| dc.description.abstract | Various researches seeking to investigate the impact of microfinance on poverty alleviation have been carried out in different locations across the world. But the most notable thing is the fact that there seems to be no consensus on the research findings. Therefore, this research seeks to find out the impact of micro finance on poverty alleviation in Kakamega County, Kenya. Governments, donor agencies, and private investors are funding an increasing number of microfinance programs in low-income countries. The findings of this research would enable all these financiers to know if their efforts are creating a meaningful impact on poverty alleviation, and also inform them about the areas they need to make improvements in order to achieve the end goal more effectively.
A sample survey research design is employed in this study. This enabled the researcher to give adequate attention to each return received from the respondents in order to enhance accuracy. All the microfinance institutions (MFls) operating within the county are involved in the study with a proportionate sample of beneficiaries being obtained from each MFI on the basis of customer numbers. A likert scale questionnaire is used to measure the respondents' perceptions about the impact of microfinance.
Descriptive and inferrential statistics are used for the purpose of data analysis. Mean is used to measure the average satisfaction level, standard deviation to measure the extent of diversity of respondents' opinions (agreement level), Z-test to measure the extent of impact for the different constructs that constitute poverty alleviation, and Chi-square to measure the general relationship between microfinance and poverty alleviation. The research finds out that microfinance has had a positive impact on the various dimensions that constitute poverty alleviation.
The research concludes that microfinance has led to poverty alleviation in Kakamega County, Kenya. However, the MFIs are only able to reach a limited number of beneficiaries. Therefore, its incumbent upon the government and other players to enhance the outreach of MFIs by offering the requisite resources and an enabling legal environment. | en_US |
