Joint Liability And Group Loan Performanceamong Micro Finance Institutions: A Case Of Nyandarua County, Kenya

ABSTRACT Group based lending has been synonymous with most borrowers of the lower economic end in the developing world and this is no exemption to borrowers in Kenya. For a long time low income earners had been left out and were previously unbanked. The microfinance model through group lending has ensured inclusion of these players to the economy. Group lending is done through self-organised groups of individuals mostly between 5 and 20 who lack mainstream collateral but can co guarantee each other’s loans to ensure they access funding. Group lending most dominant feature is joint liability t…