Village Savings and Loan Associations (VSLA) and the Socio-Economic Empowerment of Low-Income Households in Mashyoro Sub-County, Kitagwenda District

Abstract

This study examined the effects of Village Savings and Loan Associations (VSLAs) on the socio-economic empowerment of Low-Income Households in Mashyoro Sub-County, Kitagwenda District, Uganda. The purpose of this study was to determine the effect of savings on the socio-economic empowerment of Low-Income Households in Mashyoro Sub-County, Kitagwenda District. A descriptive cross-sectional research design was employed, involving 157 respondents selected through purposive and simple random sampling techniques. Data were collected using structured questionnaires and in-depth interviews, and analyzed using descriptive statistics, correlation, and regression analyses. Quantitative findings revealed that VSLA participation significantly increased household income, improved nutrition and health, and facilitated investment in income-generating activities. Correlation analysis showed a strong positive relationship between savings and socio-economic empowerment (r = 0.672, p < 0.01), while regression analysis confirmed that savings significantly predict socio-economic empowerment (β = 0.612, t = 11.50, p < 0.001). Qualitative findings from interviews supported these results, highlighting participants’ experiences of improved financial stability and livelihood opportunities. The study concluded that VSLAs are effective tools for poverty reduction and socio-economic empowerment among rural communities. It recommended strengthening VSLA programs, providing financial literacy training, and promoting community participation to enhance their impact.