The Moderating Role of Cultural Factors on SACCO Strategies and Women’s Financial Empowerment in Masaka District, Uganda

Theoretical review

This study is anchored in Empowerment Theory advanced by Zimmerman (2000), which conceptualizes empowerment as both a process and an outcome through which individuals gain control over their lives, resources, and decision-making power. The theory emphasizes that empowerment occurs when individuals develop the capacity to make choices, act on them, and influence the social and economic structures that affect their lives. It highlights personal growth, self-determination, competence, and participation as key dimensions of empowerment. Within Savings and Credit Cooperative Organization (SACCO) strategies, Empowerment Theory provides a useful lens for understanding how interventions such as financial training, access to credit, structured savings programs, and supportive government policies can enhance women’s agency, confidence, and economic autonomy. It suggests that when women acquire financial knowledge and access to resources, they are better positioned to manage their finances, invest productively, and contribute to household and community development.

Empowerment Theory is robust in its focus on individual capacity-building and participatory change. It aligns well with development programs aimed at enhancing human potential, particularly among marginalized groups such as women. The theory recognizes empowerment as a dynamic and context-dependent process, allowing for both psychological empowerment (increased confidence and self-efficacy) and economic empowerment (greater control over income and resources). Its flexibility makes it applicable to interventions that integrate financial education and cooperative participation, such as those implemented through SACCOs.

Despite its usefulness, Empowerment Theory has been criticized for emphasizing individual agency while underestimating structural and cultural barriers that constrain empowerment. In patriarchal societies such as Uganda, women’s decision-making power is often limited by gender norms, household hierarchies, and cultural expectations that restrict their control over financial resources. As such, while the theory assumes that increased access to resources automatically leads to empowerment, in practice, this outcome may be hindered by entrenched social and institutional inequalities. The theory offers limited guidance on how to address or transform these structural constraints, making it less effective in explaining variations in empowerment across different cultural settings. Empowerment Theory was adopted in this study because it provides a solid foundation for analyzing how SACCO strategies particularly financial training, savings, credit access, and government policy support contribute to women’s financial empowerment. It captures both the process of acquiring financial capabilities and the outcomes of enhanced autonomy and participation. Findings from the study supported the relevance of Empowerment Theory and the results indicated that SACCO strategies significantly enhanced women’s financial empowerment, particularly through financial training and savings programs, which improved their confidence, decision-making, and financial independence. However, the study also revealed that cultural factors mediated these effects, confirming the critique that empowerment does not occur in isolation but is influenced by existing socio-cultural dynamics. This suggests that while SACCO strategies foster empowerment, their success depends on addressing the cultural and structural barriers that shape women’s access to and control over financial resources in Masaka District.

Empirical review

Empirical evidence underscores the critical role of Savings and Credit Cooperatives (SACCOs) in promoting women’s financial empowerment, particularly in sub-Saharan Africa. Nakayiso et al. (2025a) conducted a systematic review examining cooperative financial literacy, training, and advisory strategies, highlighting their influence on women’s financial empowerment. The study’s strengths lie in its comprehensive analysis and focus on rural areas, which provides valuable insights into the unique challenges and opportunities women face in such contexts. However, its conclusions are dependent on rural areas only introducing potential selection bias. Despite these limitations, the study is particularly relevant to understanding the role of financial literacy within SACCOs and aligns with the focus on cultural factors as mediators of empowerment.

Nabasirye, Kyomuhangi-Manyindo, and Namuddu (2024) explored how cultural norms affect women’s financial empowerment in Uganda through qualitative interviews with 50 women in Kampala. The study’s qualitative depth and urban context provide rich insights into the influence of cultural norms on financial decision-making. Nonetheless, its findings may not fully generalize to rural areas like Masaka, where cultural practices differ, and the qualitative approach could introduce researcher bias. Despite these limitations, the study provides a foundational understanding of how cultural norms can mediate the effectiveness of SACCO strategies, offering insights applicable to similar rural contexts.

CARE Uganda (2022) evaluated the outcomes of SACCOs and community-based savings groups across 29 districts in Uganda. Its large-scale data collection and mixed-methods approach strengthen the reliability of its findings, offering comprehensive evidence on women’s economic empowerment. However, the broad scope may overlook district-specific dynamics, and variations in SACCO implementation could affect outcome consistency. This study is valuable as it demonstrates the effectiveness of SACCOs while providing a comparative backdrop for analyzing the mediating role of cultural factors in Masaka District.

Kyejjusa (2023) investigated the role of SACCOs in promoting women’s economic welfare in rural Uganda, offering detailed district-level insights. Its strengths include the focus on rural contexts and the provision of policy recommendations to enhance SACCO effectiveness. Limitations include its focus on a single district, which may restrict generalizability, and potential researcher bias in data interpretation. Nevertheless, this study is directly relevant, providing empirical evidence on how SACCOs contribute to women’s economic welfare and the contextual challenges that may influence empowerment outcomes.

Finally, Towe (2025) examined financial inclusion and economic empowerment across Africa, providing a pan-African perspective on successful strategies and challenges. The study’s strength lies in its comprehensive analysis of various financial products and their impact on women’s empowerment. However, its broad geographical focus may overlook local cultural nuances, such as those in Masaka District, and it lacks primary empirical data. Despite these limitations, the study complements district-specific research by situating local SACCO interventions within a broader context of financial inclusion and empowerment.

Challenges of SACCOs

Despite the overall positive evidence, empirical studies highlight several challenges and limitations that constrain SACCO effectiveness. Kumar et al. (2020) noted that entrenched gender roles and restrictive household structures limit women’s ability to fully utilize financial services in Uganda. Kamugisha (2019) observed that patriarchal restrictions often prevent women from independently managing loans or making investment decisions, even when they have access to credit. Other studies emphasize unequal benefit distribution, with better-educated or socially connected women gaining more advantages than the most marginalized (Chirwa, 2020).

Structural weaknesses within SACCOs themselves also present barriers. Okello (2021) points out that inadequate capitalization, high interest rates, and weak governance structures can undermine empowerment outcomes. These findings indicate that while SACCOs have great potential, the benefits are not uniform and may be conditioned by broader socio-cultural and institutional constraints.

Cultural factors as a mediating variable

An emerging body of research emphasizes the role of cultural factors in influencing the effectiveness of financial inclusion initiatives such as SACCO programs. While much of the literature has traditionally treated culture as a moderating factor, recent studies increasingly recognize its mediating role that is, how cultural norms, beliefs, and practices can serve as the mechanism through which SACCO strategies translate into empowerment outcomes. Cultural factors shape attitudes toward savings, borrowing, and financial decision-making within households and communities. For instance, Mugisha et al. (2021) observed that women’s limited decision-making power and disproportionate household responsibilities reduce their capacity to benefit fully from financial programs, thus mediating the relationship between participation in SACCO activities and empowerment outcomes. Similarly, Kumar et al. (2020) found that cultural orientations favoring immediate consumption over long-term saving weaken the transmission of financial literacy gains into sustainable empowerment.

However, cultural influences are not entirely restrictive; they can also act as positive mediators when properly integrated into program design. Financial interventions that acknowledge local norms, promote joint household financial planning, and engage community leaders can strengthen women’s participation and confidence. Studies have shown that culturally sensitive SACCO initiatives, such as those encouraging spousal dialogue and community-based trust building, enhance the internalization of financial practices, thereby translating SACCO strategies into improved financial autonomy and household welfare.

Assumptions of regression

Figure 4 explains the histogram of standardized residuals depicts the distribution of errors from the regression model predicting women’s financial empowerment. The overlaid bell-shaped curve indicates that residuals are approximately normally distributed, with most values centered around zero and no significant skewness or extreme outliers. These patterns suggest that the assumptions of linearity and normality are adequately met, supporting the validity of the regression analysis.

Figure 4. Histogram for normality test.

Figure 5 of the Normal P-P plot of standardized residuals shows that the observed values closely follow the 45-degree reference line, further confirming the normality of residuals. Minor deviations at the distribution tails are observed but are within acceptable limits and do not constitute a violation of model assumptions. Collectively, these diagnostics indicate that the regression model is significant and appropriate for examining the determinants of women’s financial empowerment.

Figure 5. P-P plot for normality test.

Qualitative findings

Thematic analysis of interviews with SACCO managers and focus group discussions among women members revealed that SACCO strategies significantly influence women’s financial empowerment. Financial training and advisory services enhanced budgeting, record-keeping, and business management skills, while access to tailored credit and flexible loan terms enabled investment in income-generating activities. Participatory governance and group savings mechanisms fostered accountability, trust, and regular saving habits, supporting financial resilience.

Cultural factors emerged as both barriers and enablers whereby about 32% of women reported resistance from spouses or family members, limiting their financial decision-making, while peer support and encouraging partners facilitated sustained engagement. Participants reflected: “My husband used to say women don’t need loans. Now he helps me with my market stall,” highlighting the evolving interplay between traditional gender norms and supportive social networks.

Triangulation of quantitative and qualitative findings reveals both influence of SACCO strategies and cultural factors on women’s financial empowerment. Quantitative analysis showed that SACCO strategies financial training, access to credit, Savings and government policy positively and significantly predicted women’s financial empowerment, with regression results indicating an overall model significance (R² = 0.304, F(4,335) = 36.526, p < 0.001). These findings are supported qualitatively, as participants highlighted that financial training, flexible credit, and group savings enhanced financial literacy, income-generating capacity, and confidence in decision-making. Conversely, cultural factors emerged as persistent barriers whereby in Quantitative results the moderating effect of cultural norms weakened the positive impact of SACCO strategies, while 32% of women under qualitative results reported spousal or family resistance, restricting participation in credit and savings activities. Statements such as “Some people in the village say women are being spoilt by SACCOs” illustrate the tension between traditional gender norms and financial empowerment efforts.

Implications for policy and practice

The findings of this study offer several important implications for policy, program design, and practical interventions aimed at enhancing women’s financial empowerment through SACCOs in Masaka District. The positive influence of SACCO strategies including financial training, access to credit, and participatory governance highlights the need for sustained investment in capacity-building initiatives. Policymakers and SACCO managers should prioritize financial literacy programs tailored to women’s needs, emphasizing practical skills in budgeting, savings, and income-generating activities.

The mediating role of cultural factors underscores the importance of addressing social and cultural mechanisms that shape how SACCO strategies translate into empowerment outcomes. Interventions should not only provide financial services but also actively transform restrictive gender norms and household-level barriers that may limit women’s engagement. Community-based programs that involve men, family members, and local leaders can help shift perceptions, reduce resistance, and reinforce supportive social networks, thereby facilitating the transmission of SACCO benefits into tangible financial empowerment.

The study suggests that government and regulatory bodies should develop policies that integrate gender considerations into cooperative management frameworks. Incentives for SACCOs to implement inclusive governance structures and outreach programs targeting marginalized women can promote equitable access to financial resources. Additionally, monitoring and evaluation mechanisms should incorporate measures of cultural and social constraints to ensure that program impact extends beyond financial metrics to measurable improvements in women’s empowerment.

Practitioners should recognize the interplay between institutional interventions and cultural dynamics. SACCOs can maximize their impact by combining formal financial services with mentorship, peer support groups, and awareness campaigns that actively address cultural barriers and encourage women’s participation in economic decision-making. Such integrated approaches can sustain long-term empowerment and contribute to broader socio-economic development goals in Masaka District.

Recommendations

Enhancement of SACCO Programs: SACCOs should expand financial literacy training, provide flexible credit facilities, and promote participatory governance to ensure that women have meaningful influence over financial decisions.

Culturally Sensitive Interventions: Programs should incorporate strategies that actively engage spouses, family members, and community leaders to reduce cultural barriers and strengthen support networks for women. Awareness campaigns and community dialogues can help shift traditional perceptions regarding women’s economic roles.

Policy Support and Regulation: Government and regulatory bodies should incentivize gender-responsive policies within SACCO frameworks, promoting equitable access to financial resources and integrating measures to monitor socio-cultural barriers.

Integration of Institutional and Social Support: Combining formal financial services with mentorship, peer support, and community engagement ensures that women’s empowerment is sustained beyond transactional interactions, fostering long-term resilience and economic independence.