Effect of Microfinance Products 0n Women Economic Empowerment in Kenya: Case of Women Groups Registered with Kenya Climate Innovation Center (KCIC), Kilifi County

Abstract

Women's economic empowerment globally remains a complex issue with persistent gender disparities in labor force participation, entrepreneurship, and leadership roles. However, microfinance has played a crucial role in bridging this gap by providing women, especially in low-income settings, access to essential financial services. A significant challenge in women's economic empowerment is the limited access to capital and financial resources that women often face, particularly in marginalized and low-income communities. However, microfinance has emerged as a solution to address this issue by offering tailored financial services to women who lack access to formal banking systems. This study aimed at assessing the effect of Microfinance products on economic empowerment of women groups in Kilifi County, Kenya. The specific objectives were to determine the effect of micro lending, micro saving, micro insurance and micro capital products on economic empowerment of women. This study was anchored on Resource-based view theory, Access to Capital Theory and Uniting Theory of Microfinance. This study adopted explanatory research design. The target population was 3320 women groups registered by Kenya Climate Innovation Centre (KCIC) in Kilifi County. Simple random sampling techniques and the Krejcie and Morgan t-table was used to sample three hundred and forty-one (341) was derived and primary data was collected by use of a closed ended questionnaire. The collected data was analyzed descriptive methods; deriving mean, standard deviations and also correlation and regression analysis was conducted. The hypothesis testing revealed that micro lending, micro saving and micro capital products have a significant positive effect on the economic empowerment of women groups in Kilifi County, Kenya, (P value=0.017<0.05), (P-value=0.000<0.05) and (P-value=0.016<0.05) as their null hypotheses were rejected. On the other hand, micro insurance products do not have a significant effect, (P-value=0.202>0.05) as their null hypotheses were accepted. This study recommended those women groups should embrace and utilize micro finance products (micro lending, micro saving and micro capital products) to improve their economic status and their socio-well-being. Similarly, this study recommended that MFIs should increase their outreach by educating women about the various microfinance products available to help women to make informed decisions about which products best meet their needs. This study recommends for a comparative study be undertaken between two or more other empowerment groups, like youth, PWDs, social welfare groups among others.