Influence of monitoring and evaluation on performance of Microfinance institutions in Kenya: a case of Kitui central constituency
Success and sustainability of projects undertaken depends so much on monitoring and evaluation. Microfinance institutions have enabled increased access to credit for many individuals thus improving their livelihood. It is therefore important to understand the influence of monitoring and evaluation which are essential tools that enhance the growth of microfinance institutions. The aim of the Central Bank of Kenya is to see that the microfinance industry spreads out to the heart of rural homes in order to meet the needs of the unbanked through expanding access to financial services for poor individuals and families along with small businesses, especially the small, medium Scale and informal sector businesses. Such a goal also fulfills the Kenyan Vision 2030 where the government aims to improve access to the financial sector and in doing so fulfill the millennium development goals. This research was conducted in Kitui central constituency by analyzing responses got from employees and clients working in some of the leading microfinance institutions in the region. Data analysis was done to present the findings by employing statistical methods. It was found that monitoring and evaluation practices influences performance of MFIs schemes as was supported by 86.6% of the respondents. The research established that preventive monitoring and evaluation practices are not fully utilized by microfinance organizations and in addition that Information technology practices need to be incorporated when conducting monitoring and evaluation. Recommendations were made which included insuring flexibility in M&E practices that should be customer based and the use of sustainable screening techniques that enhance effective delivery of services. Moreover, training of employers and employees on customer’s preferences and seeking professional assistance are essential tools for monitoring and evaluation.