Do policy frameworks affect microfinance participation in Kenya?

Abstract

The following paper explores the effectiveness of microfinance policy on the registered level of participation in Kenya. The research is conducted through the lens of Acemoglu and Robinson’s view of deep institutional issues restraining policy from its intended reform. Specifically, the paper looks at the effectiveness in increasing the total number of borrowers after Kenya’s National Microfinance Act of 2006 in regard to property right protection issues within the country. Ultimately, the research reinforces the idea that institutional issues, both political and economic, are a severe handicap to microfinance within a developing country