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Metropolitan Journal of Academic Multidisciplinary Research

Digitalisation And Performance Of Microfinance Institutions: A Case Study Of Kyebando Sacco

Authors: Namugabwe Rashida1 , Mwesigwa Henry2

Journal: Metropolitan Journal of Academic Multidisciplinary Research (MJAMR)

Volume/Issue: Volume 5 - Issue 7

Published: 03 Aug 2026


Abstract

This study examined the relationship between digitalisation and the performance of microfinance institutions, using Kyebando SACCO as a case study. The study was guided by three objectives: to assess the level of digitalisation adopted by Kyebando SACCO, to establish the level of organisational performance, and to determine the statistical relationship between the two variables. A descriptive cross-sectional and correlational design was adopted, targeting a population of 150 staff and members, from which a sample of 110 respondents was drawn using Krejcie and Morgan's (1970) table and stratified random sampling. Data were collected using a structured, five-point Likert-scale questionnaire and analysed using SPSS through descriptive statistics, Pearson correlation, and simple linear regression. The findings revealed a high level of digitalisation (M = 3.83) and a high level of overall performance (M = 3.69) at Kyebando SACCO, with a strong, positive, and statistically significant correlation between digitalisation and performance (r = 0.612, p < 0.01). Regression analysis showed that digitalisation significantly predicts performance (β = 0.573, p < 0.01), explaining 37.5% of the variance in performance (R² = 0.375). The study concludes that digitalisation is a key driver of SACCO performance and recommends increased investment in secure digital infrastructure, digital literacy training, and a phased digitalisation roadmap linked to measurable performance targets.
Keywords

Digitalisation, Performance, Microfinance Institutions, SACCO, Mobile Banking, Financial Inclusion

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