Factors Affecting Monitoring and Evaluation of Microfinance Institutions' (MFI's) Projects in Kenya. A Case Study of Murang' a County.
Maina, P. Gichuki.
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This study was motivated by the extensive interaction of the researcher and the rural folks who were the key target group by the ever increasing Microfinance Institutions (MFls). After making frantic efforts to make enquiries on why most of those given the loans either ended up closing down theirbusinesses or stagnating at the same economic status, considering that the poverty levels in Murang'a County was at 29% (internet), it was discovered that most of the financiers rarely followed up the intended projects with their clients. Through observation and oral interviews, it was discovered that most of those projects failed within the first one year due to lack of business and entrepreneurial skills. Lack of practical, step-by-step' business and technology-enablement programs inhibited sustainable SME competitiveness and growth. This research therefore studied the factors that affected Monitoring and Evaluation of MFIs projects. The researcher sampled out eleven (11) out of all the financial Institutions with branches in the urban and rural areas, all based in Murang'a County Headquarters. Those eleven were purely MFls. The researcher carried out a census to gather data from the top level management numbering fifty- five (55), of the selected MFIs. However, only thirty three responded, making 60% of the intended 100%. The research design used in this study was descriptive survey. Descriptive survey is the investigation in which quantity and quality data is collected and analyzed in order to describe certain phenomenon (Reid, 1998). According to Long, N. (1996), Qualitative research allows the subjects being studied to give much 'richer' answers to questions put to them by the researcher, and may give valuable insights which might have been missed by any other method. Not only does it provide valuable information to certain research questions in its own right but there is a strong case for using it to complement quantitative research methods.