Financial Inclusion and the Financial Performance of Self-Help Groups in Kenya
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Date
2023
Authors
Mutungi, Janet
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Self-help groups contribute to society through economic empowerment and social
participation of the underprivileged. However, the lack of financial inclusion hinders
them from achieving their objectives. The general objective of the study was to
establish the influence of financial inclusion on the performance of self-help groups in
Kenya. The specific objectives were: to investigate the influence of access to savings
products on the performance of self-help groups in Kenya; to determine the influence
of access to credit facilities on the performance of self-help groups in Kenya; to
establish the influence of access to money transfer services on the performance of
self-help groups in Kenya and to evaluate the influence of financial education services
on the performance of self-help groups in Kenya. Descriptive research design was
used. The population were all self-help groups in Kenya while the sample frame was
one hundred and six self-help groups. A sample size of eighty-four self-help groups
was used. A stratified sampling technique was used to select the self-help groups to be
included in the sample. Data was collected from group chairpersons using a structured
questionnaire. Inferential analysis techniques such as correlation analysis and
regression modeling were used to establish the relationships between the study
variables and to test the hypotheses. The theory framework used in the study utilized
the three theories of the theory of financial intermediation, the actor-network theory,
and the social learning theory. Results evidenced positive contribution of financial
inclusion on performance of self-help groups in Kenya. Firstly, it emerged that
financial education was the most significant component of financial inclusion,
followed by access to savings, then access to credit and least contributing factor was
access to money transfer services. The study revealed that 46.2 % of variations in
performance of self-help groups was influenced by changes in access to savings
products, access to credit facilities, access to money transfer services and access to
financial education services. Accordingly, the study recommends self-help groups to
engage in educating members as this has potential of improving their financial literary
levels that positively enhances the performance of the self helps groups. More surveys
can be done in all counties in Kenya in order to gather more information on self-help
group’s performance as a function of financial inclusion components.
Description
A Research Project Submitted to the School of Business in
Partial Fulfillment of the Requirement of the Award of
Degree of Master of Business Administration (Finance
Option) of Kenyatta University
Keywords
Financial Inclusion, Financial Performance, Self-Help Groups, Kenya