The question below was found in KNEC Past paper 2014, business finance. Find answer below.
Highlight three advantages or functions of micro-finance institutions in Kenya
Microfinance institutions play a significant role in the economy of Kenya. Here are some of the functions or advantages of micro-finance institutions in Kenya:
- They provide small loans which enable individuals to meet their daily expenses including emergencies. Microfinance institutions enable consumers to get loans conveniently when they need it – increases credit availability among low-income earners.
- They also allow customers to make savings, which enable them to invest in the future or buy items without borrowing.
- Microfinance institutions in Kenya also provide insurance services to people who have limited resources or those who are unable to get insurance from banks or larger insurance companies.
- Empowers entrepreneurs from low-income communities to access financial resources to meet their business needs.
