MEMBER PARTICIPATION AND LOAN PERFORMANCE MANAGEMENT OF SACCOS IN BUSHENYI DISTRICT

Abstract

This study explores the relationship between member participation in governance and the performance of loan portfolios in Savings and Credit Cooperatives (SACCOs). The study investigates how member involvement in governance processes, access to timely information, and decision-making participation influence the financial outcomes of SACCOs, specifically focusing on loan portfolio performance. A quantitative research approach was employed, using survey data collected from 284 SACCO members in Uganda. Descriptive statistics were used to analyze the level of member participation, while correlation and regression analyses were conducted to assess the impact of member governance involvement on loan portfolio performance. The results reveal significant positive correlations between member participation in governance, access to information, and decision-making involvement with improved loan portfolio performance. Specifically, the study highlights that SACCOs with active member participation in decision-making processes experience lower loan delinquency rates and better repayment outcomes. The findings contribute to the growing body of literature on cooperative governance and financial performance, offering practical insights for SACCO managers and policymakers. The study recommends that SACCOs invest in strategies to encourage greater member participation, improve transparency, and foster inclusive decision-making to enhance loan management and ensure long-term sustainability. This research offers valuable implications for strengthening SACCO governance and promoting financial stability in cooperative institutions, particularly in the context of developing economies.