Micro Finance in Kenya

Small and medium sized enterprises are gaining popularity all over the world and in Kenya in particular. This has necessitated the need for establishment of micro finance institutions to support this sector. The growth of micro finance institutions has been due to the response to this need. IN Kenya, there is several micro finance ranking from individual owned institutions to cooprporate based institutions. K-REP has been the fore front in promoting his sector among other new players like Equity Bank and Family Finance Bank.
KWFT has also joined in to offer credit to members of the society in the form of micro credit activity. The institutions provide small sized short term loans to its customers. This has seen the strength of existing and introduction of new micro enterprises in the area under study.
The purpose of the study was to identify the problems being faced by the entrepreneur establishment (Projects) at KWFT. The specific objectives were:-to determine the demand side factors that limits access to loans, to identify causes of challenges being faced by small enterpreneus in securing loans,to evaluate the effectiveness of issuing loans to small entrepreneurs at KWFT,to establish a long termsolution to small enterreneursin soling borrowing problem, evaluate the effectiveness of the processes of issuing loans,to identify procedures and methods to be used by small enterprenuers at kwft in issuing loans to its clients,to find out the benefits of loans onexistance of small scale enterpreeneus in securing loans on kwft.
The study adopted a case study research design that targeted population of 300 people and a simple random sampling method was used to select 35 people to form a sample size. The data was collected by use of questionnaires and analysing done by use of qualitative methods. The findings revealed that small and medium entrepreneurs encounter some challenges in securing loans at KWFT. The study concluded from the findings that the society should