The role of informal finance in empowering women at household level in Sagana division, Kirinyaga County

Abstract

This study examined the role of informal finance in empowering women at household level in Sagana Division, Kirinyaga County. The key objectives were to investigate the extent to which access to informal credit contributes to women empowerment, and to analyse the benefits of informal finance to women at household level. The study adopted a cross-sectional non-experimental research design. The study population consisted of all members of self-help groups registered with the Ministry of Gender, Children and Social Development in Sagana Location of Kirinyaga County. The sample size comprised 30 respondents and 5 key informants. Both purposive and simple random sampling techniques were employed. Data were collected through semi-structured interviews and key informant interviews.

The results of the study suggest positive impacts of the informal credit on the lives of the majority of women respondents as their living conditions were improved at the household level. Access to informal credit increased income earnings as most of them were able to create self-employment through small businesses and better farming methods that have increased yields. The study therefore, concludes that informal credit is one important means of empowering rural women. It is, therefore, recommended that, policy makers should establish and strengthen links between formal and informal finance as a means of empowering women and reducing household poverty. It is also recommended that government should promote and facilitate education and training of women through adult literacy programmes and skills development in entrepreneurship.