Microfinance Credit, Microenterprises and Livelihoods

Provision of credit is one of the critical policy components in the development of microenterprise sector in Kenya. Yet many of the entrepreneurs in the informal sector are unable to access credit from the mainstream financial institutions due to a number of restrictions and constraints. To address the shortage, a number of microfinance institutions have come up with friendly-credit programmes to support enetrpreneurs who are members of self-help groups to grow their businesses. Thus, this book is based upon empirical evidence on the role of microfinance credit on the growth of microenterprises and subsequently, how proceeds from the businesses impact entrepreneurs’ livelihoods. Data was collected from entrepreneurs, who are members of self-help groups, operating microenterprises in Mumias, Matungu, Butere and Khwisero sub-counties of Kakamega County, Kenya. The survey was conducted in 2012, covering a sample of 267 out of a population of 1779 credit-assisted microenterprises located in 40 centres in the sub counties.