17 431 distribution of respondents in respects to the

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4.3.1; distribution of respondents in respects to the cost of acquiring credit from MFIs
Figure 4.3.1 below indicates the respondents’ opinion about their accessibility to MFIs loans and
the question; is it expensive to acquire the credit? Was asked.
Table 3.1 6 distribution of respondents in respect to cost
Frequency percentage
Strongly agree 27 46
Agree 20 31
Neutral 7 11
Disagree 5 8
Strongly disagree 6 9
Total 65 100
Source: Research Findings
From the findings above 56.7 percent of the respondents acknowledge that acquiring funding
from MFIs is expensive while only 20 percent alludes that acquiring funding from MFIs is not
expensive.
4.3.1 SMEs Accessibility to MFIs Loans
In Figure 1, to determine SMEs accessibility to MFIs loans, and the result depicts that 30 of the
respondents which represents 46% claim they have an access to MFIs, and 35 respondents which
represents 54%, a minute and insignificant number of the respondents disclosed that they have
no access to MFIs loans. What this implies is that the National government of Kenya’s efforts
through its central banks (CBK) in 2015 to issue a microfinance policy i.e. the Regulatory and
supervisory Framework, whereby licenses of operation were issued out to over eight hundred
microfinance banks was a right decision. Moreover, most of the credit union banks which used to
operate only within their local environment were required to raise their capital base and operate
as microfinance within their states and interstate, thereby given them the opportunity to reach
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more SMEs. Also, many SMEs were able to approach MFIs for finance because MFIs do not
request collateral before they issue out loans to the SMEs.Number of Respondents in Percentage
2 Percentage Level of SMEs Goals Achievement Using MFIs Loans
To measure the percentage level of SMEs goals achievement using MFIs loans, Figure 2 presents
the assertion of the 65 respondents which 11% of them claim that they record 80-100 percent
goal achievement using loans granted them by MFIs. 54% which represents more than half of the
respondents believe they achieve more than half of their goals, which are 50-69 percent using
MFIs 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 loans
given to them by MFIs were not sufficient enough to achieve the targeted results.
4.4 MFIs and competition
For 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 other
companies.
Figures 4.4 below indicate respondents’ opinion about MFIs loans impact on SMEs ability to
compete and secure market share
Contributed high contributed low No contribution
Number of Respondents 24 34 7
Percentage 37% 52% 11%
Table 3.1 7 mfis contributions towards smes capital base
In Figure 4, which indicate MFIs contributions towards SMEs increase in capital, what was the
aggregate capital for your business? All the respondents agree that MFIs loans contribute to the
increase in capital for their business.