Abstract

Uganda Cooperative Alliance established SACCO’s as a response to Governments call to provide affordable financial services to rural poor. Over the year’s membership and share capital grew. This study investigated factors influencing household’s participation in SACCO programmes. Participants were disaggregated into savers and none savers. Degree of participation was estimated, an ordered probit function was used to establish likelihood of participation. Member’s participation increased with growth in incomes, dependants in secondary schools. Earning salary, rent, salaried spouse were less likely to participate. Increase in distance from the household to SACCO reduced household’s participation due to increased transaction costs.

Key words: Savings and Credit Cooperative (SACCO), savings.