What is microfinance? Have you ever heard of the term? If you have, do you know what it means and especially to the Kenyan people?
Microfinance consists of a number of financial services, such as microloans, savings and insurance, for poor people. This system is generally used in developing countries, as a way to help people grow their income, get money to pay their taxes and as an overall solution to decrease poverty. And as Kenyans, we have not been left behind.
The Kenyans who benefit from microfinance services are poor farmers, mama mbogas, Boda Boda operators, poor single mothers and unemployed or self-employed people with very low incomes. Some of these people have very few assets to use in order to get a loan and, even if they do have land, they often don't have documents to prove ownership. But microfinance offers them a remedy through group guarantee.
One of the purposes of microfinance is helping poor people establish businesses. This is very helpful for the person in the long run, since they would have a way to make some money and transform their socioeconomic lives.
As a part of microfinance, the microloan is credit offered to poor people, in order to improve their financial status. It emphasizes the building capacity of a micro-entrepreneur and also helps them start their business and offer support through difficult times. It is highly contested that people could get out of poverty by starting a small business, the microcredit is still being used to help people in need. The government has introduced the Vijana Loan and the Women Empowerment Fund that are being disbursed through a number of banks and MFIs in Kenya like Equity bank, Family bank, KWFT, Jiweze Women, Faulu Kenya etc.
Are you an upcoming entrepreneur in Kenya? Have you been thinking of where to get capital to start? Then Microfinance is the way to go. Walk in any MFI near you and ask for information about applying for a microloan. I hope we will meet up there when you have been successful in your business.
