DETERMINANTS OF FINANCIAL CREDIT UPTAKE AMONG WOMEN OWNED SELF-HELP GROUP (SHG) PROJECTS IN SAMBURU COUNTY, KENYA
Leshomo Komitu - Master of Arts in Project Planning and Management, University of Nairobi, Kenya
Prof. Harriet Kidombo - ODEL, University of Nairobi, Kenya
ABSTRACT
The purpose of study was to explore the determinant of financial credit uptake among women owned self-help groups (SHG) projects in Samburu County, Kenya. The study was guided by four research objectives. The objectives sought to determine how education and training, socio-cultural practices, financial literacy skills and information asymmetry influenced financial credit uptake among women owned Self Help Groups in Samburu County. The study was carried out using descriptive research survey design. The target population was 345 respondents while the sample was115 respondents. Data was collected using questionnaires. Data was analyzed by use of Frequencies, Percentages, Mean, standard deviation, Chi square and ANOVA. Findings revealed that level of education and training of the SHG members affected financial credit uptake. It was also revealed that lack of training, low levels of education, lack of awareness of training on SHG matters, low or lack of education was a major hindrance to financial credit uptake among women. Findings also revealed that socio-cultural practices such as patriarchy, norms and taboos and perceptions women commitments at home were major determinants to financial credit uptake. It was also revealed that lack of financial literacy skills affected financial credit uptake. Women members of the SHG did not understanding the financial requirements for credit uptake. The findings also revealed that lack of information of where to access financial credit. It was also revealed that most of the SHGs feared credit uptake from lending organization due to lack of information. There was significant association between education and training, cultural practices, financial literacy skills, information asymmetry and financial credit uptake. Data indicated that the p-values for all the variables are smaller than the level of significance of the study (0.05).Thus education and training (x2=14.165, p-value=0.00); cultural practices (x2=11.511, p-value=0.002); financial literacy skills (x2=17.129, p-value=0.00) and information asymmetry (x2=18.314, p –value=0.000) have a significant association with financial credit uptake. This implies that the independent variables and dependent variables had close association. There was a positive correlation coefficient (r), = 0.712, coefficient of determination (r2) = 0.507 and adjusted r squared between education and training, cultural practices, financial literacy skills, information asymmetry explain 50.7% percent of the variation in financial credit uptake. Based on the findings of the study it was concluded that education and training of SHG members influenced financial credit uptake among women owned Self Help Groups. The study concluded that financial literacy skills influenced financial credit uptake among women owned Self Help Groups in Samburu County. It was also concluded that information asymmetry influenced financial credit uptake among women owned Self Help Groups in Samburu County. Based on the study findings it was recommended that there is need for the Samburu county government and Non-governmental to educate the women owned SHGs on the importance of financial credit uptake. The study also recommends that the financial institutions should reach the women at the grassroots and educate them on the importance of financial credit uptake. The study also recommended that women should be empowered to shun some of the cultural practices that hinder them from accessing financial credit. The researcher suggested that a study on the influence of self-help groups on the economic empowerment of women and their households among the nomadic pastoralists’ areas should be conducted. It was also suggested that a replication of the study in urban areas of Kenya where the self-help groups have been formed and lastly a study on the influence of the emergence of Micro-finance institutions on the performance of the self-help groups should be conducted.
