The Role of Microfinance Institutions in Empowering Women Economically: A Case Study of Umoja Women Entrepreneur Programme Nakuru Branch

Microfinance is emerging as a powerful instrument for poverty alleviation in the new economy. In Kenya, Microfinance scene is dominated by Self Help Group-Bank Linkage Programme as a cost effective mechanism for providing financial services to the Unreached Poor which has been successful not only in meeting financial needs of the rural poor women but also strengthen collective self-help capacities of the poor women, leading to their empowerment. . Economic empowerment results in womens ability to influence or make decision, increased self-confidence, better status and role in household etc. This paper puts forward how micro finance has received extensive recognition as a strategy for economic empowerment of women. This research examined the role of Micro finance institutions with respect to economic empowerment and poverty alleviation of rural women. An effort is also made to suggest the ways to increase women empowerment. The research used both quantitative and qualitative data collected from both primary and secondary sources. A sample of 30 employees serving in the study area, Umoja Women Entrepreneur Programme, a microfinance Institution in Nakuru Town were approached through questionnaire to collect primary data. Secondary data was collected from relevant books, journals, theses, government publications, research reports, and various web sites. Analysis of data employed descriptive statistic. It was established that availability and accessibility of microfinance institutions to women investors is way above average. Further, the study established that microfinance institutions play a positive role on women who invest in them by increasing their well-being, access to and control of their resources, eradicating illiteracy among women, taking part in decision making in their households as well as economic decisions and finally microfinance institutions have boosted womens self-esteem.