Effect Of Risk Management Strategies On Profitability Of Microfinance Institutions In Kenya: A Case Study Of Faulu Kenya Nakuru County

Since the 1990s, poverty reduction has taken priority at both national and international development levels. Within this framework, various initiatives have been taken. Microfinance has caught the attention of many Aid donors, Non-Governmental Organizations and Governments as an effective tool for poverty reduction. The successful use of microfinance is considered as victory for the poor to escape the poverty traps. In the Kenyan context, this same initiative and hope has been adopted. The popular assumption is that it enables poor households to access credit. Households begin small businesses…