The Influence of Membership Power in Table Banking on Socio-Economic Welfare of Women in Emgwen Sub-County, Nandi County, Kenya | Chapter 2 | New Advances in Business, Management and Economics Vol. 8

Background: Access to financial services is critical to success in the modern economy. In Kenya, table-banking was initially developed by the Poverty Eradication Commission (PEC) targeting Millennium Development Goal (MDG) One on eradicating abject poverty, especially in rural settings in Kenya. Financing women's projects is closely related to their potential to succeed socio-economically. However, the formal financial institutions have failed to address and meet the credit needs of the very poor entrepreneurs and women in particular and have resulted in the popularity of informal microfinance groups. Informal microfinance models, such as table-banking, can reduce the gap by providing the opportunity for community-based activity. Table banking is a group funding strategy where members pool their savings together and borrow immediately from those savings on the table for a short period or for a long period.

 

Aim of the Study: This study therefore sought to establish the influence of membership power in table banking on women’s socio-economic projects and welfare.

 

Methodology: The study adopted an Ex-Post Facto research design, and 576 table banking group members from Emgwen Sub-County in Nandi County, Kenya, comprised the target population. The study employed a stratified sampling technique to determine a sample of 236 respondents drawn from registered self-help groups practising table banking. In addition, purposive sampling (Judgment sampling) was used to select the 6-field staff as key informants from the Nandi County Department of Social Development (DSD), Joyful Women Organisation (JOYWO) and Saving Internally and Lending Communities (SILC) working directly with the table banking groups. Data from the field was collected through the use of questionnaires issued to respondents practising table banking. Interview schedules with key informants selected from the table banking institutions in the area were also administered. Finally, data was analysed using both quantitative and qualitative data analysis techniques. Data analysis for quantitative data was conducted using both inferential and descriptive statistics. The multiple regression analysis was used for hypothesis testing so as to determine the statistical significance effect of the three variables (membership power, accessibility to credit and saving culture) on women‘s socio-economic welfare improvement.

 

Findings: The study findings indicated that membership power (β = 0.134; p<0.05) influences women’s socio-economic welfare in Emgwen Sub-county in Nandi County. Through table banking, women have been able to meet social obligations through financial contributions, participate in civil and political leadership roles, and increase their integrity and confidence within the community.

 

Conclusion and Recommendation: The study concluded that team building in the table banking group improves members’ sense of community belonging and unity. Therefore, the study recommends that there is a need to build the capacity of women's groups through training. Lending institutions also need to reach to all women groups to increase women's loan uptake capacity, and further, there is a need to seal information gaps on women groups and women need to have courage and ability that they can still perform and operate business as opposed to relying on members of their families for upkeep.

 

 

Author (s) Details

Shadrack Kipchumba Tarus
The Catholic University of Eastern Africa, P.O. Box 62157 -00200, Nairobi, Kenya.

 

Benard Muronga Kadurenge
Amoud University, Borama City, Somaliland.

Mathew Elijah Kawour
The Catholic University of Eastern Africa, P.O. Box 62157 -00200, Nairobi, Kenya

 

 

Please see the book here:- https://doi.org/10.9734/bpi/nabme/v8/5266