MJAMR

Working Capital Management and Financial Performance of SACCOs in Ngoma Town Council, Nakaseke District

Dr Ariyo Gracious Kazaara, Akampurira Sarah


Abstract

Savings and Credit Cooperative Organisations occupy a central position in Uganda's financial inclusion architecture, yet their financial performance remains constrained by persistent weaknesses in the management of short-term assets and obligations. This study examined the influence of working capital management on the financial performance of SACCOs in Ngoma Town Council, Nakaseke District. Adopting a positivist philosophy and a cross-sectional survey design, data were collected from 108 respondents drawn through stratified random sampling from a target population of 148 comprising SACCO managers, accounts and loans officers, credit committee members, board members, and internal auditors across registered SACCOs in the town council. A structured questionnaire measured four working capital dimensions, namely cash management, accounts receivable and loan portfolio management, accounts payable and savings liability management, and liquidity management, against financial performance assessed through profitability, operational self-sufficiency, portfolio quality, and growth in membership and savings. Data were analysed using descriptive statistics, Pearson correlation, and multiple regression in SPSS version 26. Findings revealed that cash management recorded the highest mean while accounts receivable and loan portfolio management recorded the lowest. All four dimensions correlated significantly and positively with financial performance, with accounts receivable and loan portfolio management strongest (r = 0.718, p < 0.01), followed by liquidity management (r = 0.652, p < 0.01), cash management (r = 0.564, p < 0.01), and accounts payable and savings liability management (r = 0.521, p < 0.01). The regression model was significant, F(4, 98) = 46.27, p < 0.001, explaining 58.3 per cent of variance in financial performance, with accounts receivable and loan portfolio management (β = 0.374) and liquidity management (β = 0.281) the dominant predictors. The findings corroborate Natukunda et al. (2023), who found receivable management significant while cash management was not in Sheema Municipality, and extend Bisherurwa and Lule (2023), whose Makindye Division study attributed 40 per cent of financial performance to working capital

Keywords

Working capital management; financial performance; SACCOs; loan portfolio management;
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Dr Ariyo Gracious Kazaara & Akampurira Sarah (2026). Working Capital Management and Financial Performance of SACCOs in Ngoma Town Council, Nakaseke District. Metropolitan Journal of Academic Multidisciplinary Research, 5(7). https://journals.miu.ac.ug/pages/article.php?article_id=735

More in This Issue

View full issue →
11
Investigating Local Governments' Role in Safeguarding Women's Rights in Uganda: A Case Study of Malere Parish in Hoima District
Ninsiima Omuhereza, Mirembe Suzan
local governments women's rights gender equality enforcement
12
Public Financial Reforms and Service Delivery in Local Governments: A Case of Wakiso District
Byuki Joel Bwambale, Irumba Alex
Public financial management reforms; service delivery; local government; internal control;
13
Public Health Awareness and Community Engagement: A Case Study of Kassanda District
Kyeyune Coas, Kituno Moses
public health awareness community engagement health knowledge health information
14
Regional Integration And State Behavior And International Cooperation In Uganda
Nasimolo Moses, Wamimbi Denis
Regional Integration State Behaviour International Cooperation East African Community
15
Teacher Motivation and Academic Performance of Learners in Government-Aided Primary Schools in Uganda: A Case Study of Mbarara District
Arinaitwe Julius, Dr Ariyo Gracious Kazaara, Dr Osman Mohamed Hassan, Professor Emmanuel Cyeze Munyamasoko, Kamugisha Nelson
teacher motivation academic performance government-aided primary schools Mbarara District