A STUDY ON OPERATIONS AND IMPACT OF ROTATING SAVINGS AND CREDIT ASSOCIATIONS:CASE OF MIDDLE INCOME EARNERS IN EMBAKASI NAIROBI, KENYA

Abstract

The study examined the operations and impact of rotating savings and credit organizations on the lives of middle income earners. Therefore, its contents covered introduction that dealt with trends research provides literature currently available on organisations and it assesses the impact of the organizations by analyzing how the members use their funds to enable them acquire financial assets, physical assets, human assets and social assets. Data from 57 groups located in Savannah Ward of Embakasi indicates that ROSCAs operations vary from group to group depending on the agreements by the members. The study indicates that ROSCAs had an impact in lives of middle income earners and it had enabled them acquire financial assets, physical assets, human assets and social assets. In addition the research also showed that the organizations also had an impact on money management since members also used the funds to meet current expenditure.