MJAAR

Working Capital Management And Financial Performance Of Saccos In Ngoma Town Council, Nakaseke District

Menya Stanely, Irumba Alex


Abstract

This study investigated the relationship between working capital management and the financial performance of SACCOs in Ngoma Town Council, Nakaseke District, Uganda. The study was necessitated by the observed financial sustainability challenges among SACCOs operating in this semi-urban district council context, where limited financial management capacity and inadequate access to technical support have constrained SACCO growth and performance. Adopting a cross-sectional survey design with mixed methods, data were collected from 78 SACCO officials, board members, and active members from four SACCOs operating in Ngoma Town Council. Working capital management was measured through cash flow management, credit management, and inventory/asset management dimensions, while financial performance was assessed using return on assets, operational self-sufficiency, and portfolio at risk indicators. Descriptive results indicated moderate levels of working capital management effectiveness (means 3.10– 3.52). Pearson's correlation analysis revealed significant positive relationships between working capital management dimensions and financial performance (r = 0.549 to 0.641, p < 0.01). Multiple regression analysis demonstrated that working capital management collectively explained 54.2% of the variance in financial performance (R² = 0.542, F = 22.18, p < 0.001). Credit management emerged as the strongest predictor (β = 0.362, p < 0.001). Findings underscored systemic deficiencies in working capital governance among Ngoma Town Council SACCOs and support recommendations for enhanced member financial education, improved credit management protocols, and regulatory support from SACCO supervision authorities.

Keywords

Working Capital Management Financial Performance SACCO Ngoma Town Council Nakaseke
Metropolitan Journal of Academic and Applied Research

Cite This Article

Menya Stanely & Irumba Alex (2026). Working Capital Management And Financial Performance Of Saccos In Ngoma Town Council, Nakaseke District. Metropolitan Journal of Academic and Applied Research, 5(6). https://journals.miu.ac.ug/pages/article.php?article_id=651

More in This Issue

View full issue →
36
The Relationship Between Legislators&#039; Educational Qualifications And Legislative Oversight Effectiveness In Uganda
Dr. Arinaitwe Julius1 , Asiimwe Isaac Kazaara2 , Nabaasa Desire3
The Relationship Between Legislators&#039; Educational Qualifications And Legislative Oversight Effectiveness In Uganda
37
The role of higher education institutions in modeling knowledge-competency partnerships for national development
Dr. Arinaitwe Julius1 , Asiimwe Isaac Kazaara2 , Nabaasa Desire3
higher education institutions knowledge-competency partnerships national development structural equation modeling
38
The Role Of Micro Finance Interventions On Poverty Reduction In Mukono District: A Case Study Of Goma Lc1 Zone, Mukono Town
Kabeije Immeldah, Zikusooka Enock
Microfinance Microcredit Microsavings Microinsurance
39
The Role Of Mobile Money Banking In Promoting Financial Inclusion In Rural Areas: A Case Of Mobile Money Users In Mityana District
Nakayiki Stella, Irumba Alex
Mobile money banking financial inclusion rural finance MTN Mobile Money
40
The Use of Donor-Funded Programs to Address Structural Gaps in Ugandan Public Service Delivery
Dr. Twinomujuni Rosebell1 , Asiimwe Isaac Kazaara2 , Ahumuza Audrey3
donor-funded programs structural gaps public service delivery Uganda