Determinants of Micro Credit provision to Women Entrepreneurs by Mfis in Kenya
Several attempts have been made by the government of Kenya towards poverty eradication and the creation of wealth. Most notable of these attempts is contained in Sessional Paper No. 2 of 1992 entitled "Small Enterprise and Jua Kali Development in Kenya. This paper provided a comprehensive framework for the promotion of small enterprises and Jua Kali development in Kenya. This was geared towards improvement of the existing policy and regulatory environment, gender specific issues, policy measures to improve access to credit facilities, and measures to improve provision of nonfinancial promotional programmes. In spite of the several milestones made in some of these areas, gender issues relating to provision of credit have not been conclusively tackled. The main purpose of this study thus was to explore the factors influencing the provision of women entrepreneurs by MFIs in Kenya. The specific objectives include; to identify the determinants of microcredit provision to women entrepreneurs by MFIs in Kenya. This study adopted explanatory research design. The scope of this study was the MFIs in Kenya. The study sought views of registered MFIs in Kenya. Stratified random sampling was used to come up with a representative sample size. Secondary data was gathered from authoritative sources including books, published articles, and on-line journals. Data was collected by use of questionnaire method. The questionnaire had structured open and closed ended questions. It comprised of two sections. The first part sought to obtain general information on respondents’ profile. The second part was devoted to the identification of determinants of micro credit provision to women entrepreneurs by MFIs in Kenya. The data was collected through questionnaires edited, classified, coded and tabulated in a systematic manner to allow for accurate analysis. Statistical Package for Social Sciences was used to generate the outputs. Tools of descriptive and inferential statistics were employed to analyze the data. Reliability test was done by use of cronbach’s alpha test. Multiple regression analysis was used to establish the predictive power of the study model. The findings were then presented in form of summarized tables with percentage scores, statistical mean and standard deviation together with outputs of inferential statistics. As relates to the influence of women savings mechanisms on microcredit provision to women entrepreneurs by MFIs based on specific variable measures, the study found out that poor product design by MFIs, lack of freedom and bargaining power by women and the relegating status for women to position of subordinates in resource management had the greatest influence on micro-credit provision to women entrepreneurs by MFIs in that order. On the influence of interest rates regulation based on specific variable measures, the study found out that the set high return on equity, high debt service chargeable on microloans and low monthly rates of return on capital in that order had the greatest influence on micro-credit provision to women entrepreneurs by MFIs. Interest inelasticity among micro-finance consumer loans, slow portfolio growth by MFIs together with low returns on agricultural investment and weak institutional growth and performance were also greatly influencing micro-credit provision to women entrepreneurs by MFIs in Kenya. Lastly, terms of payment, the lending base, the prescribed minimum loan amounts, supplementary services and restriction of credit to specific activities were found to have greatest influence on micro-credit provision to women entrepreneurs by MFIs in Kenya.