Integrating Sustainable Environmental Practices in Community Based Microfinance Organizations in Kiambu County, Kenya MBWIRIA LUCY MUTHONI Reg. No.: N50/13009/2009 A Thesis Submitted in Partial Fulfillment for the Degree of Master of Environmental Studies (Community Development) in the School of Environmental Studies, Kenyatta University. April, 2016 ii DECLARATION I declare that this thesis is my original work and has not been submitted for any degree or academic award in any other university. Signature _______________________ Date ____________________ MBWIRIA Lucy Muthoni Department of Environmental Studies and Community Development SUPERVISORS We hereby confirm that this thesis was examined by us as principal university supervisors. Dr. Jane W. Mutinda, Department of Environmental Studies and Community Development Kenyatta University Signature _______________________ Date ____________________ Dr. Stephen N. Nyaga Department of Environmental Studies and Community Development Kenyatta University Signature __________________________ Date ____________________ iii DEDICATION I dedicate this study to my spouse Professor Edward Waithaka for his unparalleled support during the course of my study, to my daughters Joanne Wangeci and Lynette Kathure and my parents Gerald and Susan Mbwiria for being a constant source of joy and encouragement. iv ACKNOWLEDGEMENTS I wish to express my gratitude to my supervisors Dr. Jane Mutinda and Dr. Stephen Nyaga for their academic support and guidance throughout the course of this study. Thank you for your valuable advice and unwavering support. Specific acknowledgment goes to Professor Edward Waithaka, my beloved spouse and Deputy Director, Pan African University Institute of Basic Sciences, Technology and Innovation and Professor Charles Ndegwa, of Dedan Kimathi University of technology. Dr. Fuchaka Waswa and Dr. Zacharia Samita of Kenyatta University were very useful in reading this work, editing and making useful comments. I appreciate the academic faculty who took me through the coursework at the Department of Environmental Studies and Community Development. I am highly indebted to Women Empowerment and Men Awareness (WEMA), in particular I single out Ms. Esther Irungu, its Managing Director for her invaluable support during my field work. My sincere gratitude goes to all the community based microfinance organizations, government officials, Intermediary Microfinance Organization officials who agreed to participate in this study, which without their help, this thesis would not been successful. Special gratitude to Ms. Mary Gitau, County Agricultural Officer for facilitating my meetings with most of the government officials. I am most grateful to all my friends, they remained to be a main source of encouragement. v TABLE OF CONTENTS DECLARATION ................................................................................................................ ii DEDICATION ................................................................................................................... iii ACKNOWLEDGEMENTS ............................................................................................... iv LIST OF TABLES ........................................................................................................... viii LIST OF PLATES ............................................................................................................. ix ACRONYMS AND ABBREVIATIONS ........................................................................... x GLOSSARY OF NON-ENGLISH TERMS ..................................................................... xii ABSTRACT ..................................................................................................................... xiii CHAPTER 1 ....................................................................................................................... 1 INTRODUCTION .............................................................................................................. 1 1.1 Background to the Study ........................................................................................... 1 1.2 Problem Statement .................................................................................................... 5 1.3 Justification ............................................................................................................... 6 1.4 Research Objectives .................................................................................................. 7 1.5 Research Questions ................................................................................................... 7 1.6 Significance of the Study .......................................................................................... 8 1.7 Conceptual Framework ............................................................................................. 9 1.8 Scope and Limitation of the Study.......................................................................... 12 1.9 Definitions of terms ................................................................................................ 13 CHAPTER 2 ..................................................................................................................... 15 LITERATURE REVIEW ................................................................................................. 15 2.1 Introduction ............................................................................................................. 15 vi 2.2 The Socio-economic and Environmental Activities Supported by Rural Microfinance ................................................................................................................. 15 2.3 The Main Socio-economic and Environmental Problems Emanating from Activities Supported by Rural Microfinance ................................................................................. 18 2.4 The Role of Community Based Microfinance Organizations in Supporting Environmental Intervention Programs .......................................................................... 22 2.5 Impact of Community Based Microfinance Organizations on the Socio-economic Activities in Kiambu County ........................................................................................ 25 2.6 Integration of Sustainable Environmental Programs into Community Based Microfinance Organizations’ Socio-economic Activities ............................................. 28 CHAPTER 3 ..................................................................................................................... 32 RESEARCH METHODOLOGY...................................................................................... 32 3.1 Introduction ............................................................................................................. 32 3.2 Study Area .............................................................................................................. 32 3.3 The Location and Topographic Conditions of the Study Area ............................... 33 3.4 Research Design...................................................................................................... 35 3.5 Target Population .................................................................................................... 36 3.6 Sample Sizes and Sampling Procedures ................................................................. 36 3.7 Data Collection Methods ........................................................................................ 39 3.8 Data Analysis and Presentation .............................................................................. 42 CHAPTER 4 ..................................................................................................................... 43 RESULTS AND DISCUSSIONS ..................................................................................... 43 4.1 Introduction ............................................................................................................. 43 4.2 Demographic Data of the Sampled Population ....................................................... 44 4.3 The Concept and Nature of CBMFOs in Kiambu County ...................................... 48 4.4 The Main Socio-economic and Environmental Activities Supported by the CBMFOs ....................................................................................................................... 68 vii 4.5 The Main Socio-economic and Environmental Problems in Kiambu County ....... 74 4.6 The Environmental Intervention Programs of CBMFOs in Kiambu County ......... 78 4.7 The Role of Intermediary Microfinance Institutions and the Government in Supporting Activities of CBMFOs ............................................................................... 82 4.8 Integration of Sustainable Environmental Practices into the Activities Supported by CBMFOs ....................................................................................................................... 89 CHAPTER 5 ..................................................................................................................... 95 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS..................................... 95 5.1 Introduction ............................................................................................................. 95 5.2 Summary of the Main Findings .............................................................................. 96 5.3 Conclusions ............................................................................................................