Abstract:
Savings and credit cooperative societies have been seen as the most appropriate institution
to serve rural farmers and contribute to poverty reductions and rural development.
However, members of saving and credit cooperatives were not uniformly productive and
used credit. This study aims to assess the determinant of credit utilization practice of saving
and credit cooperatives members of Kokosa District, West Arsi zone Oromia Regional
State, Ethiopia. In this study description and explanatory research of design as well as
mixed types of research approach and multistage sample was employed. By using Yamane's
(1967) formula total sample size of 134 members of saving and credit cooperatives was
selected randomly. Instrument data collection semi-structure questionnaire face to face
interview respondents, key informant interview, focus group discussion, and secondary data
were supplementary to primary data also collected from respective selected saving and
credit cooperatives in the study area. To analyze, the data researcher used descriptive and
binary logistic regressions were employed based on facts regarding the data collected.
Descriptive statistics such as frequency, mean, standard deviation, and percentage and
also, inferential statistics such as t-test and chi-square were used for analyzing the data.
Out of the total sample respondents, 81 were good credit utilization practices and 53 of the
respondents were not good credit utilization practices. As well as binary logistic regression
model was employed to identify the effect of determinants on credit utilization practice
finding variables gender, marital status, education level, training, credit appraisal, amount
of credit received and total annual income were positively significant. While age and
interest rate also have negative significance. Besides, total annual income and amount of
credit received were key significant determinants of credit utilization practices selected
saving and Credit Cooperatives. Recommended there is a need for investment in the
attitudinal change in men and women to reduce gender differences within the household
concerning credit utilization. There is also required for education and training to
strengthen their members to utilize credit properly for acquired purposes especially, for
production, investment, and income-generating activities rather than consumption
