would require a reliable savings institutions to enable them maximize on their growthopportunities .MFIS should establish effective saving programs by transforming their capabilitiesto support SMEs saving services.2.4 Empirical reviewMicrofinance institutions can be identified as four main types in Kenya: credit unions/memberbased organizations, non-governmental micro financial institutions, formal finance institutionsand informal microfinance providers. [CITATION Mun131 \t \l 1033 ] Describes credit unionsas members owned and governed deposit taking financial institutions that provide services onlyto their members. They rely on their member saving as the main source of funds .suchinstitutions are supervised by ministry of finance of country and governed by their ownregulations. [ CITATION Mun134 \l 1033 ] Describes informal financial providers as groups orindividual who provide or savings in an informal setting. They can be divided into individualproviders and collective clubs or merry go rounds in Kenya known as chamas.[CITATION Coo12 \t \l 1033 ]Conducted a study on the impact of microfinance services on thegrowth of SMEs in Kenya. The study targeted 50 SMEs in Nairobi and established that SMEslargely depend on microfinances for growth. A significant percentage of SMEs was found toaccess and do seek micro credit for their business .the study also established that microfinanceservices have helped enterprises to change their status through growth in sales level from microto small to medium. Though SMEs have easy access to micro finance the study indicated thatthey have no exemption from strict requirements when applying for loans. The study concludedthat microfinance services have a strong positive impact on the growth of SMEs in Kenya. 2.5 Research gapThere are various studies that have been conducted internationally and locally on microfinancing on how they influence economy and women empowerment programs.[ CITATIONGit13 \l 1033 ] Studied micro financing for low income earners .the study explained that from11
year 2006 there has been an upward trend in borrowing, more people are taking up loans to startsmall, business which are helping to create informal jobs amidst the crowding in formal sector.He also found that people need to be educated on micro financing programs show differentbusiness opportunities to venture into.[ CITATION Sch14 \l 1033 ]Disagrees implying that micro financing leads borrower to debt traps.The problem of micro financing lies with SMEs who possess little capital ,lack of economies ofscale their business encounter low productivity that result to minimal earnings which cannot liftthe poor out of their poverty situations. This study therefore sought to fill the gap by determiningthe effects of micro financing on end users who comprises of SMEs.