International Journal of Management and Leadership Studies
2025; 6(i): 906-918
ISSN:
2311 7575
MICROFINANCE SERVICES AND FINANCIAL PERFORMANCE OF WOMEN SELF-HELP GROUPS IN KENYA: A CASE STUDY OF STANDARD WOMEN SELFHELP GROUP IN UASIN GISHU COUNT
Karen Chepngetich Mutai and Amos Agui
Published:
01 December, 2025
Volume:
6
Issue:
i
Keywords:
credit, financial empowerment, microfinance, savings, women entrepreneurs
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, Uasin 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