DOES FINANCIAL LITERACY EMPOWER WOMEN IN KILIFI COUNTY?
Abstract
The primary goals of the research are to make the loans to the women of Kilifi County affordable, the availability of the no-collateral Credits, to promote the financial literacy and to provide the facilities of the extended repayment periods to motivate the empowerment of the women in Kilifi. Three theoretical frameworks are used in the research. The survey research design that would be adopted was descriptive in nature, where the relationships between the financial inclusion strategies and the outcomes of women empowerment was evaluated in a systematic manner. The design is suitable in the study of perceptions, experiences and quantifiable results among the participants in the various socioeconomic backgrounds. The research population was comprised of all women estimated to be 749,673 years and above of the total population of women entrepreneurs of the savings and credit cooperative societies (Sacco’s), women in informal businesses and women participating in the microfinance programs in the Kilifi County. The researcher will thus only sample 384 out of the entire population to make sure that the sample represents a combination of stratified and simple random sampling, was used to sample various sub-groups of the target population. Quantitative information about access to financial services, financial literacy levels, loan use, and indicators of empowerment was collected through the use of structured questionnaires. Moreover, qualitative information through semi-structured interview guides will also be obtained to help gain insight into the key informants including microfinance officers, Sacco managers, and community leaders. Analysis of the data will then be done through quantitative and qualitative tools. Interpretation of qualitative data was done using thematic content analysis of qualitative data (interviews) and this will enable triangulation and deeper interpretation of women lived experiences. This aids in the realization of how customized financial inclusion interventions can be exploited to ensure economic empowerment of women in the Kilifi County. It provides viable lessons to policy makers, financial institutions and development partners who are determined to have gender-responsive financial reforms. Since the access of women to financial services leads to inclusive growth and sustainable development, and this study places the ideals in the daily experiences of women in the Kilifi County. The findings revealed that the collateral-free credit was found to be contributing positively to economic empowerment of women, with moderate impact on businesses growth. Fewer than a quarter (28.2%) felt that collateral-free loans helped them to start or grow their businesses, and 63.0% felt that collateral-free credit helped their economic situation. The chi-square test showed that there was a significant association between collateral-free credits and women empowerment (χ² = 337.963, df = 8, p = .006). Financial institutions should offer women loans at low and flexible interest rates, and streamline the process for women to apply for loans so that they can be more easily obtained, especially by women with less financial means.
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