Wazalendo Savings and Credit Cooperative Loans and Welfare of Soldiers in Uganda:

Thumbnail Image
Journal Title
Journal ISSN
Volume Title
Kampala international University college of economics and management
Title: Wazalendo Saving And Credit Cooperative Loans And Welfare Of Soldiers In Uganda. Background: Since WSACCO loans are used to supplement a soldier’s salary in Uganda, it is necessary to find out if loans make a difference in soldiers’ lives. In the past, loans were given by loan sharks, commercial banks but currently WSACCO; a microfinance institution. Objectives: To establish factors determining access to WSACCO Loans and their relationship to standard of living, possession of property, personal business and satisfaction. Methods: After multi-stage sampling, soldiers in ten barracks were interviewed for loan usage, property and documents inspected and evaluated in a cross-sectional prospective study by Chi-square and Fisher’s tests in a logistic regression model. Results: WSACCO loans are accessed by 61.7 % of soldiers. A higher rank increases a soldier’s access to WSACCO loans; p-value 0.04339. Soldiers’ families have an average of seven members. WSACCO loans were associated with an increase in the number of soldiers with furniture, personal house, iron roofed house, mobile telephone, personal business, satisfaction with achievement and those satisfied with WSACCO at p-values of 0.0419, 0.0500, 0.0321, 0.0069, 0.0019, 0.0001 and 0.0001 respectively even after controlling for rank, education, employment of spouse and family size. WSACCO loans were not associated with an increase in the number of soldiers with mattresses, ceiling, brick-walled house, cemented floor, running water, electric equipment, electricity, land and four or more cows; p-values 0.3413, 0.7606, 0.4995, 01313, 0.1053, 08410, 0.4381, 0.1753 and 0.1141 respectively. Discussion: Private soldiers were farther than other ranks from headquarters and had smaller savings. Male and Married soldiers take more loans due to relatively higher responsibility. Uneducated people and very highly educated people see the logic of saving and taking loans more than the semi-elites. Soldiers have a higher family burden than an average Ugandan. Possession of furniture is dependent on WSACCO loans but is probably affected by ability to keep the furniture, whether the loan makes a difference in ability to purchase furniture and whether they do not have a very big family burden. Since a lot of lump-sum money needs to be used to purchase iron sheets, personal house and a mobile telephone, possession of these was associated with having taken a loan. As expected, satisfaction is greatly dependent on WSACCO. Conclusion: Access to WSACCO loans is 61.7 % in UPDF. Male soldiers took loans at a two fold higher rate than female counterparts. Married soldiers take WSACCO loans more than unmarried soldiers at a 55 0,4) higher rate. Education increased access to WSACCO loans at a higher level but reduced at a middle level. Soldiers have an average of seven family members. Mattresses were essential and did not have to depend on loans to be bought when required. Taking WSACCO loans significantly helped soldiers acquire personal houses except among those that are privates or uneducated. Soldiers who had taken WSACCO loans were not associated with possession of a ceiling, a brick walled house, cemented floor, electricity, electrical equipment and running water as they were not practical in the villages. WSACCO loans are associated with improved standard of living, acquisition of property and personal gratification and satisfaction with WSACCO. Recommendations: Conditions to improve access to loans by lower ranks need to be put in place. Semi-elites need to be educated more about WSACCO loan advantages. Soldiers need to be encouraged to have smaller families. WSACCO loans should be carried on as they are proven to support soldier’s welfare. Another study to show the effect of loans after follow up should be conducted.
A Thesis Submitted to the College of Higher Degrees And Research In partial Fulfillment of the Requirement ~ For the Award of a Master’s Degree in Business Administration of Kampala International University.
WSACCO, Microfinance,, SACCO, UPDF,, Wazalendo, welfare.