Effect of Social Capital on Financial Inclusion of Women Groups in Northern Rangeland Trust, Kenya

Abstract

Women groups are empowerment associations that form a basis that women can rely not only for professional growth but also for propelling each other to power and opening up great opportunities that make them outstanding leaders in businesses and companies. That notwithstanding, financial illiteracy among women in North Rangeland Trust groups remains persistent. The main objective of the study was to investigate effect of social capital on financial inclusion of women groups in Northern Rangeland Trust, Kenya. Specific objectives were; To evaluate the effect of social networks, social support, social participation social cohesion on financial inclusion of Northern Rangeland Trust women groups, Kenya. Empowerment theory guided social network variable of the study. Social Capital theory guided social support variable of the study. Social exchange theory guided social participation and social cohesion variables of the study. The current study used descriptive research design to collect quantitative and qualitative data. The target population was 10 women groups registered in Northern Rangeland Trust. The respondents were 10 chairladies, 10 secretaries, 10 treasurers, and 152 women members. Women group leaders were interviewed while the women who were members of self-help groups answered the questionnaire. The study conducted pre-test on 1 women group in Samburu County selected using simple random method. The study also sampled 1 chairlady, 1 secretary, 1 treasurer and 15 women members. Chairladies, secretaries and treasurers were selected using purposive sampling method while the members were selected using simple random sampling method. The descriptive statistics such as frequencies, percentages and median were computed. The findings were presented using descriptive tables, figures and narratives for ease of understanding the results. Inferential analysis to be generated included model summary to test the level of influence, analysis of variance to test hypothesis and regression coefficients to test the study’s model. Diagnostic tests such as normality, linearity, multicollinearity, heteroskedasticity, and autocorrelation were tested. The study established that social participation had the greatest effect of 74.5% on financial inclusion. The conclusion made on social networks was that most women lacked money to purchase internet enabled mobile gadgets that would help them when learning on financial matters. The conclusion on social support was that though women had been able to have income projects and financial training, they were limited on how far they could extend their financial freedom wings. The conclusion made on social participation was that in as much as women were in a position of getting finances, the full access to financial opportunities was limited. The conclusion made on social cohesion was that financial management skills such as debt management and recovery was low among the women. The study recommends that on social networks, banking institutions such as saccos and micro-finance should come up with financing products that will serve the purpose of funding women into buying electronic gadgets. The study recommends that on social support, women should be encouraged to support each other to scale up the leadership ladders. The study recommends that on social participation, there should be awareness raised by local leaders on available financial opportunities that women would engage locally to raise money. The study recommends that on social cohesion, both government and non-government institutions should introduce programs on debt management and recovery skills