Fund Mobilization Sources and Financial Performance of Table Banking Groups in Nakuru County, Kenya
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Date
2023
Authors
Gichuru, John Kinja
Journal Title
Journal ISSN
Volume Title
Publisher
kenyatta university
Abstract
Table banking groups in Kenya are faced with a variety of challenges that impede their
development and performance. One of the key challenge is limited or lack of access to
funding. Statistics from World Bank indicates that out of the 28% of the table banking groups
which are eligible to receive the funds only 3% of the table banking get the necessary funds
and strives to meet their objectives like financial performance. According to county
government of Nakuru, there were about 700 registered groups in the entire Nakuru County
by the year 2019. By year 2020 about 300 of these groups have ceased to exist due to
financial constraints hence closure. The objective of the study was to ascertain how fund
mobilization sources affected the financial performance of table banking women's
organizations in Kenya's Nakuru County. The study specifically sought to assess the effect of
group investment, groups’ contribution, loans, and donor funds on financial performance of
women groups in Nakuru County. This study was informed by the Resource based View
Theory, the Resource Mobilization theory, Network Theory and Keynesian Liquidity
Preference Theory. The research used descriptive survey design. The unit of analysis was
332 table banking groups in Nakuru County. The unit of observation was chairpersons of
each of the targeted women group. The study adopted Nassiumas formula to sample 82. The
study collected both primary and secondary data. Primary data was sourced from the
respondents through questionnaire. Secondary data was collected using data collection sheet.
A pilot study was conducted in Nakuru town on 8 women groups. Reliability of the
instruments was determined using Cronbach Alpha. This study's data were quantitative in
nature. Version 24 of the Statistical Package for Social Sciences (SPSS) was used to evaluate
the qualitative data. The study used both descriptive and inferential statistics. Use of
percentages, frequencies, measurements of central tendency (mean), and measures of
dispersion were all part of descriptive statistics (standard deviation). Inferential statistic
involving the use of correlation and regression analysis. After analysis data was presented in
form of a table, charts, and figures. The study findings revealed that there existed a positive
and significant relationship between group investments and financial performance of women
groups in Nakuru County. In addition, there is a strong positive and significant relationship
between groups contribution and financial performance of women in Nakuru County. The
study also found that loans had a strong, favorable, and statistically significant impact on
women's groups' financial performance in Nakuru County. Finally, the study revealed that
there existed a strong, positive, and significant relationship between donor funds and
financial performance of women groups in Nakuru County. The study concluded that donor
funding attracts minimal or no interest which positively affect their financial performance of
table banking groups. In addition, the study concluded that some of the donor funding are
very unsustainable which negatively affect the financial performance of table banking groups.
From the foregoing findings and the conclusion, the study recommended that table banking
groups should come up with ways of empowering women groups to the best investment
practices to enhance their saving behavior.
Description
A Research Project Submission to the School of Business
Economics and Tourism in Partial Completion of the
Requirements for the Award of a Master of Business
Administration (Finance Option) Degree from Kenyatta
University
Keywords
Financial Performance, Table Banking Groups, Nakuru County, Kenya, Fund Mobilization Sources