Tackling the 'Frontier' of Microfinance Provision in Kenya: Reaching Remoter Areas with Financial Services

This presentation captures the advantages and disadvantages of a user-owned model against a centralized system, with reference to the increasing outreach of microfinance operations to newer areas in Kenya.

The presentation gives a picture of the current trends of microfinance in Kenya and the key challenges facing the sector.

• One of the challenges that come out strongly is the need to extend outreach;
• This is followed by a brief analysis of the five models operating in the country, namely:
  • Equity Building Society;
  • Women's Enterprise Development project (WEDCO);
  • Nyeri Farmers, Savings and Credit Cooperatives (SACCO);
  • Financial Services Associations (FSAs);
  • Managed Accumulating Savings and Credit Associations (ASCAs) - Women's Enterprise Development Institute (WEDI).

The paper:

• Analyzes the models on the basis of promotion, ownership and governance, services, coverage, sustainability, strengths and limitations;
• Then classifies them in terms of their effectiveness in geographical coverage and elimination of poverty;
• It uses the microfinance experience of these models to elucidate the benefits and drawbacks of centralized and decentralized microfinance services.