CONTRIBUTION OF TABLE BANKING TO HOUSEHOLDS WELL-BEING IN KABONDO KASIPUL SUB-COUNTY, HOMABAY COUNTY, KENYA

Abstract

ABSTRACT Table banking is one of the micro-finance initiatives aimed at poverty alleviation. The popularity of table banking has been growing among development agencies and governments as one of the means for poverty alleviation. Table banking has emerged as a viable alternative financier of unbanked individuals from low income households across Kenya. Table banking is envisaged to have positive effect on livelihood improvement. However, there is little information on its contribution to household well-being. The main purpose of this study was to assess the contribution of table banking to households’ well-being in Kenya with focus on Kabondo Kasipul Sub County, Homabay County. The specific objectives of the study were: To determine the relationship between credit accessibility and household well-being in Kabondo Kasipul Sub County; to establish the influence of savings in table banking on household well-being and to determine the influence of training in table banking on household well-being. A descriptive research design was adopted in which both qualitative and quantitative data were collected from household members belonging to table banking groups. The target population of this study was 795 members of table banking groups, four chiefs from the four wards and a Sub County director. A sample of 260 respondents was selected from the members of the groups involved in table banking. The sample size was arrived at using Kathuri and Pals (1973) sample size determination table which recommends that for a population of 795, a sample size of 260 is recommended. Cluster, proportionate and simple random sampling was used to select the respondents from table banking groups within the four wards of Kabondo Kasipul Sub-County. Purposive sampling was employed on four chiefs and a sub county director since they were considered to have vast experience in the management of table banking programs. Questionnaires and interview schedules were used as tools of data collection. Validity and reliability of the instruments were determined through a pilot study in Kasipul Kabondo Sub County. For clarity, Kasipul Kabondo and Kabondo Kasipul are different sub-counties but with almost similar names. Cronbach-Alpha coefficient was used to test the reliability of the instrument. The reliability coefficient was found to be 0.7 which is acceptable. Analysis of data was done using the Statistical Package for Social Science (SPSS) version 21.0. Diagnostic tests were done before developing the multiple linear regression model. These tests are: normality test; multicollinearity test; and test for heteroscedasticity. The multiple linear regression model was established in order to determine how the three independent variables influenced the well-being of households participating in table banking. The study found that individually, all the three independent variables have a positive and statistically significant relationship with the well-being of households involved in table banking. The study recommends that table banking should be integrated as an integral component of poverty alleviation policies. Since table banking contributes to households’ well-being, recommendation is also given that most members of the community should be encouraged to join table banking groups.