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Interest Rates And Financial Performance Of Saacos In Kabwohe, Sheema District: A Case Study Of Ebo Sacco (issue 4)

The main objective for this study was to investigate the effects of interest rates on the financial performance of
SACCOs in Kabwohe, Sheema district. Specifically, the study sought to find out the clear understanding of Interest
rates in SACCOs, to find out ways of improving financial performance of SACCOs in Kabwohe and to establish the
relationship between Interest Rates and Financial performance of SACCOs in Kabwohe, Sheema district. Data
analysis and interpretation of the questionnaire responses from the respondents revealed that despite the knowledge,
civil society and the general public did not place this issue as very important one.
The study considered the gender of the respondents who participated since it did not segregate and according to the
findings, the majority of the respondents were male with 70% and female with 30%. The study also considered the
age bracket of the respondents and according to the findings, the majority (36%; n = 18) of the respondents in Kabwohe
were aged 46 years and above, followed by those aged between 25-35 years, followed by 35-45 (22%; n= 11) while
only 16% (n = 08) were below 25 years old. The results reveal that most of the respondents covered in this study were
mature experienced people. The study considered the education level of the respondents and the findings indicated
that 14% of the respondents attained secondary level, 46% attained diploma level and 40% of the respondents’
acquired degrees. The study considered the marital status of the respondents and Out of the 50 respondents
interviewed. 34 were single with 68%, 16 were married with 32%. This revealed that that majority of the respondents
were single with the highest percentage followed by the married respondents. According to the study findings, the
majority had enough understood of the term Interest rates and this was represented by 98% of the respondents while
94% said that they had a little understanding of the term Interest rates.46% said did not have any understanding of the
term Interest rates and lastly 20% of the respondents said had never heard about the term Interest rates. The second
objective was to find out the ways of improving financial performance of SACCOs in Kabwohe. the majority (82%)
agreed that availability of improving financial performance of SACCOs in Kabwohe while 18% disagreed followed
by Branding which was agreed up on by 70% of the respondents while 30% disagreed. Then Cutting costs was agreed
up on by 64% while 36% disagreed and lastly Capital was agreed up on by 56% of the respondents while 44%
disagreed. Objective three was about the relationship between the variables that is Interest Rates and Financial
performance of SACCOs. Out of 50 respondents who were interviewed, the majority 35 (70%) were of the opinion
that there is a relationship between Interest Rates and Financial performance of SACCOs in Kabwohe, Sheema district,
10 (20%) of the respondents said there is no relationship while 05 (10%) were undecided. This shows that there is a
great relationship between Interest Rates and Financial performance of SACCOs in Kabwohe, Sheema district. This study sought to establish the effect of interest rate on financial performance of SACCOs in Kabwohe, Sheema district.
Results revealed that interest rate had a positive effect on financial performance of SACCOs. However, this influence
was not statistically significant. The conclusion that interests rate had a positive effect on financial performance of
SACCOs was based on the result of the regression analysis that revealed that a unit change in interest rate resulted in
a positive change in the financial performance of SACCOs.

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