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Abstract:
The member owned microfinance institutions, the Savings and Credit Cooperatives (SACCOs), have gained National recognition as important poverty reduction tools in Uganda, through improving access to finance and financial services. However, the positive impact of these SACCOs, on the welfare of the low income people can only be sustained, if they can achieve good financial performance. Moreover, it is well documented that microfinance organisations have had various degrees of sustainability and one such sustainability is financial sustainability. The purpose of this paper therefore, was to examine the effect of board size on financial sustainability of SACCOs in Central Uganda. The study found that when board size in SACCOs reduces, financial sustainability increases and it also culminates into board effectiveness. The key recommendation in this study is that, SACCOs in Uganda, should maintain small boards as stipulated in their legal guidelines.
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