Role of microfinancing instituitions in poverty reduction in Garissa County : a case of Equity bank Garissa branch
Date
2012
Authors
Ibrahim, Addikadir Adan
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
The people of Garissa County have for a long time lived amidst abject poverty where they earn their livelihood from pastrolism at the subsistence level. The majority of the people in this area were victims of the drought in Northern Kenya. Most people in trading centers within the county are craft men, bicycle and vehicle mechanics, taxi drivers while the women are petty traders.
Generally, the majority of the people of Garissa County live in abject poverty and it is for this reason that a study had to be conducted to suggest ways as to how poverty can be reduced from amongst the people of Garissa County and also the way forward for maintaining better living standards. This was the purpose of the research.
The researcher used the interviews, observation and questionnaires as a research instrument to collect adequate data on the study of the role of the microfinance institutions in poverty reduction in Garissa County and Equity bank was used as a case study.
The majority of findings during the study was that, the majority of the people who acquired the credit facilities from the microfinance institutions (Equity bank) had their income increased as well improved standards of living as some respondents stated that they can now afford the basic necessities of both rural and urban life.
Also beneficiaries of the microfinance loans had their Businesses improved while others were able to send their children to school from the school fees loans advanced to them.
The Key recommendations suggested by the researcher was that, there should be capacity building MFIs in gender to enhance their capacity in the design of policies, procedures and products that meet the practical and strategic gender needs of the poor people. This will enhance the participation of both men and women in MFIs programs thereby lead to poverty reduction through increased access to both production and consumption credit. This can be achieved through the microfinance capacity building plan. It is therefore hope that when a number of people who access microfinance funds increase rampant poverty in Garissa County will as well be checked
Description
Abstracts only
Keywords
Financial institutions, Microfinance