Assessing the performance of village savings and loan associations in Nawanyago sub-county, Kamuli district.
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Date
2026
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Busitema University
Abstract
This study examined the performance of Village Savings and Loan Associations (VSLAs) in Nawanyago Sub-County, Kamuli district. Based on Financial Intermediation, Social Capital and Empowerment theories, the study focused on three primary objectives: assessing the level of savings, access to credit, and asset accumulation among members. The study adopted a quantitative cross-sectional design used to survey 251 who were randomly selected and interviewed using structured questionnaires. Data was analyzed via STATA. The findings revealed that respondents were mostly female (63.35%) and peasant farmers (75.70%). VSLAs showed high operational engagement, where 78.80% attended weekly meetings and 88.45% conducted savings and credit transactions in a single sitting. After joining VSLAs 82.87% increased their savings with an average of UGX 45,944 monthly. Credit access was also high (84.40%) with 63.21% getting the same-day approvals using guarantors instead of collateral. However, timely full repayment was low (32.08%) due to inflation, short maturities (1-3months), and 10%interest rates. About 76.80% used funds to acquire productive assets like farm tools and livestock, members strongly agreed that VSLAs boosted their investment capacity (4.60/5). VSLAs effectively drive asset accumulation and financial inclusion, but strict loan terms threaten long-term sustainability. The study recommends compulsory house budgeting, adopting flexible, harvest-aligned loan terms, and stronger local government support for smallholder farmers.
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Undergraduate Research report
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Nangobi, J. (2026). Assessing the performance of village savings and loan associations in Nawanyago sub-county, Kamuli district. [Unpublished undergraduate research report]. Busitema University.