Microfinance services and sustainable livelihoods of rural women: a case study of Kenya Women Finance Trust Microfinance and Uwezo Fund in Machakos Sub-County, Kenya

Abstract

Since the 1990s, microfinance services especially economic interventions have become a popular solution in development to reduce gender economic gap, improve women’s livelihoods and alleviate their poverty. Traditionally, women’s position in the society greatly contributes to feminist poverty of about 70% globally. Women account for more than 50% of the world’s population, perform 67% of the world’s working hours, provide 60% of the world’s labour force, but only earn 10% of the world’s income and own less than 1% of the world’s resources. In Machakos County, absolute poverty level is 60.7%, while in rural areas, it is 59.6%. Microfinance services have been attempting to improve women’s sustainable livelihoods which has not yet been fully realized. Women are facing problems which curtail their economic livelihoods’ progression and sustainability. This study therefore investigates the influence of microfinance services on women’s sustainable livelihoods. The specific study objectives are: to examine the influence of women’s investments on women’s sustainable livelihoods, to explore the influence of microfinance characteristics on women’s sustainable livelihoods, to examine the existing gender-related factors that hinder women’s sustainable livelihood and to establish approaches that could enhance microfinance services on women’s sustainable livelihoods in rural Machakos sub-County. The study was based on Grameen solidarity group theory, The General Theory of Gender Stratification and Sustainable Livelihood Framework. A mixed method was used and 367 respondents were randomly selected from a target population of about 8000 women from Kenya Women Finance Trust and Uwezo Fund, Kenya. Besides, 16 respondents were purposively selected for interview. Quantitative data was analyzed by use of descriptive, Principal Component Analysis and multiple regression analysis. The results were presented by use of tables and graphs. Qualitative data was analyzed by use of thematic analysis. The study revealed temporary and permanent business closure. The findings revealed that before Covid 19, rural women’s businesses were well established and stable. Furthermore, they had increased income, savings, increased property ownership and investments besides creating more jobs. The study highlighted the importance of bottom- up economic approach of enhancing livelihood.