The Effect of MFI credit on Revenue of SMEs, Survey of Small Medium Enterprises in Nakuru Town

SMEs sector is the source of income for 8 million people who represent the majority of working Kenyans. Despite their large contribution in development and economic performance they are mainly inhibited by access of finance. Large commercial institutions have failed to serve the SMEs in both urban and rural communities. They perceive them as lacking the ability to provide the quality services and are unable to satisfy more critical projects. Given the importance of small businesses to the Kenyan economy and the exposure to risks owing to their size, there was need to conduct an empirical enquiry to investigate the effect of MFI on performance of SMEs in Nakuru District face. The study used both quantitative and qualitative data. Primary data was collected through observation and structured questionnaires. The population was 700 SMEs in Nakuru District. Out of this a sample 248 SMEs was selected on basis of Krejcie method of determining sample size. These were categorised into two the SMEs that receive credit from MFI and those that do not. Frequency tables and graphs were used to display the results. The study recommends that SMEs should exploit the opportunity of obtaining MFI credit so that it can boost their revenue growth.