Analysis of performance of rotating savings and credit associations in muthara division, kenya

This study examined the performance of Rotating Savings and Credit Associations’ (ROSCAs) socio-economic benefits to ROSCAs in Muthara Division Meru County, Kenya. The study objectives were to: determine the socio-economic characteristics of ROSCA members; find out the livelihood activities of ROSCA members; evaluate factors influencing women membership and their performance into ROSCAs and establish the influence of management practices on output performance of ROSCAS. The study adopted a descriptive design and used stratified random sampling technique in selecting171 respondents from 18 ROSCAs. The study used questionnaires and interview schedules for data collection. The research findings supported the conclusions that: Providing timely feedback to members influenced output performance of groups; Women joined ROSCAs to accumulate income to cater for their family needs in education, medical and other emergencies. ROSCAs are platforms for initiating group projects like chicken rearing, outside catering, renting out utensils to organised ceremonies. Therewas a good ROSCAs management and performance output like organised group’s financial records, meeting attendance registers and ‘pot’ receiving records. The study recommends that: ROSCAs adopt technologies of using M-pesa, M-Shwari, and Airtel money among others to make it convenient to save ones income.