Capital Lifecycle and Financial Stability of Women Table Banking Groups in Nakuru County, Kenya

Poverty continues to severely impact women in Sub-Saharan Africa, especially in regions like Nakuru County, Kenya, where many face financial exclusion. Table banking, a microfinance model, offers potential for economic empowerment, yet its sustainability remains uncertain. Most women's table banking groups in Nakuru fail to operate beyond three years, often displaying weaker Gross Profit Margins compared to national averages. This study examined how different phases of the capital life cycle affect the financial stability of these groups. It focused on four key components: Capital Generation, Capital Distribution, Capital Deployment, and Capital Reinvestment. The research, conducted from January 2021 to December 2023, was grounded in Resource Mobilisation Theory, Social Capital Theory, the Life Cycle Hypothesis, and Financial Intermediation Theory. A descriptive approach was used, targeting 322 women-led groups in Nakuru County, from which 82 were randomly selected for in-depth analysis. Primary data was collected through surveys administered to group leaders, with a pilot study conducted in Nakuru town. Data reliability and validity were ensured through rigorous statistical tests and methods, including Panel Regression and Pearson's correlation. Findings revealed that Capital Generation (p=0.044), Capital Distribution (p=0.012), and Capital Reinvestment (p=0.0000) positively influenced financial stability. Notably, Capital Distribution had the strongest positive correlation. Conversely, Capital Deployment (p=0.034) showed a significant negative impact on financial health. The study concluded that enhancing Capital Formation, efficient Capital Allocation, and robust Capital Recycling practices contribute to long-term financial resilience. However, excessive or mismanaged Capital utilisation can threaten stability. Based on these insights, it is recommended that women's table banking groups prioritise savings, improve resource allocation, promote reinvestment, and manage deployment with caution to achieve sustainable financial outcomes.