Thesis:

Influence of financial inclusion on the performance of self-help groups in Malindi sub-county, Kenya

The performance of self-help groups (SHGs) is integral to fostering socio-economic development, particularly among marginalized communities. This study investigates the influence of financial inclusion on the performance of SHGs in Malindi Sub County, Kenya. The purpose of the study was evaluate the effects of access to savings products, credit facilities, money transfer services, and financial education on SHG performance. The research objectives included examining how these components impact membership growth, financial stability, project completion rates, and income generation. The findings are expected to provide insights that enhance financial inclusion and empower SHGs to achieve sustainability. The study is anchored on the Financial Intermediation Theory and the Diffusion of Innovation Theory, which explain the mechanisms through which financial institutions and innovations improve SHG operations. A descriptive survey design guides the research, targeting 3,655 individuals comprising SHG members and governance board officials in Malindi Sub-County. Using a sample size of 357 respondents derived through stratified random sampling, the study ensures representation across rural and urban settings. Data collection employed structured questionnaires and interview guides, refined through a pilot test involving 10% of the sample. Validity and reliability ensured through expert reviews and Cronbach's alpha testing, respectively. The study adheres to ethical considerations, including informed consent, confidentiality, and anonymity. Quantitative data analyzed using descriptive and inferential statistics via SPSS, with findings presented in tables, graphs, and regression models. Qualitative data complemented quantitative insights, offering a comprehensive understanding of the relationship between financial inclusion and SHG performance. Ultimately, the study aimed to inform policy and practical interventions that enhance the socio-economic impact of SHGs in Kenya. This study examined the effect of financial services on the performance of self-help groups in Malindi Sub-County, Kenya. It focused on four key financial services: access to savings products, credit facilities, money transfer services, and financial education. The findings revealed that access to savings products positively influenced financial stability, though affordability and accessibility remained challenges. Credit facilities had a negative impact due to high interest rates and rigid repayment terms. Money transfer services, while widely used, had a limited effect on group performance. Financial education emerged as the most significant factor, enhancing financial management, budgeting, and overall group sustainability. The study concluded that improving financial literacy, offering flexible savings and loan products, and integrating digital financial tools could enhance self-help groups' performance. Recommendations included enhancing financial education programs and making financial services more accessible and affordable.