Effect of Technology on the Government Revolving Funds Sustainability in Murang'a County, Kenya

Abstract

Most governments of the day in developing economies have tried to make the public values a reality through the introduction of resources for the public service due to persisting poverty in the countries. In this connection the strategic task of providing start-up funds to various organizations and groups, and ensuring their sustainability is crucial. The main focus of this study was to analyse the loan repayment and sustainability issues of government revolving funds in Murang'a County. Use of technology on the government revolving funds in order to bring about the sustainability of the fundsis very essential. The study adopted a positivism philosophy of research, where the researcher was independent on what was being observed and studied. Descriptive survey design was used to determine the level of government revolving fund repayment and its effect on sustainability for other borrowers. The target population was 1520 social and economic groups in Murang'a County. Clustering and Simple Random Sampling techniques were applied to select a sample size of 307 groups, and in addition a census of 16 constituency credit officers, who were also interviewed. This, in total accounted to 19.5% of the total population. A questionnaire and an interview schedule were used to collect data. Descriptive data were analysed using tables and charts. Quantitative data were analysed using Chi-square, Analysis of Variance and Logit Regression Model. The results indicated that,the influence on technology to government revolving fund was statistically non-significant to repayment and sustainability in Murang'a County. The study concluded that though technology did not have a statistical relationship to loan repayment and sustainability in Murang'a County, the government should strengthen this facility to enable loanee follow-up and enhance early detection of defauters in order to take early action.