The Success of Village Community Banks in Improving Household Welfare in Kigamboni District, Dar es Salaam Region

This study assessed the success of Village Community Banks VICOBA in improving household welfare in Kigamboni District. It utilised the sample of 85 respondents. The findings of the study revealed that it is easy to get loan from VICOBA and that borrowing from VICOBA is cheaper than borrowing from other financial institutions like commercial banks. The results from logistic regression model shows that marital status, average income from the business, use of borrowed loans, education, credit registrations, loan size, interest rate and household size influence the success of VICOBA in improving household welfare in Kigamboni District. Indeed, age of VICOBA members was found to be insignificant factors in explaining household welfare. The study also revealed that there increased misconceptions or stereotypical images connected to the scheme that VICOBA are special for women only. The study concludes that indigenous ownership; the needs of the time and lack of barriers determine the success of VICOBA towards improving household welfare. Consequently, the study offers several recommendations that aim towards improving household welfare through the use of VICOBA.