Abstract: This study aimed at assessing the contribution of microfinance institutions to poverty reduction in North Eastern Region in Kenya where its people had for a long time lived amidst abject poverty where they earned their livelihood from pastoralism at the subsistence level. The study was carried out in three counties in the region that were Garissa, Wajir and Mandera. The study employed descriptive survey design. The target population was 300 local small business people who acquired loans and other financial services from Equity Bank. The researcher used questionnaires as research instruments to collect data to study the role of microfinance institutions in poverty reduction in North Eastern Region. Convenience sampling technique was employed to select respondents. The study established that loans and savings and business support services provided by Equity bank had significant and positive effect on poverty reduction. Findings also established that training services and networking opportunities provided by Equity Bank had no significant effect on poverty reduction among the small businesses in north eastern region. From the study findings, the following recommendations were made. First, Equity Bank should expand its microfinance services and graduate the small businesses to enable them access bigger loans than the KES 200,000 that was the most accessible loans for the small businesses surveyed. Secondly, Equity Bank should engage its microfinance clients more in regard to building their capacity through seminars, workshops and business forums.
Keywords: Microfinance, finance, microfinance institution and Poverty.
Title: The Role of Micro Finance Institutions in Poverty Reduction in Kenya: A Case of Equity Bank in North Eastern Kenya
Author: Ayub Hassan Duale, Dr. Samson Nyang’au
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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