Financial Behaviour and Growth of Women Groups in Kenya - A Case Study of Joyful Women Organisation Registered Groups in Kajiado County
Gichuhi, Anne Wangui
Mwangi, Lucy Wamugo
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The role played by women towards nations development through their productive, communal, and reproductive roles is very important. To effectively play these roles they have grouped themselves in women groups. These groups have catalysed the economic and social empowerment of women. Unfortunately, the sustainability of these groups has become a big task. Over recent years there has been an increase in groups that have disintegrated or become dormant. The groups have also experienced a reduction in group membership, total revolving fund, and members savings. Joyful Women Organisation registered groups have experienced reduction in their number as well as membership numbers from 2017 to 2019. This has led to the groups not fulfilling their role of empowering the lives of their members. Financial literacy has been linked to growth of women groups. Low levels of financial literacy among the group’s members usually affects their ability to effectively manage the group’s operations. The general objective of the study was to establish the influence of financial literacy on the growth of JOYWO registered women groups in Kajiado County, Kenya. Specific objectives were to investigate the influence of financial knowledge, financial behaviour, financial attitude on the growth of JOYWO registered groups in Kajiado County, Kenya. This study was guided by the theory of planned behaviour, social learning theory and behavioural finance theory. Explanatory research design was adopted. Study population was 48 women groups registered by JOYWO and simple random sampling technique was used to get a sample of 43 groups. A semi-structured questionnaire was used to collect primary data. Secondary data was collected from JOYWO annual groups records. Before data collection, a pilot test was conducted to assess the validity of the questionnaire. The reliability of the questionnaire was tested using Cronbach’s Alpha technique. Descriptive and inferential statistics were used to analyse the quantitative data. Multiple linear regression analysis was utilised to analyse the collected data to establish the influence of financial literacy on the growth of JOYWO registered women groups in Kajiado County, Kenya. The data were visually presented in tables and figures. From the regression results, the study found that financial knowledge had a significant influence on the growth of JOYWO registered groups in Kajiado County, Kenya. Financial behaviour had a significant influence on the growth of JOYWO registered groups in Kajiado County, Kenya. Financial attitude had a significant influence on the growth of JOYWO registered groups in Kajiado County, Kenya. The study recommended that JOYWO management should offer training to members of groups registered by them to enhance their financial literacy skills. The government should also develop policies that mandate the management of women groups to offer its members with financial education to enhance their financial literacy.