Factors influencing the performance of self help groups in managing microfinance funds for development: A case of Kikuyu District, Kenya
Kikwatha, Reuben W
MetadataShow full item record
The purpose of this study was to establish the factors that influence the performance of self help groups in managing microfinance funds for development. Six research objectives were formulated to guide the study. The research design adopted in this research was descriptive survey. The sample comprised of 78 respondents drawn from the groups using strata and simple random sampling. Data was analysed by use of qualitative and quantitative methods. The Findings of this study revealed that self-group leadership structure influenced performance of self-help groups in managing microfinance funds. This was based on lack of elective structure and having autocratic leadership. It was also revealed that there was no specific duration when the committee was changed or elections held. The group officials make the most important decision without involving the members. It was also revealed that respondents said that ways that finances were handled needed to be improved. The study also revealed that self - help group size affected performance in management of micro economic funds. This was due to members not attending meetings, inactive participation in group discussions in microfinance funds and not involving all members in decisions on microfinance funds. The study also revealed that the groups did not receive any training or information on management of microfinance funds which impacted on performance in management of micro finance funds. The officials were therefore not capable of managing micro finance funds as a group. It was also concluded that majority of the groups did not have common goals but individual within the groups had isolated goals and objectives. The groups that had goals and objectives did not review them at all. It was also revealed that the goals and objectives of the groups were not achieved due to lack of common focus, inadequate knowledge and poor leadership. The study also concluded that funds were not adequately available which affected the performance in management of micro economic funds. Based on the findings it was recommended that the parties concerned should assist the groups have proper leadership structures which will facilitate management of micro finance funds. It was also recommended that the Ministry concerned should provide technical support by for example training so that they are able to manage the micro finance funds. The study recommended that groups should be assisted to come up with realistic and achievable goals and objectives so that finances can be disbursed in the best way possible. The study lastly recommended that groups should be provided with loans by funders and donors and even the government so that they can achieve their goals and objectives. It was therefore suggested that a study on the how formal education affects performance in management of micro economic funds should be conducted. It was also suggested that since this study was conducted in one administrative district, a similar study could be conducted in other areas to establish if factors are the same. The study lastly recommended that a study on attitude of members towards self help group and how it affects management of the groups should be conducted.