Aoma Otieno Charles


Prof. Nemwebo Bosire.


Dr. Denis Muchangi. (Phd)


CITATION: : Aoma C. O., Bosire N. & Muchangi D. (November, 2018). Effect of access to microfinance services on poverty management in Kenya: A case of Mukuru kwa Njenga slum. International Journal of Economics and Finance (IJEF) Issue No XI, Volume 4, pp 229-245.


Micro Finance Institution (MFI) offers credits mainly to low income earners as a way of alleviating poverty. Today, there is a growing recognition that credit alone is not the only solution of alleviating poverty. Poor people need and use a variety of financial services including savings. Today, savings have tremendously risen as opposed to previously when MFI focused primarily on providing loans leaving savings the “forgotten half” “The microfinance movement is bringing hope, prosperity and progress to many of the poorest people in the world. From the time of inception in 1981 to date Kenya Women Finance Trust clientele has grown to 4,000,000 with a portfolio of about 100.7 billion. However from the reviewed literature, not much has been done to link the access level of microfinance services on poverty management. Further, there is need to understand why the movement is such a success and how its exact achievement can be assessed and scrutinized.” This study therefore focused on the effect of access to microfinance services by Small and Micro Enterprises in Kenya. The objective of this study was to determine the extent to which micro finance services have assisted in poverty management in Mukuru Kwa Njenga; to establish factors influencing accessibility of microfinance services by small and micro enterprises and to determine the level of influence of microfinance services on poverty management. The study was guided by a conceptual framework where the dependent variable was the level of poverty management and the independent variable was level of community empowerment and level of access to microfinance. Descriptive and co-relational designs were adopted. The population of the study was 100 officers drawn from five micro finance institutions in Mukuru Kwa Njenga. Census sampling was applied due to small number of population. Primary data was collected using questionnaire. The questionnaire was tested for both validity and reliability. Data was analyzed using both descriptive and inferential techniques. The findings were presented in form of graphs and tables. The findings may be helpful in policy formulation besides adding knowledge to the already existing body of knowledge.

Keywords: :Micro Finance Institution, microfinance, Small and Micro Enterprises and credit.
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