The Effect of Stakeholder Involvement on Performance of Self-help Groups in Nairobi City County, Kenya

Enhancing performance of self-help groups has remained a center of attention in research and practice for decades. However, most self-help groups fail to exhibit the desired level of performance due to low levels of membership of retention capability, financial limited ability to meet stakeholder needs, and failure to manage the earned value effectively. This study analyzed the effect of stakeholder involvement on the performance of self-help groups in Nairobi City County, Kenya. The relevant theory that underpinned the study was stakeholder theory. The study adopted a cross-sectional research design, which involved collecting and analyzing primary quantitative and qualitative data from a purposive sample of 124 leaders of self-help groups in Nairobi City County and five interviewees from the longest existing groups. Quantitative data collected was coded and entered into the Statistical Software for Social Sciences for analysis. Qualitative data was analyzed using a thematic analysis technique. Qualitative data was subjected to coding and thematic analysis technique. The study revealed that stakeholder involvement (β = 0.286; p = 0.019) has a significant effect on performance of self-help groups in Nairobi City County, Kenya. The findings underscore the instrumentality of stakeholder involvement on the performance of self-help groups in Nairobi City County, Kenya. Keywords: Stakeholder involvement, self-help groups, performance, participatory processes.