The effect of microfinance loans on poverty reduction: a case study of k-rep bank
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Date
2012-10Author
Ochieng’, Eliud O
Type
ThesisLanguage
enMetadata
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This Research is about the effect of Microfinance loans on poverty reduction in Kenya. It
undertakes a review of microfinance and its impact on poverty reduction. Advocates of
microfinance argue that Microfinance loan is a powerful tool to alleviate poverty. The
objective was to find out the role of microfinance loans in poverty alleviation or
reduction. It also aims at identifying or examining the effectiveness of microfinance and
its challenges.
The research design was case study which employed descriptive techniques. Quantitative
procedures include the use of cross tabulation, frequency distributions and percentages.
Qualitative analysis includes the identification and comparison of the responses. The
simple random sampling technique was used to select respondents made up of four
groups of K-Rep bank clients within the Kawangware and Kibera areas. The study
revealed that microfinance loans and microfinance institutions play a crucial role in
reducing poverty in the country.
The study revealed that microfinance institutions despite their importance are faced with
lots of challenges; key among them is loan defaults by customers and inadequate capital
to sustain and cater for the growing number of clients. The number of respondents
selected was 40 with a sample of 10 from each of the 4 groups within Kibera and
Kawangware areas.
Publisher
University of Nairobi School Of Business, University Of Nairobi