Implementation of savings and credit schemes the case of Umurenge SACCO 2008-2010

Abstract

In line with the government’s strategy of domestic savings mobilization and building an inclusive financial system in Rwanda, the Umurenge Sacco program was adopted. The main objective of the program was to allow unbanked but bankable people to have access to financial services at low transactions costs. The purpose of this study is therefore, to make an assessment of the progress so far attained since the program was initiated in 2008. The objectives of this study include: To find out why people have joined Sacco; to find out if members know their rights; and to find out how members feel about their Sacco. The study was conducted in the 3 districts of Kigali city, namely Kicukiro, Gasabo and Nyarugenge, where a questionnaire was distributed to members of 3 Umurenge Sacco, one in each district. Most of the people interviewed admitted that they learned of the program through meetings called by the local authorities and need more information in respect of Umurenge Sacco as compared to other microfinance institutions. The majority of members joined Umurenge Sacco because it was a government policy. However many of the members are skeptical about the internal controls instituted in their cooperatives as well as customer care offered by Sacco. Some of the recommendations of this study include:Umurenge sacco management and staff should be trained in the field of financial management to avoid mismanagement of depositors funds as well as to improve on internal controls.