IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v7y2023i11p659-671.html
   My bibliography  Save this article

Effect of Gender Norms on Utilisation of Loans Borrowed from Micro Finance Bank and Livelihood Outcome in Kitui Kenya

Author

Listed:
  • Jane Wanjiku Wanjihia

    (Department Development Studies, Jomo Kenyatta University of Agriculture and Technology)

  • Lawrence Njoroge

    (Department Development Studies, Jomo Kenyatta University of Agriculture and Technology)

  • Leah Wanjama

    (Department Development Studies, Jomo Kenyatta University of Agriculture and Technology)

Abstract

This study aimed at investigating the intervening effect of gender norms on utilisation of loans borrowed from Sidian bank and livelihood outcome. The study specifically set out to assess the effects of the borrowed money on the household livelihoods of the women and men who borrowed money from Sidian Bank. It used a convergent research design and a mixed-technique approach. It focused on borrowers who had taken loans from Sidian Bank along with their spouses, government officials, and Sidian Bank. There were 324 borrowers, consisting of 51 men and 273 women. Systematic and purposive samplings were used. Data was collected through a hybrid questionnaire, including open and close-ended questions, an observation schedule, and interview guides. Additionally, secondary data was gathered from various sources such as literature, articles, newspapers, and microfinance bank websites. Quantitative data was coded and analyzed using the Statistical Program for Social Scientists (SPSS), while qualitative data was presented in narrative form. The research revealed a gender dimension in the effects of the loans. The effect of the loans on women’s household livelihoods differed from that of men. The study concluded that due to the differences in utilisation of loans the effects were gendered. This was mainly because they didn’t invest in income-generating projects and faced difficulties in loan repayments, sometimes leading to the loss of household items. Considering these findings, the study proposed that microfinance trainers modify their training methods to address the issue of utilization, considering gender differentials and ensuring more effective utilization of loans for all borrowers.

Suggested Citation

  • Jane Wanjiku Wanjihia & Lawrence Njoroge & Leah Wanjama, 2023. "Effect of Gender Norms on Utilisation of Loans Borrowed from Micro Finance Bank and Livelihood Outcome in Kitui Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(11), pages 659-671, November.
  • Handle: RePEc:bcp:journl:v:7:y:2023:i:11:p:659-671
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-7-issue-11/659-671.pdf
    Download Restriction: no

    File URL: https://www.rsisinternational.org/journals/ijriss/articles/effect-of-gender-norms-on-utilisation-of-loans-borrowed-from-micro-finance-bank-and-livelihood-outcome-in-kitui-kenya/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jain, Sanjay & Mansuri, Ghazala, 2003. "A little at a time: the use of regularly scheduled repayments in microfinance programs," Journal of Development Economics, Elsevier, vol. 72(1), pages 253-279, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Bo & Yu, Yunjun & Yang, Ziying & Zhang, Xiaomei, 2021. "Microfinance institutions and Peer-to-Peer lending: What does microfinance competition bring?," Pacific-Basin Finance Journal, Elsevier, vol. 67(C).
    2. Islam, Asadul & Nguyen, Chau & Smyth, Russell, 2015. "Does microfinance change informal lending in village economies? Evidence from Bangladesh," Journal of Banking & Finance, Elsevier, vol. 50(C), pages 141-156.
    3. Beatriz Armendáriz & Ariane Szafarz, 2011. "On Mission Drift in Microfinance Institutions," World Scientific Book Chapters, in: Beatriz Armendáriz & Marc Labie (ed.), The Handbook Of Microfinance, chapter 16, pages 341-366, World Scientific Publishing Co. Pte. Ltd..
    4. Abhirupa Das & Uday Bhanu Sinha, 2022. "Microfinance institution and moneylenders in a segmented rural credit market," Working papers 324, Centre for Development Economics, Delhi School of Economics.
    5. Berg Claudia & Emran Shahe & Shilpi Forhad, 2020. "Microfinance and Moneylenders: Long-run Effects of MFIs on Informal Credit Market in Bangladesh," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(3), pages 1-35, July.
    6. Maitra, Pushkar & Mitra, Sandip & Mookherjee, Dilip & Motta, Alberto & Visaria, Sujata, 2017. "Financing smallholder agriculture: An experiment with agent-intermediated microloans in India," Journal of Development Economics, Elsevier, vol. 127(C), pages 306-337.
    7. Mallick, Debdulal, 2012. "Microfinance and Moneylender Interest Rate: Evidence from Bangladesh," World Development, Elsevier, vol. 40(6), pages 1181-1189.
    8. Francisco J Buera & Joseph P Kaboski & Yongseok Shin, 2021. "The Macroeconomics of Microfinance," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 88(1), pages 126-161.
    9. Mansuri, Ghazala, 2007. "Credit layering in informal financial markets," Journal of Development Economics, Elsevier, vol. 84(2), pages 715-730, November.
    10. Alexander Tedeschi, Gwendolyn, 2006. "Here today, gone tomorrow: Can dynamic incentives make microfinance more flexible?," Journal of Development Economics, Elsevier, vol. 80(1), pages 84-105, June.
    11. Lutz G. Arnold & Benedikt Booker, 2012. "Good Intentions Pave the Way to ... the Local Moneylender," Working Papers 126, Bavarian Graduate Program in Economics (BGPE).
    12. Jeon, Doh-Shin & Menicucci, Domenico, 2011. "When is the optimal lending contract in microfinance state non-contingent?," European Economic Review, Elsevier, vol. 55(5), pages 720-731, June.
    13. Jacob Yaron & Ronny Manos, 2010. "Information Transparency and Agency Costs in the Microfinance Industry," Review of Market Integration, India Development Foundation, vol. 2(1), pages 87-99, April.
    14. Weber, Ron & Mußhoff, Oliver & Petrick, Martin, 2014. "How flexible repayment schedules affect credit risk in agricultural microfinance," DARE Discussion Papers 1404, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    15. Czura, Kristina, 2015. "Do flexible repayment schedules improve the impact of microcredit?," Discussion Papers in Economics 26608, University of Munich, Department of Economics.
    16. Madestam, Andreas, 2014. "Informal finance: A theory of moneylenders," Journal of Development Economics, Elsevier, vol. 107(C), pages 157-174.
    17. Weber, Ron & Musshoff, Oliver, 2015. "Does pre-defined flexibility come with teh cost of higher credit risk? Evidence from agricultural micro lending in Madagascar," 2015 Conference, August 9-14, 2015, Milan, Italy 211905, International Association of Agricultural Economists.
    18. Müller, Kirsten & Mußhoff, Oliver & Weber, Ron, 2014. "The More the Better? How Collateral Levels Affect Credit Risk in Agricultural Microfinance," Department of Agricultural and Rural Development (DARE) Discussion Papers 260815, Georg-August-Universitaet Goettingen, Department of Agricultural Economics and Rural Development (DARE).
    19. Marc Labie & Carolina Laureti & Ariane Szafarz, 2013. "Flexible Products in Microfinance: Overcoming the Demand-Supply Mismatch," Working Papers CEB 13-044, ULB -- Universite Libre de Bruxelles.
    20. de Quidt, Jonathan & Fetzer, Thiemo & Ghatak, Maitreesh, 2016. "Group lending without joint liability," Journal of Development Economics, Elsevier, vol. 121(C), pages 217-236.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:7:y:2023:i:11:p:659-671. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.