Service Quality and Members’ Expectations among Savings and Credit Co-operative Societies in Rural Tanzania: The Case of Mwanza and Tabora Regions

Abstract

The microfinance market share of Savings and Credit Co-operatives Societies (SACCOS) has dropped from 3% to 2% between 2013 to 2017 respectively in Tanzania. This makes the quality of service to be questionable in relation to members’ expectations. The study investigated whether service quality offered by SACCOS meets members’ expectations. Six SACCOS were purposively selected in four districts of Mwanza and Tabora regions. The study randomly selected a total of 200 members. The study used a questionnaire and a key informant interview guide to collect both quantitative and qualitative data. The quantitative data were analysed by using the descriptive statistics and the paired t-test while the qualitative data were analysed using thematic technique. The study found that SACCOS offered unacceptable service quality. The study concludes that SACCOS’ services in the study area do not meet members’ expectations. The study recommends that the co-operative trainings should be provided by co-operative officers to SACCOS’ leaders to enhance them to be committed to fulfil their responsibilities in the provision of quality service in SACCOS.