Factors Affecting Financial Performance Of Savings And Credit Co-Operatives Societies In Tanzania: A Case Of Majengo Sokoni Sacco’s In Dodoma City

ABSTRACT

SACCO‟s is important in any country for socio-economic development. However, performance of SACCOS in Tanzania has been below member expectations thereby causing dissatisfaction among most of their members. Therefore, this study examines factors affecting the financial performance of SACCOS. A cross section design was used to gather information from Majengo Sokoni SACCO‟s in Tanzania the case of Dodoma city. Primary data were collected through interviews and observation methods using questionnaire and checklist tools. Various publishing and unpublishing materials including books, internet, journals and report were reviewing as secondary information. The collected data were analyzed through descriptive, multiple regression and inferential statistics where frequencies, percentages, mean and standard deviation were obtained. Findings from the study revealed that the number of membership was increasing while membership savings were decreasing over past five years‟. The low membership savings contribute to poor financial performance of Majengo sokoni SACCO‟s. Moreover, the study found out that, there has been a wide trend in loans default for 2014-2015 and 2016-2017 years. This result implies that there are wide trends of loan defaults which limit the progress of financial performance of Majengo sokoni SACCOS. Furthermore, dividend policy was found to have a positive significant influence on ROA and ROE (P=