Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
The Role of Internal Control Systems on Financial Performance of Savings & Credit Cooperative Societies (Sacco’s) In Wakiso District
Kagoya Viola, Irumba Alex
| Journal | Metropolitan Journal of Academic Multidisciplinary Research (MJAMR) |
| Volume / Issue | Vol. 5, No. 5 |
| Published | 31 May 2026 |
| ISSN | 3006-4384 |
Abstract
Savings and Credit Cooperative Organizations (SACCOs) in Wakiso District, Uganda home to over 50 registered SACCOs serving more than 200,000 members played a vital role in financial inclusion, SME growth, and agriculture. However, they faced persistent financial challenges, including declining Return on Assets (ROA), NonPerforming Loan (NPL) ratios exceeding 12% (above UMRA's 5% benchmark), and internal control weaknesses like poor segregation of duties and fraud risks (Auditor General Reports, 2022–2024; UMRA, 2025). This study examined the perceived influence of COSO (2013) internal control components control environment, risk assessment, control activities, information & communication, and monitoring on SACCO financial performance (ROA, ROE, NPL ratios, liquidity, solvency), grounded in Agency Theory (Jensen & Meckling, 1976) and Contingency Theory (Donaldson, 2001). Employing a mixed-methods explanatory sequential design, it analyzed survey data from 105 experienced respondents (mean tenure: 7.2 years) across 20 purposively selected SACCOs, secondary financial data (2020–2025), and semi-structured interviews with 15–20 key informants.Findings revealed moderately to highly positive perceptions of controls, with strengths in control activities (e.g., 83.8% endorsement of approvals) and monitoring (80.0% for corrections), driving gains like 83.9% perceived NPL reductions and 95.2% liquidity improvements. Communication emerged as a key weakness (59.0% dissatisfaction). Conclusions affirmed controls' role in resilience, with recommendations for ethics training, digital tools, and regulatory mandates. The study suggested future research via regressions and regional comparisons.
Keywords
Internal Controls
COSO Framework
Financial Performance
SACCOs
Wakiso District
Uganda
Agency Theory
Contingency Theory
Cite This Article
Kagoya Viola & Irumba Alex (2026). The Role of Internal Control Systems on Financial Performance of Savings & Credit Cooperative Societies (Sacco’s) In Wakiso District. Metropolitan Journal of Academic Multidisciplinary Research, 5(5). https://journals.miu.ac.ug/pages/article.php?article_id=453
More in This Issue
View full issue →
16
The Effect Of Workplace Conflict Management On Employee Relations At The National Water And Sewerage Corporation (NWSC), Kampala, Uganda
Workplace Conflict
Conflict Management
Employee Relations
Negotiation
17
The Effects Of Contract Management On Service Delivery In Hospitals In Uganda: A Case Study Of Mulago National Referral Hospital, Central Uganda
Contract management
service delivery
Mulago National Referral Hospital
procurement
18
The Impact Of Art Education On Students' Critical Thinking And Creativity: A Case Of Selected Secondary Schools In Gulu District, Northern Uganda
Education art
critical thinking
creativity
academic performance
19
The Impact Of Auditing On Corporate Governance In Uganda: A Case Of Kampala Capital City Authority (KCCA)
Auditing
Corporate Governance
KCCA
Uganda
20
The Impact Of Auditing On Corporate Governance In Uganda: A Case Of KCCA
Auditing
Corporate Governance
KCCA
Uganda