This document outlines a proposed research study on microfinance awareness and impact in Nairobi County, Kenya. The study aims to determine the level of awareness of microfinance services among Nairobi residents and assess the impacts of microfinance on economic and social development. The researcher plans to survey Nairobi residents on their familiarity with local microfinance institutions and perceptions of how microfinance has affected areas like income, assets, education, and empowerment. The results could provide insight for microfinance institutions, government, and academics on the reach of services and viability of continued support for microfinance in Kenya.

1. MICROFINANCE AWARENESS AND IMPACT IN KENYA: A CASE OF NAIROBI
COUNTY
By Fred M’mbololo
Page 1

2. Table of Contents
1. Background of the study.............................................................................................. 3
1.1 Statement of the problem ....................................................................................... 7
1.2 Conceptual Framework .......................................................................................... 9
2. Industry background .................................................................................................. 11
2.1 Significance of the study ...................................................................................... 11
3. Research aim, research questions or hypotheses and objectives ............................. 13
3.1 Research Aim ...................................................................................................... 13
3.2 Research questions ............................................................................................. 13
3.3 Hypothesis ........................................................................................................... 13
3.4 Objectives ............................................................................................................ 13
3.5 Assumptions of the study ..................................................................................... 14
3.6 Limitations of the study ........................................................................................ 14
3.7 Delimitations to the study ..................................................................................... 15
4. Proposed methodology ............................................................................................. 17
4.1 Research Design ................................................................................................. 17
4.2 Population and Sampling Design ......................................................................... 18
4.3Sampling Design ................................................................................................... 18
5. Timescale .................................................................................................................. 20
6. Resources ................................................................................................................. 21
7. References ................................................................................................................ 22
By Fred M’mbololo
Page 2

3. 1. Background of the study (Literature Review)
The need for development that saw the Kenya develop several strategies and plans
such as the vision 2030 and the millennium development goals has led to development
of the finance sector. The need for financing of the development projects has developed
microfinance institutions in the country. Microfinance has received a lot of attention
since its inception in the early 1970s perhaps, as argued by (Okio credit, 2005: 30-32)
Because of the ability of microfinance to reduce poverty alleviation and enhance
economic development by providing credit and savings services to those people earning
low incomes. The attention has seen development of different definitions to
microfinance.
Otero, (1999: 8) says in essence that microfinance is ‘the provision of financial services
to low-income poor and very poor self-employed people’.
Schreiner and Colombet, (2001) on the other hand define microfinance as ‘the attempt
to improve access to small deposits and small loans for poor households neglected by
banks.’ Independent of the definition provided to microfinance it is a general agreement
in the economic field that micro financing alleviates economic development. The money
or funds that are provided by microfinance institutions in terms of credit and micro loans
enables those who are poor to invest into productive acitivities that are bound to earn
them income helping them boost their economic level and alleviate poverty in the entire
economy.
Microfinance institutions therefore are an opportunity for sustainable development. The
extent opportunities available to generate income and the ability of citizens to respond
By Fred M’mbololo
Page 3

4. to the available opportunities are to a large extent determined by the degree or ability to
access financial services that are affordable. Microfinance being able to provide such
financial services is being pursued by every economy worldwide. Initially microfinance
aimed at providing donor finances and financing experimental projects. This has
developed to financial institutions that provide a wide range of services and several
routes to opportunities that are significant for economic development and expansion
(Khan, 2005: 131-142).
The concept of microfinance in most instances has been used interchangeably with
microcredit imploring that they have the same meaning. However microcredit and
microfinance are two different concepts. In an attempt to explain the difference between
microcredit and microfinance.
Sinha, (1998: 2) states that, “microcredit refers to small loans, whereas microfinance is
appropriate
where
non-governmental
organizations
(NGOs)
and
microfinance
institutions (MFIs) supplement the loans with other financial services (savings,
insurance, etc.)”. This definition indicates that microcredit is part of microfinance since it
involves providing credit to the poor. Microfinance is an overall concept as it involves
both credit and non-credit financial services such as insurance, savings, pensions and
other payment services.
Microfinance institutions, given the nature of their objective of ensuring that the prop are
able to access financial services, operate in several models. The most commonly
identified models of operations of microfinance institutions include the Rotating Savings
and Credit Association (ROSCAs), the Grameen Bank and the Village Banking models.
By Fred M’mbololo
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5. Rotating Savings and Credit Association are formed when a group of individuals come
together and form an agreement to make regular cyclical contributions with an aim of
developing to a common fund. After some period of specified time the lump sum of the
contributions is given to one member of the group in each cycle.
Schreiner, (2010: 112-119), argues that this model is a very common form of savings
and credit.
The solidarity group model is based on based on group peer pressure. Loans are made
available to individuals who are in organized groups of four to seven peoples
(Berenbach, Shari and Guzman, 1994)
The advantage of being in groups is that the members collectively guarantee loan
repayment. They are therefore able to access subsequent loans depending on
successful repayment by all group members. These payments are usually made after a
specific period of time, usually one week (Ledgerwood, 1999: 137).
This model of micro financing is the most commonly used by banks. It has proven to be
more effective in the long run as there are few loan defaulters as each member of the
group is a guarantor of the other.
Berenbach et al, (1994) argues that, ‘solidarity groups have proved effective in deterring
defaults as evidenced by loan repayment rates attained by organizations’.
Village banking model are based on village banks which are normally communitymanaged. The banks are established and managed by credit and savings associations
By Fred M’mbololo
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6. established by NGOs to provide access to financial services, build community self-help
groups, and help members accumulate savings (Schreiner, 2003: 118–136).
This is perhaps the oldest model of micro financing, considering their formation in the
mid-1980s. Usually these village banks normally consist of 25 to 50 members who
majorly low-income earning individuals are seeking to improve their lives through selfemployment activities.
In Kenya, the need for economic development has seen the development of micro
finance institutions which in normal cases start as Chamas. Chamas are small groups
of individuals, who come together, collect money in a pool through continuous
contributions with an aim of accomplishing an investment objective.
(Onumah, 2002) opine that the development of Chamas has led to the development of
banks in Kenya.
For example, equity bank developed from a micro finance institution where its major
purpose was to help customers get mortgage loans for individuals who are low income
earners in the society. It was initiated as equity building society (Coetzee, Kamau and
Andrew, 2003).
There has been other current deposit taking microfinance institutions in Kenya such as
Rafiki and Jammii Bora who are also in the same path.
The rapid development of micro finance institutions in Kenya has helped the country
develop economically with the current rate standing at 5% improvement annually
(CGAP, 2004).
By Fred M’mbololo
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7. This has shown that there are several impacts of the financial institutions to the
economy. There are also business that were majorly part of the institutions that have
flopped in the economy. Independent of the connection of economic development to
these financial institutions many Kenyans residents are not members of the
microfinance institutions, let alone being aware of their existence (Kodhek, 2003).
It is in line with this background that the study wishes to determine the level of
awareness and impact on microfinance institutions among the residents of Nairobi
County.
1.1 Statement of the problem
Microfinance institutions have been identified to be the major component to economic
development. In her study on Rural Financial Services in Kenya: What is Working and
Why?
(Betty, 2006) possess that micro financing institutions have in a large extent helped the
development of the Kenyan rural community; “microfinance institutions will continue
serving the rural people and will transform themselves into community based microcredit units. This will most likely reduce unemployment in the rural areas”. Development
practitioners and policy makers have as well identified efficient microfinance services as
important for a variety of reasons; helping the poor manage their risks, build their
assets, enhance their income earning capacity, be able to develop small enterprises to
generate income, and these in turn will ensure improved life. Microfinance has also
positive impacts on poverty alleviation and specific economic indicators such as
nutrition status, women empowerment and children schooling.
By Fred M’mbololo
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8. Despite the several merits attributed to micro financial services, the level of poverty in
Kenya is still high with 40% of Kenyans leaving below a dollar, businesses are
performing poorly and this is indicated by the slow economic development of below 5%,
many Kenyans are still not members of any microfinance institution. This may be
attributed to lack of information on the positive impacts of micro financing and the lack
of awareness by the general public on the existence of microfinance institutions and the
services such institutions offer.
Few studies have been done in Kenya revolving around microfinance. However none of
these studies provide direct information on the impacts of microfinance institutions in
Kenya.
(Mjomba, 2011) studied the development of micro-finance in Kenya by specifically
considering micro finance on financial empowerment of women in Kenya. This study
though identified the impact of micro financing as empowering women positively, it
majored on Kenya Women Finance Trust and was also bias to women only. Therefore it
lacked evidence on other impacts of microfinances in Kenya.
(Joy, 2007) carried out a similar study majoring on the impact of microfinance on rural
development with a setting of Makueni County. Although this study was a great
milestone to the studies on the field of impact of micro financing services, it narrowed
down to poor households, income and poverty eradication. The setting was also rural.
This study therefore lacks enough evidence to ascertain the awareness and impacts of
microfinance in Kenya. Therefore, we remain unable to judge the validity of this
By Fred M’mbololo
Page 8

9. tentative explanation. That is, there remains insufficient empirical evidence to assess
this claim.
Several questions therefore remain unanswered. Who largely benefit from micro
financing services? What is the level of awareness of microfinance services in Kenya?
What are the impacts of microfinance in Kenya? What strategies are employed by
microfinance institutions to ensure they meet their objectives? What kinds of policy
questions do these findings raise for microfinance institutions and for national
government?
This study proposes to interrogate the data that will be collected in residents of Nairobi
County in relation to these broad questions that are emerging around the issue of
awareness and impacts of microfinance in Kenya, and suggests areas of purposeful
focus for policy attention.
1.2 Conceptual Framework
The literature review in this study will cover the previous studies that have been done on
microfinance and its effects. However there will be need to have a clear understanding
on microfinance which will call for concise definition to microfinance concepts such as
microfinance itself, microfinance institutions, economic development and SACCOs.
By Fred M’mbololo
Page 9

10. Conceptual framework
Levels of impact
Types of Impact
Household
Economic
Community
Impact variable/indicator
Economic variables
Income
Access to food
Household assets
Housing
Social
Human capital
Skills
Education
Health
Empowerment
Confidence
Social capital
Social networks
Social mobility
By Fred M’mbololo
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11. 2. Industry background
The study will be carried out in Nairobi County. The respondents shall include the
Nairobi County residents. Data will be collected from the Nairobi residents who form the
population of this study, with an aim of determining their level of awareness to
microfinance in Kenya and the impacts of microfinance in Kenya.
2.1 Significance of the study
To the government
In line with the ability of micro financing services to ensure economic development by
providing savings and credit to low income earners, the government has been pushed
to support the development of microfinance institutions. This has seen a lot of
investment by the government in providing financial support to the microfinance
institutions. The information from this study on the impact of microfinance may help the
government in determining the viability of their investments.
Microfinance institution’s management
The microfinance institutions are formed with the objective of ensuring that low income
earners have access to financial services. There are several Kenyans who fall under the
bracket of low income earners. Microfinance institutions aim at ensuring that all these
citizens who are low income earners are catered for in terms of provision of financial
services. It is therefore necessary for the institutions to understand the perceptions of
the citizens on the impact of the microfinance services they are offering and the level of
awareness of the public on the existence of microfinance institutions and their services.
By Fred M’mbololo
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12. This information may be used by the management of the microfinance institutions in
determining areas for improvement so as to ensure their success.
Academicians/ researchers
Little research has been done in sub-Saharan Africa to directly identify the impacts of
microfinance.
Considering the benefits attributed to microfinance institutions in
economic development and the rapid development of these institutions, impact of
microfinance has received attention of researchers and academicians. Therefore a
study on the awareness and the impact of microfinance in Kenya, with major focus on
Nairobi County, may therefore attract researchers and academicians who are in need of
educating more and providing solutions to lack of access to financial services in subSaharan Africa.
The information from the study will also form basis for literature for other researchers
and academicians who are willing to carry out studies in the same field in Sub Saharan
Africa. Next, the study will be a starting point for further studies on microfinance in
Kenya.
By Fred M’mbololo
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13. 3. Research aim, research questions or hypotheses and objectives
3.1 Research Aim
The aim of this study is to determine the level of awareness of microfinance services
and the impacts of microfinance services to residents of Nairobi County. The objective
is to come up with findings that may be used to make assertions on the awareness and
impacts of microfinance in Kenya.
3.2 Research questions
1. What is the level of awareness of Nairobi County residents on microfinance
institutions and the services they offer?
2. What are the impacts of microfinance to Nairobi County residents?
3.3 Hypothesis
1. Nairobi County residents are unaware of microfinance institutions within the
county and the services such institutions offer
2. Microfinance has positive impact to economic and social development of Nairobi
County residents
3.4 Objectives
The specifics objectives of the study shall include
1. To determine the level of awareness to microfinance among Nairobi County
residents
By Fred M’mbololo
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14. 2. To assess the level of development of microfinance institutions within Nairobi
County
3. To assess the impacts of microfinance to Nairobi County residents
4. To determine the strategies employed by the microfinance institutions in Nairobi
County to meet their objectives
3.5 Assumptions of the study
The researcher makes the following assumptions regarding this study:
1. Respondents will answer the survey questions about the awareness and impacts
of microfinance truthfully.
2. Respondents are familiar enough with the microfinance services to answer the
survey questions.
The researcher expects the entire exercise to move on smoothly relying on the
maximum cooperation of all those who will be involved. That the sample will properly
represent the population, the data collection instruments will have validity and will
measure the desired parameters and that the respondents will truthfully and correctly
answer questions.
3.6 Limitations of the study
Limitations are potential weaknesses or problems with the study identified by the
researcher. The limitations often relate to inadequate measures of variables, loss or
lack of participants, small sample sizes, errors in measurement, and other factors
typically related to data collection and analysis. These limitations are useful to other
By Fred M’mbololo
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15. potential researchers who may choose to conduct a similar or replication study
(Creswell, 2005).
The limitations of this study include;
1. The study involved the perception of residents on the impacts of microfinance.
The data will be collected from individuals who are self-reporting their
perceptions.
2. Perceptions of those who participated are not factual information and are biased
based on the respondent’s own experiences and attitudes.
3. The geographical expanse of the study area, inadequate financial resources and
time constraints may also reduce the chances of contacting more respondents.
These limitations will be mitigated by making sure that, there is purposive sample
selection, piloting and careful scrutiny of the perceived parameters of measurement in
the microfinance institution, population and sample.
3.7 Delimitations to the study
Delimitation narrows the scope of the study. The follow were delimitations of this study:
write in prose not points
1.
Participation in this study is voluntary.
2.
The population was limited to microfinance institutions in Nairobi County
3.
Respondents involved in the study were from the same large urban area
By Fred M’mbololo
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16. 4.
There could be other impacts of microfinance that may not be exclusively
addressed in this study.
The study is bound to have a reasonable degree of success because the population
and the sample are readily available in Nairobi County. The use of the SPSS
programme in analyzing the collected data will be helpful in making reasonable
deductions. Some of the respondents’ concerns connected with the impacts of
microfinance will be quantitatively measured and appropriate records made. Such
parameters will include number of people registered with the microfinance institutions
and the number of microfinance institutions within the county.
By Fred M’mbololo
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17. 4. Proposed methodology
4.1 Research Design
A cross-sectional descriptive research design will used in this study to investigate the
impacts of microfinance in Kenya and the awareness of Kenyans on the microfinance
institutions and their services. This design will be employed because data will be
collected once.
(Lokesh, 1984) insists that ‘descriptive research is designed to obtain pertinent and
precise information status of the phenomena’.
(Creswell, 2003) emphasize that ‘descriptive designs are used in preliminary and
exploratory studies to allow the researcher to gather information, summarize, present
and interpret for the purpose of classification.’ Descriptive research will be used in this
study to obtain information on the current status of impacts of microfinance in Kenya so
as to describe what exists with respect to variables or conditions in the situation of
access to financial services in Kenya. Descriptive statistics will mainly be used in this
study to describe information or the data collected through the use of numbers.
(Blaikie, 2000) argues that the characteristics of groups of numbers representing
information or data are called descriptive statistics.
The cross sectional descriptive design method that will be used in this study therefore
will match the purpose of the study based on the above description of a descriptive
research method. The intention of the study will be to determine the level of awareness
of microfinance services and the impacts of microfinance services to residents of
Nairobi County. The aim is to come up with findings that may be used to make
By Fred M’mbololo
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18. assertions on the awareness and impacts of microfinance in Kenya. Using descriptive
research design therefore will be to ensure an in depth description of the state of affairs
in the study.
4.2 Population and Sampling Design
Population
(Dornyei, 2007) defines ‘population as those units for which the findings of the survey
are meant’.
Data on impact and awareness of microfinance will be collected from
respondents which shall include but not limited to Nairobi County residents.
4.3Sampling Design
Sampling Frame
A sampling frame is a list that constitutes the population. The basic idea of sampling is
that the unit selected represents the population. This means that selecting some of the
element in the population, one can draw conclusions about the entire population.
(Cooper and Schindler, 2006) suggest that ‘the sample frame is a representation of the
element of target population that consist a list of all elements of that population’. In this
study the sample frame shall consist of Nairobi County residents.
Sampling Techniques
Sampling means selecting a group that represents the entire population. Sampling is
considered because it reduces cost and resources that would have been used in
studying the entire population. It makes a study more manageable in terms of resources
and ensures that the objective of the study is covered as well.
By Fred M’mbololo
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19. This study will use the simple random sampling techniques in selecting the sample of
respondents who took part in the study. Respondents will then be selected randomly
from each stratum. The strata were frontier, emerging and developed banks in Kenya.
By Fred M’mbololo
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20. 5. Timescale of Activities
Calendar Week
st
1 week of October ,
2013
nd
2 week of October,
2013
rd
3 week of October,
2013
th
4 week of October,
2013
st
1 week of November,
2013
nd
2 week of November,
2013
rd
3 week of November,
2013
th
4 week of November,
2013
st
1 week of December,
2013
nd
2 week of December,
2013
rd
3 week of December,
2013
Activities
Design a chapter structure for the research project including a table of contents,
a draft of the abstract, keywords, preface, and Introduction of the study
Review the Introduction, design questionnaire and plan how to carry out
sampling on certain institutions.
Strategize on how to fill in the gaps in the Literature review by gathering more
literature on microfinances. Submit my proposal to the supervisor for review
Incorporate the feedback received and Send out the questionnaire and follow
up for answers and tabulate the results
Carry out personal interviews, analyze the results of the questionnaire and
interviews
Perform analysis on secondary and primary data already gathered.
Write up a draft of the dissertation excluding the conclusion chapter.
Begin drafting out the conclusions of the findings
Complete the final version of the main chapters excluding conclusions.
Start writing up the entire dissertation including the conclusion chapter.
Review the entire dissertation and suggest recommendations from the study
and suggest areas which need further research.
th
Include the Bibliography and ensure that Harvard Referencing system is used.
Check for grammar, spelling and syntax.
st
Compile the entire dissertation report, allowing for any lapses in the schedule of
activities and submit it for marking.
4 week of December,
2013
1 week of January,
2014 and beyond
By Fred M’mbololo
Page 20

21. 6. Resources
I will need to get references from secondary data particularly from journals and
textbooks (accounting models and concepts), papers from meetings, as for primary data
I will get these from the businesses, internet and the tax offices.
I will need time and some money to do the fieldwork for the purpose of gathering the
relevant data through cross-sectional descriptive research design and sampling.
A list of resources to be used as per the 7 -References shown below;
By Fred M’mbololo
Page 21

22. 7. References
Books
1. Berenbach, Shari, and Guzman D. (1994). The Solidarity Group Experience
Worldwide in The New World of Microenterprise Finance, edited by M. Otero
and E. Rhyne. Kumarian Press, West Hartford CT: 119-139
2. Berenbach, et al, (1994). The Solidarity Group Experience Worldwide in The
New World of Microenterprise Finance, edited by M. Otero and E. Rhyne.
Kumarian Press, West Hartford CT: 119-139
3. Blaikie, N. W. H. (2000). Designing social research: the logic of anticipation.
Cambridge
4. Creswell, J. W. (2003). Research design: A qualitative, quantitative, and mixed
method approaches (2nd Ed.). Thousand Oaks, Calif.: Sage Publications.
5. Creswell, J. W. (2005). Educational research: Planning, conducting, and
evaluating quantitative and qualitative research (2nd Ed.). Upper Saddle River,
NJ: Pearson.
6. Dornyei, Z. (2007). Research methods in applied linguistics. New York: Oxford
University Press
7. Khan, B.H. (2005). Managing e-learning: Design, delivery, implementation
and evaluation. Hershey, PA: Idea Group Publishing
8. Ledgerwood, J. (1999), Microfinance handbook: An institutional and financial
perspective, the World Bank publications, USA
By Fred M’mbololo
Page 22

23. 9. .Lokesh K (1984). Methodology of educational research. New Delhi. Vikas
Publishing Pvt Ltd
10. Okio credit (2005) Noncredit financial services and Micro credit in Nigeria, a
textbook, 2nd edition, pages 131-142, Bolubestway Press limited, Nigeria
11. .Otero, M., (1999). The New World of Micro Enterprise Finance, Kumarion
Press, W. Hartford, CT
12. Schreiner, M.; and
Colombet H. (2001) Microfinance, Regulation, and
Uncollateralized Loans to Small Producers in Argentina, pp. 137–152 in
Douglas
R. Snow, Terry Buss, and Gary Woller (eds) Microcredit and
Development
Policy, Nova Science Publishers: Huntington, NY, ISBN 1–
59033–001–3.
Thesis
1. Betty K (2006). Rural Financial Services in Kenya What is working and Why?
Inaugural dissertation, Egerton University.
2. Joy M. The impact of microfinance on rural poor households’ income and
vulnerability to poverty: case study of Makueni District, Kenya. PhD Thesis,
University of Nairobi. Kenya. Published
3. Khan, F. (2005). Microfinance and Development, Master’s Thesis, Umeå School
of Business and Economics (USBE), Sweden.
4. Mjomba E (2011) Micro-finance and financial empowerment of women in Kenya.
PhD Thesis, University of Nairobi. Unpublished.
By Fred M’mbololo
Page 23

24. Journals
1. Schreiner M. (2010). Seven Extremely Simple Poverty Scorecards, Enterprise
Development and Microfinance, Vol. 21, No. 2, pp. 118–136.
2. Sinha H. (1998) Microcredit: impact, targeting and sustainability. IDS Bulletin,
volume 29, issue n°4.
Papers
1. CGAP (2004).
Scaling up poverty reduction: Case study for Microfinance.
Washington, D.C. World Bank Financial Sector Network.
2. Graheem Bank (2000). Annual report on of the Grameen Bank, Bangladesh,
Dhaka.
3. Kodhek, G.A. (2003). Feast and Famine: Financial Services for Rural Kenya,
Working Paper, Tegemeo Institute of Agricultural Policy and Development.
4. Onumah G.E. (2002).Improving access to rural finance though regulated
warehouse receipts systems in Africa. A case study paper presented at an
international conference on best practice”. Malden, MA. Polity Press. Blackwell
5. Schreiner,
M.
(2003)
The
Performance
of
Subsidized
Microfinance
Organizations— BancoSol of Bolivia and the Grameen Bank of Bangladesh,
Lewiston, NY: Edwin Mellen Press, ISBN 0–7734–6730–0
By Fred M’mbololo
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25. Online sources
1. Brennan, D. (2008). One mission, myriad benefits from microfinance institutions.
Microfinance
Reviews.
Available
at:
http://nuwireinvestor.com
/articles/
microfinance-institution-reviews-51486aspx. (Accessed on 03/08/2013).
2. Coetzee, G., Kamau K., and Andrew, N. (2003). Taking Banking Services to the
People:
Equity’s
Mobile
Banking
Unit.
Nairobi,
Kenya:
MicroSave.
www.seepnetwork.org/files/2084_Equity_Mobile_Banking_Unit_Coetzee_et_al.1.
doc
3. United Nations. (2005). Building inclusive financial sectors to achieve the
millennium
development
goals.
Available
at:
www.internationalyearofmicrocredit2005.com . (Accessed on 03/08/2013).
By Fred M’mbololo
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26. APPENDIX: QUESTIONNAIRE
General Questions
1. What is your gender?
a) Male
[
]
b) Female
[
]
2.
a)
b)
c)
d)
Your age is between
18-35
[
]
36-45
[
]
46-60
[
]
Above 60 [
]
3.
a)
b)
c)
d)
e)
Where do you work?
Employment
[
]
Farming
[
]
Trading
[
]
Artisan works
[
]
Others (Please specify)………………………..
4. Have you ever applied for a loan (“borrowed capital”) to finance your business?
a) Yes [
]
b) No [
]
If yes where?
a) Microfinance institution [
]
b) Bank
[
]
c) others (specify)………………………….
Level of awareness of microfinance
5. What is the name of your microfinance institution?
By Fred M’mbololo
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27. 6. Do you obtain financial services from any other microfinance institution?
a) Yes [
]
b) No [
]
7.
a)
b)
c)
d)
e)
Overall satisfaction with service provided by your microfinance institution?
Very dissatisfied [
]
Dissatisfied [
]
Neutral
[
]
Satisfied
[
]
Very satisfied
[
]
8.
a)
b)
c)
d)
e)
Observed service improvement in your microfinance institution in past 5 months?
Much better
[
]
Slightly better
[
]
Almost same
[
]
Slightly worse
[
]
Much worse
[
]
Level of development of microfinance institutions
9. In your last visit to your microfinance, how do you agree with the following? where (5-Strongly
agree, 4-Agree, 3-Neutral, 2-Disagree and 1-Strngly disagree)
1
2
3
4
5
a) I was served on a first come basis
b) The service providers displayed name tags
c) I was addressed by my name
d) The service provider made eye contact
e) I was greeted by the provider
f) The service provider smiled at me
g) I am very satisfied with counter satisfaction
By Fred M’mbololo
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28. Impacts of microfinance
10. If you have ever applied for a loan for your business from microfinance, please rate the following
statements. (5-Strongly agree, 4-Agree, 3-Neutral, 2-Disagree and 1-Strngly disagree)
1
2
3
4
5
a) It was easy to be given a loan
b) The criteria used by MFI in offering loans is fair
c) The criteria used by MFI is easy to be met
d) I would conclude that MFI has helped me in developing my business
e) I would like to obtain another loan if need be from MFI
f) Am happy with loan repayment conditions given
g) Interest rate offered was fair
11. How do you agree with the following statements about your microfinance? (5-Strongly agree, 4Agree, 3-Neutral, 2-Disagree and 1-Strngly disagree)
1
2
3
4
5
a) Before any loan is given this organization conducts analysis of the viability
of the business
b) Business analysis done for customers is informed by organization
objectives
c) Trainings are provided to customers geared towards increasing their
knowledge on available products and services
d) The organization has a structured way of evaluating training.
e) Customers do value training they receive in this organization
f) Training done to this organization is geared towards meeting customer
needs
g) After training, the organization is geared towards meeting cutomer needs
h) Within the organization there is an enabling environment for transfer of
training to thrive
i) There is reliable or efficient service at the counter (dependable for
solutions)
j) Friendliness of the counter staff (approachable for solutions)
k) Politeness of the counter staff
e) Reasonable total time taken to complete a transaction
f) Staff knowledge of products and services
Strategies employed by the microfinance institutions
By Fred M’mbololo
Page 28

29. 12. How important are the following statements in relation to MFI? (5-Most important, 4-Important, 3Neutral, 2-Not important and 1-Not important at all)
1
2
3
4
5
a) Being greeted by friendly and courteous staff
b) Receiving quick and efficient counter service
c) Having a clean and tidy environment
d) Having staff available to answer questions
e) Having information on products and services available
f) Privacy for discussing private matters
g) Efficient telephone services
h) Ability of branch to solve errors and complaints
i) Staff addressing you by name
j) Publication of service charges
By Fred M’mbololo
Page 29