Factors influencing accessibility to micro finance services by persons with disabilities: A case of Kimilili - Bungoma sub-county Kenya

Abstract

This study was designed to investigate factors influencing access to microfinance by Persons with Disability in Kimilili- Bungoma sub-county. The aim of the study based on four major objectives: social and health issues, access to information, level of finance and management skills and availability of collateral and access to microfinance. However the study intended to answer four major research questions of the revolve around the number of MFI institutions working in the county, micro finance needs of PWDs, factors that affect and hinder accessibility to microfinance by PWDs and exploration of appropriate suggestions to improve micro financing operations in Kimilili sub-County The study adopted descriptive survey design that was carried out in Kimilili- Bungoma sub-county. The study sample comprised of 78 officials of self-help groups for persons with disability, ministry of social services, and finance officers of microfinance institutions. The instruments of data collection were questionnaires and interview guides. The reliability of the instrument was done by a pilot study in Bungoma West. Validity of the instruments was enhanced by requesting the experts in the area of Research. Data was collected, coded and analysed using SPSS. The data was represented using tables of frequency and percentages. The key findings revealed that social and health issues did not hinder participation in business and access to microfinance, PWD`s lack access to information related to microfinance, the education level and skills in finance and management influence access to microfinance. The other finding was that availability of collateral hindered access to microfinance by persons with disability. It was reported that most people do not have the saving culture. It is also reported that PWD lack the potential to participate in business and therefore rely on charity. From the study, it was concluded that PWDs were aware of microfinance but MFIs did not give special consideration to them. The PWDs needed training in financial and management skills in order to run business. Lastly collateral mechanisms should be improved so that PWDs could qualify and secure loans and manage interest rates. The study recommended that there is need for microfinance institution to create awareness to persons with disability about microfinance products to alleviate poverty, the government and ministry of gender to open rehabilitation centre to train relevant disability groups in various skills in the early stages to reduce dependence ratio, the digital era should be embraced by all stakeholders, the computer programmes and special software should be made available and affordable to PWD`s. The researcher also recommended for another study to be carried out in reference to each disability – speech, sight, physical impairment and multiple disability. The role of government should also be emphasised in another study