An Assessment of People's Perception towards Community Banking in Kenya: A Case Study of Kisumu County

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dc.contributor.author Otieno, Boniface
dc.date.accessioned 2015-10-22T13:16:43Z
dc.date.available 2015-10-22T13:16:43Z
dc.date.issued 2013
dc.identifier.uri http://erepo.usiu.ac.ke/11732/1397
dc.description A Research Report by Boniface Otieno, Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA). en_US
dc.description.abstract In line with the current budgetary devolution in the Republic of Kenya, as has been established by the new constitution, there was need for monetization of rural economies as a trigger for economic transformation. Mindful of this need, this study, whose main objective was to assess people's perception towards community banking in Kenya, was conducted. It was guided by the following research questions: What are the triggers of economic development in the rural areas? What essentials of community banking contribute to capital formation? What are the perceived contributions of community banking into the rural economy? Specifically, this study sought to determine how financial need responded to the establishment of community banks in the rural settlements in Kenya, and whether it expanded credit access among the rural poor, thereby stimulating economic development in the rural settlements. The study employed a descriptive research design. The main goal of this research was to assess people's perception towards community banking in Kenya. The target population of this study included all residents of both rural and urban dwellings of the larger Kisumu County. Stratified random sampling technique was used to select 150 respondents. The collection of data was conducted through the use of questionnaires and thereafter analyzed through descriptive statistics and conclusions were drawn. The questionnaire was pre-tested to respondents before final administration. Adjustments and recommendations from the pilot survey were then incorporated to compile the final questionnaire. Statistical analysis was used to extract findings and results presented through calculations of means, frequency distributions, cross-tabulafions, and a T-test. Correlations and regressions between variables of community banking and economic development were also done to determine the existence and extent of their relationships. A l l these analyses were done using Statistical Package for Social Sciences (SPSS) software. This study was conducted during the month of July 2013. The existence of important facets of community banking that directly contribute to high economic development of the rural economy were revealed in the findings of this study. Using various measurements and attributes, the researcher showed how these critical factors were related to economic development and in particular the rural economy. Correlation and iv regression were the statistical tools that were used in measuring whether there was a relationship between two or more variables and the exact extent of the relationship. According to findings from the analyses, literacy, low unemployment, improved standard of living, entrepreneurial and vocational skills and rural monetization were found to be the most vital outcomes that community banking contributed into economic development of the rural areas. Most of the variables analyzed were found to have significant influence on economic development according to the research findings. However, lack of credit access is the one factor that was found to contribute most to low economic development in the rural areas. This was because of the nature of the variable, which made others factors revolve around it. Lack of credit access explained high unemployment, high illiteracy rates, and uneven resource allocation within the rural areas. This is because most rural areas in Kenya are not endowed with stable economic activities that earned a regular income. Recommendations were therefore made arising from the following findings. They included the need for communities and the county authorities to focus on prioritizing creation of favorable environment that would enable community banks to thrive. This will enhance rural monetization, that will avail capital for locals business start-ups and other community oriented sustainable programs. This study recommended an emphasis and adoption of this approach to economic development initiatives in all the counties in the Republic of Kenya. en
dc.publisher United States International University-Africa en_US
dc.subject Perception en_US
dc.subject Community en_US
dc.subject Banking en_US
dc.subject Kenya en_US
dc.subject Kisumu County en_US
dc.title An Assessment of People's Perception towards Community Banking in Kenya: A Case Study of Kisumu County en_US
dc.type Thesis en_US

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