African Journal of
Agricultural Research

  • Abbreviation: Afr. J. Agric. Res.
  • Language: English
  • ISSN: 1991-637X
  • DOI: 10.5897/AJAR
  • Start Year: 2006
  • Published Articles: 6849

Full Length Research Paper

Factors influencing households participation in the Savings and Credit Cooperative (SACCO) programmes in Uganda

S. Mpiira1, B. Kiiza2, E. Katungi2, C. Staver3, J. S. Tabuti2, M. Kyotalimye4, P. Muwumba5, E. Karamura3 and W. K. Tushemereirwe1
1National banana research program of the National Agricultural research Organization P. O. Box 7065 Kampala, Uganda. 2Departments of Agricultural Economics and Agri-Business, Makerere University P. O. Box 7062 Kampala, Uganda. 3Bioversity international Parc Scientifique II 34397 Montpellier, France. 4Associations for Strengthening Agricultural Research in Eastern and Central Africa P. O. Box 765, Entebbe, Uganda. 5Uganda Cooperative Alliance P. O. Box 2215 Kampala, Uganda.
Email: [email protected]

  •  Accepted: 15 October 2013
  •  Published: 07 November 2013


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.