DETERMINANTS OF MICROFINANCE INSTITUTIONS’ CREDIT ACCESSIBILITY BY PERSONS WITH DISABILITIES IN MOMBASA COUNTY, KENYA

Abstract

Microfinance has emerged as a powerful tool for financial inclusion and poverty alleviation, especially among the low-income population, including persons with disabilities, in developing countries like Kenya. Microfinance institutions (MFIs) play a crucial role in providing banking services such as microloans, savings accounts, and insurance to those traditionally excluded from the formal financial system. Despite the potential benefits, persons with disabilities still face significant challenges in accessing credit within the microfinance sector. This research aimed to establish the factors determining credit accessibility from Microfinance institutions among persons with disabilities in Mombasa County. The research was carried out to establish the following objectives; establishing the effect of occupation, gender, education, and interest rate on credit access from Microfinance Institutions (MFIs) by Persons with Disabilities (PWDs) in Mombasa County. The study tested hypothesis on the above objectives in order to enhance the realization of the key factors that constrain credit accessibility by PWDs. The research was anchored on Credit rationing theory, Credit channel theory, and imperfect information theory. The study used a descriptive survey research design and a target population of 2037 was used in the study. A study sample of 204 PWDs was utilized. Primary data collection method was employed to gather the required information. The information gathered from this research was analyzed by use of SPSS V.26. The overall results indicated that all respondents agreed that the four independents; gender, occupation, education and interest rate influenced credit accessibility. Pearson’s correlation results indicated positive relationship between gender, occupation and education and credit accessibility and negative Pearson’s correlation between interest rate and credit accessibility. At a 95% confidence level, all four null hypotheses were rejected. The study findings concluded greater adoption of gender, occupation, education and interest rate greatly affect credit accessibility. The study recommends that National Council for Persons with Disabilities (NCPWD) can use study results to advice PWDs on credit accessibility, promote integration between PWDs and the society around them in Kenya by facilitating the implementation of the existing policies and enhancing development to align with the arising needs of disabled persons. To Microfinance institutions, the study recommends them to see the untapped market for lending purposes and come up with strategies to expand the market share