INFLUENCE OF TABLE BANKING ON ECONOMIC EMPOWERMENT OF 

WOMEN IN BUNGOMA COUNTY, KENYA 

 

 

 

 

 

 

PRISCILLA MIRANDA WAFULA 

 

 

 

 

 

A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF 

THE REQUIREMENTS FOR THE AWARD OF MASTER OF BUSINESS 

ADMINISTRATION DEGREE IN FINANCE OF 

MOUNT KENYA UNIVERSITY  

 

 

 

 

 

 

NOVEMBER 2024 



 

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DECLARATION AND APPROVAL 

Declaration by the Student 

This research project report is my original work and has not been presented for a degree 

in any other University. 

Signature  Date 12/1 1 / 2024 

Priscilla Miranda Wafula 

MBA/2021/86402 

Approval by the Supervisor 

I confirm that the work in this research project report was done by the candidate under 

my supervision as the university supervisor 

Signature..  Date 12/1 1 / 2024 

Dr. Isaac Abuga Mokono 

School of Business and Economics 

Mount Kenya University 

 

 

 

  



 

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DEDICATION 

This project is dedicated to my sisters Irene, Christine, Sylvia, Lilian, and Laura for their 

support, and to my beloved daughter Maya, my inspiration 

  



 

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ACKNOWLEDGEMENT 

First, I would like to thank God for His blessings and getting me this far.  

Then, I would like to give my gratitude to my supervisor Dr. Isaac Abuga Mokono, who 

has really guided me tirelessly throughout the journey. His timely and adept instructions 

have surely sharpened this research project report. I also pass my gratitude to the entire 

school of Business and Economics in their contribution in one. 

  



 

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ABSTRACT 

It is widely held that women-owned businesses make a significant contribution to the 

economic development of emerging nations. A frequent alternative to the sourcing of 

finances is through informal pooling of financial resources commonly known as Table 

banking. This sought to investigate the influence of table banking as a source of finance 

towards economic empowerment of women in Bungoma County. The objectives of this 

research is to assess the influence of level of awareness in table banking, to determine 

the influence of membership power on economic empowerment and establish the 

influence of networking power on the economic empowerment of women in Bungoma 

county, Kenya. The research study was anchored on the social capital theory, social 

cognitive theory and economic empowerment theory. The study adopted a descriptive 

research design, targeting the secretaries of groups. A sample size of 260 respondents 

was obtained from target population of 729 registered women groups in Bungoma 

County at 95% confidence level. Questionnaires and structured interview schedules were 

used for data collection. A total of 248 questionnaires were returned and a response rate 

of 96.7% was obtained. The data collected was subjected to pre-processing in order to 

remove the undesirable and unfeasible data. A coding scheme was developed for 

qualitative data, while Statistical Package for Social Sciences, Version 21 was used to 

analyze quantitative data. Tables, means, percentages, standard deviation, regression and 

correlation were used to present the analyzed data. It was established that all respondents 

from the groups were female (100.0%). Most respondents (44.8%) of total respondents, 

were aged between 50-59 years, majority of respondents 25.9% had certificate level 

education attainment, most of the respondents 44.8% had been in groups for a duration 

of above 6 years. 79.3% which catered for majority had been in groups as members. Most 

groups 56.9% had members in the range of 21 to 25 women and majority of women 

74.1% could manage to make contributions of ksh 1001 to ksh 5000 per month in 

Bungoma County. Respondents agreed unanimously that; organizational learning, 

membership power and networking power had a positive influence on economic 

empowerment of women in Bungoma County. The multiple regression coefficient (R) 

obtained was 0.694 which implied that there was a moderate positive correlation between 

independent and dependent variables. The coefficient of determination (R) obtained was 

0.516, implying 51.6% of the influence of table banking on economic empowerment of 

women in Bungoma County can be accounted to organizational learning, membership 

power and networking power. It was concluded that organizational learning, membership 

power and networking power all contribute positively to economic empowerment of 

women. It is recommended that national and county governments should formulate 

policies that will enable table banking activities to thrive to enable many women to be 

economically productive and thus alleviating poverty levels in rural areas.  

 

 

 

 

 

 

 

 



 

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TABLE OF CONTENTS 

DECLARATION AND APPROVAL ......... ERROR! BOOKMARK NOT DEFINED. 

DEDICATION ............................................................................................................. III 

ACKNOWLEDGEMENT .......................................................................................... IV 

ABSTRACT ................................................................................................................... V 

TABLE OF CONTENTS ............................................................................................ VI 

LIST OF TABLES ....................................................................................................... IX 

LIST OF FIGURES ....................................................................................................... X 

LIST OF ABBREVIATIONS AND ACRONYMS ................................................... XI 

CHAPTER ONE ............................................................................................................. 1 

INTRODUCTION .......................................................................................................... 1 

1.1 Background of the Study ............................................................................................ 1 

1.2 Statement of the Problem ........................................................................................... 4 

1.3 Purpose of the Study ................................................................................................... 6 

1.4 Objectives of the Research ......................................................................................... 6 

1.5 Research Questions .................................................................................................... 6 

1.6 Significance of the Study ............................................................................................ 7 

1.7 Scope of the Study ...................................................................................................... 7 

1.8 Study Limitations ....................................................................................................... 8 

1.9 Delimitations .............................................................................................................. 8 

1.10 Assumptions of the Study ......................................................................................... 8 

1.11 Operational Definition of Key Terms ....................................................................... 9 

CHAPTER TWO .......................................................................................................... 11 

LITERATURE REVIEW ............................................................................................ 11 

2.1 Introduction .............................................................................................................. 11 

2.2 Theoretical Review ................................................................................................... 11 

2.2.1 Social Capital Theory ............................................................................................ 11 

2.2.2 Social Cognitive Theory ........................................................................................ 16 

2.2.3 Economic Empowerment Theory .......................................................................... 21 

2.3 Conceptual Review ................................................................................................... 26 

2.3.1 Table Banking Overview and Its Success Factors ................................................ 26 

2.3.2 Credit Accessibility Success Factor ...................................................................... 27 

2.4 Empirical Review ..................................................................................................... 28 



 

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2.4.1 Influence of Organizational Learning on Economic Empowerment of Women ... 29 

2.4.2 Membership Power in Table Banking and Its Influence on Economic 

Empowerment on Women .............................................................................................. 31 

2.4.3 Networking Power and their Influence on Women Economic Empowerment ..... 33 

2.4.4 Women Economic Empowerment in Kenya ......................................................... 35 

2.5 Conceptual Framework ............................................................................................ 38 

2.6 Research Gaps .......................................................................................................... 39 

CHAPTER THREE ...................................................................................................... 42 

RESEARCH METHODOLOGY ................................................................................ 42 

3.1 Introduction .............................................................................................................. 42 

3.2 Research Design ....................................................................................................... 42 

3.3 Target Population ..................................................................................................... 42 

3.4 Sampling Procedures ................................................................................................ 43 

3.5 Instruments for Data Collection-Research Instrument ............................................. 44 

3.6 Pilot Study ................................................................................................................ 44 

3.6.1 Validity Test for Data Collection Instrument ........................................................ 44 

3.6.2 Reliability test for Data Collection Instruments .................................................... 44 

3.7 Data Collection Procedure ........................................................................................ 45 

3.8 Source of Data-Data Management ........................................................................... 45 

3.9 Data Analysis Techniques ........................................................................................ 45 

3.10 Diagnostic Tests ..................................................................................................... 46 

3.11 Research Ethical Considerations ............................................................................ 47 

CHAPTER FOUR ........................................................................................................ 48 

RESEARCH FINDINGS AND DISCUSSIONS ........................................................ 48 

4.1 Introduction .............................................................................................................. 48 

4.2 Return Rate ............................................................................................................... 48 

4.3 Demographic Characteristics of the Respondents .................................................... 48 

4.3.1 Respondent Distribution by Gender ...................................................................... 49 

4.3.2 Distribution of Respondents by Age ..................................................................... 50 

4.3.3 Distribution of Respondents by Education ............................................................ 52 

4.3.4 Respondent Distribution by Duration of Engagement in Groups ......................... 54 

4.3.5 Distribution of Respondents by Positions Held in the Group ............................... 55 

4.3.6 Distribution of Respondents by Number of Females in Group ............................. 56 

4.3.7 Distribution of Respondents Based on Monthly Contribution .............................. 57 



 

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4.4 Organizational Learning in Table Banking on Women Economic Empowerment .. 59 

4.5 Membership Power in Groups on Women Economic Empowerment ..................... 61 

4.6 Networking Power in Table Banking on Women Economic Empowerment ........... 64 

4.7 Economic Empowerment of Women as a Result of Table Banking ........................ 67 

4.8 Multiple Linear Regression of the Study .................................................................. 69 

4.9 Analysis of Variance (ANOVA) .............................................................................. 70 

4.10 Regression Coefficientsª ......................................................................................... 70 

4.11 Correlation Analysis ............................................................................................... 71 

4.12 Discussions of the Findings .................................................................................... 73 

4.12.1 Organizational Learning and Economic Empowerment ..................................... 73 

4.12.2 Membership Power on Economic Empowerment ............................................... 74 

4.12.3 Networking Power on Economic Empowerment ................................................ 75 

CHAPTER FIVE .......................................................................................................... 77 

SUMMAR, CONCLUSION AND RECOMMENDATIONS ................................... 77 

5.1 Introduction .............................................................................................................. 77 

5.2 Summary of the Findings ......................................................................................... 77 

5.3 Conclusions of the Study .......................................................................................... 77 

5.4 Recommendations of the Study ................................................................................ 78 

5.5 Suggestion for Further Studies ................................................................................. 79 

REFERENCES ............................................................................................................. 80 

APPENDICES ............................................................................................................... 85 

Appendix 1: Introduction Letter ..................................................................................... 85 

Appendix II:  ERC Document ........................................................................................ 86 

Appendix III: Research Permit ....................................................................................... 87 

Appendix IV: Plagiarism Report .................................................................................... 88 

  



 

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LIST OF TABLES 

Table 1: Return Rate ....................................................................................................... 48 

Table 2: Respondent Distribution by Gender ................................................................. 49 

Table 3: Distribution of Respondents based on age ....................................................... 50 

Table 4: Distribution of Respondents based on education attainment ........................... 52 

Table 5: Distribution of respondents by duration period ................................................ 54 

Table 6: Distribution of respondents by positions held .................................................. 56 

Table 7: Respondent distribution by the females in group ............................................. 57 

Table 8: Respondent distribution based on Monthly Contribution ................................ 58 

Table 9: Organizational Learning in Table Banking on Women Economic 

Empowerment ................................................................................................................. 59 

Table 10: Mean and Standard Deviation for Organizational Learning on Economic 

Empowerment ................................................................................................................. 61 

Table 11: Membership power in groups and Economic Empowerment of Women ...... 62 

Table 12: Mean and standard deviation of membership power on women economic 

empowerment ................................................................................................................. 63 

Table 13: Frequency distribution for opinions of Networking Power on Economic 

Empowerment ................................................................................................................. 64 

Table 14: Mean and Standard Deviation for Networking Power on economic 

empowerment ................................................................................................................. 66 

Table 15: Economic Empowerment of Women as a result of Table banking ................ 67 

Table 16: Mean and standard deviation of economic empowerment of women ............ 68 

Table 17: Regression Model Summary .......................................................................... 69 

Table 18: ANOVA Representation ................................................................................ 70 

Table 19: Regression Coefficients .................................................................................. 71 

Table 20: Correlation Analysis ....................................................................................... 72 

 

 

 

  



 

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LIST OF FIGURES 

Figure 1: Conceptual Framework ................................................................................... 39 

 

  



 

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LIST OF ABBREVIATIONS AND ACRONYMS 

GB    Grameen Bank 

IMF         International Monetary Fund 

JOYWO Joyful Women Organisation  

NGO   Non-Government Organisation 

ROSCAS Rotating Savings and Credit Associations 

UN  United Nations  

US   United States 

VIF  Variance Inflation Factor 

VSLAs           Village Savings and Loans Associations 

WEF            Women Enterprise Fund  



 

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CHAPTER ONE 

INTRODUCTION 

1.1 Background of the Study 

Economic empowerment is a critical element of global development goals, as it provides 

individuals, particularly women, with the means to improve their livelihoods, achieve 

financial independence, and contribute to overall economic growth. Table banking, a 

form of group-based microfinancing where members pool savings and lend to each other, 

has emerged as a notable strategy for empowering women economically, especially in 

contexts where formal financial services are less accessible. This system has become a 

catalyst for women’s economic empowerment worldwide, enabling them to support 

small enterprises, invest in their families' well-being, and foster local economic 

resilience. This background examines the influence of table banking on the economic 

empowerment of women through a global, African, and Kenyan perspective. 

In Bangladesh, table banking or similar community-based financing mechanisms, such 

as group lending, have shown significant positive outcomes in enhancing women's 

economic empowerment. The Grameen Bank, a prominent microfinance institution, has 

helped many Bangladeshi women access credit without conventional collateral (Yunus, 

2017). This financial support has allowed women to invest in small-scale businesses, 

thereby elevating their economic position within households and communities. 

Furthermore, table banking initiatives in Bangladesh empower women by improving 

their decision-making abilities within the family and community (Rahman & Ahmad, 

2020). These achievements are consistent with findings that link financial inclusion 

through microfinance to women's increased participation in economic activities, 

demonstrating table banking’s potential impact on women’s economic autonomy and 

social standing. 



 

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India provides another example of the transformative potential of group-based financial 

initiatives for women. The Self-Employed Women’s Association (SEWA) in Gujarat, 

India, supports low-income women through a cooperative financial model that resembles 

table banking (Sharma & Zeller, 2021). SEWA's members pool resources to create a 

shared fund, from which they can borrow to expand small enterprises or meet urgent 

needs. Such initiatives have enabled women to diversify their sources of income and 

enhance their economic stability. A study by Kabeer (2022) concluded that such 

collaborative financial models improve not only women’s income levels but also their 

confidence, allowing them to negotiate better terms and participate more actively in 

community decision-making. 

In Ghana, table banking and similar microfinance programs have become increasingly 

popular as tools for economic empowerment among women. The Village Savings and 

Loan Associations (VSLA) are widely adopted, allowing women to save, borrow, and 

invest in local enterprises (Mensah, 2019). This system encourages women to participate 

in economic activities, particularly in rural areas, by reducing their reliance on traditional 

banking services, which often exclude low-income earners. The VSLA model also fosters 

a sense of community and mutual support among members, enhancing the social capital 

that is essential for economic resilience. A study conducted by Boateng et al. (2021) 

highlights that women involved in VSLAs experience increased income stability and 

improved financial literacy, factors critical for their economic empowerment. 

Nigeria also demonstrates how table banking has fostered women’s economic 

empowerment through community-based microfinance groups. Programs such as the Lift 

Above Poverty Organization (LAPO) Microfinance Bank have made strides in 

empowering Nigerian women by offering small loans and saving options (Igbokwe-Ibeto 

& Osakede, 2019). The LAPO model is structured to support low-income women in rural 



 

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and urban areas, enabling them to access financial resources to support small businesses. 

Research by Oduyoye and Okurumeh (2020) reveals that these interventions contribute 

significantly to women's empowerment, allowing them to generate income 

independently, support their families, and strengthen their economic status within 

society. This model underscores the value of group-based financial strategies in 

enhancing economic opportunities for women in Africa. 

In Kenya, table banking has gained traction as a viable model for economic 

empowerment, particularly in rural and semi-urban areas where women have limited 

access to formal financial services. Initiatives like the Joyful Women Organization 

(JOYWO), established in 2009, have been instrumental in helping women access credit 

through table banking groups (Mwangi, 2020). JOYWO’s model emphasizes collective 

savings and lending among women’s groups, which supports members in building small 

enterprises and managing household financial needs. According to Wanyama and 

Kimani (2021), participation in table banking has increased financial independence and 

self-confidence among Kenyan women, contributing to their economic empowerment. 

The success of JOYWO has encouraged other local organizations to adopt similar table 

banking approaches to address economic disparities faced by women. 

Another example of table banking’s impact in Kenya is the success seen within the 

initiatives by Kenya Women Microfinance Bank (KWFT). KWFT has adapted its 

microfinance approach to include table banking elements, particularly in rural areas, 

where formal banking infrastructure is sparse (Otieno & Koech, 2020). By leveraging 

group lending, KWFT enables women to access credit and save money collectively, 

reducing financial exclusion and promoting sustainable economic practices. Research by 

Njoroge and Wambua (2022) shows that these table banking activities help women build 

capital, expand small enterprises, and increase household income, which positively 



 

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impacts overall community welfare. Table banking thus stands as a transformative model 

for economic empowerment, with substantial benefits for women’s financial autonomy 

in Kenya. 

Table banking has emerged as a powerful tool for economic empowerment across diverse 

settings globally, regionally, and locally. Globally, countries like Bangladesh and India 

have demonstrated how community-based financial systems can improve women’s 

economic status and social influence. Regionally, African nations such as Ghana and 

Nigeria highlight the adaptability of table banking in addressing the unique challenges 

women face in accessing traditional banking services. In Kenya, table banking initiatives 

have empowered women by facilitating access to financial resources, thereby enabling 

them to improve their economic standing. The success of these programs underscores the 

potential of table banking as a sustainable financial model for empowering women 

economically in contexts where formal banking options may be limited. 

 

1.2 Statement of the Problem 

In Kenya, economic empowerment among women, particularly in rural areas, remains a 

challenge due to limited access to financial resources and the formal banking sector 

(Mwangi & Wanyama, 2020). Despite government efforts to promote financial inclusion, 

rural women often lack the financial literacy and collateral necessary for traditional 

banking services, leaving many without access to the capital needed to improve their 

economic status. Table banking, an alternative microfinance approach based on group 

lending and community-based savings, has gained popularity as a solution to this gap, 

fostering economic independence and resilience among women (Otieno & Koech, 2020). 

However, there is limited empirical research on the effectiveness of table banking in 

empowering women economically, especially in specific Kenyan counties like 



 

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Bungoma, where economic and social factors vary significantly compared to other 

regions (Wambua & Njenga, 2021). 

While some studies have explored the role of microfinance in general on economic 

empowerment, these often overlook the unique dynamics of table banking in rural 

settings. Research by Njoroge and Wambua (2022) highlights how table banking has 

empowered women in areas like Nairobi and Nakuru, leading to improvements in 

household income and financial decision-making. However, Bungoma County presents 

unique socio-economic challenges, such as high poverty levels and limited financial 

infrastructure, which may affect the efficacy of table banking differently from other 

regions. This study addresses the gap by focusing specifically on Bungoma, assessing 

whether table banking achieves similar outcomes for women in this context. 

Understanding the influence of table banking in Bungoma is crucial, as previous studies 

may not fully represent the specific barriers and opportunities faced by women in this 

region. 

The urgency of this study is underscored by the persistent economic inequalities in 

Bungoma County, where many women continue to experience financial insecurity 

despite participating in table banking groups (Wafula & Mukewa, 2020). Without 

targeted research on the effectiveness of table banking in Bungoma, policies and 

programs cannot be tailored to meet the unique needs of women in this area. This study 

seeks to fill this critical gap, providing localized insights into the role of table banking 

on women’s economic empowerment in Bungoma County. By addressing this need, the 

research aims to inform stakeholders, policymakers, and financial institutions about 

potential improvements and support mechanisms that could strengthen table banking’s 

impact in rural Kenya. Therefore, this research is necessary not only to deepen the 



 

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understanding of table banking's role but also to contribute to the broader goals of 

financial inclusion and gender equality in Kenya. 

 

1.3 Purpose of the Study 

The purpose of this study is to investigate the influence of table banking on economic 

empowerment of women in Bungoma county. 

 

1.4 Objectives of the Research 

The following research objectives will guide the study:- 

i) To assess the effect of organizational learning in table banking on economic 

Empowerment of women in Bungoma County, Kenya. 

ii) To determine the influence of the membership power on the economic 

Empowerment of women in Bungoma County, Kenya. 

iii) To establish the networking power contributions on the economic empowerment 

of women   in Bungoma County, Kenya. 

 

1.5 Research Questions 

The following research questions will guide the study:- 

1) What is the effect of organizational learning in table banking for women 

economic empowerment in Bungoma County, Kenya? 

2) How does membership power in table banking influence the economic 

Empowerment of women in Bungoma County, Kenya? 

3) What is the influence of high networking power in table banking for women in 

Bungoma County Kenya for economic empowerment? 

 



 

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1.6 Significance of the Study 

The notion of "table banking" was developed to help women overcome economic 

inequality and social isolation. It does this by allowing them to pool their resources and 

lend to one another. The financial resources made available to women via table banking 

allow them to support themselves and their families better. This, in turn, has a positive 

effect on the community at large. Improve our understanding of women's economic 

empowerment and aid in its expansion as this study elucidates pathways to enhanced 

quality of life on personal, neighborhood, and national scales. 

This research will help, in a meaningful way, to the creation of policies in the nation 

addressing the empowerment of women. Future scholars, practitioners, students, and the 

general public in Kenya will all benefit from the study's contribution to the growth of 

theory in the area of microfinance and women's empowerment. 

 

1.7 Scope of the Study 

The scope of this study is confined to examining the influence of table banking on 

economic empowerment among registered women’s groups in Bungoma County, Kenya. 

This research will focus solely on registered women who participate in formal table 

banking activities, allowing for a structured assessment of its impact within an organized 

framework. To ensure a comprehensive analysis, the study will be conducted over a six-

month period, from April 2024 to September 2024, providing ample time to observe the 

patterns, challenges, and benefits associated with table banking across various phases. 

This extended timeframe will enable multiple rounds of data collection and follow-up, 

ensuring that seasonal and contextual factors specific to Bungoma County are well-

accounted for. By concentrating on the concept of table banking as it relates to women’s 

economic empowerment in Bungoma County, this study aims to deliver focused insights 



 

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to policymakers, local authorities, and non-governmental organizations, highlighting the 

effectiveness and potential for improvement within this financial model. 

 

1.8 Study Limitations 

The study shall take three months from April to June 2024. It will be restricted only to 

registered women groups in Bungoma county. Some respondents may be unavailable for 

contact during the field survey because their schedules conflict with the poll's timeframe 

due to activities like business travels or vacations for development employees.  

 

1.9 Delimitations 

The researcher will attempt to contact many groups as possible to increase response rate 

thereby obtain required data, will use comprehensive analytical tools to ensure any 

hidden information is revealed through statistical analysis. 

 

1.10 Assumptions of the Study 

All respondents are presumed to have access to the study and to be willing to provide 

their informed permission in the research proposal. It operates on the presumption that 

respondents will offer accurate data that may be utilized to draw conclusions about the 

rest of the population. In addition, it is expected that the devices used to collect data 

would have a high level of validity and reliability. The researcher has acknowledged the 

possibility of a wide range of demographic characteristics in the area where data would 

be collected. The research makes the assumption that the participants will answer the 

questions provided to them by the researcher in a true and accurate manner, despite the 

fact that their cultural connections and views will differ. It is also assumes that most 

Women in Bungoma County are practicing table banking, and that regulatory agencies 

support table banking practices among women groups. 



 

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1.11 Operational Definition of Key Terms 

Microfinance: The provision of financial services to persons or organizations with low 

incomes who are usually excluded from conventional banking. 

Table Banking: A technique for group finance in which members of the group assemble 

on a regular basis, lay their savings, loan repayments, and other 

contributions on a table in front of them, and then proceed to borrow 

instantly either as a long-term or short-term loan according to their own 

individual interest rates. 

Women Empowerment: The process of recognizing and valuing the perspectives of 

women, making an effort to find those perspectives, and elevating the 

position of women via increased awareness, education, literacy, and 

training in order to better equip them to make choices that affect their 

whole lives. 

Organizational Learning: The act of developing new information, keeping existing 

information secure, and sharing it with other employees or members of an 

organization. 

Marginalized areas: Communities confined to the lower or peripheral edge of the 

society. 

Inter-personal networking  A term that refers to the interpersonal connections that are 

fostered between different members of an organization. 

Social Capital: The webs of personal and professional connections that bind the 

members of a given society and make it possible for that society to carry 

out its tasks efficiently. 



 

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Quantitative data analysis: Doing analysis on data that consists of numbers or data that 

can be "converted" into numbers quickly and readily without the data's 

original meaning being altered in any way. 

Networking: Is the sharing of knowledge and ideas, often in a less formal social context, 

among individuals who have a shared occupation or specific interest in a 

certain topic. 

 

  



 

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CHAPTER TWO 

LITERATURE REVIEW 

2.1 Introduction 

This section will discuss the literature review and empirical Literature. The section 

begins with a review of some of the theories upon which the study is based, followed by 

a review of the key concepts and concluded with a look into some of the major studies in 

this area. 

 

2.2 Theoretical Review 

Karl Marx's idea of social capital will serve as the primary theoretical framework for this 

investigation. The term "conceptual framework" is used to describe a word in relation to 

ideas in a certain field, namely the investigation of the effect of alternative table banking 

financing methods among various socioeconomic groups (Clever, 2021). This definition 

includes acceptance and comprehension of the theories it is, investment into ventures, 

and dependent on. In other words, creating a hypothetical construct is to define (MFI, 

2019). This procedure of penalization is often confused with functional elucidation, but 

it should not be the case (Kumar, 2018); therefore, the purpose of this part is to skillfully 

define the analytic framework that was utilized to investigate the effect of table banking 

in Bungoma County as an optional financing method amongst groups that were selected: 

the generation of wealth in Kenya via the economic empowerment of women. 

 

2.2.1 Social Capital Theory  

Social Capital Theory explores the resources accessible within and through social 

networks, emphasizing the value of relationships, trust, and shared norms as mechanisms 

for social and economic benefits. The theory is rooted in the idea that social connections 



 

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are assets, or "capital," that individuals and communities can leverage to achieve specific 

objectives. It has gained prominence in understanding economic development and 

empowerment strategies, particularly among communities with limited access to formal 

financial institutions (Yunus, 2019). Although the term "social capital" appeared 

sporadically in the 1980s, Social Capital Theory's foundational underpinnings can be 

traced to Émile Durkheim’s work on societal cohesion and networks. However, Jane 

Jacobs is credited with popularizing the term in her 1961 work, "The Death and Life of 

Great American Cities," where she highlighted the value of community networks in 

fostering trust and collective action (Tembo Kenya, 2022). Social Capital Theory has 

since evolved, incorporating contributions from various scholars who have developed a 

more nuanced understanding of how social networks function as economic resources. 

A central figure in the development of Social Capital Theory is Norman T. Uphoff, who 

expanded on the foundational ideas of social capital by proposing a structured framework 

that emphasizes trust, reciprocity, and social norms (Uphoff, 2019). Uphoff's 

interpretation of social capital integrates the relational, cognitive, and structural aspects 

of social networks, suggesting that these elements collectively enable people to work 

collaboratively toward shared goals. According to Uphoff (2019), relational social capital 

involves trust and reciprocal actions, cognitive social capital encompasses shared values 

and cultural norms, and structural social capital refers to established roles and networks 

that facilitate collective action. This tripartite model positions social capital as a powerful 

driver of social and economic development, particularly in contexts where formal 

institutions may not fully support individual financial advancement. Uphoff's framework, 

therefore, provides a robust foundation for understanding how social networks can foster 

financial independence and resource-sharing, essential components for women’s 

economic empowerment through table banking. 



 

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Another significant contribution to Social Capital Theory is that of Pitt (2020), who 

argued that social capital is intrinsically linked to the concept of influence within 

networks. Pitt (2020) contends that influence is as important as social capital itself, 

suggesting that individuals in a network are motivated not just by shared resources but 

also by the capacity to shape others' decisions and behavior. This dimension of influence 

extends Social Capital Theory beyond resource-sharing to include the power dynamics 

inherent in networks. In the context of economic empowerment, this notion of influence 

becomes crucial, as it enables women in community-based financial groups like table 

banking to leverage their networks not only for financial support but also for fostering 

social influence, building leadership skills, and increasing their autonomy in decision-

making processes. This perspective highlights that social capital operates through both 

tangible financial resources and intangible social influence, making it a comprehensive 

tool for empowerment. 

The role of trust within Social Capital Theory is further explored by Clever (2021), who 

argues that the effectiveness of social capital depends on the level of trust among network 

members. Trust acts as the foundation upon which social capital is built, allowing 

individuals to take collective action and rely on others within the network. In the context 

of table banking, trust is critical, as members pool resources and depend on one another 

to honor financial commitments. Clever (2021) posits that the presence of trust in 

networks reduces transaction costs, as individuals are more willing to collaborate without 

the need for formal contracts or legal enforcement mechanisms. This reduction in 

transaction costs makes social capital an appealing approach for economic activities 

among women in rural areas, where formal financial services may be limited or 

inaccessible. Thus, trust within social capital not only enhances financial empowerment 

but also builds a sustainable community of support among women. 



 

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Uphoff's framework also underscores the absence of preconceived notions in Social 

Capital Theory, allowing for an open examination of intrinsic motivations and attitudes 

necessary for forming alliances (Uphoff, 2019). This flexibility is particularly relevant in 

examining how women in rural areas use table banking to create sustainable financial 

networks. Unlike traditional banking models, which are often rigid and rely on collateral, 

table banking builds on the principles of social capital by focusing on shared goals and 

mutual benefits. By encouraging women to pool resources and extend loans based on 

social trust, table banking becomes more than just a financial mechanism; it transforms 

into a community-based empowerment tool. This adaptability of social capital, as 

highlighted by Uphoff, makes it an effective framework for understanding the nuances 

of financial empowerment in rural contexts. 

Social Capital Theory has seen substantial application in analyzing empowerment 

through financial networks, as demonstrated by Liebeskind (2018), who explores how 

social capital enables individuals to access resources and support beyond their immediate 

means. Liebeskind's (2018) work emphasizes that social capital in financial settings is 

not limited to monetary exchanges; it also involves the exchange of information, skills, 

and emotional support. In the case of table banking, women benefit from financial 

resources and gain knowledge on budgeting, investing, and managing small businesses. 

Social Capital Theory thus provides a framework for understanding these multifaceted 

benefits, which go beyond mere financial gain. According to Liebeskind, the concept of 

social capital in this regard extends to fostering resilience and adaptability, as women 

can rely on their networks for support in times of financial hardship or economic 

opportunity. 

The adaptability of Social Capital Theory to diverse socio-economic contexts is also 

reflected in recent studies examining community-based microfinance initiatives. Michael 



 

15 

 

(2020) examined the influence of social capital on financial independence among low-

income women involved in table banking and found that social networks were 

instrumental in helping women generate income through various entrepreneurial 

activities, such as farming and selling goods. In Bungoma County, women have been 

known to engage in small-scale agribusinesses, such as cultivating thorn lemons, sweet 

potatoes, and pumpkins, and using these products in value-added activities like baking 

and selling chapatis and biscuits (Michael, 2020). This entrepreneurial spirit is fostered 

through table banking, where members collectively pool resources to support each 

other’s ventures. Social Capital Theory provides a theoretical basis for understanding 

how such initiatives enable women to move beyond subsistence-level income generation, 

leveraging their networks for sustainable financial growth. 

Linking Social Capital Theory to this study on table banking in Bungoma County, the 

theory provides a valuable lens through which to examine the mechanisms of trust, 

reciprocity, and influence that underpin the success of community-based financial 

initiatives. As Social Capital Theory suggests, the pooling of resources and the reliance 

on mutual trust are core components that enable women to access financial support in a 

way that formal institutions often cannot provide (Uphoff, 2019). By applying Social 

Capital Theory, this study will explore how women’s participation in table banking not 

only enhances their access to financial resources but also builds social bonds that 

contribute to their overall empowerment. These bonds foster a sense of belonging and 

shared purpose, which can enhance women's resilience to economic shocks and create 

pathways to sustained financial independence. 

This study is significant because it builds on the existing literature on Social Capital 

Theory by specifically examining its application in rural Kenya, where access to financial 

resources remains a challenge for women. While previous studies have focused on the 



 

16 

 

economic benefits of table banking, there is a gap in understanding the social dimensions 

of this model, particularly how social capital influences women’s ability to leverage 

financial networks for empowerment. By focusing on Bungoma County, this study 

contributes to a localized understanding of Social Capital Theory, providing insights into 

how trust, influence, and reciprocity within women’s networks facilitate economic 

empowerment. In doing so, it will highlight the unique role of social capital in 

overcoming structural barriers to financial inclusion, offering policymakers, 

development practitioners, and community organizers a framework for designing 

effective, community-driven financial empowerment initiatives. 

 

2.2.2 Social Cognitive Theory  

Social Cognitive Theory (SCT) is a psychological framework that explains how 

individuals acquire knowledge, develop behaviors, and shape their attitudes through 

observation and social interaction. The foundation of SCT was laid by Miller and 

Dollard, who initially introduced the idea of social learning by positing that behaviors 

are learned through observation and imitation (Atherton, 2021). This theory evolved 

significantly through the work of Albert Bandura in the 1960s, who extended it to include 

cognitive processes, such as attention, memory, and motivation. Bandura's contributions 

emphasized that people not only learn by observing others but also by processing 

observed information, which influences their beliefs and actions. This shift towards 

cognitive elements set SCT apart from earlier behavioral theories, which solely focused 

on stimulus-response mechanisms without accounting for the mental processes that shape 

behaviors (Bandura, 2017). 

One of SCT’s central propositions is the concept of reciprocal determinism, which states 

that behavior, personal factors, and environmental influences interact in a dynamic 



 

17 

 

relationship, mutually affecting one another (Bandura, 2017). This concept implies that 

individuals are both products and producers of their environment, shaping their 

surroundings while being influenced by them. SCT also highlights the importance of self-

efficacy, which is an individual's belief in their ability to successfully execute a task. 

Bandura (2018) argued that self-efficacy is a critical factor in determining the likelihood 

of an individual engaging in a particular behavior, as people are more inclined to perform 

tasks they believe they can accomplish successfully. Self-efficacy, therefore, plays a vital 

role in SCT as it affects not only whether an individual will attempt a behavior but also 

the level of effort and persistence they will invest in overcoming challenges. 

Social Cognitive Theory encompasses several key dimensions relevant to social 

interactions and communal behaviors, which can also be linked to components of social 

capital. According to Morazes and Pintak (2020), the dimensions of SCT relevant to 

social capital include solidarity, cooperation, trust, generosity, and reciprocity. These 

dimensions describe behavioral dispositions that encourage individuals toward collective 

action and contribute to the creation of social capital within communities. For instance, 

solidarity refers to the cohesion and mutual support among members of a group, fostering 

a shared sense of purpose and loyalty (Morazes & Pintak, 2020). Cooperation, another 

key dimension, involves a willingness to work together for mutual benefit, which is 

essential for the success of collective economic ventures, such as community-based 

savings groups. The alignment of these dimensions with social capital underlines SCT’s 

relevance in contexts where community interactions form the basis for economic and 

social empowerment. 

The dimension of generosity within Social Cognitive Theory emphasizes an altruistic 

attitude, where actions are performed for the welfare of others without immediate 

expectation of reward (Etang, 2018). In community-based settings, such as table banking 



 

18 

 

groups, generosity manifests as support and encouragement among members, fostering 

a spirit of giving that strengthens social bonds. Reciprocity is closely linked to generosity 

and involves the expectation that supportive actions will eventually be returned, creating 

a cycle of mutual benefit. This cycle of giving and receiving contributes to building trust, 

which is a foundational component of social capital. As Dasgupta (2019) argues, trust in 

SCT not only facilitates observable actions but also influences behaviors in situations 

where actions may not be directly monitored. This trust allows community members to 

rely on one another, reducing the need for formal contracts or monitoring mechanisms, 

thus enhancing group cohesion and collaboration. 

Social Cognitive Theory also emphasizes the role of observational learning, where 

individuals acquire new behaviors and skills by observing others (Bandura, 2018). In 

community settings, such as table banking groups in rural areas, observational learning 

is particularly relevant, as members learn financial management skills, business 

practices, and cooperative behaviors by watching others. Observational learning is 

supported by the concept of modeling, where experienced members of the group serve 

as role models, demonstrating successful behaviors that others can emulate. This 

modeling is critical in community-based economic empowerment, as it allows less 

experienced members to gain confidence and knowledge, fostering an environment of 

continuous learning and skill development. By observing the successes and strategies of 

peers, individuals in table banking groups can learn effective practices for managing 

finances and investing in income-generating activities, thus contributing to the group's 

overall economic resilience. 

The cognitive components of SCT also play a significant role in shaping individuals' 

motivations for engaging in group activities. According to Atherton (2021), SCT 

includes the cognitive aspect of social capital, which encompasses the beliefs and 



 

19 

 

attitudes that predispose individuals toward collective behavior. This cognitive 

component is reflected in the reasons individuals choose to participate in table banking, 

such as the desire for financial independence, the need for social support, or the belief in 

the benefits of pooling resources. These intrinsic motivations drive individuals to commit 

to group goals, cooperate with others, and persist in their efforts despite challenges. The 

cognitive aspect of SCT is therefore essential for understanding why individuals engage 

in group-based financial activities, as it reveals the underlying attitudes that make 

collective economic efforts successful. 

SCT also underscores the importance of self-regulation, which is the ability of 

individuals to control their actions, emotions, and thoughts to achieve specific goals 

(Bandura, 2018). In the context of table banking, self-regulation enables members to 

adhere to group rules, save consistently, and make disciplined financial decisions that 

contribute to their personal and communal growth. This self-regulatory process is guided 

by self-efficacy, as individuals with a strong belief in their capabilities are more likely to 

set and achieve ambitious financial goals. Furthermore, the collective self-regulation 

within the group is enhanced by accountability, as members are motivated to contribute 

consistently and uphold group standards, knowing that their actions impact the entire 

community. This dimension of SCT thus supports the development of financial discipline 

and accountability, which are critical for the success of community-based financial 

models like table banking. 

In the broader social context, SCT provides a theoretical framework for understanding 

how cultural norms and societal values influence behavior. The French practitioners 

highlighted in Ferragina’s (2018) study emphasize that social capital is deeply embedded 

in societal structures and that the equality of circumstances in a society is directly linked 

to the level of social capital present. This perspective aligns with SCT's assertion that 



 

20 

 

environmental factors shape individuals' actions and attitudes, as the surrounding social 

and economic environment influences individuals' access to resources, support, and 

opportunities. In rural Kenya, for example, the presence of a strong social capital network 

in table banking groups reflects a cultural orientation towards collective responsibility 

and mutual aid, values that are integral to the success of community-based financial 

systems. 

Social Cognitive Theory is particularly relevant to this study on the influence of table 

banking on economic empowerment among women in Bungoma County, Kenya. The 

theory’s emphasis on observational learning, trust, and reciprocal relationships aligns 

with the dynamics of table banking groups, where members learn from each other and 

build networks of mutual support. In these groups, women observe successful financial 

behaviors, such as saving and investing, from experienced members and emulate these 

practices to improve their financial status. This learning process is essential for the 

success of table banking, as it provides a continuous cycle of knowledge-sharing and 

skill development that empowers women economically. 

Moreover, SCT’s focus on self-efficacy and motivation resonates with the goals of table 

banking, where women are encouraged to believe in their financial capabilities and make 

proactive decisions about their economic future. Self-efficacy, a central component of 

SCT, enables women in Bungoma County to pursue income-generating activities with 

confidence, knowing that they have the support and resources of their table banking 

group. This belief in their capabilities motivates them to persist in entrepreneurial 

ventures, invest in small businesses, and save for future needs, thus achieving greater 

economic independence. 

Social Cognitive Theory also supports an understanding of the social capital generated 

within table banking groups. The dimensions of trust, reciprocity, and cooperation foster 



 

21 

 

a strong sense of community among members, creating an environment where women 

feel supported and motivated to contribute to collective goals. In Bungoma County, 

where access to formal financial institutions is limited, this social capital serves as an 

essential resource, enabling women to rely on each other for financial support and 

guidance. By examining table banking through the lens of Social Cognitive Theory, this 

study will provide insights into how social networks and observational learning facilitate 

economic empowerment for women, offering a nuanced understanding of the social and 

cognitive processes that underpin community-based financial systems. This framework 

not only explains the mechanisms behind table banking’s success but also underscores 

its potential as a model for empowering women in similar socio-economic settings, 

highlighting the value of SCT in analyzing and supporting community-driven economic 

initiatives. 

2.2.3 Economic Empowerment Theory  

Economic Empowerment Theory emphasizes individuals' and communities' ability to 

make choices and transform those choices into desired actions and outcomes that 

improve their socio-economic conditions. Proposed by Paulo Freire, a Brazilian educator 

and philosopher, this theory is grounded in the concept of empowerment as a process of 

enabling individuals to take control over their circumstances, gain autonomy, and assert 

their rights within society (Freire, 2020). Economic empowerment, as a subset of this 

broader empowerment concept, focuses on equipping individuals, particularly 

marginalized groups such as women, with the knowledge, skills, and resources necessary 

to improve their financial independence and influence economic decisions. Freire’s work 

on empowerment through education has deeply influenced economic empowerment 

frameworks, promoting the idea that economic empowerment allows individuals not only 



 

22 

 

to access resources but also to understand and challenge the social structures that limit 

their economic potential. 

Economic empowerment enables individuals, especially women, to move from a state of 

dependency or powerlessness toward one of control and agency (Etang, 2020). It 

provides them with the tools to create and pursue their own opportunities, thereby lifting 

themselves out of poverty and improving their quality of life over time. According to 

Etang (2020), empowerment is a fundamental driver of long-term socio-economic 

change, as it encourages individuals to actively participate in economic activities, make 

informed financial decisions, and ultimately enhance their living standards. Freire’s 

theory suggests that economic empowerment is not simply about income generation but 

also about developing a sense of self-worth and self-reliance that enables individuals to 

navigate economic challenges independently. For marginalized women, this means 

building the skills and confidence necessary to engage in entrepreneurial ventures, seek 

fair wages, and participate in local economies, thereby contributing to community and 

national development. 

Freire’s perspective on economic empowerment has also informed the understanding that 

structural inequalities, including gender discrimination, are significant barriers to 

women's economic advancement (Kabeer, 2020). His theory advocates for a holistic 

approach to empowerment, emphasizing that economic progress cannot be fully achieved 

without addressing the social and cultural barriers that perpetuate economic inequity. 

Kabeer (2020) argues that empowerment must be viewed within the broader social and 

ecological context, encompassing communities, self-help groups, and communal 

activities that support personal and collective growth. This ecological definition 

underscores that individual empowerment is closely linked to community empowerment; 

hence, group-based initiatives such as table banking are seen as powerful tools for 



 

23 

 

advancing economic empowerment in under-resourced communities, where collective 

support can substitute for limited formal financial access. 

Furthermore, Freire’s theory is grounded in the concept of conscientization, or critical 

consciousness, which refers to the development of an in-depth understanding of the 

social, political, and economic factors that shape one's life (Freire, 2021). This critical 

awareness is essential for economic empowerment, as it enables individuals to recognize 

and challenge the forces that limit their economic potential. According to Bandura 

(2021), empowerment is not merely about accessing resources but also involves 

understanding the power dynamics that govern resource distribution and taking action to 

change one's position within these structures. For women, conscientization means 

developing an awareness of the systemic inequalities they face, such as wage disparities 

and limited access to financial services, and mobilizing collectively to overcome these 

barriers. Freire’s emphasis on critical consciousness is particularly relevant to economic 

empowerment, as it fosters a mindset of resilience and self-determination, essential for 

navigating the complexities of financial independence. 

Economic empowerment, particularly for women, involves building capacity not only in 

terms of financial literacy and resource access but also in achieving a more equitable 

social standing (Kumar, 2022). Women’s empowerment is increasingly recognized as a 

vital component of broader economic growth, as it fosters more inclusive and resilient 

economies (Etang, 2020). Freire’s theory advocates that empowerment should lead to 

tangible outcomes such as increased income, improved employment opportunities, and 

enhanced decision-making power within the household and community. Kumar (2022) 

points out that economic empowerment is transformative as it shifts the social dynamics 

that often constrain women’s roles and contributions to the economy. In many societies, 

including Bungoma County in Kenya, women’s economic activities are often 



 

24 

 

undervalued, and their potential contributions to local and national economies remain 

untapped due to gender-based barriers. Economic Empowerment Theory provides a 

framework for addressing these challenges by promoting the idea that women's active 

participation in the economy is both a right and a strategic imperative for development. 

Freire’s theory also highlights the importance of access to resources as a critical factor 

in economic empowerment (Etang, 2020). For women in rural areas, access to financial 

services such as credit and savings is essential for starting and sustaining small 

businesses. The concept of economic empowerment within Freire's framework extends 

beyond the simple provision of resources to include the ability to effectively utilize these 

resources to improve one’s socio-economic position. This perspective aligns with 

Kumar's (2022) emphasis on resourcefulness and resilience, suggesting that economic 

empowerment requires both material support and the development of adaptive strategies 

that enable women to thrive in challenging economic environments. This aspect of 

Economic Empowerment Theory is particularly relevant for initiatives like table 

banking, where women pool resources to create a self-sustaining financial system, 

allowing them to invest in income-generating activities without the need for external 

support from formal banking institutions. 

In the context of Bungoma County, economic empowerment has been shown to play a 

significant role in poverty reduction and socio-economic development. According to 

Masinde (2019), empowering women economically has led to improvements not only in 

their personal livelihoods but also in their families and communities. Women in 

Bungoma County who participate in economic empowerment programs exhibit a 

remarkable capacity to influence economic change, demonstrating that when provided 

with the right tools and support, they can lift themselves and others out of poverty. 

Economic Empowerment Theory supports the notion that empowering women 



 

25 

 

economically has a ripple effect, as it enables them to reinvest in their families’ health, 

education, and well-being. Freire’s model of empowerment is particularly relevant in this 

context, as it emphasizes community-oriented strategies that enhance women’s agency 

and promote self-sufficiency. 

Economic Empowerment Theory is also closely linked to gender equality, as it addresses 

the imbalances in economic opportunities and resources that exist between men and 

women. Freire’s model calls attention to the structural barriers that restrict women’s 

access to economic opportunities and proposes empowerment as a means of breaking 

these barriers (Kabeer, 2020). By fostering economic independence, women are better 

positioned to advocate for their rights and challenge gender-based restrictions within 

their communities. Freire's model aligns with the argument that economic empowerment 

for women should lead to equal participation in economic decision-making, which is a 

critical step toward achieving gender parity (Etang, 2020). Thus, the theory promotes a 

comprehensive approach to economic empowerment that includes advocating for 

systemic changes to create a more level playing field for women in the economy. 

Economic Empowerment Theory is particularly relevant to the study of table banking 

and its impact on women’s economic empowerment in Bungoma County. Table banking 

is a community-based financial system that aligns with Freire’s emphasis on collective 

empowerment, as it enables women to pool resources, support each other’s financial 

goals, and achieve economic independence in a supportive, communal setting. By 

examining the influence of table banking through the lens of Economic Empowerment 

Theory, this study will explore how this model not only provides financial resources but 

also fosters critical consciousness, self-efficacy, and agency among women participants. 

The study will investigate how table banking empowers women to challenge economic 



 

26 

 

and social barriers, reflecting Freire’s view that empowerment is a transformative process 

that goes beyond mere resource acquisition. 

Furthermore, Economic Empowerment Theory underscores the importance of self-

sufficiency and resilience, which are core outcomes of successful table banking groups. 

Women in Bungoma County who engage in table banking gain not only financial support 

but also confidence and knowledge to manage their economic activities independently, 

which aligns with Freire’s vision of empowerment as a path toward autonomy. This study 

aims to contribute to the understanding of how table banking can serve as a practical 

application of Economic Empowerment Theory, providing women with the tools to 

improve their socio-economic status, advocate for their rights, and contribute to broader 

community development. By grounding the analysis in Economic Empowerment 

Theory, this study seeks to illuminate the transformative potential of table banking as a 

sustainable strategy for enhancing women’s economic resilience and social standing in 

rural Kenyan communities. 

 

2.3 Conceptual Review 

In a research project, a conceptual framework illustrates the progression of variables and 

outlines the methods employed to evaluate their effects. Networking power, membership 

power and organizational learning represents the independent variables. Women 

economic empowerment is the dependent variable. 

 

2.3.1 Table Banking Overview and Its Success Factors 

Being a form of micro Finance supplied to the less fortunate in society, which may be 

termed as un bankable to do not have certain documents and credentials to take a loan, 

Table Banking is made available to such women (Kenya Gazzette, 2018, to ensure that 



 

27 

 

the practice of taking loans is traced back to decades. Different financing programs have 

embraced Table Banking as a resolution as a small enterprise aid program initiated in 

many counties (Goldberg, 2022), including Bungoma County, and across several 

countries like Asia and Latin America. These programs have been affected to perform 

operations suitable to particular environments (Baron & Markman, 2018). Economic 

influence confers upon how effectual the intervention outcomes are, signifying 

advancement in the economic Empowerment of women in marginalized areas (Global 

Report, 2020). Development in the economy is pointed out by a significant level of 

improvement in an organization's mission and vision into an optimistic effect on the 

affected women living in adverse poverty (Crowley et al., 2018). Economic enhancement 

is gained through information, employment opportunities, health, or financing (Grameen 

Foundation, 2021). 

2.3.2 Credit Accessibility Success Factor 

Microfinance institutions have been widely recognized as important growth initiatives in 

Ethiopia over the last two decades, according to the literature (Ahmad, 2020). After the 

1996 declaration, legalized initiation regarding the movement and development of 

microfinance was formed in Ethiopia (Mengstie, 2022). During the formation of 

microfinance, this declaration was regarded as a means to begin and grow microfinance 

throughout the country. It was noted that the participation of women in microfinance is 

slowly increasing. As a result, most microfinance organizations have a coincident vision 

of poverty eradication and economic development regarding women. In different 

developing countries, women are seen as the major economic power (Clever, 2021). 

Microfinance programs play a big role in supplying services for example low-cost credit, 

skill training and savings (Mahfuz et.al, 2017). Therefore, formation of microfinance 

programs has proved to be beneficial to women who participate in them.  



 

28 

 

Women still encounter more obstacles than males when trying to get company financing, 

according to recent research (Baron & Markman, 2018). Majority of the loan application 

rejections have their basis from the lack of collateral that can be acceptable, thereby a 

major constraint for they women in Bungoma County. Lack of access to capital is a major 

reason why women business owners fall short of their male counterparts (Liebeskind, 

2018). The factors that affect the accessibility of credit for women include the women’s 

position in the society, lack or rather insufficient information, high bank rates on 

interests, and lack of collaterals. These collaterals serve as protection for a lender against 

the defaulting borrowers (Masinde, 2019). As a result, it may be utilized as a deterrent 

against defaulting borrowers' principal and interest payments.  

Due to the fact that just 1% of women in Kenya are homeowners, it is very difficult for 

Kenyan females to supply banks with collateral (Mengstie, 2022). Those collaterals have 

inclusion of car log books, personal savings, land ownership title deeds as well as fixed 

deposit savings (Michael, 2020). The lack of collaterals for women from acquiring bank 

loans hinder the women from obtaining funds to finance their investments to a greater 

extent (Hills & Stewart, 2021). Through the provision of funds, and most especially from 

the banks, women in Kenya and most especially in Bungoma County, will be 

economically Empowered to pursue businesses that will help them grow financially. 

 

2.4 Empirical Review 

Having access to financial services enables individuals who are economically 

disadvantaged to generate income, manage risks, and improve both their beneficial and 

non-beneficial assets. Strategic discussions have centered on the relevance of restricted 

savings and the availability of loans for usage combined with manufacturing, the 

establishment of groups, and the feasibility of permissions for a set amount of trust fund 



 

29 

 

for programs that are working with specific client groups in a variety of different 

situations. According to Awori and Atema (2021), several programs have developed 

effective strategies for combating poverty and functioning in rural settings. Lately, 

several sponsors' attention has been focused on becoming more familiar with equivalent 

techniques. It is assumed that expanding access of women to microfinance will allow 

women to contribute significantly to the economy together with other interventions that 

may translate into better and improved living standards for women, thereby allowing 

them to bring about significant changes in the economy of Bungoma County 

(Ledgerwood, 2020). 

 

2.4.1 Influence of Organizational Learning on Economic Empowerment of Women 

The notions of self-employment that are used in table banking are what make up 

organizational learning in the groups that are active in it. Organizational learning is 

comprised of social capacities as well as solidarity, and it is an essential component of 

ideas on empowerment. Group laws initiated by schools have the ability to lead the 

learning program as a combination section of curricular activities, according to study 

conducted by Otieno for the Kenya Organization of Environmental Education in their 

school's program (Otieno, 2020). Peterson (2022) lists improved environmental 

consciousness, a more progressive campus, networking possibilities, and financial 

savings as some of the advantages of formal education. In the same way, social 

capabilities are an involvement procedure which individuals participate in, with 

expectations to better standards of life. Organizational learning has opened the mindsets 

of the organization members in financial access, thereby increasing their capacities to a 

greater level (Khan & Noreen, 2019). Having access to various financial services is very 

necessary for the growth and development of the modern economy.  



 

30 

 

Financial sustainability, in organizational learning, is viewed as an essential resource for 

enhancing development which is sustainable (Liebeskind, 2018). The theory in question 

is considered implausible by the majority of individuals who own bank accounts, 

particularly those with low incomes who may be classified as underbanked due to their 

potential lack of access to formalized savings mechanisms. There is a growing 

recognition among practitioners of the prevalence of a conservative approach to savings, 

as opposed to the employment of loan mechanisms, in table banking programs 

implemented in counties like Bungoma via the use of Village Savings and Loan 

Associations (VSLs) (Michael, 2020). The adverse impact of credit prices on the overall 

affordability of credit services results in a decrease in investment rates and growth assets. 

The Bungoma County case study in Kenya demonstrates a situation where banking 

services and microfinance institutions (MFIs) have limited access to rural areas and 

impoverished individuals due to the financial burden associated with reaching out to such 

clients and the stringent borrowing requirements (Hills & Stewart, 2021). Breaches that 

occur in capacity and proficiency between executing partners are the major reasons for 

delay in execution of activities and insufficient standards in observation, integrating and 

recording through organizational learning (Crowley et al., 2018). In addition, literature 

showed that delays that occur in obtaining financial reports have detrimental effect on 

the capability of UN women to hand out funds and produce donor reports on time (UN 

women, 2021).  

In order to realize results, partners ought to exhibit sufficient capacity to perform 

designated tasks. Therefore, failure to connect capacity development of women fosters a 

great risk in realizing only short term goals which do not guarantee women economic 

empowerment (Brannen, 2019). The Table banking Women Group in Bungoma County, 

Kenya, are created as an efficient strategy for social and economic empowerment, 



 

31 

 

poverty alleviation as well as human development, most especially for women. There is 

a lack of acceptable quality services in rural areas, which hinders economic 

empowerment (Baron & Markman, 2018), even if the prevalence of informal services 

implies a general need for financial services. To ensure that women's capacity building 

is developed, they should be given enough support to help them stand collectively. 

Moreover to foster ability of women to be associated with the government, they should 

be trained endorsement to declare their rights regarding financial services. It will ensure 

that women's capacity in building the economy is greatly empowered (UN Women, 

2021). 

 

2.4.2 Membership Power in Table Banking and Its Influence on Economic 

Empowerment on Women 

Table banking is a concept that was inspired by the Grameen Bank (GB) in Bangladesh 

as well as the Village Savings and Loan Associations (VSLAs) in Zanzibar (Ahlen 2018). 

This is notable since table banking follows in the footsteps of these institutions. Grameen 

Bank was established in 1976 in the town of Jobra by Mohammed Yunus, the bank's 

namesake and founder. The year 1986 was the year in which it was converted into a 

legitimate bank by virtue of a specific regulation that made its establishment possible 

(Pitt & Chandler, 2019). It was formed with the sole purpose of aiding the needy in the 

community, particularly women, have easier access to finances (Peterson, 2020). 

According to Chowdhury (2018), women account for 97% of the overall borrowers of 

Grameen Bank, making them the organization's members and borrowers who constitute 

the majority. According to MkNelly and Dunford (2016), as of the year 2016, the GB has 

2600 branches across 98 percent of the villages in Bangladesh. As defined by the work 

of Karlan et al. (2020), "table banking financing" is the process by which a group of 



 

32 

 

people pool their resources to create a sum of money via a variety of small loans and 

investments. The premise of table banking is that the Bungoma County Women's Group 

may benefit from being bolstered monetarily, culturally, socially, politically, and 

spiritually. 

Emergent financial systems with softer terms of agreement attract memberships. Table 

Banking is gradually getting composed of individuals whose population is increasing at 

a high rate which makes it a critical discussion in research particularly considering 

economic empowerment of women in rural areas (Olaf et al., 2020). According to Olaf 

et al, persons who are linked to a kind of table banking that includes more than two billion 

people are mostly formed of groups that are driven to save money. individuals living in 

underserved regions, the majority of which are marginalized, make up the majority of the 

members of these networks and groups. These individuals are more likely to choose 

sustainable banking models that are adaptable because of the nature of their membership 

in the network or group. Table banking groups became popular in rural villages due to 

the absence of household cash flow to manage them and table banking came as the best 

means of doing so. The current execution of table banking is a notion that was first 

documented in 1864 in Japan during the period when towns there provided recreational 

services to Japanese Americans to interact. Immigration from Japan were often 

prejudiced by banks causing them to encounter a lot of challenges. Consequently, the 

immigrant business people from Japan were forced to practice Rotating Savings and 

Credit Associations (ROSCAS) to generate finances (Lebeskind, 2019).  

Individuals of the groups were needed to come up with an irrefutable sum of money in 

the group which would give members an opportunity to borrow money in turns from 

which they would pay back after a period of time with interest (Karlan et al., 2020). 

According to Boone and Witteloostuijn (2018), the most crucial rule of table banking is 



 

33 

 

to make sure that the SHGs you form are massive and that both their members and their 

superiors have a great deal of power. This will drive empowerment on an individual level 

on several fronts, including spirituality, politics, culture, and society. Table Banking is 

distinguished by a person's attempt and motivation by preparing savings and other 

resources by forming associations and economic activities inclined to producing income 

as a way of financing and self-determination (Hugh, 2019). Therefore, when financial 

programs are able to reach and mobilize many individuals, specifically poor women from 

marginalized areas, the economy is will increase greatly.  

 

2.4.3 Networking Power and their Influence on Women Economic Empowerment  

The use of networking power in social capital theory is shown via the idea of bridging, 

which is manifested through several mechanisms. There are a few different types of 

networking that may be distinguished here: between organizations, inside organizations, 

and between individuals. Tongia and Wilson (2018) define inter-organizational 

networking as the process of establishing and maintaining links between internal groups 

or people and external organizations. Intra-organizational networking, on the other hand, 

involves forming connections between people who already work together, and so 

includes aspects of both social perception and flexibility. According to Baron and 

Markman (2021), the inclination of entrepreneurs to react favorably to environmental 

hazards is influenced by their level of social expressiveness and self-promotion. 

Interpersonal networking, in addition, pertains to the establishment and maintenance of 

connections among individuals inside an organization (Shane, 2021). The idea of entity 

networking power is used to exploit the bridging concept, as examined via several 

constructions within the social capital theory (Clever, 2021). The literature establishes a 

connection between inter-organizational networking and the capacity to evaluate 



 

34 

 

entrepreneurial opportunities (Shah, 2020). In contrast, intra-organizational networking 

is focused on enhancing the collective strengths of an organization and utilizing 

bargaining power as a strategic approach to empower entities (Wilson, 2019).  

The dependence on individual social networking stems from the social competence of its 

members, who possess the ability to spot opportunities within their surroundings and 

demonstrate their capacity to exploit anticipated entrepreneurial chances (Kandher & 

Mark, 2022). Field (2018) argues that an entrepreneur's propensity to respond positively 

to environmental hazards is linked to personality attributes including social 

expressiveness, adaptability, and self-promotion. 

According to Ream (2018), there is a growing recognition among companies of the need 

to integrate activities of members located in diverse geographical locations. As a result, 

organizations are exploring the adoption of a novel category of online software known 

as table banking. The aforementioned applications combine planning with collaborative 

capabilities to help teams set up a structure for their interactions and work together more 

effectively (Kumar, 2022). In addition, by examining identification and dexterity 

characteristics, these methods provide the groundwork for the creation of extraordinarily 

effective teams. Microfinancing was shown to be more effective in the context of both 

individual programs and group intermediation, according to study by Gupta et al. (2021). 

However, it must be stressed that not all the sampled groups benefited from 

microbusinesses.  

A positive reputation amongst members may be gained by the strategic use of an entity's 

social capital, which can lead to the formation of collaborative buildings, the merger of 

two or more organizations, the formation of new networks, and the formation of new 

partnerships (Jin, 2019). The present study asserts and advocates for the resolution of 

effective and efficient networking capabilities by leveraging the knowledge capacities of 



 

35 

 

trainers through the improvement of educational institutions' knowledge base. A positive 

reputation amongst members may be gained by the strategic use of an entity's social 

capital, which can lead to the formation of collaborative buildings, the merger of two or 

more organizations, the formation of new networks, and the formation of new 

partnerships (Jin, 2019). 

Rural women play pivotal roles in almost in every societal aspects from time in memorial. 

Fundamental contributions have been made by the women in the creation of natural, 

human, physical and social capital for making livelihood sustainable, through economic 

empowerment (Narasiah, 2019). The human capital, natural and financial capital as well 

as the physical and social capital play an essential role in women to ensure they are 

economically empowered thereby boosting their livelihoods Saravana, 2022). Credit 

availability has positively brought the correlation with change in the livelihood status of 

women, more so in Bungoma County, through economic empowerment. 

 

2.4.4 Women Economic Empowerment in Kenya 

According to Paul & Kumari (2013), women empowerment entails granting rightful 

authority to undertake tasks, whether within the household or in the workplace. The 

decision-making role of women holds significant importance as it enhances their 

negotiating power and fosters economic empowerment. Empowered women are better 

equipped to engage in planning, decision-making processes, and contribute to 

developmental initiatives autonomously.  

Kabeer (2012) defines empowerment as the enhancement of individuals' capacity to 

make purposeful decisions in their lives. Economic empowerment initiatives aim to 

facilitate the efficient utilization of resources (Safaricom Foundation, 2011). Women are 

integral to societal well-being; thus, the prosperity and empowerment of a society hinge 



 

36 

 

on the prosperity and empowerment of its female members. Tunon (2007) asserts that 

women's empowerment is greatly facilitated by engaging in collective entrepreneurial 

endeavors outside the confines of the home, which fosters a sense of independence, 

compatibility, and effective utilization of their skills. 

According to Kumar (2019), empowerment is a method for increasing tenacity in several 

aspects of an organization's growth. These aspects include the social, economic, political, 

gender, educational, and religious dimensions of an organization. Empowerment may 

also be seen as a technique to improve gender equality. According to CIDA (2019) and 

the International Monetary Fund (2020), the empowerment advantages of a social setup 

are characterized by geography, access to development possibilities, and also by gender. 

Therefore, change that is transformative hence denoting empowerment calls for 

redistribution and review of the resources and the opportunities  to sought the 

distinguished needs , preferences and interests for both the men and the women (Lagarde, 

2022). 

Women's Empowerment is a challenge that has been witnessed globally, and mainly in 

Kenya. It is mainly because, in the past, women were subjects to men. Women make up 

70 percent of the world's population (Yunus 2020). 

Paul and Kumari (2013) highlighted that women's empowerment involves granting them 

rightful power and authority to fulfill tasks. When women are empowered, they gain the 

ability to engage in planning, decision-making, and contribute to development programs 

and activities on their own terms. 

As stated by Mallikarjuna & NAIK (2014), the evaluation of women's empowerment can 

be based on several factors. This includes assessing the percentage of income allocated 

by women for themselves and their children. Furthermore, it involves examining the 

extent of women's participation in significant household decisions, such as major 



 

37 

 

purchases like cars, houses, or appliances. Additionally, it's essential to consider women's 

access to information and technology as part of the assessment process. 

Entrepreneurship has its target to the reduction of the inequality in the distributions of 

individuals incomes at the levels of the households and the creation of opportunities for 

the poor individuals (Al-Mamun et al., 2021). According to Shah (2018), the Women 

Enterprise Fund (WEF) was established in Kenya with the goal of promoting the 

equitable distribution of income across a variety of socioeconomic groups by way of 

MSMEs initiatives. Several agents give their acknowledgements on the table banking 

fundamentals, and therefore more knowledge on table banking is needed for economic 

empowerment (Rand et al., 2018). 

Enabling rural women to access land and other assets can address both practical and 

strategic gender needs. Practical needs, such as access to food, water, and healthcare, are 

essential for survival and do not inherently challenge existing social structures. In 

contrast, strategic needs, like access to land and productive resources, have the potential 

to enhance women's economic independence but may challenge patriarchal norms 

prevalent in many communities. (Nyukuri, 2006: 17; PALAMA, 2008: 21). 

The Kenyan government has played a fundamental role in the establishment of the 

renowned The Joyful Women's Organization (JOYWO) is a non-governmental 

organization whose mission is to solve societal issues that the government has neglected 

(Keter, 2020).Its goal was to encourage women to save money and invest in themselves 

as a means of combating poverty. Several trends that affect economic empowerment in 

Kenya are factors such as the women’s levels of education, age, lack of collaterals, 

illiteracy among many other factors (Kumar, 2020). These variables have therefore had 

a significant impact on increasing women's engagement in the economy. In the approach 

to gender equity in the financial involvement and incorporation, the study seeks to make 



 

38 

 

sense of the opportunities and hindrances that clear the way to the financial incorporation 

of women and economic empowerment. 

 

2.5 Conceptual Framework 

The conceptual framework represents essential aspects and elements forming this study's 

justification (Crowley & Bass et al., 2018). Graphically, it explains the essential variables 

like dependent and independent along with the intervening variables and the moderating 

variables (Goldberg, 2022). It also indicates the most important concepts, which calculate 

the dependent and independent variables. Independent variables are Networking power, 

Membership power and Organisation learning which influence the dependent variable 

for the economic Empowerment of women to be significantly achieved programs in order 

to increase their income and bring together women to discuss a variety of concerns. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

39 

 

Independent Variables                                                                    Dependent Variable       

Table Banking                                                                         Women Economic 

Empowerment                                                                                                                                                                          

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 1: Conceptual Framework 

Source: Researcher (2023) 

 

2.6 Research Gaps 

There has been a proliferation of initiatives that are financed by benefactors, 

governments, and non-governmental organizations (Mayoux, 2021). The need that those 

who are less fortunate have access to credit is more important than resolving the 

empirical issues that arise from the disparity in the manner in which low-income families 

in Bungoma County's low-income households and financial institutions carry out their 

revenues. Commercial loan institutions demand that lenders have a steady flow of income 

from which interest can be paid back as stated by the terms and conditions. Nevertheless, 

Women Economic 

empowerment  

a) Decision making 

capacity 

b) Ownership of 

 property 

c) Household income 

capacity 

 

Networking Power in Table-

Banking 

-Individual networks formed 

-Intra/Inter organizational 

 networking 

-Training partnerships 

Membership power in table 

banking 

-Self-efficacy 

-New group formation rate 

-Membership retention rate 

-Team building 

-Membership outreach 

Organizational learning in 

table banking 

-Governance 

-Leadership development 

-Business development 

-Participation 



 

40 

 

the earning of numerous self-employed households could be more stable despite their 

size. In order to attain success, financial agents who give services and produce local 

assets must be able to meet dear performance standards. They should be able to meet 

quality repayments and give access to customers 

Theoretical and conceptual analyses, in addition to empirical research, all concur that 

table banking has the potential to significantly influence community development, 

economic growth, national welfare, and the income levels of individual households. 

Research on table banking and Village Savings and Loan (VSL) initiatives is few and 

poorly documented. These programs may be helpful for members of the poorest rural 

families, who otherwise have little access to financial markets and the loans and savings 

possibilities they offer. It is important to note that the Kenyan government has prioritized 

creating a policy for funding female entrepreneurs, but that there is no overarching policy 

framework in place to govern and standardize the implementation of table banking 

projects at the national level. This is despite the fact that the Kenyan Government has 

made the basic commitment to initiate Women Entrepreneurship Funding policy. As a 

way to put in place levels for the savings-led programs, reviews indicate that it is 

necessary to validate the literacy levels, development activities, management, and 

outreach to people of the community who are more financially disadvantaged. Particular 

attention was paid during the first-ever international women's conference, which 

intended to raise awareness of women's dynamic role in the national economy and 

women's rights, to the challenge that women in Bungoma County face in obtaining loans. 

This was done in order to highlight the importance of the situation. As a consequence of 

this, it resulted in the founding of the women's World Bank organization as well as the 

fabrication of guides to secure the distribution of loans. Other organizations that are 



 

41 

 

operated entirely by women may be found all over the globe. These groups have 

established credit and savings 

The conceptual framework represents essential aspects and elements forming this study's 

justification (Crowley & Bass et al., 2018). Graphically, it explains the essential variables 

like dependent and independent along with the intervening variables and the moderating 

variables (Goldberg, 2022). It also indicates the most important concepts, which calculate 

the dependent and independent variables. Independent variables are Networking power, 

Membership power and Organisation learning which influence the dependent variable 

for the economic Empowerment of women to be significantly achieved. 

 

  



 

42 

 

CHAPTER THREE 

RESEARCH METHODOLOGY 

3.1 Introduction 

In this part, the research details its methodology, including its population of interest, 

sampling strategy, data collection and analysis procedures, and results presentation 

strategy. 

 

3.2 Research Design 

A research design is a plan that is adopted that integrates many parts of a study in a 

logical and cohesive way, so ensuring that a researcher successfully answers a research 

topic. A research plan is used to achieve this goal. The study used a descriptive 

explanatory methodology. According to Bhattacherjee (2012), a descriptive research 

study includes not only data collecting but also the many processes of data organization, 

tabulation, and description. Descriptive research seeks to address the fundamental issues 

of "what," "who," and "how." Research that aims to explain rather than just describe a 

phenomena is called explanatory research. They are devised to examine if one event 

effects another occurrence in a controlled environment. The study's goal is to see whether 

a table banking strategy may help women in Bungoma County become more financially 

independent, hence an explanatory descriptive research design is the best technique for 

this study. 

 

3.3 Target Population 

Mugenda (2022) defines a population as "the entire group of individuals, events, or 

objects with consistent, observable characteristics." A population may include both living 

and nonliving things. Therefore, the emphasis of this section is on the population that the 



 

43 

 

researcher intended to analyze, and the ramifications were extrapolated to apply to the 

whole population of Bungoma County based on the outcomes of the organization 

described in this section. All of the official Bungoma County women's groups were 

included in this study as respondents. The demographic of focus for this study consisted 

of the 729 women's groups registered in Bungoma County. 

 

3.4 Sampling Procedures 

According to Martyn (2008), a sampling frame is a catalog that can be used to collect the 

memberships of microfinance institutions' attributes that may identify each and every 

aspect that is to be included in the sample. This catalog can be found online. In this 

research, a straightforward random sample strategy was used to characterize the 

population that is the focus of the investigation. This research provided an illustration of 

the Bungoma Women Table Banking Groups. 

The survey was carried out using a sample size of 60 table banking groups, and the group 

secretaries were be chosen to answer the survey questions on behalf of their respective 

groups. This is due to the fact that it may be impossible to have all of the group members 

present at the time that the data is being collected.   

This study used Yamane’s (1967) formula to determine the study sample size as follows: 

n = N / (1 + Ne²) 

where, 

n = the sample size, 

N = the study population, 

e = level of significance. 

Therefore, 

  n = 729/ (1+729(0.05)²) 

  n= 260 

  n = 260 groups 



 

44 

 

3.5 Instruments for Data Collection-Research Instrument 

In order to collect data, a structured questionnaire was sent to individuals who volunteer 

to be part of the sample in the research region. 

 

3.6 Pilot Study 

Kimilili Town served as the location for the study's pilot run. The pilot research was 

carried out by gathering information from 26 different respondents, which represents 

10% of the total sample population. In order to produce the final research instrument 

which was utilized for the study, the pilot test assisted in rectifying any shortcomings of 

the instruments that are detected. 

3.6.1 Validity Test for Data Collection Instrument 

In the context of research instruments, the term "validity" coined by Gravetter (2019) 

refers to how well an evaluation tool measures the variable of interest. Throughout the 

process