Does access to Credit matter in Reduction of Poverty? Evidence from the Women Groups in Bondo Sub-county

Abstract

: Very little has been achieved in terms of poverty reduction, despite the many Self-Help groups that have been formed and operate in Bondo Sub-County due to financial constraints that affect many women. Thus, the study explored the influence of access to credit on reduction of poverty among women groups in Bondo sub-county. The study used a descriptive survey research design using 150 women groups in Bondo Sub-county. Through stratified random sampling, the groups were selected from the five wards in the sub-county. Quantitative data was collected using questionnaires and interviews. Statistical Package for Social Sciences (SPSS) version 24.0 was used for data analysis. The study also found that there was a significant association between collateral and poverty reduction since the computed p value of 0.011 is less than 0.05 at 95% confidence level. The study recommends that stakeholders such as government and financial institutions make it easier for women to access credit. Finally, the study recommends that the women groups find other avenues of investment so as to diversify their operations.