The Effects of Microlending on Poverty Alleviation in Rural Kenya - A Case Study of Kinango Constituency

Abstract

Micro lending is important in increasing income activities, creates employment opportunities and also leads to better living standards of people. It has assisted many, especially people in rural areas who are unable to get loans from modern banks and who lack the collateral required by the banks. The purpose of the Study was to evaluate the effects of micro lending on poverty alleviation in rural Kenya The specific objectives was: To evaluate the effect of government policy about micro lending on poverty alleviation in rural Kenya, to analyze the effect of change in technology about micro lending on poverty alleviation in rural Kenya, to assess the impact of  credit terms on poverty  alleviation in rural Kenya, to examine the effect of borrowers Culture on poverty alleviation.

The study utilized survey study approach in order to enable the researcher carry out in-depth investigations of the effects of micro lending on poverty alleviation. The target population was 1250 members of Micro lenders with a sample size of 125 members. The data was coded and edited for completeness and accuracy before being analyzed using SPSS.

The study utilized the stratified random sampling method and simple random sampling to determine the final sample. The strata was the Micro lenders located in Kinango Constituency. The researcher collected data through assisted self-administered questionnaires to the respondents. The results was analyzed in terms of descriptive statistics (frequencies and percentages) followed by correlation on the independent and dependent variables. Presentation of data was done using tables and graphs.