Contribution of Microfinance Institutions Towards Wealth Creation in Rwanda: The Case Study of Kagarama Umurenge Sacco in Kicukiro District

The general objective of this study was to assess the microfinance institutions and the wealth creation in Rwanda. The study was carried out in Kagarama Umurenge SACCO as case study.  The findings were intended to supplement the body of knowledge on microfinance organizations and how their operations impact members' ability to create wealth in Rwanda.  The following goals guide this study:  To assess the influence of micro saving services (Ease of access and cost-effective savings) on the wealth creation in Kagarama U-SACCO, to assess the impact of the lending process (credit access and collateral) on the wealth creation in Kagarama U-SACCO, and to assess the impact of business development (outreach and digital financial services) on the wealth creation in Kagarama U-SACCO. The study population, 623 SACCO members who had received two or more loans since the Kagarama U-SACCO's founding, was selected using a descriptive research approach. With the aid of stratified sampling, a sample size a sample size of 162 respondents was established through calculations carried out using Wayne (2014) formula.  The researcher used primary and secondary data in this study.  A closed end questionnaire will be utilized. Descriptive research design and correlation analysis were also utilized to assess the data and results generalized for the entire population, while multiple regression will be used to test hypotheses. To compute and analyze the data in this study, available statistical packages was used. Secondary data was obtained from available documentation in Kagarama U-SACCO and elsewhere on the project. The multiple regression analysis proved that other factors being constant, Lending Process increases the wealth creation of Kagarama U-SACCO per 28.7%, Micro-saving services by 41.4%, and Business Development by 32.1% meaning that microfinance institutions have an important effect on the wealth creation of Kagarama U-SACCO in Rwanda. The study recommended that Kagarama U-SACCO may involve members in the determination of service fees and a reasonable percentage of the loan that is supposed to be saved in advance. Also, the U-SACCO is recommended to adopt technological utilization in its services. Keywords: Microfinance Institution, Wealth Creation, Kagarama Umurenge Sacco, Kicukiro District, Rwanda