An Evaluation of Microfinance Programmes in Kenya as Supported Through the Dutch Co-Financing Programme

This paper evaluates microfinance programs in Kenya, as supported through the Dutch Co-Financing Program (CFP), to assess the role and importance of microfinance as a tool for poverty reduction in Kenya.

The evaluation study explores two central objectives:

• The outreach, impact and valuation at the client level of the financial services as provided by Kenyan organizations financially supported by Dutch Co-Financing Agencies (CFA);
• The specific contribution of the Dutch CFAs as financial supporters of the Kenyan financial service providers to low-income people and the quality of this contribution.

Further, the evaluation report:

• Questions the legitimization and overall objectives of Dutch CFAs to support microfinance programs in Kenya;
• Assesses impact and valuation of financial services of partners of Dutch CFAs at the clients' level, highlighting results from the client-centered impact assessment of Kenya Women Finance Trust (KWFT);
• Compares policies and practices of Dutch CFAs with regard to the selection and support of partners in the field of microfinance;
• Outlines how Kenyan partners assess the support given by Dutch CFAs.

The report concludes the following points, as mentioned by clients, with regards to KWFT loan program:

• Repeated access to loans has led to increased enterprise turnover and profitability;
• It has improved living conditions of the household (in particular ability to pay school fees, quality of housing, ownership of residential and farm plots);
• KWFT has boosted the self-confidence of women.