Determinants of Saving Behaviour Among Members of Community- Based Savings and Credit Co-operative Societies in Moshi

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.