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American Journal of  Financial 
Technology and Innovation (AJFTI)

Socioeconomic Impact Assessment of  Caritas Nairobi Self  Help Programme: Ruiru 
Fund Self  Help Group Programme

Boniface Mbugua Kabue1*

Volume 3 Issue 1, Year 2025
ISSN: 2996-0975 (Online)

DOI: https://doi.org/10.54536/ajfti.v3i1.3298
https://journals.e-palli.com/home/index.php/ajfti

Article Information ABSTRACT

Received: June 29, 2024

Accepted: August 01, 2024

Published: March 19, 2025

Established in 1995 by 30 members of  the Catholic Women Association (CWA) in Ruiru 
Parish, Kiambu County, the group has evolved into a leading entity within the Caritas Nairobi 
network, currently entitled to over 20,000 members and savings exceeding KSH 1 Billion. 
This assessment aimed to evaluate the socioeconomic transformation facilitated by the 
Ruiru Fund Self-Help Group Programme within the framework of  the Caritas Nairobi Self-
Help Programme. The researcher will particularly investigate the group’s growth trajectory 
including the challenges along the ragged progressive paths, its leadership and governance 
management, its impact on members’ livelihoods, community development initiatives, and 
its role in fostering financial inclusion and empowerment in Ruiru, Kenya and beyond. The 
study targeted 11,027 accessible members of  the Programme. The study adopted descriptive 
survey and predictive correlation research designs, collecting data from respondents with 
practical experience with the socioeconomic impact assessment of  the Ruiru Fund Self-
Help Group Programme. The study used a structured questionnaire administered online 
through Google Forms to collect the required primary data. The study established a positive 
significant influence of  the Group’s growth trajectory, the challenges along the ragged 
progressive paths, its leadership and governance management on Socioeconomic Impact 
of  Ruiru Fund Self  Help Group Programme. Through surveys, the investigator aims to 
provide insights into the mechanisms through which self-help groups can contribute to 
socioeconomic development at the grassroots level, offering lessons and recommendations 
for similar programs elsewhere in other Caritas Kenya jurisdictions and beyond.

Keywords
Community Development, 
Entrepreneurship, Financial 
Empowerment, Financial Literacy, 
Leadership, Management
Socioeconomic Transformation

1 Kiambu Water & Sewerage Company, and Board of  Management, Ruiru Fund, Kenya
* Corresponding author’s e-mail: mbuguab@gmail.com

INTRODUCTION
Globally, Microfinance Institutions (MFIs) have become 
crucial components of  development and economic 
rejuvenation strategies (Chomen, 2021). Researchers 
(Awojobi, 2019; García-Pérez et al., 2020) suggest that 
microfinance services can aid low-income individuals 
by reducing poverty, enhancing business management, 
increasing productivity, securing higher returns on 
investments, and improving their living standards along 
with those of  others in society. Typically, MFIs provide 
small loans to low-income individuals with the goal of  
boosting labor productivity and investment, thereby 
enhancing household incomes (Khan & Luo, 2020). 
The Self  Help Group consists of  community members 
who voluntarily come together to form a collective 
mobilization resources aimed at overcoming poverty. 
Initially, they pool their financial resources through 
individual savings to tackle poverty. These accumulated 
savings are then lent to members as capital (Vetrivel & 
Mohanasundari, 2011).

Caritas Movement
Caritas is an international network of  Catholic 
organizations dedicated to addressing humanitarian crises 
and improving the lives of  marginalized individuals in 
communities. Rooted in Catholic social teachings, Caritas 
agencies are committed to advancing development 

and justice globally. They provide essential aid during 
emergencies and work on long-term projects to uplift 
vulnerable populations, ensuring they achieve a dignified 
and fulfilling life. Through their efforts, Caritas seeks to 
foster solidarity, compassion, and sustainable progress 
across diverse regions and cultures.
The Self-help Programme was launched by the Servant of  
God Michael Maurice Cardinal Otunga, who recognized 
the socio-economic challenges faced by communities in 
the Archdiocese of  Nairobi. These communities were 
trapped in severe poverty due to exclusion from the 
financial system’s benefits. Without opportunities for 
economic empowerment, many were unable to initiate or 
expand income-generating activities.
Caritas operates at various levels: local (parish), diocesan, 
national, regional, and international. Each national 
Caritas organization functions autonomously under its 
Bishops but is part of the global Caritas International 
is confederation, which is affiliated with the Universal 
Church. In the Archdiocese of Nairobi, Caritas Nairobi 
serves as the social and development agency. Registered 
as a charitable trust (Archdiocese of Nairobi Social 
Promotion Registered Trustees), it is chaired by the 
Archbishop of Nairobi. The governance structure 
comprises a two-tiered system with Trustees and a 
non-executive Board of Directors. Caritas Nairobi is 
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and implement aid and socio-economic development 
programs. Over the years, Caritas has assisted thousands 
through initiatives in microfinance (self-help groups), 
refugee aid, agriculture and food security, support for 
individuals with disabilities and HIV/AIDS, women’s 
and youth empowerment, peer counseling, and child 
protection, among other areas. Caritas Nairobi operates 
within the Archdiocese of Nairobi, which encompasses 
the counties of Nairobi and Kiambu, divided into 14 
deaneries. The Archdiocese also includes 114 parishes 
and numerous Christian communities.

Caritas Microfinance
In the 1980s, the Servant of God Michael Maurice 
Cardinal Otunga dispatched Fr. Joseph Mukui to Sierra 
Leone to study its savings and lending model, aiming to 
implement a similar system in Kenya. Upon his return, 
Fr. Mukui launched a savings and lending program 
in Kiriko Parish, in the Archdiocese of Nairobi with 
an initial group of 20 members, each contributing a 
minimum of KShs. 20 monthly. Today, this self-help 
program has evolved into a model of socio-economic 
empowerment, benefiting society and operating on 
Christian values of love and charity. The Archdiocese of 
Nairobi Social Promotion Registered Trustees, known 
as “the trust,” is a charitable organization operating 
under the name “Caritas Nairobi.” It is responsible for 
administering and managing the affairs and projects of 
Self-Help Groups within the Archdiocese of Nairobi. The 
trust has the authority to delegate its responsibilities to 
one or more trustees to conduct any business or perform 
any tasks necessary for achieving its objectives. This 
delegation is given to trustees who possess the relevant 
professional or business expertise. The objectives 
within the parishes of the Archdiocese of Nairobi are as 
follow; Firstly, to encourage the formation of self-help 
groups composed of members from each specific parish. 
Secondly, to maintain, control, and regulate these self-
help groups to ensure their proper functioning. Thirdly, 
to ensure that these self-help groups adhere to proper 
fiscal management practices. Fourthly, the tradition 
and doctrinal teachings of the Catholic Church within 
these groups must be upheld. Lastly, to coordinate the 
growth of self-help groups in terms of both the number 
of groups and the membership within them, ensuring an 
equitable distribution of capital and effective leadership 
throughout.

Ruiru Fund Self-Help Group Programme
The St. Francis of  Assisi Catholic Church Ruiru Self-Help 
Group, commonly known as the Ruiru Fund, operates 
under the Caritas Nairobi Self-Help Programme within 
the Archdiocese of  Nairobi. This group was established in 
1995 by 30 members of  the Catholic Women Association 
(CWA) in Ruiru Parish, Kiambu County. Since its 
inception, the group has experienced significant growth 
and has become the leading Self  Help Group under 
the Caritas Nairobi Self  Help Programme. The Ruiru 

Fund aims to promote self-reliance and improve the 
socio-economic status of  its members through savings 
and credit facilities. Its objectives include: Encouraging 
a savings culture among members; providing affordable 
credit facilities to members; Empowering women and 
the community through financial education and support 
(Ruiru Catholic Fund, 2023). The group engages in 
various activities and programs to achieve its mission 

Savings and Credit: Members are encouraged to save 
regularly, and the accumulated savings are used to provide 
loans at affordable interest rates; 

Financial Education: Workshops and training 
sessions are conducted to educate members on financial 
management, entrepreneurship, and other relevant skills;

Community Support: The group participates in 
community development projects and supports charitable 
activities within the parish and beyond. The SHG has 
already achieved the following;

Membership Growth: From 30 members in 1995 to 
over 20,000 members currently; 

Financial Milestone: Members’ savings have surpassed 
KSH 1 billion, reflecting the group’s strong financial 
foundation; 

Leadership in Caritas Nairobi: Recognized as the 
leading Self  Help Group under the Caritas Nairobi Self  
Help Programme. The Ruiru Fund aims to continue its 
growth trajectory by; Expanding its membership base; 
Increasing the variety and scope of  its financial products 
and services; Enhancing the capacity of  its members 
through continuous education and training; Strengthening 
its role in community development and social welfare 
initiatives (Ruiru Catholic Fund, 2023).

Objectives of  the Study
The main aim of this investigation was to evaluate 
the socioeconomic transformation facilitated by the 
Ruiru Fund Self Help Group Programme within the 
framework of the Caritas Nairobi Self Help Programme. 
The specific objectives of the investigation were.

1. Investigate the influence of  group’s growth trajectory 
on socioeconomic performance of  Ruiru Fund Self  Help 
Group

2. Analyze influence of  the challenges along the 
progressive paths on socioeconomic performance of  
Ruiru Fund Self  Help Group

3. Assess influence of  the group leadership structure 
on socioeconomic performance of  Ruiru Fund Self  Help 
Group

Hypothesis
The hypotheses of the investigation included;

H01: Group’s growth trajectory does not significantly 
influence socioeconomic performance of  Ruiru Fund 
Self  Help Group

H02: The challenges along the progressive paths do 
not significantly influence socioeconomic performance 
of  Ruiru Fund Self  Help Group

H03: The group leadership structure does not 



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significantly influence socioeconomic performance of  
Ruiru Fund Self  Help Group.

LITERATURE REVIEW
Theories of  the Study
Empowerment theory, as proposed by Zimmerman 
(2000), involves using interventions to help communities 
gain a sense of control. Communities may feel powerless 
for various reasons, and the focus of empowerment 
theory is on how oppression contributes to this feeling 
and how communities can overcome it. The theory 
aims to assist disadvantaged individuals at personal, 
group, and community levels to acquire personal, 
interpersonal, economic, and political power to enhance 
their livelihoods. Fundamentally, empowerment theory 
challenges systems that prevent people from meeting 
their essential needs (Perkins & Zimmerman, 1995). 
External agents are crucial for capacity building because 
people need new ideas, understanding, and information 
to change their perceptions and mindsets, encouraging 
them to act against barriers in their households and 
communities. 
Empowerment is seen as an ongoing process that 
involves personal determination in making choices 
that can improve individual and community well-being 
(Kabeer, 2005; Mosedale, 2005). For significant poverty 
reduction, interventions like microfinance services 
should help liberate poor individuals by providing them 
with the means to earn a living. Microfinance institution 
services offer access to and control over resources to 
create a sustainable, long-term livelihood and reap the 
material benefits of this access and control (Mosedale 
2005). This fosters a spirit of independence and does not 
merely address existing needs (Kabeer, 2005).

Empirical Review
Abdullah et al. (2021) identified microfinance financial 
services, training programs, and business coaching 
had effect on household socioeconomic performance. 
Additionally, the efficiency of microfinance institutions’ 
services is considered a moderating factor that can 
enhance the effectiveness of microfinance services. 
The findings offer valuable insights for policymakers, 
financial institutions, households, micro-enterprises, 
and researchers to better comprehend microfinance 
interventions and their impact on household economic 
mechanisms. 
Mukabazaire and Rusibana (2023) studied effect of 
Microfinance Institutions Services on Socio Economic 
Welfare of Women in Rwanda. A Case of Selected 
Umurenge SACCOs in Kigali City. The findings 
indicated that access to credit and social-economic 
welfare of women have a positive and moderately strong 
correlation (r = 0.614, p<0.05). Saving facilities and 
social-economic welfare of women also have a positive 
and moderately strong correlation (r = 0.606, p<0.05). 
Collaterals facilities and social-economic welfare of 
women have a positive and strong correlation (r = 0.536, 

p<0.05). These correlations suggest that women’s socio-
economic welfare of women in Kigali City is positively 
influenced by better access to credit, saving facilities, 
and collateral facilities.
The multiple regression R is 0.704, indicates the strength 
and direction of the overall linear relationship between 
the study variables. Indicating a moderately strong 
positive relationship between the predictors and the 
dependent variable. The coefficient of determination 
(R Square) represents the proportion of variance in the 
dependent variable that the predictors explain. In this 
model, the R Square value is 0.495, which means that 
approximately 49.5% of the variance in the dependent 
variable can be explained by the combined effects of 
collaterals facilities, access to credit, and saving facilities. 
Dhungana (2023) investigated the perceived impact of 
microfinance on livelihood improvement in the Kaski 
District of Nepal. The study revealed that microfinance 
significantly enhances the livelihoods of poor and 
marginalized populations. Microfinance interventions 
have notably improved clients’ economic conditions, 
including the establishment of microbusinesses, increased 
income levels, saving habits, productive investments, 
consumption, and capital expenditures. Additionally, 
clients’ social conditions have significantly improved, 
particularly in terms of educational status, health 
status, women’s empowerment, and social networking. 
Despite debates over its efficacy, microfinance can 
be instrumental in promoting economic growth and 
improving the lives of low-income individuals and 
communities. The regulatory authority should ensure 
both the welfare of clients and the sustainability of 
microfinance institutions by developing sound financial 
and social outreach efficiencies.
Mehta (2023) examined the impact of microfinance 
institutions on the socioeconomic development 
of women in Saurashtra. The study utilized both 
exploratory and descriptive research methods to achieve 
its objectives. The researcher collected data from various 
self-help groups across different blocks on multiple 
dates. To analyze the primary data, several statistical 
tools were employed, including Descriptive Analysis, 
Chi-square test, ANOVA, Garret ranking technique, 
Discriminate Function Analysis, Friedman Test Factor 
Analysis, Kendall’s coefficient of concordance test, 
Kruskal-Wallis test, Neural Network, and Structural 
Equation Modeling. The study concluded that obtaining 
microfinance loans from these institutions significantly 
empowers women economically, socio-culturally, and 
politically. Additionally, the findings revealed that 
beneficiaries of microfinance loans experience better 
employment opportunities, increased income, and 
greater participation in household financial decision-
making compared to non-beneficiaries.
Chikwira et al. (2022) argued that microfinancing aims 
to combat poverty by providing credit to poor and 
marginalized economic sectors. However, the core 
objective of these institutions has yet to materialize, 



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particularly in developing economies. Their study 
analyzed the role of microfinancing in poverty 
alleviation using a Vector Error Correction Model 
on quarterly time-series data. The results indicated a 
significant long-term relationship among variables such 
as poverty, microfinancing, SMEs, and agricultural 
growth. Contrary to expectations, microfinancing was 
found to increase poverty in the long run, while SMEs 
and agricultural development reduced poverty levels. In 
the short run, the regression results showed that SME 
growth alleviates poverty and that poverty drives the 
growth of microfinance loans. This suggests that the 
increase in SMEs is effective in reducing poverty, but 
the growth of microfinance institutions is propelled by 
existing poverty. The study concludes that improper use 
of microfinancing can exacerbate poverty, indicating 
that the mere provision of funds is insufficient for 
poverty reduction.
Mrindoko and Pastory (2022) investigated the impact of 
Microfinance Institutions (MFIs) services on poverty 
reduction among micro and small entrepreneurs in Iringa 
Municipality, Tanzania. The study included 333 micro 
and small entrepreneurs who had utilized MFI services. 
Using a cross-sectional survey design within a mixed 
research approach, data were collected from micro and 
small entrepreneurs through a structured questionnaire 
and from key informants using an interview guide. Out 
of the 333 distributed questionnaires, 320 were deemed 
usable for data analysis, while the remaining contained 
incomplete data. The study found that the entrepreneurs 
were engaged in sectors such as manufacturing, 
agriculture, services, and commerce. While most MFI 
services did not significantly improve the income of 
these entrepreneurs, the results indicated that MFIs 
have contributed to poverty reduction among micro and 
small entrepreneurs in Iringa Municipality.
Kireti and Sakwa (2014) examined the socio-economic 
impacts of microfinance services on women using the 
case of Rosewo Microfinance in Nakuru County, Kenya. 
The findings highlighted that microfinance services 
significantly influenced the socio-economic status of 
women. Access to microcredit services was associated 
with increased income levels, expanded enterprise 
stocks and output, and higher spending on health and 
education services. Additionally, micro-savings services 
provided women with increased capital resources for 
education and healthcare, smoothed irregular income 
patterns for better consumption management, and 
boosted income generation for wealth accumulation. The 
study also found that microinsurance services fostered 
stronger trust networks, enhanced social connections, 
and motivated greater participation in development 
activities among women. Lastly, non-financial services 
from microfinance institutions were noted to stabilize 
income levels, thereby alleviating production constraints 
and enhancing economic stability.
Patel (2023) suggests that the current body of literature 
indicates that microfinance affects household income, 

employment, gender empowerment, education, and 
health. These aspects are analyzed in terms of their 
influence on significant poverty indicators. While the 
study supports the link between microfinance and 
poverty reduction, it acknowledges scholarly debate 
about its effectiveness. Technological innovation is 
proposed as a potential solution to address these issues, 
warranting further investigation.
Diar et al. (2017) investigated the factors influencing the 
growth of Microfinance Institutions (MFIs) in Kenya, 
focusing on selected microfinance banks in Nairobi 
City County. The study employed a descriptive research 
design where data was collected through questionnaires 
distributed to respondents. The study population 
consisted of microfinance institutions within Nairobi 
County, with a sample size of 20% drawn from a target 
population of 180 institutions. Thirty-six staff members 
representing various levels of the institutions were 
included in the study using a stratified random sampling 
technique.
Both primary and secondary data were utilized for data 
collection, analysis, presentation, and discussion of 
research findings. Primary data included financial and 
income statements spanning a five-year period, which 
were summarized and analyzed using SPSS version 
21 to perform inferential statistics, including multiple 
regression analysis to ascertain relationships between 
dependent and independent variables. The study 
findings indicated a positive and significant relationship 
between leverage, financial literacy, and the growth of 
microfinance institutions in Kenya. It was concluded 
that the expansion of these institutions could positively 
impact the welfare of their clients, contingent upon 
achieving sound financial growth and stability. The 
study recommended that microfinance institutions 
develop strategies to ensure adequate leverage levels 
to meet operational needs and implement appropriate 
policies and procedures to achieve these objectives.

METARIALS AND METHODS
Location of  the Study
The investigation was conducted it St. Francis of Assisi 
Catholic Church Ruiru Self Help Group (Ruiru Fund) 
operating under Caritas Nairobi Self Help Programme 
in the Archdiocese of Nairobi. St. Francis of Assisi 
Catholic Church Ruiru Self Help Group which is 
currently the leading Self Help Group under Caritas 
Nairobi Self Help Programme with over 20,000 (twenty 
thousand) members and members’ savings in excess of 
KSH 1 Billion.

Study Design
The study adopted descriptive survey and predictive 
correlation research designs, collecting data from 
respondents who have had practical experience with 
the socioeconomic impact assessment of Ruiru Fund 
Self Help Group Programme. Descriptive survey 
and predictive correlation research designs was 



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useful because the researcher wanted to collect data 
on phenomena that cannot be observed directly. Its 
advantage is that it allowed for the collection of large 
amounts of data from a sizeable population in a highly 
effective, easily and in an economical way by the use of 
questionnaires. Predictive correlation design was used 
due to its appropriateness in the measurement of two or 
more variables and the relationship between or among 
those variables (Stangor, 2011). 

Target Population
The total number of members of St. Francis of Assisi 
Catholic Church Ruiru Self Help Group is 20,000 
scattered all over the Nairobi and Kiambu Counties. 
Th accessible population for the investigation was 
11,027 members of St. Francis of Assisi Catholic Church 
Ruiru Self Help Group. This population was useful for 
the investigation because they have been involved in 
savings and taking loans towards the socioeconomic 
transformation of their social and economic activities.

Sample Size and Sampling Procedure
The sample drawn from every stratum was proportionate 
to the stratum’s share of the total population. 
Representative sample which enabled generalization of 
the findings was derived from Yamane (1967) formula
n = N/(1+Ne2)
Where;
n = sample size
N = Population
e = precision error which is 0.05
Therefore, out of a population of 11,027 members of St. 
Francis of Assisi Catholic Church Ruiru Self Help Group, 
the sample consisted of 110 member as expressed in the 
formula n = 11,027/1+ (11,027 * 0.0025) = 109.1684 ≈ 
110. The sample size in this study was selected based on 
the criteria set by Roscoe’s rule of thumb Sekaran (2003) 
that is a sample that is larger than 30 and less than 500 
is appropriate for most research. The sample size in this 
study was 110 which is within the 30-500 range Roscoe’s 
rule of thumb. The study then used random sampling 
technique to pick the sample.  
The study used structured questionnaire as the main 
data collection tool. Questionnaire is appropriate in a 
survey research because it is simple to administer and 
ease for the respondents to score on a 5 point Likert 
Scale which is easy to analyze (Cohen et al., 2007). 
Structured Questionnaire is also useful in obtaining 
consistency across the respondents (Denscombe, 2007). 
This allowed the collection of ordinal measure data 
from the respondents. Each section of the questionnaire 
investigated a given variable and was used to test the 
corresponding hypothesis and research questions. To 
increase response rate, questionnaires were sent to all 
members of the population and responses randomly 
picked to meet the sample numbers. To accelerated data 
collection process, the investigator used Google Forms 
where a link was sent to the respondents and when they 

filled the questionnaire, it came back to the investigator’s 
database.

Data analysis and presentation
The researcher used multiple linear regression to 
investigate socioeconomic impact assessment of Caritas 
Nairobi Self Help Programme: Ruiru Fund Self Help 
Group Programme. Linear regression was used to test 
the relationship between variables due to the linear 
relationship between them. The following regression 
model was used for quantitative procedures examining 
the relationship between independent and dependent 
variables;
Y = α + β1X1+ β2X2 + β3X3 + ε
Where;
Y = Socioeconomic Impact
α =constant
β1……β3= Regression Coefficients
X1= Group’s growth trajectory
X2= the challenges along the progressive paths
X3= the group leadership structure
ε = the error term.

RESULTS AND DISCUSSIONS
Demographic Results

Figure 1: Age Bracket of the Respondents

The results established that majority of the respondents 
44% observed that the members were within the age 
bracket of 41-50 years followed by 37% who were within 
31-40 years age bracket and 19% who were within 51-
60 years age bracket. This finding indicated that the 
programme was attracting middle age members for their 
transform their socioeconomic status. This demographic 
may have specific needs such as career advancement, 
family support, health considerations, and financial 
planning for retirement. Ruiru Fund Self Help Group 
should therefore address these needs effectively. 
The results on the Motivation of Joining the Programme 
established that majority of the respondents 88% were 
motivated to join the Ruiru Fund Self Help Group 
Programme in pursuit of financial support compared to 
12% who were motivated by training programme. This 
strong motivation suggests that financial needs are the 
primary concern for the majority of members. In order 
for the programme to pursue this motivation, it should 
increase the availability and accessibility of credit and 



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Figure 2: The Motivation of Joining the Programme

loan facilities. Ensure that these financial products are 
tailored to meet the diverse needs of members, such as 
small business loans, emergency loans, and microfinance 
options. The Programme should allocate resources 
effectively to strengthen financial support services. 
This includes funding for loan schemes, financial 
counseling, and development of financial products that 
meet member needs. In its promotional programme. In 
marketing and outreach efforts, the Programme should 
emphasize the financial support benefits of joining the 
Ruiru Fund Self Help Group Programme. Success stories 
and testimonials from members who have benefited 
financially can attract new members.

Ruiru Fund Self Help Group Growth Trajectory

The finding on the number of group members changed 
since its inception, the results revealed that majority of 
the respondents 79% observed that membership had 
increased significantly compared to 21% who observed 
that membership had increased slightly. The significant 
increase in membership (79% of respondents) indicates 
that the Ruiru Fund Self Help Group Programme is 
perceived as effective and attractive. This growth suggests 
that the program is meeting the needs and expectations 
of its members. The increase in membership reflects a 
positive reputation within the community, likely driven 
by word-of-mouth recommendations and visible benefits 
experienced by current members.
As membership grows, it is crucial to maintain the 

Figure 3: The number of group members changed since 
its inception

quality of services provided. This might involve scaling 
up operations, hiring additional staff, and implementing 
robust quality control measures. Efforts should be made 
to continue offering personalized services to members, 
ensuring that individual needs are met despite the larger 
group size. The significant increase in membership 
means that the program is likely having a broader impact 
on the community. This increased influence can be 
leveraged to implement larger community development 
projects and initiatives. A larger membership base 
enhances the social capital of the group, providing 
more opportunities for networking, collaboration, and 
collective action. The growth in membership is a positive 
indicator for the long-term sustainability of the program. 
However, it also requires careful planning to ensure 
that the program can sustain this growth over time 
without compromising its core values and objectives. By 
addressing these implications, the Ruiru Fund Self Help 
Group Programme can effectively manage its significant 
membership growth, ensuring continued success and a 
positive socioeconomic impact on its members and the 
broader community.

The results suggest that the primary factor driving 
membership growth in the Ruiru Fund Self  Help Group 
Programme is improved financial benefits, as indicated 
by 41% of  respondents. This implies that financial 
incentives are the most significant motivator for joining 
the program. Additionally, effective leadership, noted by 
24% of  respondents, plays an important role, suggesting 
that strong management and guidance are also key to 
attracting members. Community outreach, observed 
by 21%, indicates that efforts to engage and involve 
the community are essential but less influential than 
financial benefits and leadership. Lastly, better financial 
performance, cited by 12% of  respondents, shows that 
while financial success is a factor, it is the least impactful of  
the four identified drivers. Overall, these results highlight 
the importance of  focusing on financial incentives and 
effective leadership to continue growing membership. 
Results concerning the services to the members (See 
Figure 5) revealed that majority of  respondents 47% 
observed the members utilized savings and credit, 31% 
observed that members also utilized financial literacy, 13% 
observed that the members utilized business training and 
only 6% of  the respondents observed that the members 

Figure 4: Factors Have Contributed to the Change in 
Membership



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utilized market linkages. With 47% of  respondents 
noting that members primarily utilize savings and credit 
services, there is a strong demand for financial products 
that support savings growth and access to credit. This 
suggests a need to continue emphasizing and expanding 
these services to meet member needs effectively.
The significant observation (31%) that members utilize 
financial literacy services underscores the importance of  
education in financial management. Strengthening these 
programs can empower members to make informed 
financial decisions, potentially improving their overall 
financial health and sustainability. Despite being mentioned 
by 13% of  respondents, the utilization of  business 
training services highlights a notable but somewhat lower 
interest compared to financial and savings services. There 
may be opportunities to enhance these offerings to better 
support members in developing and managing their 
businesses effectively. The low utilization rate of  market 
linkages, noted by only 6% of  respondents, suggests a 
potential area for improvement. Strengthening efforts 
to connect members with markets could enhance their 
ability to sell products or services, thereby increasing their 
income and economic opportunities.

Figure 5: Services Utilized From the Programme

Results on rating the overall effectiveness of  the 
programme (See Figure 8) revealed that majority of  
respondents 67% observed that the Ruiru Fund Self  Help 
Group Programme was effective, 20% observed that the 
Programme was very effective and 13% observed that 
the programme was ineffective. This high satisfaction 
level suggests that the program is meeting or exceeding 

expectations in fulfilling its objectives and delivering 
benefits to its members. Despite the overall positive 
ratings, the 13% who found the program ineffective 
highlight areas where improvements may be needed. 
Understanding the reasons behind this perception can 
provide insights into specific aspects of  the program 
that require attention, such as service delivery, member 
engagement, or program management.
The high satisfaction rates present an opportunity to 
build on existing strengths and successes of  the program. 
By identifying and reinforcing what members find 
effective, the program can continue to enhance its impact 
and relevance within the community. Given the varying 
perceptions of  effectiveness, it’s important for program 
managers to regularly evaluate feedback and adapt 
strategies accordingly. This ongoing process of  evaluation 
and improvement can ensure that the program remains 
responsive to the evolving needs and expectations of  its 
members.

Figure 6: Rating the Overall Effectiveness of the 
Programme

Figure 7: Projects Members of Ruiru Fund Self Help 
Group Programme Participated in

Concerning the projects members of  the Ruiru Fund 
Self  Help Group Programme participated in, the results 
revealed that majority of  respondents 43% observed that 
members used the credit from the Programme in economic 
empowerment, 32% observed that members used the 
credit to support education of  their family members, 
14% used the credit for environmental conservation, 7% 
used the credit for infrastructural development and 4% 
used the credit for health initiatives. The majority (43%) 
of  respondents noting that members used credit for 
economic empowerment highlights a significant priority 
within the program. This suggests that access to credit 
plays a crucial role in supporting members’ entrepreneurial 
activities and income-generating projects. Emphasizing 
and expanding these economic opportunities can further 
empower members economically.
The substantial number (32%) of  respondents indicating 
that members used credit to support education 
underscores the importance of  education within the 
community. This usage suggests that the program not 
only supports economic activities but also contributes 
to improving educational outcomes for members’ 
families, potentially leading to broader community 
development. While smaller percentages (14% and 7%, 
respectively) used credit for environmental conservation 



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and infrastructure development, these areas indicate 
a commitment to broader community welfare and 
sustainability. Strengthening initiatives in these areas 
could enhance environmental stewardship and improve 
local infrastructure, contributing to long-term community 
resilience and quality of  life. The variety of  projects 
members engage in reflects the program’s multifaceted 
impact and its ability to cater to diverse community needs. 
This diversity underscores the program’s adaptability 
and responsiveness to local priorities, fostering a more 
inclusive approach to community development.

Figure 8: How Quality of Life Improved

Figure 8 reveals the socioeconomic improvement of  quality 
of  life of  the members. Majority of  respondents 26% 
observed that the Ruiru Fund Self  Help Group Programme 
has improved members living conditions, employment 
and community cohesion respectively Compared to 22% 
who observed that generally the services had improved. 
The majority (26%) of  respondents noting improvements 
in members’ living conditions and employment highlights 
the program’s positive impact on socioeconomic factors. 
This suggests that the program effectively supports 
members in enhancing their livelihoods and achieving 
greater economic stability, potentially reducing poverty 
and improving overall well-being.
Another significant observation (26%) is the improvement 
in community cohesion attributed to the program. This 
indicates that the program not only benefits individual 
members but also strengthens social ties and unity 
within the community. Building on this aspect can foster 
a supportive and collaborative environment among 
members, enhancing overall community resilience and 
solidarity. While slightly fewer respondents (22%) noted a 
general improvement in services, this finding underscores 
the program’s overall effectiveness in delivering valuable 
services to its members. Continuously enhancing service 
delivery and responsiveness to member needs can further 
strengthen the program’s impact and sustainability. This 
finding is supported by Patel (2023) who established that 
the current body of  literature indicates that microfinance 
affects household income, employment, gender 
empowerment, education, and health.

Figure 9: Challenges Faced While Participating in the 
Programme

Ruiru Fund Self  Help Group Challenges along the 
Progressive Paths
Concerning the challenges faced while participating in 
the Programme, results revealed that the Ruiru Fund 
Self  Help Group Programme faced the majority of  
respondents 38% observed that the Programme faced 
lack of  market linkage to its members as a challenge, 
27% observed that the members were still exposed to 
high interest rates, 24% observed that the members had 
inadequate training on operations of  microfinance based 
Self  Help groups. The majority (38%) of  respondents 
identifying lack of  market linkage as a challenge indicates 
a critical area for improvement. Addressing this challenge 
can enhance members’ ability to sell their products or 
services, thereby increasing their income and economic 
opportunities. Strengthening efforts to connect members 
with markets through partnerships or training programs 
could significantly benefit program participants.
A significant number (27%) of  respondents highlighting 
high interest rates as a challenge underscores the financial 
burden on members accessing credit through the program. 
Lowering interest rates or providing financial literacy 
programs to help members manage debt effectively 
could mitigate this challenge and improve the overall 
financial health of  participants. The observation (24%) 
that members have inadequate training on the operations 
of  microfinance-based Self  Help groups points to a need 
for capacity-building initiatives. Providing comprehensive 
training on financial management, group dynamics, and 
governance can empower members to effectively manage 
their groups and maximize the benefits of  program 
participation. Addressing these challenges is crucial for 
enhancing the program’s sustainability and impact. By 
improving market linkages, reducing interest rates, and 
enhancing training programs, the program can better 
support members in achieving their economic and 
social goals. This, in turn, can contribute to the long-
term success and resilience of  the Self  Help Group 
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Concerning required improvement in the leadership 
structure, majority of  respondents 41% observed that 
there is an urgent need in the improvement of  the top 
management leadership structure of  the Ruiru Fund 
Self  Help Group Programme, 32% observed a need to 
improve programme based leadership structure while bere 
22% observed a need to improve both general leadership 
structure and financial governance leadership structure. 
The majority (41%) of  respondents emphasizing the 
urgent need to improve the top management leadership 
structure highlights a critical area for organizational 
development. Strengthening leadership at the executive 
level can enhance strategic direction, decision-making, 
and overall governance, ensuring effective management 
and alignment with organizational goals.
The significant number (32%) of  respondents identifying 
a need to improve program-based leadership structure 
suggests a focus on enhancing leadership within 
operational and programmatic aspects of  the organization. 
This can improve program implementation, member 
engagement, and service delivery, ultimately enhancing 
the program’s impact and effectiveness. The observation 
(22%) that there is a need to improve both the general 

leadership structure and financial governance leadership 
structure underscores the importance of  governance and 
financial oversight. Strengthening these areas can improve 
transparency, accountability, and financial management 
practices, thereby enhancing organizational integrity and 
sustainability.
Addressing these leadership structure improvements 
requires strategic development and capacity-building 
initiatives. Investing in leadership training, succession 
planning, and governance frameworks can empower 
leaders at all levels to effectively manage and lead the 
organization, driving continuous improvement and 
organizational growth. These findings underscore the 
organization’s commitment to achieving excellence 
in leadership and governance. By prioritizing these 
improvements, the Ruiru Fund Self  Help Group 
Programme can enhance its operational efficiency, 
member satisfaction, and overall impact, positioning 
itself  for long-term success and sustainability.

Socioeconomic Impact of  Ruiru Fund Self  Help 
Group Programme
The investigator conducted inferential statistics using 
multiple regression analysis to establish the socioeconomic 
impact of  Ruiru Fund Self  Help Group Programme. The 
investigator tested the fllowing hypotheses; 

H01: Group’s growth trajectory does not significantly 
influence socioeconomic performance of  Ruiru Fund 
Self  Help Group

H02: The challenges along the progressive paths do 
not significantly influence socioeconomic performance 
of  Ruiru Fund Self  Help Group

H03: The group leadership structure does not 
significantly influence socioeconomic performance of  
Ruiru Fund Self  Help Group

Figure 10: Required Improvement in the Leadership 
Structure

Table 1: Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .703a .494 .488 .76196

Table 1 results showed that there was a strong association 
since the R-value was 0.703 and the R Square was 0.494. 
The proportion of  the dependent variable is revealed by 
the R2 value, “Group’s growth trajectory, the challenges 

along the progressive paths and the group leadership 
structure “. In this case, 49.4% was the R Squared, which 
was large indicating a high degree of  correlation.

Table 2: Anova Socioeconomic Impact of Ruiru Fund Self Help Group Programme
Model Sum of Squares df Mean Square F Sig.

1 Regression 178.001 4 44.500 76.648 .000b

Residual 182.301 314 .581
Total 360.302 318    

The predictor: Measure indicators of  Group’s growth 
trajectory, the challenges along the progressive paths and 
the group leadership structure and the dependent variable 
is Socioeconomic Impact of  Ruiru Fund Self  Help 
Group Programme. Table 2 showed that the regression 

prototype substantially forecasted the outcome variable 
with a p-value of  0.000, less than 0.05, and that the model 
generally significantly and statistically predicted the result 
variable. This result indicated that there was a strong 
association between the dependent (Socioeconomic 



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Table 3: Influence of Organizational Structures on Leadership Performance
Model Unstd Coeff Std Coeff t Sig.

B Std. Error Beta
1 (Constant) .484 .156  3.096 .002

Group’s growth trajectory .494 .091 .480 5.434 .000
The challenges .215 .092 .200 2.328 .021
Leadership structure .363 .080 .048 3.788 .031

First, the study established a positive significant influence 
of  the Group’s growth trajectory on Socioeconomic 
Impact of  Ruiru Fund Self  Help Group Programme 
(β=0.494, p=0.000<0.05). This significant positive 
influence made the researcher conclude that the Group’s 
growth trajectory influenced Socioeconomic Impact of  
Ruiru Fund Self  Help Group Programme. Based on this 
finding, an increase of  the Group’s growth trajectory by 
1 unit will lead to an increase in Socioeconomic Impact 
of  Ruiru Fund Self  Help Group Programme by 0.494 
multiple units. This finding is supported by Mehta (2023) 
who established that microfinance loans from these 
institutions significantly empowers women economically, 
socio-culturally, and politically. Additionally, the findings 
revealed that beneficiaries of  microfinance loans 
experience better employment opportunities, increased 
income, and greater participation in household financial 
decision-making compared to non-beneficiaries. The null 
hypothesis that H01: Group’s growth trajectory does not 
significantly influence socioeconomic performance of  
Ruiru Fund Self  Help Group was therefore rejected.
Second, the study established a positive significant 
influence of  the challenges along the progressive paths on 
Socioeconomic Impact of  Ruiru Fund Self  Help Group 
Programme (β=0.215, p=0.021<0.05). This significant 
positive influence made the researcher conclude that 
the challenges along the progressive paths influenced 
Socioeconomic Impact of  Ruiru Fund Self  Help Group 
Programme. Based on this finding, an increase of  the 
challenges along the progressive paths by 1 unit will 
lead to an increase in Socioeconomic Impact of  Ruiru 
Fund Self  Help Group Programme by 0.494 multiple 
units. The null hypothesis that H02: the challenges along 
the progressive paths do not significantly influence 
socioeconomic performance of  Ruiru Fund Self  Help 
Group was therefore rejected.
Third, the study established a positive significant influence 
of  the group leadership structure on Socioeconomic 
Impact of  Ruiru Fund Self  Help Group Programme 
(β=0.361, p = 0.031<0.05). This significant positive 
influence made the researcher conclude that the group 
leadership structure influenced Socioeconomic Impact 
of  Ruiru Fund Self  Help Group Programme. Based on 
this finding, an increase of  the group leadership structure 
by 1 unit will lead to an increase in Socioeconomic 

Impact of  Ruiru Fund Self  Help Group Programme 
by 0.494 multiple units. This finding is supported by 
Dhungana (2023) who established that microfinance 
significantly enhances the livelihoods of  poor and 
marginalized populations. Microfinance interventions 
have notably improved clients’ economic conditions, 
including the establishment of  microbusinesses, increased 
income levels, saving habits, productive investments, 
consumption, and capital expenditures. Additionally, 
clients’ social conditions have significantly improved, 
particularly in terms of  educational status, health status, 
women’s empowerment, and social networking. The null 
hypothesis that H02: the group leadership structure does 
not significantly influence socioeconomic performance 
of  Ruiru Fund Self  Help Group was therefore rejected.

CONCLUSION
The main aim of  this investigation was to evaluate the 
socioeconomic transformation facilitated by the Ruiru 
Fund Self  Help Group Programme within the framework 
of  the Caritas Nairobi Self  Help Programme. The first 
objective of  the study was to investigate the influence of  
group’s growth trajectory on socioeconomic performance 
of  Ruiru Fund Self  Help Group. The study established 
a positive significant influence of  the Group’s growth 
trajectory on Socioeconomic Impact of  Ruiru Fund 
Self  Help Group Programme. The significant positive 
influence made the researcher conclude that the Group’s 
growth trajectory influenced Socioeconomic Impact of  
Ruiru Fund Self  Help Group Programme. The second 
objective was to analyze influence of  the challenges along 
the progressive paths on socioeconomic performance of  
Ruiru Fund Self  Help Group.
The study established a positive significant influence of  the 
challenges along the progressive paths on Socioeconomic 
Impact of  Ruiru Fund Self  Help Group Programme. 
The significant positive influence made the researcher 
conclude that the challenges along the progressive paths 
influenced Socioeconomic Impact of  Ruiru Fund Self  
Help Group Programme. The third objective of  the 
study was to assess influence of  the group leadership 
structure on socioeconomic performance of  Ruiru 
Fund Self  Help Group. The study established a positive 
significant influence of  the group leadership structure on 
Socioeconomic Impact of  Ruiru Fund Self  Help Group 

Impact of  Ruiru Fund Self  Help Group Programme) 
variable and the independent variable (Group’s growth 

trajectory, the challenges along the progressive paths and 
the group leadership structure).



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Programme. The significant positive influence made the 
researcher conclude that the group leadership structure 
influenced Socioeconomic Impact of  Ruiru Fund Self  
Help Group Programme.

Recommendations
1. Ruiru Fund Self  Help Group Programme should 

develop strong financial internal control systems and align 
all financial systems towards the recommendation of  the 
Parent Organization; Caritas Nairobi Self  Help group 
Programm for effective functionality. By implementing 
these measures, the Ruiru Fund Self  Help Group 
Programme can develop strong financial internal control 
systems that align with the recommendations of  Caritas 
Nairobi Self  Help Group Programme, thereby ensuring 
effective functionality, enhanced financial integrity, and 
long-term sustainability.

2. Ruiru Fund Self  Help Group Programme should 
develop and implement comprehensive training programs 
focused on enhancing the leadership skills of  current and 
potential leaders within the group. These programs should 
cover areas such as strategic planning, conflict resolution, 
decision-making, and effective communication

3. Ruiru Fund Self  Help Group Programme should 
evaluate term limits and rotation policies for leadership 
positions to prevent stagnation and bring in fresh 
perspectives. This can also provide opportunities for more 
members to develop leadership skills. The Programme 
should also promote diversity and inclusivity within the 
leadership structure. Ensure that leadership positions are 
accessible to all members, including women, youth, and 
marginalized groups, to reflect the diverse makeup of  the 
group

4. Ruiru Fund Self  Help Group Programme should 
allocate a dedicated budget for leadership development 
activities, including training, workshops, and capacity-
building initiatives. Investing in leadership development 
can yield significant returns in terms of  group performance 
and impact. The Programme should provide leaders with 
access to the necessary tools, resources, and support 
systems to perform their roles effectively. This includes 
access to technology, information, and expert advice

5. Ruiru Fund Self  Help Group Programme should 
streamline internal processes to enhance efficiency and 
reduce the likelihood of  operational challenges. This 
includes improving communication channels, decision-
making procedures, and project management practices. The 
programme should further utilize external resources such 
as grants, technical assistance, and mentorship programs 
to provide additional support in addressing complex 
challenges. By implementing these recommendations, the 
Ruiru Fund Self  Help Group Programme can effectively 
address and mitigate the challenges encountered along its 
progressive paths, thereby enhancing its socioeconomic 
impact and contributing to the sustainable development 
and well-being of  its members.

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