Abstract
Savings and Credit Cooperative Organisations have emerged as vital financial intermediaries in Uganda's inclusive finance architecture, extending credit and savings services to populations largely excluded from formal banking, yet persistent governance failures, financial mismanagement, and institutional collapse have undermined public confidence and limited the sector's developmental impact. This study examined the relationship between corporate governance practices and the financial performance of SACCOs in Wakiso District. Adopting a positivist philosophy and a correlational cross-sectional design, data were collected from 218 respondents drawn through stratified random sampling from a target population of 312 comprising board members, supervisory committee members, credit committee members, managers, accounts staff, and loans officers across registered SACCOs in the district. A structured questionnaire measured four governance dimensions, namely board composition and effectiveness, internal control and audit systems, transparency and disclosure, and member participation and accountability, against financial performance assessed through profitability, operational self-sufficiency, loan portfolio quality, and growth in savings and membership. Data were analysed using descriptive statistics, Pearson correlation, and multiple regression in SPSS version 26. Findings revealed that board composition recorded the highest mean while member participation recorded the lowest. All four dimensions correlated significantly and positively with financial performance, with internal control and audit systems strongest (r = 0.724, p < 0.01), followed by board composition and effectiveness (r = 0.651, p < 0.01), transparency and disclosure (r = 0.578, p < 0.01), and member participation and accountability (r = 0.516, p < 0.01). The regression model was significant, F(4, 205) = 68.94, p < 0.001, explaining 57.4 per cent of variance, with internal control and audit systems (β = 0.382) dominant. The findings corroborate Ivan et al. (2023) on internal controls and SACCO financial performance in Wakiso District, and address sector evidence that at least 25 per cent of Ugandan SACCOs struggle with loan default rates exceeding 40 per cent attributable to weak internal controls and poor credit risk management (Derrick et al., 2023). The study concludes that control systems rather than board structure drive SACCO performance and recommends audit institutionalisation, segregation of duties, and UMRA compliance.