Effects of Table Banking on Socio-Economic Empowerment of Households in Turkana County, Kenya.

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Table banking is a concept that has gained popularity in the recent past in Kenya. The aim of this type of informal banking is to enhance the socio-economic status of citizens, particularly those from poor areas of the country. However, measuring and tracking changes in the levels of socio-economic empowerment of households through table banking is not well documented, although it is becoming popular, especially among women groups in Kenya. The main objective of this study was to investigate the effects of table banking on the socio-economic empowerment of households in Turkana County, Kenya. The specific objectives were: to establish the effect of table banking financial accessibility, table banking awareness, table banking group participation, table banking group credit risks management strategies on socio-economic empowerment in Turkana County. The study is guided by the theory of change by Loiseau and Walsh 2015, vulnerable group theory of financial inclusion and public good theory of financial inclusion. The study adopted descriptive survey design where questionnaires were used to get primary data. Secondary data was used to validate the primary data collection. The study involved a sample of 398 members drawn using simple random sampling method from a population of 60,500 Table banking members from Kalobeyei ward, Kakuma ward in Turkana West Subcounty in Turkana County. A total of 398 questionnaires were administered with a return rate of 97.0%. The data collected was analysed using descriptive statistics. The study relied on Pearson’s correlation, linear regression and factor analysis to draw inferences from the responses. Statistical analysis was done with the aid of statistical package of social sciences (SPSS) software version 24. The findings of the study revealed a strong, positive and statistically significant relationship between access to finance and socio-economic empowerment of households. The findings of the study also showed a fairly, strong, positive and statistically significant relationship between table banking awareness on socio-economic of households. Besides, the findings revealed a very strong, positive and statistically significant relationship between Table banking and active group participation on socio-economic empowerment of women. The results of the study also revealed a very strong, positive and statistically significant relationship between table banking credit risk management strategies and socio-economic empowerment of women. According to the findings, this study recommends continuous, operative and thorough training of all groups involved in table banking to enhance their capacity in leading the groups and enhancing financial management capability and performance. Additionally, the study recommends creating a functional system for financial access through the use of several financial products at affordable prices, this focuses on government considering increasing the avenues and mechanisms for socioeconomic empowerment of women and special interest groups, especially in the rural areas. As shown in this study, findings provide evidence of active participating of women in the table banking compared to men involvement, based on this it will also be pivotal to further research the basis of men’s involvement in table banking and how affects their contribution to socio -economic empowerment at the household level.