Community Based Saccos and Poverty Alleviation in Rural Kenya: A Case Study of Lainisha Sacco, Mwea Sub-County Kirinyaga County

The role played by community based Saccos towards poverty alleviation cannot be ignored. Nevertheless, empirical evidence across the globe have largely paid attention on Saccos in general and not community based. Therefore, this study sought to investigate the role that community based Saccos play in poverty alleviation in rural Kenya, focusing on Mwea sub-county, in the larger Kirinyaga County. Specifically, the study examined the role of community based saccos in poverty alleviation in rural Kenya on saving mobilization, loans accessed, training offered and employment generated that Saccos play in alleviating poverty. The study adopted descriptive design and targeted a total of 1,674 Lainisha Sacco members. Sample of 322 members was obtained from four locations in Mwea Sub-County (Kangai, Mutithi, Nguka and Kimbimbi) using stratified sampling technique. Data was collected using questionnaires and analyzed with the aid of statistical package for social sciences version 26. Findings indicate that loan conditionalities, savings mobilization, capacity building and employment generated by Lainisha Sacco has a positive effect on poverty alleviation in Mwea sub-county. The study concludes that Lainisha Sacco which is a community-based, plays a critical role towards poverty alleviation. The study recommends that National, county governments and the civil society should sensitize local communities on the importance of the community-based Saccos and the need to join them. In addition, these community based Saccos should be up scaled especially in all the rural communities of Kenya.