The Effect Of Village Banks On Rural Development: "A Case Study Of Midia Sub-County, Koboko District"

ABSTRACT

This research investigated the effect of village banks on rural development from

2006 to the year 2010. The specific objectives of the research were to determine

the role of village banks in development of clients in Midia, discover the social

and economic achievements of the clients of the village banks and identify some

of the challenges facing the village banks in developing clients' socio-economic

life in Midia Sub-County.

In the literature review, different concepts and opinions and ideas of various

experts were used to support the study and concepts linked and analyzed to

bring an understanding of the study. In the research methodology, the study

employed a case study design where both qualitative and quantitative

approaches were employed and study population consisted of management and

employees of the banks, clients of the banks, relatives of some of the clients and

local government officials in the sub-county of the study. Seventy respondents

were sampled through stratified technique. Both questionnaire and interview

methods were used to collect data and the researcher followed all the research

procedures on ground besides respecting all the ethical and logistical

considerations of research.

The findings of the study reveal that the effect of village banks in the SubCounty

is wholesome and holistic. This means that village banks in the area have

empowered people not only in business but also in health, nutritional,

educational among others through offering a variety of services such as

microfinance loans, development loans, business loans, education loans among

others and some saving products. Based on the challenges facing village banks in

the area, the study recommends that the banks should continue providing such

developmental and client friendly products and argues different stakeholders to

support such banks for better development.