EFFECT OF ROSCA MICRO-SAVINGS ON THE WELFARE OF BODA-BODA MEMBERS IN EMBAKASI SUB-COUNTY
Abstract
This study investigated the effect of ROSCA Micro-Savings on the welfare of Boda-Boda members in Embakasi Sub-County. The study was guided by Grameen Bank Lending Model. Cross-sectional research design was used in this study. The target population comprised of boda-boda ROSCA members with an accessible population of 653. Samples of 248 respondents were drawn from the study population using stratified random sampling technique. The study used structured questionnaires for data collection. A pilot study was conducted before the main study to determine the reliability and validity of the questionnaire. Validity of the questionnaire was determined through content validity test, while reliability was tested using the Cronbach alpha coefficient. Data processing and analysis was facilitated by the Statistical Package for Social Sciences version 23. It encompassed both descriptive and inferential statistics. Descriptive statistics such as means, standard deviations and variance were used. Inferential statistics was in form of Pearson’s correlation coefficient. Data was presented in form of frequency tables. The study found that micro-saving services has a significant positive relationship with welfare of members. The study indicated that affordability and convenience of micro-saving services had increased income levels and increased expenditure on health and education. From the study findings, the researcher recommended that the government should enact policies that would increase participation in informal financial institutions through scaling up financial literacy programmes, and extending informal financial institutions outreach to people with low-incomes. Finally, policy should address training programs to ensure they are more appropriate to the clients’ needs, and should be conducted regularly by qualified institutions/personnel.
Key Words: Effect, Welfare, Micro-savings
CITATION: Andanje, E. N., & Sakwa, M. (2022). Effect of ROSCA micro-savings on the welfare of Boda-Boda members in Embakasi Sub-County. The Strategic Journal of Business & Change Management, 9 (2), 995 – 1007.
Full Text:
PDFReferences
Anderson, S., Baland J.M. & Moene, K.O. (2009). The Economics of ROSCAs and Intra- household Resource Allocation, Quarterly Journal of Economics vol. 117 (3): pp. 963–995.
Brau, J. C., & Woller, G. M. (2004). Microfinance: A comprehensive review of the existing literature. The Journal of Entrepreneurial Finance, 9(1), 1-28.
Chiteji, N.S. (2002). Promises kept: Enforcement and the role of rotating savings and credit associations in an economy, Journal of International Development, Vol.14 pg. 393-411.
Fadiga, T. & Fadiga, S. (2003) Collective Action and Informal Financial Institutions: An Empirical Analysis of Rotating and Savings Credit Associations (ROSCAS) in Senegal. Paper presented at the Agricultural Economics Association Annual Meeting American. August 1-4, 2004.
Galor, O., & Zeira, J. (2012). Inequality, Human Capital Formation. The Review of Economic Studies, 60(1), 35-52.
Gardial, D. I. (2004). Mobilizing savings key issues and good practices in savings promotion. (p. 3). Sweden: Swiss Agency for Development and Cooperation.
Gugerty, M. K. (2007). You can't save alone: Commitment in rotating savings and credit associations in Kenya, Economic Development and Cultural Change, Vol 55, 251- 282.
Gugerty, M. K. (2007). You can’t save alone: Commitment in rotating savings and credit associations in Kenya. Economic Development and Cultural Change, 55(2), 251-282.
Hanna, H. (2012). Why are Commercial Banks Not Entering the Microfinance Market? Microfinance Article Library Alternative Finance. MDG Publishing.
Hendricks, L., & Chidiac, S. (2011). Village savings and loans: A pathway to financial inclusion for Africa’s poorest households. Enterprise Development and Microfinance, 22(2), 134-146.
Kabuya, F.I. (2015). The Rotating Savings and Credit Associations (ROSCAs): Unregistered Sources 0f Credit in Local Communities. Journal of Humanities and Social Science, 20(8), 95-98.
Kothari, C. R. (2004). Research Methodology; Methods and Techniques (2nd revised edition). New Age International, Delhi.
Morduch, J. & Haley, B. (2002). Are Microfinance Programmes Effective in Reaching the Poorest? NYU Wagner Working Paper series.
Mugenda, O. & Mugenda, A. (2003). Research Methods: Quantitative and Qualitative Approaches, Nairobi: Acts Press. Nairobi, Don Bosco Printing Press, Pauline Publications Africa.
Mugo, J.G. (2012). The effect of financial innovation on the growth of micro-finance Institutions in Kenya. Unpublished MBA project: University of Nairobi
Rutherford, S. (2000). Raising the curtain on the Micro financial services era, in M Harper (ed), Microfinance Evolution, Achievements, Challenges, ITDG Publishing, London, pp.37-51.
Sandsor, A.M.J. (2010). The Rotating Savings and Credit Association - An Economic, Social and Cultural Institution, Thesis for the degree Master of Economic Theory and Econometrics Department of Economics University of Oslo.
Yunus, M., (2004b). What is Microcredit?
DOI: http://dx.doi.org/10.61426/sjbcm.v9i2.2314
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.