Effects of Village Savings and Loans on Rural Women Livelihood Outcomes Among Women Groups in Kisii County

Abstract

Over the past decades, rural households in Kenya have been involved in the activities of informal savings schemes that raise capital from internal accruals and members who are shareholders control management of those. Despite women participation in village savings in Kisii County, their incomes are still very low and in general, the households or individuals are still having very poor standards of living. This research focused on the effects of village savings and loans on rural women livelihoods outcomes among women groups in Kisii County. The research followed descriptive research. Registered women groups involved in village savings activities within Kisii County were the population interest and relied on a sample size 100 respondents. The instrument employed in data analysis was a questionnaire. The study used both descriptive and inferential methods in analyzing the primary data collected from women group operating in Kisii County. The findings of the study revealed that the members who save with village savings and loans group members, increase their likelihood of improving their livelihood outcomes. Getting loans from village savings and loan groups was found to have a negative influence, on the members’ ability to improve their livelihoods. An increase in the chances of members not getting loans from the groups was found to decrease the probability of that member to improve his/her livelihood. This study recommends that village savings and loan groups should follow Professor Muhammad Yunus pro-poor model in their operations and that they should be motivated by improvement of their members and not profits.