Contribution of Microfinance Institutions Services on Socio-Economic Development of its Members Case study: Selected Members of ICYERECYEZO KINYINYA SACCO, period: 2020-2023

Abstract

The topic under this study is made of “the Contribution of Financial institution on Socio-Economic Development of its Members with the following objectives; to analyze effectiveness of financial services offered by ICYERECYEZO SACCO KINYINYA to its members. to determine the contribution of ICYERECYEZO SACCO KINYINYA on socio-economic development of its members. The study populations are constituted by 3,571 members of Gisozi SACCO. In my research the sample was 97 respondents The results presented in the table 4.8 shows that the majority of respondents with 72.2.6% strongly agreed that ICYEREKEZO SACCO KINYINYA provides to its members saving and withdraw services and 27.8% agreed with this statement. Normally saving is a very important because it allows clients to prepare future expansion through their savings. In the interview with some respondents they mentioned that before being clients of ICYEREKEZO SACCO KINYINYA they have no habit of saving. One said that “ even though I wasn’t earned enough money I miss used the few I had because I wasn’t know that someone can go to the bank to save one thousand, whenever I got few money I used to buy beer and drink it only. But the advices I received from one of SACCO ICYEREKEZO’s loan officer completely changed my life when he told me that when you count you start from one and that you reach to millions and billions”. Therefore, this shows that the saving ability encouraged by ICYEREKEZO SACCO KINYINYA to its members encouraged them to think, Table 4.17 showed that before using the services of ICYERECYEZO SACCO KINYINYA, 72.2% of the respondents were only be able to pay school fees of one child in the family due to poverty of the family, but after using the services were reduced up to 3.2%. Members of the SACCO who were able to pay school fees of all children were 23.7% before using the services of ICYERECYEZO SACCO KINYINYA sector but they were reduced to 14.4%. For the members of the SACCO who were able to pay school fees of relatives and children were only 4.1% before using the services of ICYERECYEZO SACCO KINYINYA but due to the services offered by the SACCO, members were increased up to 80.4%. Basing on the research findings as results provided by the collected data, the socio-economic activities and services offered and improved by ICYERECYEZO SACCO KINYINYA. show that they contribute significantly through poverty reduction .