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Saudi Journal of Economics and Finance (SJEF)
Volume-10 | Issue-03 | 79-85
Review Article
A Review of Related Literature on Board Composition and Financial Sustainability of SACCOs in Uganda
Sempebwa Brian, Enock Maina, Namungo Hamzah, Turinawe Abdusalamu
Published : March 16, 2026
DOI : https://doi.org/10.36348/sjef.2026.v10i03.002
Abstract
This review investigates the relationship between board composition and the financial sustainability of savings and credit cooperatives (SACCOs) in Uganda while drawing comparisons to global contexts. Employing an integrative literature review framed by agency theory and resource dependence theory, the study synthesizes scholarly evidence regarding pivotal board characteristics, including independence, diversity, expertise, and size. The findings reveal that board composition significantly influences financial outcomes, such as loan recovery and capital adequacy, in Uganda. Nonetheless, challenges such as limited capacity, political interference, and weak regulatory enforcement impede the implementation of optimal governance practices. International models from Kenya, Canada, and Scandinavia underscore the advantages of independent and professional boards; however, these models are challenging to replicate in Uganda due to contextual disparities. The review concludes that effective board composition remains an underutilized factor in the sustainability of SACCOs. Recommendations include ongoing board training and digital literacy, context-specific performance metrics, enhanced regulatory oversight, and targeted capacity-building initiatives for rural SACCOs. Furthermore, the study highlights a critical need for more qualitative and longitudinal research to explore the intricate governance dynamics in low-resource settings.
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