Sacco Services and Member’s Household Investments:Case of Makadara Sub-County, Nairobi

Abstract

Abstract

Savings and Credit Cooperative societies, have a key mandate to improve members’ lives through offering services that boost their capacity to invest for their households. The study was anchored on life cycle, relative income and permanent income theories. The independent variables of this study were SACCO services while the independent variable was household investments. A sample size of 236 SACCO members across the sub-county of Makadara was employed and a questionnaire was used to collect data. The data was analyzed using descriptive statistics to gain insights. Pearson’s correlation was employed for statistical inference. The findings indicated a significant relationship between loan facilities and household investments, however the correlation coefficient was low at 0.41. A significant relationship was found between SACCO trainings and household investments and between savings and investments and household investments. SACCO member’s capacity are enhanced to invest, access education, shelter, healthcare and insurance. In conclusion, SACCOs give their members a chance to participate in activities that afford them a reasonable capacity to invest for their households. It is recommended, that more focus be placed on enhancing loan facilities to ensure members get maximum benefit, to invest for their households.