Influence of Microfinance Institutions on Socio-economic Status of Rice Farmers: a Case of Mwea Rice Farmers, Kirinyaga County, Kenya
Abstract
Microfinance is defined as a collection of banking services based on advancing micro loans mostly without condition of collateral and accepting small savings as deposits from members. The purpose of the study was to establish the influence of microfinance institutions on socio-economic status of rice farmers in Mwea Irrigation scheme. The objectives of the study were: To determine influence of savings mobilisation on socio economic status of rice farmers, To establish the influence of training services on socio economic status of rice farmers, To assess the influence of credit facilities on socio economic status of rice farmers and To determine the influence of insurance services on the socio-economic status of rice farmers in Mwea Irrigation Scheme. A descriptive survey research design was adopted. Questionnaire and interview schedules were used to collect data and analysis was done using SPSS. Descriptive analysis was used to analyze numeric data and findings presented using frequency distribution tables. The overall results suggest that socio economic status of Mwea rice status has improved tremendously after taking loans. This study found out that with their constant saving in groups managed by MFIs, households and individual’s farmers in Mwea had built up assets to use as collateral, self-insured themselves against uncertainty and self-financed their investments. Adult literacy and business training programmes offered by MFIs facilitated farmers’ access to better jobs and income-generating opportunities and influenced means of promoting modern farming. Credits facilities provided by MFIs created economic empowerment that translated into social empowerment, lifting the poor rice farmers out of poverty. Additionally, insurance services offered by MFIs in Mwea influenced the socio-economic status of rice farmers positively. The Key issue identified by most recipients is lack of stable market for their rice produce. The key recommendation from the study is the need to provide education by MFI since only few of them undertake such exercise.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- Faculty of Education (FEd) [6020]
The following license files are associated with this item: