Effect of Micro-credit to Women Empowerment in Nairobi County

Abstract

There is growing evidence that women’s economic empowerment plays a crucial role in poverty alleviation, as well as in macro-level economic growth and poverty reduction. Yet, women continue to lag significantly behind with credit constraints being a key obstacle to the creation of women-owned businesses, investment decisions, and growth (World Bank 2012). The use of financial services targeted specifically at women can have significant effects at the household level, including higher levels of education and better health services for children, and increased household savings. Research findings on how financial services are put to use once women access these services—microcredit in particular—are mixed. There is not enough evidence to show that existing financial services meet women’s needs or why existing efforts tend not to yield the desired results or impact.In an effort to identify effects of access to micro-credit on women empowerment, this study selected the county of Nairobi in Kenya to help generate a representative mix of recommendations that can help to improve women’s access to micro-credit. This study used primary data collected from the respondents of the survey. Data was captured and analyzed using Statistical Package for the Social Sciences (SPSS) version 21. Regression analysis was used to determine the relationship between women empowerment and their ability to access micro credits. The study concludes that women make use of micro credit services however the conditions imposed by microfinance institutions affect their access to these credit facilities. The results of the study show that education and skill asset ownership, decision making, women mobility and contribution to household income have positive influence and are directly proportional to women empowerment.