Formation, survival and performance of self-help groups in Dagoretti south constituency Nairobi county.

Abstract

Self-help groups are important in providing access to finances. Engagement in these groups increases the capabilities of individuals enabling them to improve their livelihoods. Groups have also offered a platform where individuals can offer social support. This study was set on providing an understanding on how these groups were formed. The second objective of this study was to examine the mechanism that these groups utilized so as to remain functional. Thirdly, the research was aimed at providing an understanding on how these groups performed in relation to their intended goals. In order to realize this, the study was undertaken through a case study research design. Non-probability sampling was used where ten groups were selected and seventy nine respondents interviewed from all the groups. Data was collected through an interview guide, key informant guide and a focus group discussion guide. The findings of the study showed that, during group formation people considered friends and neighbours mainly. Most of the respondents were literate which facilitated rational thinking. Secondly, fines acted as a major instrument of maintaining the effectiveness of the groups. External support was negligible including associations with other self-help groups. Lastly, increased savings were observed from the time groups started. This meant that more money was in circulation in terms of loans. The group members could get more money at lower interest rates to cater for their needs. Increased social support was also reported which was an achievement in all the groups. This study recommends collaboration of the Ministry of gender, sports, culture and social services with other ministries in order to utilize the space created to disseminate more information on social issues.