CHAPTER ONE
INTRODUCTION
Microfinance encompasses the provision of microcredit, microsavings and microinsurance services especially to the low-income households and Micro and Small Enterprises (MSEs) (Armendariz & Morduch, 2005). Many microfinance institutions (MFIs) have adopted the social objective of assisting the poor and smallscale businesses to become more self-sufficient without sacrificing the commercial objective of providing financial services to make profit (Armendariz & Morduch, 2005). In addition to provision of these financial services, MFIs provide social intermediation services which include; facilitating formation of groups (whose members come together for purposes of obtaining credit) and training group members on enterprise development, financial literacy and management capabilities (Ledgerwood, 1999; 2013). The clients who receive these services from MFIs include; the self-employed, small-scale traders, vendors and low income households.
Statement of the Problem
The microfinance sub-sector is viewed as a catalyst for increasing household welfare and enhancing Micro and Small Enterprises (MSEs) performance in developing countries (Demirguc-Kunt & Leora, 2012; Rooyen et al., 2012). In Kenya, efforts to promote microfinance are contained in various government policy documents (Republic of Kenya, 1999; 2007; 2012; 2013; 2015). Through these policy efforts, the sub-sector has recorded considerable developments including; increase in gross lending by leading microfinance banks from Kshs 707 million in 1999 to Kshs 254 billion in 2015; increase in the number of licensed microfinance banks from one in 2009 to 13 in 2016 and; increase in the usage of informal microfinance from 32 percent in 2006 to 41 percent in 2016
How to get complete project materials
Step 1: make payment of N3000 to any of the bank below
NAME: JOLLERTEX GLOBAL SERVICES
BANK: WEMA BANK PLC
ACCT NO: 0124522105
AMOUNT: N3000
NAME: TITUS AYANI SOLA
BANK: FIRST BANK
ACCT NO: 3111741042