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Metropolitan Journal of Academic Multidisciplinary Research

The Corporate Governance And Financial Performance Of Saccos In Wakiso District, Uganda

Authors: Nakato Hafswa1 , Kabanda Richard2

Journal: Metropolitan Journal of Academic Multidisciplinary Research (MJAMR)

Volume/Issue: Volume 5 - Issue 5

Published: 05 Jun 2026


Abstract

Savings and Credit Cooperative Organisations (SACCOs) have emerged as vital financial intermediaries in Uganda's inclusive finance architecture, extending credit and savings services to populations largely excluded from formal banking. However, persistent concerns about governance failures, financial mismanagement, and institutional collapse have undermined public confidence and limited the sector's developmental impact. This study investigates the relationship between corporate governance practices and financial performance among SACCOs in Wakiso District, Uganda. Drawing on the Agency Theory and Stewardship Theory frameworks, the study employs a correlational cross-sectional research design. Primary data were collected through structured questionnaires administered to board members, managers, and members of 28 registered SACCOs, complemented by financial statement analysis spanning 2018–2022. Corporate governance was operationalised through board composition, transparency and disclosure, member participation, and regulatory compliance. Financial performance was measured through return on assets, loan portfolio quality, operational self-sufficiency, and member savings growth. Regression analysis reveals that board composition (β=0.412, p
Keywords

Corporate Governance, SACCOs, Financial Performance, Wakiso District, Board Composition, Cooperative Finance, Agency Theory, Uganda, Loan Portfolio Quality, Operational Self-Sufficiency

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