Impact of Microfinance awareness in Kenya
MICROFINANCE AWARENESS AND IMPACT IN KENYA: A CASE OF NAIROBI COUNTY
Table of Contents
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The need for development that saw the Kenya develop several strategies and plans such as the vision 2030 and the millennium development goals has led to development of the finance sector. The need for financing of the development projects has developed microfinance institutions in the country. Microfinance has received a lot of attention since its inception in the early 1970s perhaps, as argued by Okiocredit (2005: 30-32), due to the ability of microfinance to enable poverty alleviation and economic development through provision of credit and savings services to those earning low income. The attention has seen development of different definitions to microfinance.
According to Otero (1999: 8) microfinance is “the provision of financial services to low-income poor and very poor self-employed people”. On the other hand, Schreiner and Colombet (2001: 339) define microfinance as “the attempt to improve access to small deposits and small loans for poor households neglected by banks.” Independent of the definition provided to microfinance it is a general agreement in the economic field that micro financing alleviates economic development. The money or funds that are provided by microfinance institutions in terms of credit and micro loans enables those who are poor to invest into productive activities that are bound to earn them income helping them boost their economic level and alleviate poverty in the entire economy.
Microfinance institutions therefore are an opportunity for sustainable development. The extent opportunities available to generate income and the ability of citizens to respond to the available opportunities are to a large extent determined by the degree or ability to access financial services that are affordable. Microfinance being able to provide such financial services is being pursued by every
Table of Contents
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The need for development that saw the Kenya develop several strategies and plans such as the vision 2030 and the millennium development goals has led to development of the finance sector. The need for financing of the development projects has developed microfinance institutions in the country. Microfinance has received a lot of attention since its inception in the early 1970s perhaps, as argued by Okiocredit (2005: 30-32), due to the ability of microfinance to enable poverty alleviation and economic development through provision of credit and savings services to those earning low income. The attention has seen development of different definitions to microfinance.
According to Otero (1999: 8) microfinance is “the provision of financial services to low-income poor and very poor self-employed people”. On the other hand, Schreiner and Colombet (2001: 339) define microfinance as “the attempt to improve access to small deposits and small loans for poor households neglected by banks.” Independent of the definition provided to microfinance it is a general agreement in the economic field that micro financing alleviates economic development. The money or funds that are provided by microfinance institutions in terms of credit and micro loans enables those who are poor to invest into productive activities that are bound to earn them income helping them boost their economic level and alleviate poverty in the entire economy.
Microfinance institutions therefore are an opportunity for sustainable development. The extent opportunities available to generate income and the ability of citizens to respond to the available opportunities are to a large extent determined by the degree or ability to access financial services that are affordable. Microfinance being able to provide such financial services is being pursued by every
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