IMPACT OF SAVING AND CREDIT COOPERATIVES SERVICES ON POVERTY REDUCTION OF ITS MEMBERS CASE STUDY: SACCO ICYEREKEZO KINYINYA PERIOD: 2020-2023

Abstract

The Research based on the role of Saving and Credit Cooperatives services on the poverty reduction of its members. The General objective of this study is to analyse the role of Saving and Credit Cooperatives services on the poverty reduction of its members. The specific objectives of the study are to assess effectiveness of saving and credit services offered by Sacco Icyerekezo Kinyinya and to analyse the contribution of Sacco Icyerekezo Kinyinya services on poverty reduction of its members. The data was collected by using questionnaires, interview and documentation techniques with a sample size of 98 members of Sacco Icyerekezo Kinyinya. The findings show that the researcher have been found that the percentage of individuals earning between 10,000 to 25,000 Rwf decreased dramatically from 53.1% to just 11.7%, suggesting that many who were previously in this lower income bracket have moved up to higher brackets following their access to financial resources through the cooperative. The lower level of saving before joining cooperatives as it illustrated in the table where 54.2% have responded that clients are able to save only between 50,000-100,000rwf, 25 of respondents out of 30.8 means that the clients are able to save between 100,001-500,000rwf and there are 12 of respondents out of 98 means are able to save Above 500,000rwf. This lower level of saving is due to the low of income earned per month. The payment of school fees of their children was 22.3% to 1% after getting loans, while those was able to pay school fees of beneficiary or the partner decreased from 77.6% to 1%, and members who was able to access the education him/herself, children and relatives was increased from 0% to 97.8%, it means that after getting loans beneficiaries was able to access education of themselves or for their families. This positive change is a result of the contribution Sacco Icyerekezo Kinyinya in social development of its members. They insured that before getting loans only 13.8% of respondents was able to pay hospital services, but at this getting loans increased up to 31.9%. The clients who was able access on health services from health center had been increased 14.8% to 63.8% and the clients who used to buy medicines decreased from 48.9% to 4.2%, the numbers of clients who used traditional herbs decreased from 21% to 0%. The Researcher recommended the credit committee and the management team should teach the members of Sacco Icyerekezo Kinyinya loans on how to create small business projects generating income in order to increase the number of those who overcome poverty.