Abstract:
The study aimed at examining financial literacy and profitability of SACCOs in Pallisa District. This study was guided by the following research objectives; to examine the relationship between member financial behavior and profitability of SACCOs, to determine the relationship between operational efficiency and profitability SACCOs, to assess the effect of risk management on the profitability of SACCOs in Pallisa district. A cross sectional research design was adopted from a sample of 80 members to enable the collection and analysis of quantitative data and to ensure that the study accurately describes the true nature of the prevailing conditions, demography and quantitative description of trends, attitudes to effectively address the research problem. The study gathered primary data which was established through questionnaire tool to randomly selected SACCO. This was recommended since it guarantees confidentiality to the respondents. Descriptive statistics were used in the data analysis and information presented in statistical forms.
Correlations and linear regression analysis were also used to analyze the relationship between financial literacy and profitability of SACCOs. The findings presented showed that there is an effect of financial behavior on profitability of SACCOs; and the effect of financial attitude on profitability of SACCOs.
