MICROFINANCE INSTITUTIONS STRATEGIES AND ECONOMIC EMPOWERMENT OF WOMEN ENTERPRISES IN SIAYA COUNTY- KENYA
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Date
2025-07
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THE CATHOLIC UNIVERSITY OF EASTERN AFRICA
Abstract
Economic empowerment of women enterprises in evolving countries is a transformation point to reduce poverty, expand business, advance in economic development and a full realization of vision 2030. In spite of their significant presence and ability, women-owned enterprises in rural Kenya report stagnant or declining business performance due to financial constraints and lack of strategic support. This study explored on the effects of MFIs Strategies and economic
empowerment of women enterprises in Siaya County, Kenya. Focused on four main strategies of: Product diversification, capacity building, technology adoption and risk management. The study was supported by feminist empowerment theory, financial literacy theory, technology acceptance model (TAM) theory and financial intermediation theory. The research employed a descriptive cross-sectional survey design by utilizing quantitative research methodology. The
target population consisted of 5 MFIs branch Managers in Siaya County and 1000 women accessing services of these MFIs. A sample size of 105 respondents was used,( 5 MFIs branch managers and 100 women), censers method was used to select MFIs branch managers and simple random sampling procedure was used to select the women. Data was collected using structured questionnaires. Statistical Package for Social Sciences (SPSS) was used for processing
data. Descriptive statistics such as percentages, means and standard deviations were utilized to summarize data. For Inferential statistics, diagnostic tests (normality, heteroscedasticity and multi-collinearity) were done, analysis such as multi linear regression was used to examine the relationship between MFIs strategies and the economic empowerment in Siaya County - Kenya. The Study found out that the four strategies used by MFIs have a statistical significance on
economic empowerment of women enterprise in Siaya County. Product diversification strategy having the strongest significance (β = 0.52, p = 0.001), followed by Capacity building strategy (β= 0.38, p = 0.001), Risk management strategy (β = 0.31, p = 0.0015) and last but not least, Technology adoption strategy (β = 0.28, p = 0.002). The study concludes that MFI strategies are principal drivers of rising income growth, business expansion, and women's economic
independence as business owners. The study recommends that MFIs invest more in gender responsive product innovation, strengthen capacity-building efforts, and leverage technology to increase outreach. Policymakers are called upon to develop enabling regulatory frameworks for inclusive, diversified, and sustainable microfinance systems responsive to women's enterprise development.
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Keywords
Microfinance institutions, strategic management, economic empowerment, women enterprises, financial inclusion, entrepreneurship development, Siaya County, Kenya