Analysis of the Financial Literacy Training and Management Models by Financial Services Associations to Influence Performance of Rural-Women-Owned Enterprises in Kiambu County, Kenya

Abstract

Women-owned enterprises in Kiambu County predominantly operate in the informal sector and are characterized by small-scale operations, low capital investment, limited access to modern technology and business infrastructure, and low rates of business survival and expansion. Although Kiambu County is economically strategic owing to its proximity to Nairobi and its growing urban population, many women entrepreneurs remain economically vulnerable due to the unstable and insufficient incomes generated by their businesses. Financial Services Associations (FSAs) are rural, community-level, member-based semi-informal financial institutions that combine features of savings and credit cooperative organizations and microfinance institutions, operating under a table banking system. With over 100 FSAs spread across rural Kiambu County, membership ranges from 10,000 to 20,000 per FSA, and their primary aim is to provide financial support to poor rural communities for both investment and consumption purposes. Despite this, rural women entrepreneurs in Kiambu County continue to face significant challenges in accessing financial resources essential for business growth, a situation compounded by persistent gender-based disparities.Financial literacy training delivered by FSAs is highly valued by women entrepreneurs and demonstrates strong positive perceived impacts on business growth, with particular strengths in relevance, trainer competence, and applied usefulness in credit management and business planning. However, evidence indicates that these training initiativeshave limited impact on advanced financial outcomes, particularly credit access and effective financial record keeping, revealing a knowledge-application gap whereby structural and institutional barriers constrain women entrepreneurs from translating acquired financial knowledge into tangible enterprise growth. This study therefore proposes integrated, county-led policy actions that combine financial education, product design, mentorship, and institutional coordination to enhance women's financial capability and accelerate inclusive economic development. To maximize effectiveness, FSAs should adopt integrated capacity-building approaches that combine training, mentorship, digital literacy, market linkages, and expanded access to finance, interventions that would strengthen the sustainability and growth of women-owned enterprises in Kiambu County.