Financial Management Practices and Financial Performance of Table Banking Self-Help Groups in Kenya

Fauzia Ramadhani  Ali

doi:10.59413/

Authors

Fauzia Ramadhani Ali Technical University of Mombasa, Kenya Author

DOI:

https://doi.org/10.59413/

Keywords:

financial management practices, Financial Performance, Table Banking, Self-Help Groups

Abstract

Effective financial management is critical to the sustainability and growth of organizations, including support groups such as table banking groups. Table banking involves pooling members' financial resources to provide loans at reasonable interest rates to improve their socioeconomic status. This study examines the impact of financial management practices on the performance of self-help groups using the table banking model in Kenya. Theoretical frameworks, including monetary theory and financial theory, guide the investigation alongside empirical findings from previous studies. The study examines the importance of record keeping, debt management, credit assessment and cash flow management in improving the financial performance of table banking self-help groups. The results highlight the importance of these practices in maximizing savings, facilitating credit, and ultimately promoting economic empowerment within communities. The study concludes that financial management practices play a crucial role in shaping the performance of self-help groups engaged in table banking. By adopting effective strategies such as record keeping, debt management, credit assessment, and cash flow management, these groups can improve their financial stability, promote prudent lending, and ultimately contribute to poverty alleviation and economic development.

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