Organizational Practices, Governance Structures, and Sustainability of Women’s Self-Help Groups in Informal Settlements in Nairobi, Kenya

Abstract

Women’s Self-Help Groups (SHGs) have become a central pillar of grassroots socio-economic empowerment in Kenya, particularly for women in low-income urban contexts who rely on collective systems of savings, credit, and mutual support. However, despite their potential, many SHGs in informal settlements struggle to remain stable and sustainable due to internal organizational challenges. This study examined the organizational practices, governance structures, and sustainability factors of women’s SHGs in Viwandani informal settlements in Nairobi, drawing on responses from N = 73 members across seven groups. Guided by Social Exchange Theory and the T7 Model of Team Effectiveness, the study pursued three objectives to: identify organizational practices influencing SHG stability, analyze strategies used to address operational challenges, and examine how member characteristics contribute to sustainability. A quantitative design was applied using descriptive statistics. Findings show that SHGs in Viwandani are governed through frequent meetings, consensus-based decision-making, rotational leadership, and strong committee systems, demonstrating high levels of participation and accountability. Groups reported relying on disciplinary mechanisms, internal loan controls, welfare support, and collective problem-solving as strategies for addressing challenges, although limited market linkages and minimal external partnerships constrained growth. Member characteristics, particularly self-employment, low formal education, and heavy household responsibilities, shaped motivation, commitment, and cohesion, but also exposed groups to financial vulnerability. Overall, sustainability was linked to trust, perceived benefits, shared responsibility, and strong internal governance, while long-term growth required capacity-building, market integration, and stakeholder partnerships. The study recommends targeted training, stronger institutional support, and structured collaboration with financial actors to reinforce SHG resilience in informal urban settlements.