Influence of Budgeting Skills on Loan Repayment Performance among Faith-based Women’s Groups in the Catholic Diocese of Embu, Kenya
Ndungu Wanja Regina, Daniel M. Kitonga and Shem Mwalw’a
Tangaza University, Kenya
Email: ndunguregina125@gmail.com
Abstract: The study examined the Influence of Budgeting Skills on Loan Repayment Performance among Faith-based Women’s Groups in the Catholic Diocese of Embu, Kenya. The study was anchored in Financial Literacy Theory and supported by the Behavioural Life-Cycle Hypothesis and General Systems Theory. The study adopted a convergent parallel mixed-methods design. Using a multistage sampling procedure combining random and purposive selection, quantitative data were collected from 127 of targeted 160 respondents across 16 women’s groups in four deaneries, while qualitative data were obtained through semi-structured interviews from 48 purposively selected group leaders. Quantitative data were analysed using descriptive statistics, Pearson correlation, and multiple regression, while qualitative data were analysed thematically. The findings showed that budgeting skills had a moderate perceived influence on loan repayment performance, with a mean score of 3.20 (SD = 0.99). Pearson correlation revealed a positive and statistically significant relationship between budgeting skills and loan repayment performance (r = .558, p < .001). Multiple regression further established that budgeting skills was a significant positive predictor (β = .284, p = .002). The overall regression model, comprising four financial literacy dimensions, explained 42.1% of the variation in loan repayment performance (R² = .421). Qualitative findings highlighted the importanceof reviewing financial records, adjusting budgets to changing circumstances, and allocating funds for scheduled repayments. The study concludes that Budgeting Skills is an important predictor of loan repayment performance among faith-based women’s groups. The study recommends strengthening practical budgeting training to support financial planning and timely loan repayment.
