Abstract:
This paper assesses the contribution of Village Community Banks (VICOBA) to
members’ livelihoods. Specifically, the paper examines the factors for
membership in Village Community Banks and the contribution of VICOBA to the
livelihood outcomes of members. The paper is based on a cross-sectional study
whereby a sample of 224 respondents was drawn from the population using
simple random sampling;112 were members and 112 were non-members of
VICOBA. Non-members of VICOBA were used as a control group. The method
of data collection was a survey. The data were analysed by computing descriptive
and inferential statistics. Descriptive statistics included calculating frequencies
and percentages, while inferential statistics included means comparison. The
results indicate that services offered by VICOBA were determinants of
membership in VICOBA, which included access to loans, networking, receiving
earnings, a lower interest rate, savings, and a source of capital. VICOBA
contributed to livelihood outcomes variables such as net income and SMEs value
of members as it showed a statistically significant P ≥ 0.05 meaning that members
of VICOBA had higher net income and Small and Medium Enterprises
(SMEs)value compared to non-members. Also, livelihood outcomes such as TV
set value, health service cost, and house value of members of VICOBA showed
higher values compared to non-members as it showed statistics significant of P
≥ 0.01. The findings conclude that there is a strong positive relationship between
membership and livelihood outcomes. The study recommends that local district
authorities, NGOs, and the ministry responsible for community development to
promote members of the community to participate in VICOBA through
developing appropriate policies as VICOBA has shown a tool for achieving
livelihood outcomes and means of financial inclusion by enabling members to
access capital at affordable costs.
