Strategic Role Of Savings And Credit Cooperative Society On Financial Empowerment Of Female Fish Sellers At Homabay Town Fish Market, Kenya

ABSTRACT

A cooperative society is made up of a group of people, who come together voluntarily to achieve common social and economic objectives. As used in the cooperative movement, the term cooperative means the societies that have certain fundamental characteristics and regulations that are adhered to, including cooperative principles. Cooperative societies have been cited as being important in financial empowerment of the poor and marginalized in the community and are one of contributors to the economy. Despite the role played by the cooperative societies in Kenya in contributing to the country’s economy studies have indicated a relatively high failure. According to the economic survey of 2016, five out seven medium scale businesses fail within the first year leading to closure of businesses hence unemployment, high poverty level, and poor standards of living. In African patriarchal settings, many societies do not allow women to own assets. This has had detrimental consequences on family, community and nation’s economic growth. A woman with no asset under her name will find it impossible to access loans in banks which will always need collateral. Financially disempowered women may not be in a position to access education or even take their children to school Since women are among the financially marginalized cohort, it was necessary to carry out this study. The study’s general objective was to assess the strategic role of savings and credit cooperative societies on financial empowerment of female fish sellers at Homa Bay town fish market, Kenya. Specifically, the study determined the role of product and service innovation on financial empowerment of female fish sellers, assessed the effect of value addition on financial empowerment of female fish sellers and determined the relationship between competitive advantage and financial empowerment of female fish sellers. The study was important in financially empowering women and addressing issues that would increase their access to markets and finance. Cross sectional study design was used. A study sample of 112 was obtained from a study population of 155. Primary data was collected using self-administered questionnaires while society’s documents provided secondary data. Descriptive statistics was used to analyze data on demographics while inferential statistics (correlational and regression analysis) was used in analyzing data on role of product and service innovation on financial empowerment, role of value addition on financial empowerment and relationship between competitive advantage and financial empowerment. The results were presented in tables. Product and service innovation, value addition and competitive advantage were found to be significant positive predictors of financial empowerment, (β=0.259, P=0.011), (β=0.183, p=0.022) and (β=0.378, p=00.36), respectively. It was recommended that these variables (product and service innovation, value addition and competitive advantage) be developed further to empower the female fish sellers financially.