Microfinance Institutions: Definition, How It Works, Principles, Benefits, Drawbacks, Types, and Examples
Microfinance institutions (MFIs) have been a part of the Kenyan Financial ecosystem for some time, but most of you do not understand what sets them apart from other providers. Nonetheless, they play a central role in providing financial services to individuals and small businesses that do not have access to commercial banking services. Let us then explore the definition, history, operational mechanisms, principles, benefits, drawbacks, and various MFIs in Kenya, along with examples of notable local institutions. MFIs-Growth-Drive-in-Kenya What Are Microfinance Institutions? Microfinance institutions (MFIs) offer financial services, such as loans, savings, and insurance, to low-income individuals or groups who lack access to traditional banking services. The primary goal of MFIs is to promote financial inclusion by providing resources that help alleviate poverty and stimulate economic growth. Microfinance Institutions History in Kenya Microfinance in Kenya has evolved...