| dc.description.abstract | Due to the increasing financial services offered by most
microfinance institutions in Uganda in both urban and rule areas
to women and men, a study was conducted to assess, the effect of
microfinance institutions on increasing people’s economic
empowerment in Kahoora division- Hoima municipality. The study
was guided by the following research objectives: to establish
the contribution of microfinance institutions on increasing
people’s economic empowerment; to assess the challenges facing
microfinance institutions on increasing people’s economic
empowerment and to devise some strategies that micro finance
institutions can use to enhance people’s economic empowerment.
The researcher used both primary and secondary data to compile
this report. The primary data was obtained from former clients
of different micro finance institutions and officials (employees
and officials) from different micro finance institutions. The
primary data was obtained through the use of questionnaires and
interviews Secondary data was obtained from magazines,
textbooks, journals, newspapers, internal reports of different
MFIs, internet among others. The study revealed that MFIs have
contributed to a lesser extent in offering financial support to
the people to increase on their economic empowerment. It was
noted that these MFIs have various challenges affecting their
performance in trying to increase on people’s economic
empowerment, these include insufficient collateral security by
their clients, high charges imposed on them by the central Bank,
multi borrowing by their clients, poor record keeping by their
clients among others. It was revealed that several strategies
were to be formulated like encouraging clients to get group
loans instead of individuals, teaching their clients dangers of
multi borrowing among others. The study came up with several
conclusions among them is that micro finance institutions
contribute to some extent on increasing people’s economic
empowerment through giving them business support; there are
several challenges facing MFIs the major one being high charges
imposed on them by the central bank. The study made the
following recommendations; the central Bank lower the charges in
order for these MFIs to lower the interest rates imposed on
clients, lengthen the grace period, sensitize clients on the
dangers of multi borrowing if they are to benefit from their
financial services. | en_US |
