Razia J. Chemjor

MFIs provide its members with financial and social intermediation services to help improve their businesses. Despite a multitude of studies devoted to the topic, the effect of microfinance intervention on the empowerment of women entrepreneurs in Mogotio constituency remains largely unexplored in Kenya. This study therefore sought to bridge the gap by establishing the effect of microfinance intervention on empowerment of women entrepreneurs in Mogotio Constituency in Kenya. It focused on three specific objectives: To determine the effect of micro credit on empowerment of women entrepreneurs, the second aim was to examine the effect of micro savings on empowerment of women entrepreneurs and finally to establish the effect of micro finance training on empowerment of women entrepreneurs. In order to accomplish the task, the study adopted a causal relationship research design and an Ordinary Least Square model was used.

The population comprised of women entrepreneurs who are members of the four most popular micro finance institutions in the area of study. Multi-stage stratified random sampling procedure was used to collect data from 80 members of microfinance institutions (MFIs) in the study area. Linear multiple regression was used to determine the variables that affected micro finance intervention. The data collection tools were the questionnaires and interviews. Data was presented in the form of frequency distribution tables, graphs and pie charts which facilitated description and explanation of the study findings. Statistical Package for Social Scientists (SPSS) was used to generate frequency distribution tables. The findings showed that the respondents agreed that Loan application procedure was easy (64%), design of loan product was appropriate (51%),loan application procedure was easy(63%), loan repayment schedule was convenient (49%), design of loan product was appropriate (44%), loan application process was transparent (66%), interest rate charged was appropriate (39%) and provider of micro credit was easily accessible (45%). On savings, the study found that the women agreed that there was voluntary saving in their institutions(39%), monthly savings were affordable (66%), initial deposit required to qualify for a loan was manageable (61%), procedure of withdrawing the savings was difficult (35%), institutions for depositing the savings were within the proximity (45%) and confidentiality was observed (55%). On micro finance training, the respondents agreed that there was training offered in the micro finance institutions (61%),frequency of training was appropriate (61%), provider of micro finance training was easily accessible (54%), training was affordable (66%), venue for training was convenient (58%) and the relevance of topic taught was good (52% ). Empowerment of women entrepreneurs was seen as there were positive changes in profit, income, asset ownership, employment opportunities, food security, savings, housing ownership, fund availability, consumption and decision making power of the women entrepreneurs. In conclusion, the women found it difficult to withdraw their savings and the frequency of training offered by the micro finance institutions was in question. The study concluded that the first and third null hypothesis be rejected while the second null hypothesis be accepted. Nevertheless, the study supports findings that Microfinance intervention empowers women entrepreneurs.