Browsing by Author "Aduda, Josiah Omollo"

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    The impact of micro-finance services on poverty alleviation: an empirical assessment of selected households and micro-finance institutions in Kenya
    (University of Dar es Salaam, 2009) Aduda, Josiah Omollo
    The thesis examines the depth of outreach and impact of micro-finance services on poverty alleviation and women empowerment in Kenya. The Study employed a cross-sectional impact assessment, which used both the treatment and control groups. The Principal Components Analysis was used to isolate and measure the poverty component embedded in the various poverty indicators and to create a household specific poverty index. In addition two non-parametric tests, Kolmogorov Smirnov and Mann-Whitney, were performed to assess the impact of micro-finance services on women empowerment. The findings of the study confirm that micro-finance services have a positive impact on poverty alleviation in Kenya by helping the poor people to increase their sources of income which is an essential path out of poverty, hunger and deprivation. The micro-finance services have a positive impact on the empowerment of women because the access to savings and credit gives women a greater economic role in decision-making. The study, however, found that a majority of the poor households in Kenya do not have access to micro-finance services due to several factors, namely, physical and economic challenges, self-exclusion, sector risks, lack of awareness, negative publicity, cost structure of MFIs, capacity constraints as well as environmental factors. The study recommends that MFIs should intensify savings mobilization and establish strong partnerships with commercial banks in order to obtain sufficient funds for lending to the poor. The study also recommends the need for effective prudential supervision of MFIs by the CBK to ensure full compliance with the Micro-finance Act (2006). The Government should also implement stable macro-economic policies and develop infrastructure in the rural areas to enhance the capacity of MFIs to alleviate poverty.