Abstract:
The study intended to examine the contribution of micro-credit in improvement of women's' economic
livelihood. A total of 74 respondents were selected as sample by using stratified, simple random and
purposive sampling. The study used documentary review, questionnaires, personal interviews and focus
group discussion to obtain primary and secondary information. As for the nature of the business run by
women, the study showed selling crops, retail shops and second-hand clothes as the most preferred types
of business activities by the respondents in the study area were. About financing of women's income
generating activities, findings revealed that majority of the respondents were satisfied by the loan given
to them. Basing on the benefits of microcredit to women livelihood, findings showed that women who
accessed loan and use it in a proper way were able to improve their livelihood by improving their
income, supporting children's education and buying house equipment. About challenges facing women
during application and management of credit, findings revealed inability of accessing loan on time,
shortage of credit guarantors, corruption, failure to get instalment on time, loss in business, and misuse
of credit. The study recommends on more savings, provision of training, self guarantor ship in groups
and uplifting the capital of the SACCOs. The area for further study included SACCOs' autonomy and
member's democracy in order to solve challenges facing majority of the members in the study area.
