CONTRIBUTION OF SAVING AND INTERNAL LENDING COMMUNITIES (SILC) ON WOMEN ECONOMIC EMPOWERMENT IN IGEMBE SOUTH CONSTITUENCY, MERU COUNTY, KENYA

Abstract

This study assessed the contribution of Savings and Internal Lending Communities (SILC) in Igembe South Constituency, Meru County Kenya. Three decades ago a historic Convention dubbed “Beijing Conference” for the Elimination of All forms of Discriminations against Women (CEDAW), was held in Beijing, China. Major milestones have since been achieved in addressing gender-based challenges, including integration of women into socio-economic as well as political development. Much, however, remains to be done, as there is growing consensus that empowering a woman wholesomely is like empowering the whole family, the community and the nation at large. In rural as well as urban areas, however, access to financial institutions is usually limited or missing for the women, as transaction costs are too prohibitive for making use of banking services. Innovative schemes such as savings and internal lending communities (SILCs) have emerged as timely initiatives to provide collateral-free and reasonable credit to support women start and expand businesses and other opportunities. The Kenyan Government and various financial institutions have thrown their weight behind SILCs by providing enabling environment for the scheme to thrive. There is no doubt that SILCs are playing a critical role in uplifting women from poverty. This study sought to explore the impact of SILCs in economic empowerment of women in Igembe South Constituency. Descriptive research design was used while purposive sampling technique was then utilized in targeting only those women that are involved in SILCs. Thereafter, Yamane formula was used to obtain sample size of 100 respondents from women that are engaged in SILCs. Both secondary and primary data was collected. The findings of this study would be used by development practitioners involved in women’s economic development in Meru County and Kenya in general. The study concluded that cultural aspect remains the major factor influencing respondent’s participation in SILCs. The study revealed that, this cultural aspect included: Gender inequality, approval by men, education level, Occupation and Age of the respondents. Collection problem solving skills and increased solidarity were ranked high in relation to the social-economic changes triggered by the SILC among women while women sourcing money to save was ranked lowest on the same. The study concluded that women participating in SILC groups have encountered different experiences allowing them to have more equitable access to assets, boost in entrepreneurial qualities and finally improved income source among others.

Keywords: Socio-Economic Characteristic, Social-Economic Changes, Women Empowerment, Gender Inequalities

CITATION:  Wechabe, C. A., & Mwangi, S. W. (2022). Contribution of Saving and Internal Lending Communities (SILC) on women economic empowerment in Igembe South Constituency, Meru County, Kenya. The Strategic Journal of Business & Change Management, 9 (1), 109 – 117.