Financial Effects of Depletion of Mangrove Forest on the Performance of Micro Finance Community Based Organizations -The Case Study of Wajomvu Community in Kenyan Coast
Feiruz Jumaa Kaloo
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This paper discusses the Financial Effects of Depletion of Mangrove Forest on the Performance of Micro Finance Community Based Organizations. Microfinance programmes are seen as a means for such communities to gain access to much-needed and appropriate credit services. The communities along the coast have been able to undertake microfinance programmes due to income arising from sea products and mangrove forests such as income from eco-restaurant, birding excursions, selling crabs and fish to hotels, honey products, pottery items, timber for construction and fuel wood. Mangrove forests worldwide have suffered depletion due to overharvesting, pollution and urban development among others. A broad study was done with regards to the various variables showing how each of them affects performance of Microfinance Community Based Organizations. A descriptive survey study design was adopted in the methodology to explain the relationship between the variables of the study as shown in the conceptual framework. The research discloses that overharvesting, Pollution and urban development are environmental issues which affect MFI’s profitability by increasing its risk. The study concludes by recommending conservation and protection of mangrove forests in order to ensure sustainable yields of timber which have a relatively high economic return leading to increase in savings thus enhancing performance of microenterprise. All stakeholders, including women and marginalised groups, should be included in management planning to avoid approaches which are detrimental to those who rely most heavily on mangrove resources.