Abstract

This study is focused on the contribution of Kumba Central Cooperative Credit Union Limited to the socio-economic Development of Kumba from 1995 – 2008. It also laid emphasis on the geography, history, the administrative and economic setup of Kumba.

It also goes further to demonstrate the origin of KUCCCUL, the reasons for its formation, and its objectives. Lastly, the study examines the growth and challenges of KUCCCUL since it was formed in 1995 – 2008.

The most important aspect of this study is the additional literature on the historical origins and geographical location of Kumba. The researchers in his investigation draw up the following conclusions: that the formations of KUCCCUL brought significant socio-economic development in Kumba as compared to the ordinary banks.

The research also found out that KUCCCUL equally increases the living standard of many people as most of it members became rich. Despite these achievements brought about by KUCCCUL, the researcher investigated that the emergence of KUCCCUL however caused many people to be poor because when they borrowed money and at the end, they were unable to pay the money that they presented as collateral which at times was mostly their houses or farms were sold to pay for the loan.

CHAPTER ONE

INTRODUCTION

1.1 Background of Study

A Credit Union is a Cooperative Organization made up of a group of people having a common bond in accordance with the provision of law, for the purpose of promoting thrift among its members and creating a source of credit for provident for productive purpose.

The Kumba Central Cooperative Credit Union Limited (KUCCUL) is a dynamic people-owned financial institution that operates on sound cooperative and business principles, for the purpose of providing high quality, reasonable price, products, and services to its members. This has been achieved by providing a secure place where members can save and borrow at a very low-interest rate.

This union was formed in 1995 with one of its aim being the provision of quality financial services and product, encourage saving among it members and Kumba people in general. From that year, the Union has been growing at a geometric rate but with some challenges in the course of growing.  However, the Kumba Central Cooperative Credit Union Limited has also contributed to the socio-economic development of Kumba through it services provided to its members and the inhabitance of Kumba in general.

1.2 Statement of Problem

Credit Union in general has played an important role in many people’s lives throughout Cameroon and Kumba in particular. Historically, the Kumba central cooperative Credit Union started in 1995. During this time saving was not much because members were very few and most of the members were small-scale farmers with little income. This created a problem as some members wanted to take many loans and there was not enough money in the Union. But with the coming of many to join the union especially people of all work of life who owns the account in the union worth millions of CFA franc has solved the problem of limited money in the union for borrow.

Furthermore, from 1995 when the said union was created, the union had a secretariat who record all transactions in the Union. At this time, there was the wrong calculation of members saving and interest rates which always resulted in quarreled in the then union house which started as a Njangi group.

However, with the establishment of an account book for each member where he or she records his or her saving, a computerized system to record every transaction in the union, and a trained accountant and manager to manage the Union has solved the problem of miscalculation and mismanagement of members saving and interest rate in the union respectively.

The study, therefore, is to investigate the origin of the union; growth and it impact on the population of Kumba.

1.3 Objectives of Study

The study has the following objectives

1. To investigate the origin of the Kumba Central Cooperative Credit Union limited and the reasons for the formation of the union.
2. To assess the growth of the union, here we are trying to look at the growth in terms of members, innovations in the Union, and it budgetary growth. Also, we are going to look at the challenges the Union faces.
3. To investigate the contribution of the Union to the Socio-economic development of Kumba from 1995.