The role of Self-Help Groups’ Structures in Uplifting the Livelihoods of Households in Nyakach Sub County of Kisumu County, Kenya

Abstract

Joint liability lending strategy adopted by Self Help Groups (SHGs) has provided a panacea for financial exclusion previously associated with the rural poor. Access to SHG microcredit by the rural poor enables acquisition of assets for improved production as well as food and better livelihood. However, poverty levels in some regions in Kenya remain high despite the existence of several SHGs. There were about 796 registered self-help groups in Nyakach Sub-County by December 2015. In the study area, poverty level had moved from 18% to 43% in the period up to 2019, representing 238% rise. The situation contradicts evidence from other developed countries across the globe especially parts of Asia and Europe which show that self-help groups have positive influence on the overall development of society. The purpose of the study was to explore how structures of SHGs influence livelihoods of households in Nyakach Sub County, Kenya. Specific objectives were to determine how types of SHGs influence livelihood of households; assess the influence SHG size has on the livelihood of households and to determine how objective based SHGs influence households' livelihoods. The theory of Collective Action (CA) stipulating that mobilization of groups of vulnerable population to fight a common problem which has been overlooked by responsible public institutions guided the study. Descriptive design was employed on a target population of 9450 from which a sample size of 384 respondents was calculated via Yamane's formula. Questionnaires and interview schedules were used to collect data from the SHG members whereas Key Informant interviews were used to collect data from Divisional Social Services Officers (DSSOs) who were non SHG members. Findings showed that financial and social capitals were the livelihood aspects highly influenced by structures of SHGs and the size and objective-based SHGs had high influence on livelihood of households. The influence of SHG structure on livelihood was significant but small (n=384; r = .427; p < 0.05). It was concluded that the influence of structure was not homogeneous. The study recommended that structures of SHGs should be aligned to contextual conditions of the household members.