...CHAPTER ONE 1.0 INTRODUCTION 1.1 Background of Study MFIs’ are recognized and acknowledged as vital and significant contributors to economic development, employment creation and technological development (mortis 2000). MFI have therefore been given great emphasis in recent times because they are considered as essential actors in achieving social and economic development in both developed and developing countries. Kenya with an estimated population of 29.6 million people and a per capita income of US $260 is categorized by the World Bank to be among the poorest countries in the world (world development report 1992). Kenya’s development challenge therefore remains in finding sustainable poverty eradication strategies. Micro and small enterprises have been seen as one of the strategies that can bring faster development. MFI does therefore play a big role in financing the micro and small enterprises for faster development. MFI’s enterprises are also highly rated for employment creation. They are therefore important in Kenya where unemployment and underemployment are estimated at between 25% and 35% respectively. MFI s’ through the provision of credit influence the type of technology adopted by entrepreneurs and even the rate of technology adoption. Small scale enterprises in the agricultural sector play a big role in providing food, income generation and employment creation. The application of technology is vital in enhancing growth and development of these enterprises. Inflation...
Words: 13682 - Pages: 55
...MP A R Munich Personal RePEc Archive Attracting Microfinance Investment Funds: Promoting Microfinance Growth through Increased Investments in Kenya Jeffrey Ben Matu Duke University, International Development Program 18. April 2008 Online at http://mpra.ub.uni-muenchen.de/12084/ MPRA Paper No. 12084, posted 12. December 2008 17:42 UTC Attracting Microfinance Investment Funds: Promoting Microfinance Growth Through Increased Investments in Kenya Master’s Project Master of Arts in International Development Policy Terry Sanford Institute of Public Policy Duke University Jeffrey Ben Matu Principal Policy Advisor Dr. Graham Glenday April 18, 2008 Acknowledgements This paper could not have been written without Dr. Graham Glenday who not only served as my policy advisor, but also encouraged and challenged me to do my best. I would also like to thank my other committee members; Dr. Cory Krupp and Dr. Rosemary Fernholz for patiently guiding me through the writing process and for their suggestions and continued support. To my family and friends, I thank you for your encouragement with reading and commenting on the paper. And to my wife Sharon, for believing in me and encouraging me to never accept less than my best efforts. Finally I would like to thank Jennefer Sebstad, Leila Webster, Stefan Staschen, and Jerry Grossman for reading and making comments on my drafts. Thank you all. 2 Table of Contents List of Acronyms…………………………….…………………………………………….……………………...
Words: 22493 - Pages: 90
...THE EFFECTS OF MICROFINANCE INSTITUTIONS ON WOMEN EMPOWERMENT IN KENYA: A SURVEY OF MERU COUNTY A Research Project Submitted to the School of Human Resource Development in Partial Fulfillment for the Award of the Degree of Executive Master Of Business Administration of Jomo Kenyatta University of Agriculture and Technology JULY 2013 CHAPTER ONE Introduction 1.1 Background information Several studies show that access to microfinance contributes to poverty reduction, particularly for women participants, and to overall poverty reduction at the village level. It also contributes to women empowerment, including higher levels of mobility, political participation and decision making. According to the State of the Microcredit Summit Campaign 2001 Report, 14.2 million of the world’s poorest women now have access to financial services through specialized microfinance institutions (MFIs), banks, NGOs, and other nonbank financial institutions. These women account nearly 74 percent of the 19.3 million of the world’s poorest people now being served by microfinance institutions. Most of these women have access to credit to invest in businesses that they own and operate themselves. Microfinance programs have been deemed to have the potential to transform power relations and empower the poor—both men and women. As a consequence, microfinance has become a central component of many donor agencies’ and national...
Words: 10177 - Pages: 41
...THE IMPACT OF MOBILE MONEY SERVICES ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN AN URBAN TOWN IN KENYA BY KENNETH M. NYAGA A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTER OF BUSINESS ADMINISTRATION (CORPORATE MANAGEMENT) IN THE SCHOOL OF BUSINESS AND PUBLIC MANAGEMENT AT KCA UNIVERSITY NOVEMBER, 2013 DECLARATION I declare that this dissertation is my original work and has not been previously published or submitted anywhere for award of a degree. I also declare that this contains no material written or published by other people except where due reference is made and author duly acknowledged. Student Name: ______________________ Sign: __________________________ Registration Number: ________________ Date: ___________________ I do hereby confirm that I have examined the master’s dissertation of: Kenneth Miriti Nyaga And have certified that all revisions that the dissertation panel and examiners recommended have been adequately addressed. Signed _______________________________ Date ___________________ Dr. Okonga-Wabuyabo, Brigitte M. Dissertation Supervisor ii ABSTRACT Since the launch of mobile money services in Kenya in 2007, the number of subscriptions has grown to approximately 48% of entire the Kenyan population. This overwhelming uptake has been attributed to the affordability and accessibility of the service, especially among low income earners. The main challenges of mobile money...
Words: 20382 - Pages: 82
...FACES OF INDEBTNESS 1) KENYA Kenyan borrowers promptly repay their loans despite the stiff interest rates and high inflation, presenting a lower default risk investment environment for banks compared to other parts of the world. The low default risk for banks has however not translated to lower interest rates for customers despite the credit referencing system taking effect. The credit risk is measured in terms of gross non-performing advances as a percentage of the total gross advances. A survey by audit firm RSM Ashvir, based on banks 2012 financial reports showed only 4.6 per cent of loans by banks in 2011 ended up as non-performing advances. The banking industry disbursed Sh1, 335 billion, out of which only Sh61.4 million was defaulted. The risk has consistently decreased from 7.9 per cent in 2009 to 6.3 per cent in 2010. With the increase in interest rates and inflation rate, non-performing advances were expected to go higher, but it is not the case. This shows that the risk in the Kenyan market is low Interest rates spiked in December 2011 after the Central bank increased its key lending rate to a high of 18 per cent to curb the inflation rate which had peaked at 19.72 per cent in November that year. Though both the Central Bank Rate and inflation rate have dropped to 9.5 per cent and 4.11 per cent, banks are still lending at an average of 17.84 per cent. Microfinance institutions in Kenya have suffered significant loan repayment default resulting into subsequently...
Words: 8289 - Pages: 34
...Factors Affecting the Performance of Micro and Small Enterprises in Arada and Lideta Sub-Cities, Addis Ababa By Admasu Abera A Thesis submitted to the school of graduate studies of Addis Ababa University in partial fulfillment of the requirements for the Master of Business Administration (MBA) degree Addis Ababa University Addis Ababa, Ethiopia October 2012 Factors Affecting the Performance of Micro and Small Enterprises in Arada and Lideta Sub-Cities, Addis Ababa By Admasu Abera A Thesis submitted to the school of graduate studies of Addis Ababa University in partial fulfillment of the requirements for the Master of Business Administration (MBA) degree Addis Ababa University Addis Ababa, Ethiopia October 2012 Declaration I, the undersigned, declare that this study entitled “Factors Affecting the Performance of Micro and Small Enterprises in Arada and Lideta sub-cities, Addis Ababa” is my own work. I have undertaken the research work independently with the guidance and support of the research advisor. This study has not been submitted for any degree or diploma program in this or any other institutions and that all sources of materials used for the thesis have been duly acknowledged. Declared by Name: Admasu Abera Signature: _____________ Date: October 2012 Place: Addis Ababa, Ethiopia Advisor: Fesseha Afewerk (Ast. Prof.) Signature: ______________ Date: __________________ Addis Ababa University School of Graduate Studies This is to certify that...
Words: 22269 - Pages: 90
...is guided by the firm dividend policy .This paper will discuss what is dividend, dividend policy and the various factors that affect dividend policy used in the dividend policy in an organization.. Reference will be made to metropolitan teachers Sacco in Kenya. Table of content Table of Contents Abstract 2 Table of content 3 1.0 Introduction 4 1.1 Metropolitan teachers Sacco 4 1.2 Financial system 5 1.2.1 Advantage of financial systems: VISUAL ASMAS 6 2.0 Dividend 7 3.0 Dividend Policy 9 3.1 How much to pay as dividend 10 3.2 When to pay dividend 11 4.0 Dividend policy theories 12 4.1 The Modigliani and Miller Theorem 12 4.2 The residual theory 14 4.3 The Gordon / Lintner (Bird-in-the-Hand) Theory 14 4.4 The Tax-Preference Theory 16 4.5The Agency 17 4.6 The Signalling 17 4.7 The Clientele Effect 18 REFERENCES 19 1.0 Introduction 1.1 Company profile: Metropolitan teachers Sacco Metropolitan Teachers SACCO Society was registered on 10th February 1977 as Kiambu Teachers SACCO and continued to operate as such until 2nd July 2009 when we were granted the change of name certification. Originally, the SACCO was intended to serve primary school teachers in Kiambu District, Central Province. Over the years, the society’s common bond was opened to allow all interested Government employees within the Republic of Kenya to become members. Also eligible are Kenyans working and/or living Abroad. The Society has continued to offer...
Words: 4575 - Pages: 19
...An Evaluation of Micro-Finance Programmes in Kenya as Supported through the Dutch Co-Financing Programme With a focus on KWFT Otto Hospes Muli Musinga Milcah Ong’ayo November 2002 Study commissioned by: Steering Committee for the Evaluation of the Netherlands’ Co-financing Programme 3 Contents List of contributors List of abbreviations Acknowledgements 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 2 Introduction Background and objectives Legitimization and overall objective of Dutch CFAs to support micro-finance programmes Partners of Dutch CFAs operating in the micro-finance market of Kenya Central questions Organization and methodology Process implementation and limitations of the study Structure of the report A brief description of micro-finance in Kenya and agencies as supported by Dutch CFAs Micro-finance in Kenya 2.1.1 The emergence of micro-finance as an industry 2.1.2 Types of micro-finance agencies in Kenya 2.1.3 Service delivery approaches 2.1.3.1 Savings services 2.1.3.2 Loan products 2.1.4 Outreach 2.1.4.1 Banks 2.1.4.2 NGO-MFAs 2.1.4.3 Savings and Credit Co-operatives (SACCOs) 2.1.4.4 ROSCAs and ASCRAs A profile of micro-finance agencies and schemes as supported by Dutch CFAs 2.2.1 General profile 2.2.2 Specific profiles 2.2.2.1 K-REP Development Agency (KDA) 2.2.2.2 Kenya Women Finance Trust (KWFT) 2.2.2.3 Jitegemea Credit Scheme (JCS) 2.2.2.4 PRIDE Africa – Sunlink Some conclusions 7 9 11 13 13 15 16 17 17 18 19 21 21 21 23 25 26 28 28 31 33 35 35 36 36...
Words: 76935 - Pages: 308
...Assessing the Effectiveness of Microfinance Loans from NBC in Reduction of Poverty in Kinondoni District – Dar es Salaam. LIST OF ABBREVIATIONS. ACB - Akiba Commercial Bank CGAP - Consultative Group to Assist the poor CRDB - Cooperative and Development Bank FFI - Formal Financial Institution FINCA - Foundation for International Community Assiatance GDP - Gross Domestic Product NBC - National Bank of Commerce NGO - Non Governmental Organisation NMB - National Microfinance Bank NMFP - National Microfinance policy PFSs - Private Financial Sectors PRIDE - Promotion of Rural Initiatives and Development Enterprise SACCOS - Saving and Credit Cooperative Society SPSS - Statistical Package for Social Science URT - United Republic of Tanzania ABSTRACT The Ojective of the research was to assess the eeffectiveness/contribution of PFSs in reduction of poverty in Kinondoni District Dar es Salaam Tanzania. The research was conducted at NBC branches. The Branches to which the Reseacrh was conducted were Kinondoni Branch, Ubungo Branch, Mlimani City Branch, UDSM Branch and Tegeta Branche. Data were collected through interview and research questionnaires and were analyzed by using quantitative approach. The research study revealed that Tanzania...
Words: 15107 - Pages: 61
...framework and enforcement issues. 21 Government policy 21 Why Do Small, Rural Borrowers Find Rural Banks Unattractive? 26 Absence of flexible products and services 26 Transactions costs 26 Collateral 27 IV. RECENT EFFORTS IN INDIA TO IMPROVE RURAL ACCESS TO FINANCE: THE ROLE OF FORMAL—INFORMAL LINKAGES AND NEW PRODUCTS 28 SHG-bank Linkage Approach: Linking Commercial Banks to Grassroots Borrowers 28 How Effective Has SHG Bank Linkage Been in Targeting the Poor? 30 Impact on vulnerability of poor households 32 Some Lessons from SHG Bank Linkage 33 Key concerns: Limited outreach and scale of lending and issues in financial sustainability 34 Microfinance Institutions (MFIs) 35 What has constrained the outreach and scale of MFIs? 36 The “Service Provider” Model of Microfinance Piloted by Private Banks 37 The Kisan Credit Card 39 Recent Innovations in Micro- and...
Words: 29724 - Pages: 119
...Review of Warehouse Receipt System and Inventory Credit Initiatives in Eastern & Southern Africa Final report commissioned by UNCTAD under the All ACP Agricultural Commodities Programme (AAACP) *The views expressed in this paper are those of the author and do not necessarily reflect the views of the United Nations September 2009 CONTENTS CONTENTS ............................................................................................................................................. i ACKNOWLEDGEMENT .....................................................................................................................iii GLOSSARY OF ABBREVIATIONS .................................................................................................. iv GLOSSARY OF ABBREVIATIONS .................................................................................................. iv SUMMARY ............................................................................................................................................ 1 Introduction ....................................................................................................................... 1 Observations on the different approaches ......................................................................... 1 Policy conclusions and recommendations ........................................................................ 3 Specific proposals .....................................................................
Words: 56151 - Pages: 225
...nanceGender and rural microfinance: Reaching and empowering women Guide for practitioners Enabling poor rural people to overcome poverty This paper was prepared by Linda Mayoux and Maria Hartl. Linda Mayoux is an international consultant on gender issues in economic development including microfinance. She is currently global consultant for Oxfam Novib’s Women’s Empowerment, Mainstreaming and Networking (WEMAN) programme. Mayoux prepared this paper in collaboration with Maria Hartl, Technical Adviser for Gender and Social Equity in IFAD’s Technical Advisory Division. Annina Lubbock, Senior Technical Adviser for Gender and Poverty Targeting, Michael Hamp, Senior Technical Adviser for Rural Finance. Ambra Gallina, Gender and Poverty Targeting Consultant, also contributed. The following people reviewed the content: Maria Pagura (Rural Finance Officer, Rural Infrastructure and Agro-Industries Division of the Food and Agriculture Organization of the United Nations (FAO), Carola Saba (Development Manager, Women’s World Banking) and Margaret Miller (Senior Microfinance Specialist, Consultative Group to Assist the Poor – CGAP). The opinions expressed in this publication are those of the authors and do not necessarily represent those of the International Fund for Agricultural Development (IFAD). The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of IFAD concerning the legal status of any...
Words: 30165 - Pages: 121
...------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ International Conference on Telecommunication Technology and Management (ICTTM 2015) April 11-12, 2015 ORGANIZED BY Bharti School of Telecommunication Technology and Management Indian Institute of Technology Delhi ACADEMIC PARTNERS Telecom Ecole de Management, France GSM Association (GSMA) PUBLICATION PARTNER SPONSORS 1 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ CONFERENCE SCHEDULE Day 1 (11th April, 2015) Registration (9:00 A.M. - 10:00 A.M.) Venue: Seminar Hall, IIT Delhi Inaugural Session (10:00 A.M. - 11:00 A.M.) Venue: Seminar Hall, IIT Delhi Networking High Tea (11:00 A.M.. - 11:30 A.M.) Panel Discussion (11:30 A.M. - 1:00 P.M.) Venue: Seminar Hall, IIT Delhi Lunch (1:00 P.M.- 2:00 P.M.) Venue: Cricket Ground, IIT Delhi Track 1 Venue: Room No 101, Ground Floor, Bharti School, IIT Delhi Session Coordinator: Ms. Shiksha Kushwah Session 1 Session 2 (2:00P.M. to 3:30 P.M.) (4:00P.M. to 6:00 P.M.) Session Chair(s) Session Chair(s) Prof. Sushil Prof. S. S. Yadav Prof. Kirankumar S. Momaya Dr. Sujata Joshi Track 2 Venue: Room No 106, Ground Floor, Bharti School, IIT Delhi Session Coordinator: Ms. Rojalin Pradhan ...
Words: 6478 - Pages: 26
...The Role of Micro and Small Enterprises in Employment Creation and Income Generation A Survey Study of Mekelle City, Tigray Region, Ethiopia A Thesis Submitted to the Department of Management of Mekelle University in Partial Fulfillment of the Requirements for the Award of Master of Arts Degree in Development Studies (Regional and Local Development Studies) by Bereket Tadesse Advisor: Gebremedhin Yihdego (Assistant Professor) Co-Advisor: Tesfay Aregawi (Assistant Professor) Mekelle University College of Business and Economics Department of Management June 2010 Mekelle Declaration I declare that this thesis work entitled “The Role of Micro and Small Enterprises in Employment Creation and Income Generation a Survey Study of Mekelle City, Tigray Region, Ethiopia.” is my original work, has not been presented earlier for award of any degree or diploma to any other university and that all sources of materials used for the thesis have been duly acknowledged. I have produced it independently except for the guidance and suggestion of my research advisors. Name of the student Bereket Tadesse Signature: ----------------- Date: ---------- Name of the supervisor Gebremedhin Yihdego (Assistant professor) Signature: ------------------ Date: ---------- Name of Co -Advisor Tesfay Aregawi (Assistant Professor) Signature: ----------------------- Date: -------- Mekelle University Abstract Unemployment and low income are one of the present situations in urban cities of Ethiopia. The...
Words: 21017 - Pages: 85
...1 National Employment Policy and Strategy of Ethiopia November 2009 Addis Ababa ii Acronyms AIDS ART CETU CSA EEF EPRDF ERP FDI GDP HERQA HICES HIV ICT IHDP IMF M&E MDG MFI MOFED MSE NEC NEPS NES NGO PASDEP PSNP TVET UEAP Acquired Immunity Deficiency Syndrome Anti-retroviral Therapy Confederation of Ethiopian Trade Unions Central Statistical Agency Ethiopian Employers’ Federation Ethiopian People’s Revolutionary Democratic Front Economic Reform Program Foreign Direct Investment Gross Domestic Product Higher Education Relevance and Quality Agency Household Income and Consumption Expenditure Survey Human Immunodeficiency Virus Information and Communication Technology Integrated Housing Development Program International Monetary Fund Monitoring and Evaluation Millennium Development Goals Micro-finance Institutions Ministry of Finance and Economic Development Micro and Small Enterprises National Employment Council National Employment Policy and Strategy National Employment Secretariat Non-governmental Organization Plan for Accelerated and Sustainable Development to End Poverty Productive Safety Net Program Technical and Vocational Education and Training Universal Electricity Access Program iii Table of Contents Foreword ............................................................................................................................ iv PART ONE Background ......................................................................................................
Words: 20689 - Pages: 83
