MJAAR

Working Capital Management And Financial Performance Of Saccos In Wakiso District: A Case Of Munaku Kaamakisubi Co-Operative Savings & Credit Society Ltd In Wakiso District

Mbabazi Lucia, Irumba Alex


Abstract

This study examined the relationship between working capital management and the financial performance of savings and credit cooperative organisations (SACCOs) in Wakiso District, using Munaku Kaamakisubi Co-operative Savings and Credit Society Ltd as a case study. The motivation for the study arose from the inconsistent financial performance of SACCOs in Wakiso District despite their growing membership base and savings mobilisation capacity. A cross- sectional research design was employed, with data collected from 84 SACCO management staff, credit committee members, and elected board members using structured questionnaires. Working capital management was operationalised through three dimensions: cash management, receivables management, and payables management. Financial performance was measured using return on assets (ROA), portfolio at risk (PAR), and operational self- sufficiency (OSS). Descriptive statistics showed moderate effectiveness across all working capital management dimensions (means ranging from 3.24 to 3.61). Pearson's correlation analysis revealed significant positive relationships between all working capital management dimensions and financial performance (r = 0.581 to 0.673, p < 0.01). Multiple regression analysis revealed that working capital management collectively explained 59.7% of the variance in financial performance (R² = 0.597, F = 28.43, p < 0.001). Cash management was the strongest individual predictor (β = 0.381, p < 0.001). The study concluded that effective working capital management is a fundamental driver of SACCO financial performance and recommended enhanced cash flow planning, stricter receivables management protocols, and improved payables scheduling.

Keywords

Working Capital Management Financial Performance SACCO Savings and Credit Cooperative
Metropolitan Journal of Academic and Applied Research

Cite This Article

Mbabazi Lucia & Irumba Alex (2026). Working Capital Management And Financial Performance Of Saccos In Wakiso District: A Case Of Munaku Kaamakisubi Co-Operative Savings & Credit Society Ltd In Wakiso District. Metropolitan Journal of Academic and Applied Research, 5(6). https://journals.miu.ac.ug/pages/article.php?article_id=650

More in This Issue

View full issue →
31
The effectiveness of the National Accelerated Education Programme (AEP) in re-engaging out-of-school youth
Dr. Arinaitwe Julius1 , Dr. Mategeko Betty2
Accelerated Education Programme out-of-school youth re-engagement Uganda
32
The Impact Of Budgeting Practices On The Financial Performance Of Small And Medium Enterprises In Kikuubo, Kampala
Mwesigwa Tonny, Asiimwe Prisca
Budgeting practices financial performance SMEs Kikuubo
33
The impact of Constituency Development Funds on parliamentary accountability and independence
Asiimwe Isaac Kazaara1 , Akampulira Sarah2 , Dr. Mategeko Betty3
Constituency Development Funds parliamentary accountability legislative independence Uganda
34
The Influence Of Operation Wealth Creation (Owc) On Youth Farmers' Development In Unyama Sub- County, Gulu District
Kiwule Brian, Elweru Felix
Operation Wealth Creation Youth Farmers Agricultural Development Gulu District