Role Of Informal Financial Banking Services In Economic Empowerment Of Rural Women Through Self-Help Groups Affiliated To Joyful Women Organization In Kericho County, Kenya
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 3
Abstract
Women all over the world contribute a lot to the national agricultural output and family food security, and several studies from Sub Saharan Africa shows that rural women are credit constrained than men of equivalent socio-economic conditions. Rural women are exposed to economic disability yet they form the majority of the rural population. Empowerment and improvement of women's socio-economic status is important for achievement ofthenecessary rural Development. In Kenya informal financial services concept has taken root with recent adoption of Joyful Women Organisation to provide financial resources to rural women to engage in livelihood projects. The purpose of this study was to determine the role of informal financial services to the economic empowerment of rural women entrepreneurs in Kenya. The specific objectives were; to determine the role of informal savings, to evaluate role of informal loans and credit on empowering rural women entrepreneurs, and to establish the role of financial training on empowering rural women entrepreneurs and to assess the role of information access and awareness of informal financial services on the empowerment of rural women entrepreneurs in Kericho County. The study used a survey design and targets rural women who are members of groups that subscribe to (JoyWO). The target population was 1040 members of women spread in 65 groups. Stratified sampling method was used to sample out 153 women. The study was carried out in Kericho County. The main instruments of data collection were the questionnaire, focus group questionnaire, and use of interview schedule for key informants. A pre-test of the questionnaire was carried out in a similar setting in Nakuru County to test the reliability of the instrument. The data was analysed using descriptive statistics, frequency distributions, chi-square and multiple linear regressions with the aid of Statistical Package for Social Sciences (SPSS). The results of the study showed that there was a significant association between informal savings and women economic empowerment (χ2=54.534, df= 27, P=0.001). The researcher therefore failed to accept the null hypothesis, hence concluded that there was a significant relationship between members’ savings and their level of economic empowerment.The study recommends that the Government and microfinance institutions need to help women groups evaluate viability of income generating projects and follow up on how loans are used. This will ensure funding is directed to projects that can generate income and improve the ability to pay back loaned money easily.The study will be helpful to groups and their members in streamlining their lending, saving and borrowing programmes. The formal banks will also benefit by adapting the principles of Informal banking and the use of group lending. Both national and county governments will make policies based on the findings.
Authors and Affiliations
Felister Chebet Kurgat, Prof Peter Kibas, Dr Robert Otuya
Keywords
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- EP ID EP410148
- DOI 10.9790/487X-2003125666.
- Views 49
- Downloads 0
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