| dc.description.abstract | Microfinance remains one of the most important tools which can be used in poverty eradication
and achievement of Millennium development goals (MDGs) especially MDG 1 which aims at
eradicating extreme poverty and hunger by the year 2015.It enables the poor not only to save
but also to borrow money with little or no collateral enabling them meet their social and
financial aspirations.Recently,most commercial banks have ventured into microfinance either
through directly offering microfinance products through their mainstream banks or through
fully-owned subsidiaries dealing exclusively with microfinance. The main objective of this study
was therefore to examine the determinants of uptake of micro finance products among
commercial banks in Mombasa County, Kenya. Related literature review was done on the
independent variables which included Interest rates, competition, and technology and customer
retention. The researcher found out that there was a correlation between interest rates and the
uptake of microfinance products and services among commercial banks in Mombasa County.
There was also a positive correlation between technology and the uptake of microfinance
products among commercial banks in Mombasa County. Mobile banking and internet banking
were some of the technology researched on. Based on the findings of the study, it was prudent
for the researcher to conclude that interest rates charged by a bank on micro products and
services had a significant influence on their uptake among commercial banks. The researcher
also concluded that competition was a key indicator and had a significant influence on the uptake
of microfinance products and services among commercial banks in Mombasa County. On
technology, the researcher concluded that it plays a pivotal role in modern day banking and
especially on access and uptake of micro finance products. The researcher found it prudent to
suggest further research on factors that propel customers to prefer commercial banks to micro
finance institutions when it comes to uptake of micro finance products and services. The research
employed descriptive survey design and both qualitative and quantitative data was collected.
Data collection instruments used were questionnaires and interview guides. The quantitative data
from the study was coded and entered into a computer for analysis using the statistical Package
for Social Sciences (SPSS). Independent sample T-test and Chi square test of independence at
95% level of confidence was used in this study. The level of significance at probability level of
5% was applied. | en_US |
