TABLE OF CONTENTS
DECLARATION
APPROVAL
DEDICATION
ACKNOWLEDGEMENT iv
TABLE OF CONTENTS
LIST OF TABLES
LIST OF ACRONYMS/ABBREVIATIONS
ABSTRACT
CHAPTERONE 1
1~O Introduction 1
1.1 Background of the study
1.1.1 Historical perspective 1
1.1.3 Theoretical perspective 5
1.1.4 Contextual perspective 6
1.2 Statement of the Problem 6
1.3 Purpose of the study 7
1.4 The objectives of the study 7
1.5 Research Questions 7
1.6 Significance of the study 7
1.7 Conceptual framework of the study 8
CHAPTER TWO 9
LITERATURE REVIEW 9
2.0 Introduction g
2.1 Definitions of key concepts used in the research 9
2.2 Review of Literature and theories related to the study 9
2.2.1 Microfinance activities 9
2.2.2 The level of rural development in Akalo sub county 11
2.2.3 The Role of microfinance institutions on rural development 12
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CHAPTER THREE .21
METHODOLOGY 21
3.0 Introduction 21
3.1 Research design 21
3.2 Study Population 21
3.3 Sample size 21
3.4 Sampling Procedure 22
3.5 Data sources 22
3.5,1 Primary data sources 22
3.5.2 Secondary sources 22
3.6 Data collection instruments 22
3.7 Validity and Reliability of the Instruments 23
3.7.1 Validity of the instrument 23
3.7.2 Reliability of the instruments 23
3.8 Research Procedure 23
3.9 Data Analysis 24
3.10 Ethical Considerations 24
CHAPTER FOUR 25
DATA PRESENTATION, ANALYSIS AND INTERPRETATION 25
4,0 Introduction 25
4,1 Demography of respondents 25
4.1.1 Age of respondents 25
4.1.2 Gender of respondents 26
4.1.3 Education level of respondents 26
4.1.4 Duration of stay in Akalo sub county 27
4.3 The level of rural development in Akalo sub county 30
4.4 The effects of microfinance institutions on rural development in Akalo sub
county 32
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CHAPTER FIVE
DISCUSSIONS, CONLUSIONS AND RECOMMENDATIONS 33
5.0 Introduction 33
5.1 Discussion of research findings 33
5.1.1 Findings on the personal information of respondents 33
5.1.2 Findings on the activities of microfinance institutions in Akalo sub county 33
5.1.3 The level of rural development in Akalo sub county 35
5,1.4 The effects of microfinance institutions on rural development in Akalo sub
county 35
5.2 Recommendation 36
5.3 Limitations of the study 36
5.4 Areas of further research 37
REFERENCES 38
APPENDICES 40
APPENDIX I: RESEARCH BUDGET 40
APPENDIX II: RESEARCH TIME FRAME 41
APPENDIX II: RESEARCH INSTRUMENT 42
ABSTRACT This study was to establish the effects of microfinance institutions on rural development in Akalo Sub-County, Kole district. The study was guided by the following objectives namely; To establish the activities of microfinance institutions in rural areas in Akalo Sub -County, Kole district, to establish the level of rural development in Akalo Sub-County, Kole district and To establish the role of microfinance institutions on rural development in Akalo Sub County, Kole district. The study applied both quantitative and qualitative research approaches that is descriptive and cross-sectional research designs. Akalo SubCounty was used as a case study because these are microfinance institutions available to support in developing rural areas. A sample size of 54 respondents were selected from the target population of 62 in Akalo Sub County, Kole District. Findings indicated that respondents generate more income from farming more than any other venture implying that farming is one sector that is driving development in the area. Furthermore, the findings indicate that the biggest percentage of the money that respondents save in the banks or microfinance institutions is generated from sale of farm produce but the market value of the produce sold in the market is still low and lastly, its revealed that microfinance institutions have partly contributed to the development of the area through spurring growth of businesses, The researcher recommends that more roads need to be constructed in Akalo sub county and the poor ones improved, The researcher also recommends that microfinance institutions should provide further trainings to their customers to enable them manage the funds provided to run their business successfully and more hospitals, schools and electricity have to be put in place and the community need to take care of these infrastructure in order to foster economic growth and development in Akalo sub county.