Impact of microfinance on women economic development ; A case study of Kenya women finance trust in Narok County

Abstract

Since the 1990s there has been a significant increase in provision of microfinance services to women through Micro Finance Institutions (MFls) to start small and medium enterprises income generating activities in Kenya, especially in urban areas. The microfinance programs are aimed at empowering women economically and socially. The purpose of the study was to investigate the impact of micro finance on economic development of MFls' women clients in Narok town. Data for the study was collected from primary sources using questionnaires administered to beneficiaries of the MFls' microfinance programs and from structured interviews. The study used a descriptive survey design. The target population of this study included the 500 SMEs operating in Narok town. A sample of Fifty (50) women was selected randomly from the target population. A questionnaire was designed and used to collect the data from the respondents. The data was analyzed both qualitatively and quantitatively where frequencies and percentages were computed and the data was presented using Percentages and frequencies. The data was presented in forms of tables and charts. The main finding of the study is that access to micro finance has impacted positively in the economic development of women through improvement in their businesses, asset ownership income and living standards. Besides, the study shows that access to microfinance has improved the status of women both at the family level and in society as a whole. Based on the results, the study recommends that MFls should endeavor to extend more credit facilities to women clients as this enhances their economic empowerment. Finally, MFls and other institutions should provide more training programs to women in order to improve their entrepreneurial skills and help reduce problems which hinder their access to micro finance and growth. This study shall be of great benefit to all women in Narok County, and women entrepreneurs as it sheds light on the various aspects of MFls success to women development. The study results will also be of great benefit to the entire County of Narok in terms of increased revenue generation from the businesses. The government shall also be a key beneficiary as it shall enable in appropriate policy formulation.