Title: Financial Stability of SACCOS and Its Impact on Civil Servants' Financial Well-Being: A Study from Iringa Municipality Prisons Department
Authors: Hamis Miraji, Dr. Theobald Kipilimba, Prof. Enock Wiketye
Volume: 9
Issue: 10
Pages: 81-96
Publication Date: 2025/10/28
Abstract:
This qualitative study assessed the financial stability and governance of the Prisons Department SACCOS in Iringa Municipality, Tanzania. Based on data from a sample of 64 respondents, the research employed interviews and document analysis to evaluate key performance indicators. The study concluded that the SACCOS's financial stability was moderately strong, exhibiting a mixed performance across critical areas. Findings revealed a demonstrated capacity to meet member withdrawal demands and maintain liquidity; however, significant weaknesses were identified in reserve adequacy, credit monitoring, and the consistency of audit practices. Thematic analysis further highlighted that leadership effectiveness and operational transparency were pivotal in shaping member trust, with inconsistencies in communication and financial disclosure directly eroding confidence in management. These findings align with global empirical evidence underscoring the importance of prudent lending, transparent governance, and robust liquidity management for cooperative resilience. Nonetheless, the study identified persistent challenges, including limited financial management skills among officials and inadequate member participation, which threaten long-term sustainability. To address these issues, the study recommends comprehensive capacity-building initiatives for leadership in financial governance, risk assessment, and reporting. It further proposes establishing transparent communication frameworks and strengthening internal audit systems through digital solutions. The study urges policymakers to develop tailored oversight and mentorship programs to ensure departmental SACCOs adhere to cooperative best practices, thereby enhancing their contribution to the financial welfare of civil servants.