Regulatory Framework and Performance of Saving and Credit Co-Operatives in Rwanda:A Survey of Selected Saving and Credit Co-Operatives in Gasabo District


  • Mss. Uwamaliya Marie Immaculée Mount Kenya University
  • Dr. Paul Munene Muiruri, PhD Mount Kenya University



A regulatory framework is regulation, law, rule or other orders prescribed by authority, especially to regulate the conduct of SACCO in Rwanda. Hence, the study sought to examine the impact of the regulatory framework on the performance of SACCOs in Rwanda with specific reference to the Survey of selected SACCOs in the Gasabo District. The research used a descriptive research design. The study targeted 110 drawn from two categories SACCO staff /employees and SACCO members. The study used both primary data and secondary data. The primary data was collected using structured questionnaires both open and closed. The data was analyzed using a qualitative and quantitative method using MS excel SPSS. Research findings showed there is a very high correlation (r=0.943) between internal control and performance. In addition, the study findings indicated a very high correlation (r=0.823) between saving mobilization and the performance of Sacco. It was revealed there is a very high correlation (r=0.749) between credit risk management and the performance of Sacco. The study reported the correlations between liquidity requirements and performance of SACCO is very high (r=0.923). Moreover, the results established that the regulatory framework is satisfactory in determining the performance. The adjusted R square was found to be 0.887. This implied that the regulatory framework could explain 88.7% of the variations in the performance. All four variables of the regulatory framework: Internal control, saving mobilization, credit risk management and liquidity requirement, were positively correlated to the performance. Furthermore, regression indicates that any change (increase) would have a significant change in the performance of Selected SACCO in the GASABO District. The recommendation is that the RCA and other policymakers of saving and credit cooperatives in Rwanda should clear that internal control, saving mobilization, credit risk management and liquidity requirement, and performance of selected Saccos in Gasabo District, Rwanda. There should be structuralization of permanent internal audit control and verification for all income and expenses of SACCOs and should set the boundaries for some members who ask for loans to limit payment loans.

Keywords: Internal control, Saving mobilization, Credit risk management, Liquidity requirement, Performance

Author Biographies

Mss. Uwamaliya Marie Immaculée , Mount Kenya University

Postgraduate student, Business Administration, Mount Kenya University, Rwanda

Dr. Paul Munene Muiruri, PhD, Mount Kenya University

Lecturer, Business Administration, Mount Kenya University, Rwanda


Abdullah, H. & Valentine, B.,. (2009). Fundamental and Ethics Teories of Corporate Governance.Middle eastern Finance and Economics. Issue 4, pp. 88-96.

Bhimani, A. (2008). Strategic Finance. London: UK: Strategy Press.

Clarke, T. (2004). Theories of corporate governance. The philososophical foundations of corporate governance. Routlegde, London and New York.

Cooperman, E., Mills, D. & Gardner J.,. (2000). Managing Financial Institution, An Asset and or Liability Approch. Orlando: The Dryden Press, Harcout College Publishers.

Diamond, D., & P.Dybvig. (2013). Bank Runs, Deposit Insurance and Liquidity. Journal of Political Economy, 91,401-419.

Donaldson, L.& Davis, J.H. (1991). Stewardship Theory or Agency Thery: CEO Governance and Shareholder Returns. Australian Journal of Management, 16(1), 49-64.

Jarrow, R. A. (2011). Credit market equilibrium theory and evidence: Revisiting the structural versus reduced form credit risk model debate. Finance Research Letters, 8(1), 2-7.

Jensen M., C., & Meckling, W. (2016). Theory of the Firm: Managerial Behavior, Agency costs and ownership structure. Journal of Financial Economics, 3( 2016) 305-360.

Kariuki, P. W. O. (2017). Firm characteristics and financial intermediation efficiency of deposit taking saving and credit co-operative societies in Kenya. Unpublished Doctoral dissertation: COHRED, JKUAT,Kenya

Kavulya, P.W. (2018). Effect of Deposit Mobilization Strategies on the Performance of Deposit Taking Savings and Credit Cooperative Societies in Kenya. Unpublished PhD dissert , JKUAT-COHRED.

Keynes, J. (1936). The general theory of employment, interest and money. New York: Harcourt Brace and World.

Kombo, D.K.& Tromp, L.A. (2009). Proposal and thesis writing : An introduction. Nairobi: Paulines publicational Africa.

Koutsoyiannis, A. (2003). Modern micro-economics. London : Macmillan Press Ltd.

Lakis,V. & Girinjnas, L. (2012). The Conept of Internal Control system: Theoretical aspect. Ekonomika 91(2).

Lawrence, P. R., &Lorsch, J. W. (1967). Differentiation and Intergration in complex organizations. Administrative Science Quarterly.

MINICOFIN. (2012). Economic Development and Poverty strategy 2013-2018.

Mitnick, B. (2006). Origin of the theory of agency: an account by one of the theory's originators. Working Paper, University of Pittsburgh, Pittsburgh, PA., Katz Graduate School of Business,.

Mugenda, O.M & Mugenda, A.G. (2003). Researchs Methods: Quantitative and Qualitative Approaches. Nairobi: African Center for Technology Studies(ACT).

Mugisha, A. (2016). Savings and credit cooperatives and financial inclusion in rwanda: a case study of murundi sacco in kayonza district. Unpublished Master l dissertation, Mount kenya university

Mumanyi, E. A. L. (2014). Challenges and opportunities facing SACCOs in the current devolved system of government of Kenya: A case study of Mombasa County. International Journal of Social Sciences and Entrepreneurship, 1(9), 288-314.

Nzotta, S. (2014). Money, Banking and finance: Theory and practice. (Revised ed.).

Shim, J. (2011). Internal Control and Fraud Detection. Global Professional Publisher Ltd.

Tuan, N., & Hung, D. N. (2015, May). A theoretical model studying the Impact of Internal Control on Performance and Risks of Vietnam Commercial Banks. In International Conference on Accounting. Danang, Vietnam (Vol. 22).

Vogel, R. (2014). Saving Mobilization: The Forgotten Half of Rural Finace. In D.G.D.W. Adams Undermining rural Development with cheap Credit Boulder. Westview Press:Vrinda publication[P] Ltd.




How to Cite

Immaculée , U. M. ., & Muiruri, P. M. . (2022). Regulatory Framework and Performance of Saving and Credit Co-Operatives in Rwanda:A Survey of Selected Saving and Credit Co-Operatives in Gasabo District. Journal of Finance and Accounting, 6(3), 40–64.