Every Mwananchi needs to feed their families
Kenya is blessed with an abundance of business minded people that have revolutionary ideas and strong in-depth business models but have no way of materializing these ambitions because they lack the capital to do so. People of low income require a means of sourcing finance that will facilitate them in making their aspirations a reality and microfinance has been an imperative tool in doing so.
Simply, microfinance allows for low income people to borrow small amounts of money to set up their businesses since they lack access to banking services due to the collateral banks require.
Who benefits the most from Microfinance in Kenya?
Having been born and raised in Kenya, I have witnessed first-hand the vital role microfinance has played in assisting people escape poverty and violence. It has empowered people to become self-reliant by extending loans to those with little assets and it is through these credits that aids to alleviate poverty. These are the reasons why low income people must actively work with and become educated with microcredit institutions in order to transform their lives.
Back home, I was introduced to a man named Sammy Nduati who would usually sell movies on the streets to get an income, slowly he worked with a local microfinance institution and gradually grew his business to the point that he managed to escape poverty and look after his family. This real life example further emphasizes the potential magnitude microfinance can have to person with no assets but possesses the energy and determination to live a better life.
However, Microfinance has to be more widespread and reach more people in not only Kenya but Africa extensively. A large majority of people still do not have any access to financial services, and governments should work collaboratively with these institutions in order to do this.
Microfinance ultimately allows for more education as children are more likely to stay in school as parents are financially secure. More employment opportunities are created which will consequently have a positive impact on a countries economy. Lastly, microfinance improves societal welfare and more importantly gives people a chance to escape the circumstances they are in. Therefore, making microfinance more accessible and educating people about microfinance in Kenya and beyond the continent should be an undertaking that countries should deem very important.