The purpose of this study was to examine the influence of working capital management practices on financial performance of SACCOs in Uganda a case of Makindye Division. The study was based on the argument that working capital management practices influence the financial performance of organisations including SACCOs. However, in Uganda especially Makindye Division, there was lack of empirical evidence to support the previously mentioned assertion. Adopting a mixed methods research design, primary data was collected from the SACCO staff members using a structured questionnaire and an interview guide. Primary data was collected from 120 respondents’ drawn from purposively selected 24 SACCOs in Makindye Division.

The findings revealed that working capital management practices have a combined influence of 40% on the financial performance other factors being constant. In addition, proper cash management leaves the SACCO with reasonable levels of cash to allow it run, accounts receivables management ensures that the amount of cash tied up in the hands of clients is at an optimal and manageable level, which then leads to increased profitability of firms. Un-checked accounts payables of the SACCOs when allowed to rise to unsustainable levels threatens financial services delivery, profitability and sustainability of business. The findings suggest that a unit improvement in the working capital management practices increases the financial performance of the SACCOs by 40%.

This study therefore, recommends that management of SACCOs should put emphasis on the working capital management practices like cash management, accounts receivable management and accounts payable management to enhance financial performance.