Microfinance Impact on Coastal Kenyan Smallholder Farmers and Entrepreneurship Development: An Empirical Analysis

Microfinance is a financial service provided by microfinance institutions (MFIs) to low-income individuals who do not have access to traditional banking services. A mixed-methods approach combining quantitative data from a survey with qualitative insights from interviews to evaluate the effectiveness of MFIs in supporting rural economic activities. Microfinance has significantly increased access to credit among smallholder farmers by providing them with flexible and affordable financial services, enabling them to invest in their businesses and improve productivity. The findings suggest that microfinance plays a crucial role in enhancing the financial stability of coastal Kenyan smallholder farmers and supporting entrepreneurship development. MFIs should continue to offer tailored credit products aligned with local needs, while government policies could be strengthened to create an enabling environment for microfinance growth. Microfinance, Smallholder Farmers, Entrepreneurship Development, Financial Performance Metrics