An assessment of the contribution of VSLA to poverty reduction in Masaba Sub-County, Busia district

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College of Humanities and Social Sciences
Delivery of appropriate financial services is one of those public services that have come under immense pressures to effectively respond to the challenges posed by recent trends in the global poverty. This study investigated the contribution of VSLA to poverty reduction in Masaba sub-county Busia district. Systems in improving access of affordable financial services to the poor with a focus to community owned micro-finance. It was intended to establish how the VSLA interventions have changed the living conditions of people in Masaba Sub-county, assess the appropriateness, sustainability and replicability of the VSLA model in Masaba sub-county in relation to financial inclusion of the poor and to enhance poverty reduction. Using qualitative methods such as interviews, focus group discussions, review of existing literature, and observations and likert questionnaire which was administered among VSLA members, numerical values of some of the issues was got. Data was collected from 30 VSLA groups and control group for comparison purposes; this helped to qualify whether the current economic status of households is a result of VSLA. The study findings indicate (83%) of the respondents had increased their income, (73%) had increased their savings while 24% had diversified their income sources. Also 64% of the respondents agreed that they had started new businesses due to participation in VSLA, 46% had increased their business capital while 71% agreed that they had acquired more personal property. The study recommends that the implementers of VSLA Methodology should address the challenge of loan repayment and utilization within the context of micro-finance management to ensure that people do not loose property and minimize conflicts that might occur. Again engagement men to participate in VSLAs is crucial, so men can directly draw from the benefits of VSLA, increase family stability and enable both men and women contribute to the local economy
A Thesis Presented to the College of Higher Degrees and Research Kampala International University Kampala, Uganda in Partial Fulfillment of the Requirements for the Degree Master of Public Administration and Management of Kampala International University
Poverty reduction, Village Savings and Loans Associations (VSLA ), Busia District