MICROFINANCE SERVICES AND FINANCIAL PERFORMANCE OF WOMEN SELF-HELP GROUPS IN KENYA: A CASE STUDY OF STANDARD WOMEN SELF HELP GROUP IN UASIN GISHU COUNTY

Abstract

This study examines the impact of microfinance services on the financial performance of women self-help groups in Kenya, specifically the Standard Women Self-Help Group in Langas Ward, Usain Gishu County. Despite the expanding role of microfinance in empowering women entrepreneurs, limited research addresses the combined effects of credit, savings, training, and insurance in informal urban settings. The study’s sample consisted of 109 active women entrepreneurs selected through stratified random sampling from approximately 150 group members. Data collection involved structured questionnaires and focus group discussions, with instrument reliability confirmed by Cronbach’s alpha values exceeding 0.7. Quantitative analysis employed descriptive statistics, regression, and ANOVA to evaluate outcomes including income growth, savings mobilization, loan repayment capacity, and business expansion. Findings indicate that microfinance training significantly improves financial performance, whereas credit, savings, and insurance positively but not significantly influence outcomes. The integrated microfinance services explain variations modestly, emphasizing the influence of socio-economic and contextual factors. Recommendations urge tailored microfinance strategies addressing informal settlement challenges, increased training and advisory services, streamlined loan processes, and enhanced awareness and accessibility of insurance products. This study provides empirical evidence supporting the importance of integrated microfinance approaches with capacity-building components to foster sustainable economic empowerment among women self-help groups. These insights offer practical and policy guidance for microfinance institutions, development practitioners, and policymakers aiming to strengthen financial inclusion and resilience for women entrepreneurs in peri-urban Kenya.