The Role of Saving and Credit Cooperatives in Improving Household Income: The Case for Teachers in Iganga District
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Date
2025-09-22
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Uganda Christian University
Abstract
Savings and Credit Cooperative Societies (SACCOs) have emerged as critical tools for
promoting financial inclusion and income enhancement, especially in rural areas of Uganda. This
study explores their role in improving household income among teachers in Iganga District. The
objective was to assess how SACCO services—namely loan provision, savings mobilization, and
financial advisory—affect the economic welfare of teachers. A mixed-methods approach was
employed, incorporating cross-sectional surveys, structured interviews, and analysis of
secondary data from SACCO reports and school records. The results showed that 70% teachers
accessed SACCO loans, mainly for income-generating activities, with a significant majority
(82%) of regular savers reporting enhanced financial stability. Financial advisory services
improved financial literacy, though inconsistent delivery hindered their overall impact.
Regression analysis showed a strong positive correlation between loan access and income growth
(r = 0.94, p < 0.01). Despite these benefits, challenges such as weak governance and limited
product flexibility were identified. The study concludes that SACCOs substantially enhance
household income among teachers, but reforms in governance and service delivery are essential
for sustainable impact.
Keywords: SACCOs, household income, financial inclusion, microfinance, Uganda, teacher
welfare