Financial Records and Performance of Microfinance Institutions: A Case Study of Rukiga SACCO.
This study examined the relationship between financial records and the performance of microfinance institutions, using Rukiga SACCO as a case study. The objectives were to identify the types of financial records kept by Rukiga SACCO, to examine the indicators of its performance, and to determine the...
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| Format: | Thesis |
| Language: | English |
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Kabale University
2024
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.12493/2137 |
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| Summary: | This study examined the relationship between financial records and the performance of microfinance institutions, using Rukiga SACCO as a case study. The objectives were to identify the types of financial records kept by Rukiga SACCO, to examine the indicators of its performance, and to determine the relationship between financial records and performance. A descriptive research design was employed, involving a population of 130 and a sample size of 65 respondents. Data was collected through interviews and questionnaires. Regarding the types of financial records kept by Rukiga SACCO, 37% of respondents identified cash books as the most common, while 6% mentioned fixed asset registers as the least common. For performance indicators, 29% of respondents highlighted capital adequacy as the primary indicator, while 11% mentioned efficiency and productivity as the least important. On the relationship between financial records and performance, 32% of respondents indicated that accurate and reliable financial records are crucial for generating dependable financial reports, while 18% emphasized that financial records are vital for internal management and decision-making, as they enable tracking of income and expenses and monitoring of the loan portfolio. The study recommended that the portfolio size should align with the MFI's operational capacity to maintain a balance between the number of clients served and the institution's management capabilities. Additionally, the portfolio size should reflect the institution's mission to reach underserved and financially excluded populations, balancing growth with the ability to serve the targeted client base to fulfill its social objectives. Furthermore, investment in client education programs is recommended to improve financial literacy and awareness of financial products, as educated clients are more likely to engage effectively with financial services. |
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