Savings mobilization and investments among the fish traders along lake victoria region. a case study of Osienala beach barns accountholders

Abstract

Saving mobilization among the fish traders is conceptualized in terms of those internal and external efforts put in place to boost the financial holding capacity of the fish business families. Several Sessional Papers emphasize the need to develop small and medium scale business firms in the country as a means of enhancing creation of wealth and employment. 'fhe papers note this to be achievable through encouraging private households saving alongside empowering women and youths into business. All these initiatives aim towards savings mobilization and development. The problem that underlies this study is on the fact that not many fishermen save (keep bank accounts). The Government of Kenya alongside other institutions has come up with several initiatives to improve the fish traders' savings. OSIENALA as an example has started fifteen beach banks within the main trading centers along the lakeshore. Examples of the beach barns include Uhanya, Mbita, Port Victoria, Muhuru Bay, Usenge etc just to mention a few. The main objective of the beach barns is to mobilize savings and foster development along the region. Lately there has been an increased use of modern fishing gears, increase in fish harvest and fishermen income. The fishermen housing standards has of late greatly improved, many locals attribute this to the current banking activities of the beach barns. The main objective that guided this research was to establish the factors that determine the savings mobilization for investment, growth and development of fish traders. Literature review covered both theoretical and empirical facts like the types of savings, reasons of saving's and the savers behaviour. The study evaluated the systems of beach financing; lending and borrowing as it takes on board the fact that most fisherman did not have good collateral for long term and big borrowings. Data was collected from 4 beach barn managers and 119 accountholders totaling to 123 respondents. Sampled beach barns were Muhuru, Sori, Mbita, Lwanda Kotieno and Dunga. The statistical instruments that were used to collect data were questionnaires and surveys. Data analysis was done by SPSS. Graphs, tables and pie charts were used to present the analysed data. The study found out that distance to barns from the savers residence, consumption habit, age, family size and number of dependants had negative correlations with savings size. Strictness to religious matters payment of tithe and special offering did not affect the fish traders savings. In conclusion the researcher noted that the beach barns activities immensely supported the SMEs along Lake Victoria to increase their savings size for development, this was seen from the increased savings amount made by the accountholders. The researcher recommended to the beach barns management to turn some of its branches into cooperative holdings as this would bring the accountholders closer to the management board of the barns, feel as owners and thereby save more of their earnings