EFFECTS OF MICROFINANCE LOANS ON POVERTY REDUCTION: A CASE STUDY OF VISION FUND, NAROK

Abstract

ABSTRACT The study is on the effects of Microfinance in poverty reduction in Narok County, a case study of Vision Fund (VF), Narok Branch. This study was focused on investigating the outcomes and impacts of microfinance services in efforts of eradication of poverty in Narok County. This was with reference to Vision Fund microloans. The research outlined evidence of poverty, loan disbursement criterion, potential of poverty reduction and the achievements of Vision Fund services to the Maasai community. A background of the problem and the problem statement were discussed in chapter one. Besides, it also outlined the objectives of this study. It also contained a hypothesis and value of the study. The limitations of the research were identified, and ways of overcoming the shortcomings. The worth of this study was to assist microfinance institutions to understand the gaps in the community and what needs to be implemented concerning the efforts of eradication poverty. Terminologies that were used throughout the study have been elaborated. The research included review of past materials and works that relate to the topic under study in chapter two. The study identified what has already been researched on regarding the topic, globally and locally. It enabled to identify literature gaps in poverty alleviation. The study employed both primary and secondary sources of collection of data in chapter three. Specifically use of questionnaires, interviews, and use of the internet. The projected population were beneficiaries of Vision Fund microloans. The study gathered information from 50 participants who represented the whole target population. The research used random sampling to select the participants who gave the information required. Also, structured questionnaires were completed to gather information during fieldwork. The results based on the study objectives have been highlighted and discussions made in chapter four. Data has been presented in charts, graphs and tables. Data analysis was done using MS Excel. Later, a summary of the objectives, conclusion of the findings and recommendations for future research was completed in chapter five. Timelines and budget were included to account for time and cost of the entire project work. All referencing materials were cited in and at the end of the text