Abstract:
The main objective of this study was to examine the extent to which SACCOS have been able
to determine factors influencing their members on loan repayment performance in Tanzania. A
multiple case study was opted for the study such as Okoa, CHAWAKUKO, Same-Kaya,
Mashati, Ushiri and ELCT-ND SACCOS, all in Kilimanjaro region. Various methods were used
for data collection such an interviews, questionnaires and document reviews. The overall
findings revealed that, loan diversion and multiple borrowing from different institutions were
the most significant factors influencing negative loan repayment performance. It also indicated
that, the use of valid salary slips from employed members and the saving capacity of members
evidenced to improve the loan repayment performance. Based on the findings, it is
recommended that members and SACCOS officials should be trained in order to build their
capacity and entrepreneurial skills so as to invest in productive activities and enhance loan
repayment performance. The suitability of loan repayment period should be improved so as to
minimize the loan delinquency problem and enhance profitability and sustainability of
SACCOS.
