which were analysed by using
descriptive statistics and logistic regression models. Findings show that, demographic factors such
as sex, age, household size and marital status have a positive and significant influence on saving
behaviour of SACCOs members (p<0.05). The study also found that, level of income, employment
status and loan borrowed are economic factors with a positive and significant influence on
SACCOs members saving behaviour (p<0.05). Additionally, education level, peer group pressure
and duration of membership are social factors with a positive and significant influence on
members' savings behaviour (p<0.05). Furthermore, interest on savings was the only institutional
factor with a positive and significant influence on members saving behaviour (9<0.05). The study
concludes that, demographic, economic and social factors influence members saving behaviour
while institutional factors have a weak influence. Thus, it is recommended that managers should
focus their efforts in savings practices which are the main source or funds for lending in the
SACCOs. Moreover, the policy makers should formulate and implement policies that take into
consideration the behavioural differences of SACCOs members in enhancing ssavings
mobilisation.
