Factors Influencing Performance Of Revolving Loan Fund programmes: A Case Of Women Groups In Kikuyu District,Kiambu County, Kenya
This study sought to establish the factors influencing performance of revolving loan fund programme among women groups in Kiambu County, Kenya. The objectives of the study were; to determine the influence of level of education among group members on the performance of revolving loan fund, to establish the extent to which management practices influences the performance of revolving loan fund, to assess how entrepreneurial competences influence the performance of revolving loan fund among women groups and to assess how demographic factors influence the performance of revolving loan fund among women groups. Descriptive research design was used in this study. The study was conducted within Kiambu County. Target population was 1275 respondents in the 85 active registered women groups in Kiambu County. The management and the members of the groups formed the target population. For purposes of this study, the target population was stratified into executive group officials, committee members and the general members. From each stratum the study utilized simple random sampling to select 128 respondents. Random sampling was preferred because it minimizes the sampling error in the population. The use of survey method of data collection was chosen for this study. The study further used semi structured questionnaires containing closed ended and Linkert scale questions to collect primary data. Questionnaires were administered to the respondents through drop and pick method. In this study, a pilot study was carried out on 10 respondents who were excluded in the actual data collection. The researcher administered the instruments personally to the respondents. The researcher applied for a permit from National Council for Science and Technology before embarking on the study. In this study, a descriptive approach to data analysis was used to analyze collected data to establish the factors influencing performance of revolving loan fund among women groups in Kiambu County, Kenya. Quantitative data collected was analyzed using SPSS and presented through percentages, means, standard deviations and frequencies. The information was displayed by use of tables. From the findings the study established that there is a dire need to provide education and business training to enhance the financial management skills of the borrower. The study also revealed that poor management practices had a negative influence on the performance of revolving loan fund. The study found that lack of entrepreneurial competences had a negative impact on the performance of revolving loan fund among women groups. The study found that demographic factors had a negative influence the performance of revolving loan fund among women groups. The study recommends that there women in “Chamas” need to educate as borrowing and repayment procedures as this can highly help to reduce loan default repayment rate. There is need to provide training on good management practices, this will help to reduce multi-practices within the group as the members will act as a check to one another thus in overall enabling the group members conduct to be good preventing corrupt cases that may arise.