Assessment of the impact of microfinance institutions on micro,small and medium enterprises in Kenya
Mutuku, Peter M
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The microfinance industry in Kenya has experienced major transformations over the past twenty years, growing from a fledgling concern dominated by a few donor and churchbased NOOs to a vibrant industry increasingly driven by commercial viability and sustainability. The general objective of the study was to investigate the impact of microfinance institutions' services in Kenya. The researcher employed causal research design. The population of the study was from micro, small and medium businesses within Nairobi Eastland. The researcher used both primary and secondary sources to collect data. The researcher chose the self-administered questionnaire method for all correspondents as it was inexpensive and allowed the respondents to complete the questionnaire at a convenient time. The tabulated data was then analyzed by calculating various percentages where possible. Descriptive statistics especially, frequencies and cross tabulation were applied to help establish patterns, trends and relationships and to make it easier for the researcher to understand and interpret implications of the study. Presentation of data was in form of Tables, Pie-charts and Bar graphs only where provide successful interpretation of the findings. Descriptive data was provided in form of explanatory notes. The study concludes that Microfinance institutions had a great impact on employment creation and poverty alleviation in the Micro, Small and Medium Enterprises Sector. The concern for job creation resonates increasingly in the microfinance industry itself. Major microfinance networks justify their work also with the expected impact on job creation. The study further concludes that Microfinance institutions had a positive impact on equitable distribution of income and wealth in the Micro, Small and Medium Enterprises sector. The study recommends that Microfinance institutions need to continuously provide finance and entrepreneurial knowledge to the poor in the society as this leads to creation of jobs and reduced poverty levels in a country.
University of Nairobi, Kenya