Exploring Adherence to Operational Guidelines Set by Rural Women’s Savings and Investment Groups in Kashari County, Mbarara District

Abstract

Most Civil Society Organisations (CSOs) in developing countries all over the world are fighting poverty through various strategies such as employment promotion, agricultural and rural development among others. Microcredit has been proven as one of the most effective strategies in poverty alleviation especially through giving small loans to vulnerable populations particularly women without requiring collateral security. This study delved into exploring the adherence to operational guidelines set by the rural women savings and investment groups in Kashari County, Mbarara district. This is a qualitative study that was conducted among rural women in Kashari county Mbarara district. Key findings revealed that all members including those who can’t read and write are aware of the operational guidelines. However, only members who are involved in the day today running of the groups’ activities are more knowledgeable about the operational guidelines, lending rules and procedures and they go ahead to adhere to them. Findings further revealed that members who are not involved in daily running of the groups have not adequately adhered to the operational guidelines as expected. It was further found out that the guidelines which were easily adhered to by most members were mainly to do with subscription as members for instance paying their annual, monthly and weekly subscription and contributions. The lending guidelines were also reported to be easily and keenly followed during the loan appraisal process. This paper concludes that operational guidelines are crucial ingredients in the smooth running of rural women to the savings and investment groups. We recommend that concerted efforts must be directed towards ensuring that both active and non-active members, educated and less or non-educated members are kept abreast with operational guidelines and reminded of their obligations on regular basis.