Browsing by Author "Lanyero Judith"

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    Financial Literacy, Governance Practices and Loan Performance of Saccos in Selected Institutions in Kampala.
    (Makerere University Business School, 2025-10-23) Lanyero Judith
    This study examined the relationship between financial literacy, governance practices, and loan performance of Savings and Credit Cooperative Organizations (SACCOs) in selected institutions in Kampala. The purpose was to determine how members’ financial knowledge and the quality of governance structures influence the ability of SACCOs to maintain healthy loan portfolios and achieve financial sustainability. The study was guided by three objectives, namely to establish the relationship between financial literacy and loan performance, to determine the relationship between governance practices and loan performance, and to examine the combined effect of the two factors on loan performance. A cross-sectional research design with a quantitative approach was used. The study focused on three employee-based SACCOs in Kampala, namely MTN Staff SACCO, Stanbic Bank Staff SACCO, and NSSF Staff SACCO, with a total population of 2,000 members. Using the Krejcie and Morgan (1970) table, a sample size of 322 respondents was selected through stratified random sampling to ensure representation across managerial, operational, and membership levels. Data were collected using structured questionnaires designed on a five-point Likert scale. The reliability of the instrument was confirmed through Cronbach’s alpha coefficients above 0.70, and validity was ensured through expert reviews and Content Validity Index analysis. Findings showed a moderately strong positive relationship between financial literacy and loan performance (r = 0.537, p < 0.01) and a significant positive relationship between governance practices and loan performance (r = 0.439, p < 0.01). The adjusted R² value of 0.368 confirms the reliability of the model while accounting for the number of predictors, leaving a considerable proportion of loan performance to be influenced by other unexamined factors. The study concluded that both factors are crucial in improving SACCO performance and recommended regular financial education programs, stronger governance structures, transparent reporting, and continuous monitoring systems to enhance accountability and ensure long-term sustainability.