Socio-economic Factors Influencing Sustainability of Women Village Saving and Loaning Institutions in Kuria Subcounty of Migori County, Kenya

Abstract

Women's village saving and loan institutions emerged in response to the pervasive poverty within rural communities. Their primary objective is to enhance the livelihoods of villagers and significantly reduce poverty levels. However, ensuring the long-term viability of these projects remains a challenge due to issues such as inadequate <governance within the groups, a lack of capacity-building initiatives, and insufficient stakeholder engagement, all of which result in limited benefits associated with these initiatives=. This study aimed to investigate <the socio-economic factors that influence the sustainability of women's village saving and loan institutions in Kuria East Sub-county, Migori County, Kenya=. The research was <guided by the following objectives: to examine the impact of governance on the sustainability of women's village saving and loan institutions, to assess how capacity-building for women affects their sustainability, to explore the influence of stakeholder engagement on sustainability, and to analyze how associated benefits contribute to the sustainability of these institutions in Kuria Sub-county, Migori County, Kenya=. The researcher <framed the study within the context of the theory of constraints and systems theory, both of which emphasize the effective management of scarce resources=. For example, these theories encourage groups to embrace a culture of saving to ensure the sustainability of women's saving and loan initiatives. The research employed <a descriptive survey design, with a sample size of 106 respondents, including 104 group members and 2 loan officers involved in village saving and loaning activities in Kuria East Sub-county, Migori County=. The sample was selected <using stratified and purposive random sampling methods, as the population under investigation was sufficient for conducting a scientifically sound inquiry=. Data collection was conducted <using questionnaires and interview schedules, and descriptive analysis was employed to examine variable distributions in terms of mean and standard deviation=. Additionally, <a Z- test was used to test the study's hypotheses at a 95% confidence level (P=0.05). The study's findings revealed that governance (1.3874 with a p-value of 0.0025>0.05), capacity building (1.3874 with a p-value of 0.0025>0.05), stakeholder engagement (0.1264 with a p-value of 0.004>0.05), and associated benefits (1.5352 with a p-value of 0.0035>0.05) all exerted significant influence on the sustainability of women's village saving and loan institutions=.

Key Terms: Governance, capacity building, stakeholders’ engagement, associated benefits and <sustainability of women village saving and loaning institutions=.