Savings and credit co-operative societies’ members’ livelihood outcomes in Kasarani Sub County, kenya

Abstract

The study was conducted with the aim of assessing the role of SACCOS in improving members’ livelihood outcomes in Kasarani Sub County, Kenya. Three specific objectives guided the research: first, to examine the level of members’ participation in the financial services offered by SACCOS; second, to investigate the influence of demographic factors on members' livelihood outcomes; and third, to compare the livelihood outcomes between SACCOS members and non-members in Kasarani. The study adopted a cross sectional research design as it enabled the researcher to examine the relationship between SACCOS services and the livelihood outcomes of its members. Both SACCOS members and non-members in Kasarani Sub County were targeted, facilitating a comprehensive comparison of livelihood outcomes. Fisher’s formula determined the sample size, which comprised 385 respondents. Additionally, key informant interviews were conducted with five individuals, including a district manager, two SACCOS employees, one SACCOS board member, and one SACCOS regulator. Data collection involved the use of questionnaires and key informant interviews, with analysis facilitated by the SPSS software, encompassing both descriptive and inferential analysis. The findings indicated active members' participation in SACCOS financial services, underscoring a sense of involvement and investment in SACCOS operations. Furthermore, demographic factors significantly impacted the livelihood outcomes of SACCOS members in Kasarani Sub County, Kenya. Specifically, gender diversity (β=0.221, p=0.001), age (β=0.267, p=0.000), level of education (β=0.340, p=0.000), and occupation (β=0.126, p=0.006) were positively and significantly related to improved livelihood outcomes. In contrast, household size did not exhibit a significant relationship (β=0.034, p=0.527). Moreover, independent t-test results showed a significant difference in livelihood outcomes between SACCOS members and non-members (p-value<0.05). The study concluded that SACCOS played a vital role in shaping the financial landscape of Kasarani Sub County, with active member participation, demographic influences on livelihood outcomes, and a significant positive impact on members' economic well-being compared to non-members. The study recommended that effort should be directed towards promoting the benefits of SACCOS membership through comprehensive awareness campaigns emphasising financial literacy and accessibility to formal financial services to uplift the entire community.