Impact of Financial Literacy among Women Village Savings Associations on Household Livelihood Security in Nakuru East Sub-County - Kenya

This study examined the impact of financial literacy among members of Women Village Savings Associations (WVSAs) on household livelihood security in Nakuru East Sub-County, Kenya. The study was motivated by the need to strengthen financial inclusion, resilience, and women’s empowerment in areas with limited access to formal financial services. Guided by Empowerment Theory, a mixed methods approach was adopted, combining descriptive statistics and thematic analysis. The target population comprised 3,750 WVSA members, from which a sample of 355 participants was selected, including 303 questionnaire respondents, 32 Focus Group Discussion participants, 10 household interview participants, and 10 key informants. Data were collected using questionnaires, key informant interviews, focus group discussions, and observation checklists. The research instruments demonstrated reliability with an average Cronbach’s alpha coefficient of 0.46. Validity was established through the Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy (KMO = 0.84) and Bartlett’s test of sphericity (p = 0.028), which confirmed the suitability of the data for factor analysis. The findings revealed that although most women had received financial literacy training, their ability to apply financial knowledge varied. Improved skills in budgeting, saving, record-keeping, and loan management contributed to better household financial management and livelihood outcomes. The study concludes that context-specific and continuous financial literacy training is essential for enhancing household livelihood security. It recommends integrating WVSAs into county development plans and strengthening partnerships among government agencies, non-governmental organizations, and WVSA leadership to expand financial literacy initiatives. Keywords: Financial Literacy, Household Livelihood Security, Women Village Savings Associations (WVSAs)