Financial Innovation and Financial Sustainability of Self-help Groups in Kisumu County, Kenya
Abstract
Self-help groups have grown from welfare groups to investment groups, while some transition to
Savings and credit cooperative societies and banks. Despite being instrumental, self-help groups
in Kisumu County continue to fail due to factors associated with financial resources and
management. They face financial constraints, which are also anchored on unaware opportunities,
limited trainings, and limited access to financial support. Lack of information regarding available
technological advancement and credit facilities have also contributed to the failure of these groups.
There is a need to study the relationship between the increasing technological advancement in
relation to finances and their effect of sustainability of the self- help groups. This research study
considered innovation in relation to electronic money transfer, internet banking, automated teller
machines (ATM) and mobile loans. These were studied in thet to their effect of sustainability of
self-help groups the indicator being consistent internal income. The objective of the research study
was to determine the relationship between financial innovation and financial sustainability among
Self-help groups in Kisumu County. A self-administered paper questionnaire was used to gather
primary data for purposes of having a deeper understanding of influence of financial innovation
on the sustainability. There are 2,843 registered self-Help groups in Kisumu County. The
researcher used Fisher et al model to calculate a sample size and a total of 385 self-help groups
were used in this study. The researcher conducted a statistical analysis using SSPS 21.0 software.
Findings from the analysis revealed that financial innovation had an influence on the financial
sustainability of these groups. From the study, it was evident that some innovations had a positive
effect on the sustainability therefore self-help groups should embrace them in their transactions.
They should utilise the use of electronic mobile transfer and ATMs to reach sustainability. This
study failed to include all innovations due to time and resource constraints. The researcher
therefore recommends to other researchers to further investigations that will be all inclusive
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1919]
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