4.3.1; distribution of respondents in respects to the cost of acquiring credit from MFIsFigure 4.3.1 below indicates the respondents’ opinion about their accessibility to MFIs loans andthe question; is it expensive to acquire the credit? Was asked.Table 3.1 6 distribution of respondents in respect to costFrequency percentageStrongly agree 27 46Agree 20 31Neutral 7 11 Disagree 5 8Strongly disagree 6 9Total 65 100Source: Research Findings From the findings above 56.7 percent of the respondents acknowledge that acquiring fundingfrom MFIs is expensive while only 20 percent alludes that acquiring funding from MFIs is notexpensive.4.3.1 SMEs Accessibility to MFIs LoansIn Figure 1, to determine SMEs accessibility to MFIs loans, and the result depicts that 30 of therespondents which represents 46% claim they have an access to MFIs, and 35 respondents whichrepresents 54%, a minute and insignificant number of the respondents disclosed that they haveno access to MFIs loans. What this implies is that the National government of Kenya’s effortsthrough its central banks (CBK) in 2015 to issue a microfinance policy i.e. the Regulatory andsupervisory Framework, whereby licenses of operation were issued out to over eight hundredmicrofinance banks was a right decision. Moreover, most of the credit union banks which used tooperate only within their local environment were required to raise their capital base and operateas microfinance within their states and interstate, thereby given them the opportunity to reach18
more SMEs. Also, many SMEs were able to approach MFIs for finance because MFIs do notrequest collateral before they issue out loans to the SMEs.Number of Respondents in Percentage2 Percentage Level of SMEs Goals Achievement Using MFIs LoansTo measure the percentage level of SMEs goals achievement using MFIs loans, Figure 2 presentsthe assertion of the 65 respondents which 11% of them claim that they record 80-100 percentgoal achievement using loans granted them by MFIs. 54% which represents more than half of therespondents believe they achieve more than half of their goals, which are 50-69 percent usingMFIs loans. 35% of the respondents believe they only met 10-49 percent of their targeted goals.This implies that some SMEs could not effectively meet their goals virtually because the loansgiven to them by MFIs were not sufficient enough to achieve the targeted results.4.4 MFIs and competitionFor SMEs to survive in Kenya there is a need to achieve a substantial market share. Moreover,for them to gain a portion of the market, competitions have to take place between them and othercompanies.Figures 4.4 below indicate respondents’ opinion about MFIs loans impact on SMEs ability tocompete and secure market share Contributed high contributed low No contributionNumber of Respondents 24 34 7Percentage37%52%11%Table 3.1 7 mfis contributions towards smes capital baseIn Figure 4, which indicate MFIs contributions towards SMEs increase in capital, what was theaggregate capital for your business? All the respondents agree that MFIs loans contribute to theincrease in capital for their business.