DOCSLIB.ORG

Mediating Influence of Niche Policy in the Relationship Between Entrepreneurs’ Profile and Women Entrepreneurial Activity in Selected Western Kenya Counties

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Mediating Influence of Niche Policy in the Relationship Between Entrepreneurs’ Profile and Women Entrepreneurial Activity in Selected Western Kenya Counties MEDIATING INFLUENCE OF NICHE POLICY IN THE RELATIONSHIP BETWEEN ENTREPRENEURS’ PROFILE AND WOMEN ENTREPRENEURIAL ACTIVITY IN SELECTED WESTERN KENYA COUNTIES BY SANGURAH RAMARI MUKHEBI ROBBERT REG No. SHRD/PhDE/4/13 A RESEARCH THESIS SUBMITTED TO THE DEPARTMENT OF QUANTITATIVE AND ENTREPRENEURSHIP STUDIES, SCHOOL OF HUMAN RESOURCE DEVELOPMENT IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF THE DOCTOR OF PHILOSOPHY DEGREE IN ENTREPRENEURSHIP DEVELOPMENT MOI UNIVERSITY 2018 ii DECLARATION Declaration by the Student; This thesis is my original work and has not been presented for a degree in any other university or any other award ……………………….. ………………………….. SANGURAH RAMARI MUKHEBI ROBBERT Date REG. No. SHRD/PhDE/04/13 Confirmation by Supervisors; This thesis was submitted for examination with our approval as University supervisors ……………………………… …………………………. Prof. Peter Isaboke Omboto Date Department of Quantitative and Entrepreneurship Studies, SCHOOL OF HUMAN RESOURCE DEVELOPMENT ……………………………… ………………………… Prof. Ruth Tubey Date Department of Quantitative and Entrepreneurship Studies, SCHOOL OF HUMAN RESOURCE DEVELOPMENT iii DEDICATION I dedicate this thesis to my family: Dear wife Stellah Kananu Ramari; beloved children Kimathi Wambani, Wafula Mugambi, Ramari (Jnr) and RoseCeline Nameme, and; my loving parents, the late Mzee Alfred Mukhebbi Sangurah ‘Siamoni’(Kikayi Wamilele Wamitungu- Omumeme) and Mum Colleta Nanjala Mukhebi (Nekoye Nabwami). Thank you for your support. iv ACKNOWLEDGEMENT This work was completed because of the co-operation and support I got from several people and institutions. I may not name them all here but to them all I owe my gratitude. I pay particular tribute to God for giving me the wisdom, guidance and strength to research and organize this work. Special thanks go to my supervisors, Prof. P. I. Omboto and Prof. R. Tubey for their comments, critisms, suggestions and encouragement that were invaluable. More thanks to lecturers and classmates for their insightful guidance. I thank Moi University and the School of Human Resource Development for giving me a chance to study in this PhD in Entrepreneurship Development program. May I in a special way thank the Khamilas (John and Caroline) for their financial support, my friend and neighbor Moses Kombo, cousin Dickson Simiyu for their encouragement, proprietors of Serena Barber Shop on Kiminini market for allowing me working space at no cost, sometimes at the expense of their customers, workmates at Maliki Boys High School (in the years 2014- 2018) for moral and material support and the research assistants; Humphrey, Rose and Moses through whom I accessed the respondents. Last but not least, I thank the county governments of Trans Nzoia and Bungoma for allowing me to research in their areas of jurisdiction and the respondents for accepting to answer the survey questionnaires. I thank my aunt Nabachenja, the late grandmothers; Roseline Mulimangila Sangurah (Nalonja) and Celine Khisa Wambani (Namualila) who were instrumental in paying my fees and always had inspiring confidence in me throughout this long academic journey. May the Lord rest their souls in eternal peace. v ABSTRACT There has been little emphasis on public policy, research and popular media interest in women entrepreneurship, a situation that has left women entrepreneurs prone to both general and gender-specific barriers. The need for a women-specific policy, which was the basis of this study therefore cannot be over-emphasized. The study sought to assess the mediation influence of the niche entrepreneurship policy in the relationship between women entrepreneurs’ profile and their entrepreneurial activity as the broad objective. The specific objectives were to analyze: The contribution of women entrepreneurs’ profile to their entrepreneurial activity; the relationship between women entrepreneurs’ profile and the niche policy; the relationship between niche policy and the women’s entrepreneurial activity; the mediating influence of promotional efforts in the relationship between women entrepreneurs’ traits and the number of new venture start-ups they create and; the mediating influence of resource support in the relationship between women entrepreneurs’ motives and their ventures’ growth. The study design was a Cross-sectional Survey, guided by Motivational and Resource-based Theories. It adapted a Positivist Paradigm and used a Quantitative Multi-method approach. Structured questionnaires and document review were used to collect primary and secondary data respectively. Through multi-stage sampling, a sample of 375 women entrepreneurs participated in the study. The data was analyzed in two phases. Descriptive Analysis in phase one and Inferential Analysis in phase two. In phase two, correlation coefficient and coefficient of determination were the specific techniques used to assess the strength of the relationship between and among variables. Hypotheses testing results revealed there being significant direct and indirect relationships. For example, the correlation coefficient results for the first hypothesis (H01): There is a significant relationship between women entrepreneur’s traits and the number of new venture start-ups they create, were; R2=.9629, p= .00, meaning that 96% change in the rate of new start-ups initiated was directly attributed to promotional efforts. Also, the coefficient of determination results for the fourth hypothesis (H04): There is a significant mediating influence of promotional efforts in the relationship between women entrepreneurs’ traits and the number of new venture start-ups they create, were; k2=.1391, 95% BCa CI (.0811, .2041) and b=.0199, z=4.4065 and p=<.001, meant that 14% change in the rate of new start-ups initiated was caused by the mediation influence of promotional efforts in the relationship between women entrepreneurs’ traits and the number of the new venture start-ups they created. The study therefore concluded that niche policy programs mediate in the relationship between Western Kenya women entrepreneur’s profile and their entrepreneurial activity. The findings will help policy makers address women entrepreneurs’ unique entrepreneurial challenges. They are a prescriptive niche policy model that can be used to enhance women entrepreneurship and foster inclusive and therefore sustainable economic development in Kenya, and other developing countries. They also provide a useful research output to tertiary learning institutions for teaching- learning purposes and guiding other academic researches on women entrepreneurship. vi TABLE OF CONTENTS DECLARATION ................................................................................................................ ii DEDICATION ................................................................................................................... iii ACKNOWLEDGEMENTS .............................................................................................. iv ABSTRACT ....................................................................................................................... v TABLE OF CONTENTS………………………………………………………………....vi LIST OF TABLES .............................................................................................................. x LIST OF FIGURES ........................................................................................................... xi LIST OF APPENDICES .................................................................................................. xiii ABBREVIATIONS ......................................................................................................... xiv OPERATIONAL DEFINITION OF KEY TERMS ....................................................... xvii CHAPTER ONE: INTRODUCTION ................................................................................. 1 1.0 Overview…………………………………...……………………………………….…1 1.1 Background to the Study ............................................................................................... 1 1.1.1 Women Entrepreneurship…………………………………………………………...3 1.2 Statement of the Problem .............................................................................................. 7 1.3 The General Research Objective .................................................................................. 8 1.3.1 Specific Research Objectives .................................................................................... 8 1.4 Research Hypotheses .................................................................................................... 8 1.5 Scope and Delimitation of the Study...…………………………...……..…..……….10 1.6 Limitations of the Study ………………….....………..…………………..………….10 vii 1.7 Significance and Justification of the Study ................................................................. 11 1.8 Theoretical Framework ............................................................................................... 13 CHAPTER TWO: LITERATURE REVIEW ................................................................... 17 2.0 Introduction ................................................................................................................. 17 2.1 The Concept of Entrepreneurship Policy…………………………...……………......17 2.1.1 Distinction Between Entrepreneurship and SME Policies………………..…..........19 2.2 Evolution of Entrepreneurship Policy in Kenya………………..…………………....24 2.2.1 Encouraging Modern Small-Scale Enterprises (1964-1972)………………..……..25 2.2.2 Official Recognition of MSEs without Policy Action (1973- 1985)……..………..26
Load more

Recommended publications
  • An Overview of the Role of Microfinance in Eradicating Poverty in Kenya; a Lesson to Be Learnt from the Emerging Economies
    International Journal of Arts and Commerce ISSN 1929-7106 www.ijac.org.uk AN OVERVIEW OF THE ROLE OF MICROFINANCE IN ERADICATING POVERTY IN KENYA; A LESSON TO BE LEARNT FROM THE EMERGING ECONOMIES. Simeon Nyandemo Kaburi1 [email protected], Benson Bonyi Ombasa2 [email protected] David Nyambane Omato3 [email protected] Vicky Obanyi Mobegi 4 [email protected] 5 Dr. Flolence Memba 1-5 Jomo Kenyatta University of Agriculture and Technology (Kisii CBD) Abstract. This paper reviews the role microfinance has had in the emerging economies in the eradication of poverty. Data for this paper was ascertained from secondary sources. Most developing countries record very high poverty index. The majority of the poor live in rural and remote areas as well as in informal settlement in urban areas. These people as the paper realized do not have access to finances from commercial banks because of varied reasons among; them being fear of default risk by banks. The paper also reveals that microfinance in the Kenyan plays in empowering the poor and finally makes recommendations based on the successes achieved by microfinance programmes in emerging economies. Introduction Meaning of microfinance: Microfinance is simply defined as credit advanced to the poor who normally do not have collateral to pledge. It involves the provision of financial services via microfinance institutions (MFIs) either to the working poor or those people who rely on their small businesses for income and who are not considered bankable because they lack collateral to be pledged as security or are considered high risk by the main stream or traditional commercial banking sector (Daley Harris 2002).
    [Show full text]
  • Promoting Microfinance Growth Through Increased Investments In
    Munich Personal RePEc Archive Attracting Microfinance Investment Funds: Promoting Microfinance Growth through Increased Investments in Kenya Matu, Jeffrey Ben Duke University, International Development Program 18 April 2008 Online at https://mpra.ub.uni-muenchen.de/12084/ MPRA Paper No. 12084, posted 12 Dec 2008 17:42 UTC Attracting Microfinance Investment Funds: Promoting Microfinance Growth Through Increased Investments in Kenya Master’s Project Master of Arts in International Development Policy Terry Sanford Institute of Public Policy Duke University Jeffrey Ben Matu Principal Policy Advisor Dr. Graham Glenday April 18, 2008 Acknowledgements This paper could not have been written without Dr. Graham Glenday who not only served as my policy advisor, but also encouraged and challenged me to do my best. I would also like to thank my other committee members; Dr. Cory Krupp and Dr. Rosemary Fernholz for patiently guiding me through the writing process and for their suggestions and continued support. To my family and friends, I thank you for your encouragement with reading and commenting on the paper. And to my wife Sharon, for believing in me and encouraging me to never accept less than my best efforts. Finally I would like to thank Jennefer Sebstad, Leila Webster, Stefan Staschen, and Jerry Grossman for reading and making comments on my drafts. Thank you all. 2 Table of Contents List of Acronyms…………………………….…………………………………………….……………………...5 Executive Summary……………………………………………………………………….……………………..6 1. Introduction…………………………………………………………………..………………………………7 2. Background……………………………………………………………..…………………………………….7 2.1. Microfinance Sector……………………………………………………………………………………...7 2.2. Sociopolitical……………………………………………………………………………………………...10 2.3. Investment Climate………………………………………………………………………………………13 2.4. Economic Sector………………………………………………………………………………………….14 3. Problem Statement………………………………………………………………………………………….17 3.1. Policy Question…………………………………………………………………………………………...17 3.2.
    [Show full text]
  • The Effect of Financial Innovation on the Growth of Micro-Finance
    THE EFFECT OF FINANCIAL INNOVATION ON THE GROWTH OF MICRO-FINANCE INSTITUTIONS IN KENYA BY JESSE GITONGA MUGO D61/73601/2009 A RESEARCH PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION, SCHOOL OF BUSINESS, UNIVERSITY OF NAIROBI OCTOBER, 2012 DECLARATION This research project report is my original work and has never been submitted for any degree award in this or any other university. Signature …………………. Date ………………………….. JESSE GITONGA MUGO D61/73601/2009 This research project report has been submitted for award of degree of master of business administration with my approval as the University supervisor , Signature ……………………… Date……………………….. DR. FREDERICK OGILO Lecturer , Department of Finance and Accounts, This research project report has been submitted for award of degree of master of business administration with my approval as the Chairman of the department , Signature ……………………… Date…………………………….. DR. JOSIAH ADUDA Chairman , Department of Finance and Accounts, ii DEDICATION I dedicate this project to my parents Mr. and Mrs. Mathews Mugo, brothers and sister for their concern, enthusiasm and encouragement throughout my studies. iii ACKNOWLEDGMENT I am sincerely grateful to the managers and other employees of Micro Finance Institutions (MFIs) for their time and support during the data collection at their firms. My special thanks go to my supervisor, Dr. F. Ogilo and other lecturers for the constructive criticism, guidance and support throughout the research process. I also thank my MBA colleagues for their valuable support, contributions and encouragement during the studies and research. Lastly, I thank my family for their moral support, encouragement and love they have shown throughout my entire studies and particularly during the research project writing process.
    [Show full text]
  • Influence of Mobile Banking on Growth of Micro Finance Institutions in Kenya
    International Journal of Social Science and Entrepreneurship Vol. 1, Issue 2, 2013 INFLUENCE OF MOBILE BANKING ON GROWTH OF MICRO FINANCE INSTITUTIONS IN KENYA Maurice Onzere Ala Dr. Patrick Karanja Ngugi Jomo Kenyatta University of Jomo Kenyatta University of Agriculture Agriculture KENYA KENYA CITATION: Ala, M. O. & Ngugi, P. K. (2013). Influence of mobile banking on growth of Micro Finance Institutions in Kenya. International Journal of Social Science and Entrepreneurship, 1 (2), 132- 151. ABSTRACT MFIs in the developing world are increasingly deploying the use of mobile banking to increase growth. The pace of transformation in the MFI sector has speeded up with more MFIs realizing the potential of using the mobile banking in their service delivery. However, there are only a handful of studies on the effect of mobile banking on growth of micro finance institutions. A population of 360 management staff was identified from three levels of management, which included top management, middle level and lower management. The study used both primary and secondary data. The questionnaire included both structured and unstructured questions. The questionnaire was administered through the drop and pick method to the top, middle and lower managers in the MFIs. The study found out that regulatory requirements influences the growth of MFI to strengthen the governance and internal control structures ; that the profitability and growth of MFIs has led to commercialization and integration of MFIs into the formal financial sector ; that the specialized equity funds help compensate for the lack of private sector representation on MFI boards; that the growth of MFIs tend to have a strong interest in overseeing both the commercial and social objectives; that the growth of MFIs provides sustained access to multiple sources of capital.
    [Show full text]
  • Key Principles of Microfinance Xi Chapter 1
    35031 Public Disclosure Authorized Public Disclosure Authorized Access for All Building Inclusive Financial Systems Public Disclosure Authorized Consultative Group to Assist the Poor Brigit Helms CAPTURING 10 YEARS OF CGAP EXPERIENCE Public Disclosure Authorized Consultative Group to Assist the Poor Argidius Foundation Ford Foundation ACCESS FOR ALL Building Inclusive Financial Systems CONSULTATIVE GROUP TO ASSIST THE POOR BRIGIT HELMS CAPTURING 10 YEARS OF CGAP EXPERIENCE © 2006 The International Bank for Reconstruction and Development / The World Bank 1818 H Street, NW Washington, DC 20433 Telephone 202-473-1000 Internet www.worldbank.org E-mail [email protected] All rights reserved. 1 2 3 4 09 08 07 06 The findings, interpretations, and conclusions expressed herein are those of the author(s) and do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank encourages dissemination of its work and will normally grant permission promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA, telephone 978-750-8400, fax 978-750-4470, www.copyright.com.
    [Show full text]
  • Influence of Microfinance Institutions on the Growth of Women Entrepreneurial Ventures in Mombasa County, Kenya
    INFLUENCE OF MICROFINANCE INSTITUTIONS ON THE GROWTH OF WOMEN ENTREPRENEURIAL VENTURES IN MOMBASA COUNTY, KENYA BY EDITH NYANGARA ONKOBA A research project report submitted in partial fulfillment of the requirements for the award of the degree of Master of Arts in Project Planning and Management of the University of Nairobi 2017 DECLARATION This Research Project Report is my own original work and has not been submitted for examination in any other University SIGNED……………………………….. DATE…………………………… EDITH N ONKOBA L50/80634/2015 This Research Project Report has been submitted for examination with my approval for examination as the university supervisor. Signed ………………………………….. Date………………………………. JOHNBOSCO KISIMBII LECTURER, DEPARTMENT OF OPEN AND DISTANCE LEARNING. UNIVERSITY OF NAIROBI. ii DEDICATION I would like to dedicate this study to my parents Mr. & Mrs. Chris Onkoba, thank you for being a pillar of strength and for your support both financially and morally. I wouldn’t have made it this far without you. To my siblings Pauline, Diana, Steve and Winnie for your prayers I will always remember you. My niece Debra and Nephew Onkoba Junior, I love you all. iii ACKNOWLEDGEMENT I would like to recognize important people who enabled me to finish my studies. First, I want to acknowledge and thank God for giving me the strength and wisdom, health and endurance to see this day and complete this work. Second, I greatly acknowledge my supervisor Mr. Johnbosco Kisimbii who stood by me showing guidance in this work. I also want to thank God for giving him the patience and understanding that has enabled Mr. Kisimbii to work tirelessly towards the completion of this report.
    [Show full text]
  • Do Policy Frameworks Affect Microfinance Participation in Kenya? Matthew Reed
    James Madison University JMU Scholarly Commons Senior Honors Projects, 2010-current Honors College Spring 2019 Do policy frameworks affect microfinance participation in Kenya? Matthew Reed Follow this and additional works at: https://commons.lib.jmu.edu/honors201019 Part of the Growth and Development Commons Recommended Citation Reed, Matthew, "Do policy frameworks affect microfinance participation in Kenya?" (2019). Senior Honors Projects, 2010-current. 633. https://commons.lib.jmu.edu/honors201019/633 This Thesis is brought to you for free and open access by the Honors College at JMU Scholarly Commons. It has been accepted for inclusion in Senior Honors Projects, 2010-current by an authorized administrator of JMU Scholarly Commons. For more information, please contact [email protected]. Do Policy Frameworks Affect Microfinance Participation in Kenya? _______________________ An Honors College Project Presented to the Faculty of the Undergraduate College of Business James Madison University _______________________ by Matthew J. Reed May 2019 Accepted by the faculty of the Department of Economics, James Madison University, in partial fulfillment of the requirements for the Honors College. FACULTY COMMITTEE: HONORS COLLEGE APPROVAL: Project Advisor: John R. Subrick, Ph.D Bradley R. Newcomer, Ph.D., Professor, College of Business Dean, Honors College Reader: Melinda Adams, Ph.D. Professor, College of Arts and Letters Reader: Philip S. Heap, AbD. Professor, College of Business PUBLIC PRESENTATION This work is accepted for presentation, in part or in full, at Honors Symposium on April 5th, 2019. 1 Table of Contents Abstract 1 Introduction 3 Historical Analysis 5 History and Current State in Kenya 11 Structure and Policy Analysis in Kenya 17 Data 24 Analysis 26 Conclusion 28 References 28 Abstract: The following paper explores the effectiveness of microfinance policy on the registered level of participation in Kenya.
    [Show full text]
  • Determinants of Real Estate Financing by Microfinance Institutions in Kenya
    DETERMINANTS OF REAL ESTATE FINANCING BY MICROFINANCE INSTITUTIONS IN KENYA BY TREASY MARYANN WIRA MURIUKI UNITED STATES INTERNATIONAL UNIVERSITY- AFRICA SUMMER 2018 DETERMINANTS OF REAL ESTATE FINANCING BY MICROFINANCE INSTITUTIONS IN KENYA BY TREASY MARYANN WIRA MURIUKI A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirements of Master in Business Administration (MBA) UNITED STATES INTERNATIONAL UNIVERSITY- AFRICA SUMMER 2018 STUDENT DECLARATION I declare this work has not been submitted to any other university other than United States International University-Africa, it’s my original work which has been submitted for the Academic purposes. Signature __________________________ Date____________________ Treasy Maryann Wira Muriuki (ID NO: 652644) This project has been submitted for examination with my approval as the University Supervisor. Signature __________________________ Date____________________ Dr. Elizabeth Kalunda Signature __________________________ Date____________________ Dean, Chandaria School of Business ii COPYRIGHT All rights reserved. No part of this project may be reproduced or transmitted in any form or by any means, electronic or otherwise, without prior written permission from the author. © Copyright by Treasy Maryann Muriuki, 2018 iii ABSTRACT The general objective of the study was to examine the determinants of real estate financing by micro financing in Kenya. The study was guided by the following research objectives; the effect of borrower’s characteristics on access to real estate financing by microfinance institutions in Kenya, effect of lending policies on access to real estate financing by microfinance institutions in Kenya, and to determine the effect of interest rate on access to real estate financing by microfinance institutions in Kenya. The study adopted the use of descriptive research design.
    [Show full text]
  • The Effect of Macroeconomic Factors on Financial Performance of Insurance Firms in Kenya
    THE EFFECT OF MACROECONOMIC FACTORS ON FINANCIAL PERFORMANCE OF INSURANCE FIRMS IN KENYA BY FAITH NYAMU A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF SCIENCE IN FINANCE, SCHOOL OF BUSINESS, UNIVERSITY OF NAIROBI 2016 DECLARATION This research project is my original work and has not been presented for a degree at any other university for examination. Signature ____________________________ Date ___________________________ Faith Nyamu D63/72887/2014 This research project has been submitted for examination with my approval as the University supervisor. Signature _______________________________ Date __________________________ Dr. Kennedy Okiro Lecturer, Department of Finance and Accounting School of Business University of Nairobi ii ACKNOWLEDGEMENTS My dedication of the research project to my family. Their support and encouragement Impelled to achieve my goal. iii DEDICATION This research project would not have been a success without the support and contribution of a number of people, who immeasurably contributed towards my ultimate goal. I candidly give my gratitude to my project supervisor Dr.Kennedy Okiro, Lecturer department of finance and Accounting for his selfless dedication, guidance and encouragement towards the conclusion of the project. I would also wish to acknowledge the contribution of the rest of the university of Nairobi fraternity especially the MSC coordination office and moderators to the success of this project. I also wish to thank my family and close friends, for their moral support and encouragement towards the achievement of my goal and for understanding during the project period. I would not have made it this far without their prayers and cooperation.
    [Show full text]
  • Assessing Borrower's and Business' Factors Causing Microcredit
    Journal of Education and Practice www.iiste.org ISSN 2222-1735 (Paper) ISSN 2222-288X (Online) Vol.7, No.12, 2016 Assessing Borrower’s and Business’ Factors Causing Microcredit Default in Kenya: A Comparative Analysis of Microfinance Institutions and Financial Intermediaries Muturi Phyllis Muthoni Department of Business Administration and Management in Dedan Kimathi University of Technology, School of Graduate Studies and Research, P.O Box 657-10100 –Nyeri, Kenya Abstract A major concern on microcredit repayment remains a major obstacle to the Micro Financial Institutions (MFIs) and Financial Intermediaries (FIs) in Kenya. The health of MFI sector in Sub Sahara Africa (SSA) is a cause of concern due to the increased portfolio at risk (PAR). This region records the highest risk globally. Its PAR 30 is greater than 5 percent. This study sought to investigate causes of loan default within MFIs and Financial Intermediaries (FIs) in Kenya. The study addressed the following specific objectives; (1) to evaluate the influence of borrower’s characteristics on loan default in MFIs and FIs (2) to investigate the relative influence of business characteristics on loan default in MFIs. A target population of 294 MFIs institutions and 76 Financial Institutions was used. A multistage sampling procedure was used to save time and cost by narrowing down on the regions and branches since they were widely spread, a sample of 106 MFIs and 40 FIs was selected. Random sampling was used and primary data collected by use of a questionnaire. Data was analyzed by quantitative methods by use of SPSS; Version 21. Descriptive statistics and inferential statistics were employed to make generalizations while Factor Analysis was done to reduce the high numbers of factors to a smaller number which were significant.
    [Show full text]
  • 2014 Sector Report on the Kenyan Microfinance Sector
    20142014 SECTOR SECTOR REPORT REPORT ONON THE THE MICROFINANCE MICROFINANCE SECTOR SECTOR ININ KENYAKENYA THIRD EDITION || OCTOBER 2014 THIRD EDITION || OCTOBER 2014 Experience and innovation that knows no boundaries Through advanced business intelligence solutions fo r consumers and commercial businesses, TransUnion (previously Credit Reference Bureau Africa), can help you break through boundaries and move ahead. With i nnovative data solutions, analytics and sophisticated decisioning technology, we help you build more efective strategies, improve customer relationships and grow your bottom line. We’re providing customised solutions that allow loc al microfinance organisations to benefit from lower operational costs, improved tu rnaround time and a more streamlined document management process. We’re prou d to continue building stronger economies, both here and around the world. For more information, please contact Kanini Mativo: + 254 20 202 1299 or +254 722 20 5072 | e-mail [email protected] Visit www.transunionafrica.com © 2014 TransUnion. All Rights Reserved. Association of Microfinance Institutions-Kenya The Association of Microfinance Institutions-Kenya (AMFI) is a member-based institution, registered in 1999 under the Societies Act by the leading MFIs in Kenya, with the aim to build the capacity of the Kenyan microfinance industry. AMFI-K is membership ranges from large, mature banks to relatively smaller MFIs, Deposit taking Microfinance Institutions, Sacco’s, developmental institutions, wholesalers and retailers as well as
    [Show full text]
  • The Transformation of Microfinance in Kenya
    NUMBER 41 I JUNE 2000 The Transformation of Microfinance in Kenya The desire to achieve institutional and financial sustain ability through improved governance and increased profitability has resulted in the transformation of one of Africa's most successful microcredit programs into Kenya's first commercial microfinance bank. Despite considerable strategic, operational, and regulatory challenges, there is now the potential to access additional sources of capital, particularly from client savings, thereby reducing dependence on donor funds, expanding market outreach, and recycling client savings to microenterprises rather than channeling them through traditional banks to finance wealthier sectors of the economy. This transformation will also facilitate the provision of additional financial services to low-income populations. The Kenya Rural Enterprise Programme (K-Rep) was established in 1984 by World Education, Inc., a United States based private voluntary organization, with funding from the United States Agency for International Development. It is now one of the most innovative and successful microfinance schemes in Africa. K-Rep provides financial services to the poor who are typically excluded from the formal financial sector, thereby generating income and employment opportunities for low-income people. In 1994, K-Rep decided to transform its microenterprise credit program into a commercial bank. Five years later, K-Rep has just completed the process of institutional reorganization and diversification. It has: 1) changed its name from Kenya Rural Enterprise Programme to K-Rep Holdings Limited; 2) split its microenterprise credit operations from its research and advisory services, creating K-Rep Bank Limited; 3) received a banking license in March 1999; and 4) secured share capital in K-Rep Bank.
    [Show full text]