Understanding Sustainability of Table Banking Groups

Abstract

Table banking represents a widely embraced form of informal financial institutions that provide rural inhabitants with the advantages of adaptability, convenience, and straightforwardness, aspects often lacking in formal banking institutions. Notwithstanding its widespread appeal, table banking groups encounter persistent difficulties in maintaining long-term viability. The incidence of table banking groups disintegrating is particularly pronounced in rural regions of Kenya. It is against this backdrop of recognition that this research is undertaken. The study’s main objective is to establish the effect of financial literacy and group attributes on the sustainability of table banking groups. The specific objectives of this study are to: understand the nature of sustainability of table banking groups; determine the effect of financial literacy on the sustainability of table banking groups and; establish the effect of group attributes on the sustainability of table banking groups. The study uses qualitative data analysis.