Effect of microfinance services on poverty alleviation in Kenya

Abstract

Microfinance institutions are increasingly publicized as one of the most successful tools for poverty alleviation. Kenya has experienced a rise in the number of the Deposit Taking and Credit Only Microfinance Institutions over the last seven years. This research looks into micro-financing in Kenya and focuses on the effect of microfinance services on poverty alleviation in Kenya. Microfinance service providers help the poor and those having smaller enterprises by giving loans or startup capital. It is one of the best ways embraced by many countries across the globe in alleviating the poverty levels. This project provides an overview of the effect of MFIs in poverty alleviation in Kenya. The method employed in this study is descriptive survey design. Secondary data obtained from AMFI will be used in this project. Quantitative methods are used in this research to answer the research question of this project. The result of this study indicates that MFI’s have played a key role in alleviating the poverty levels as well as improving the living standards for the Kenyan people. From the findings of the study, the study recommends that MFI’s should ensure they reach out to core of people leaving under poverty levels through awareness so as to decrease the poverty levels further.