Effect of Education on Microfinance Institutions’ Credit Accessibility by Persons with Disabilities in Mombasa County, Kenya

Abstract

This research aimed to establish the factors determining credit accessibility from Microfinance institutions among Persons with Disabilities (PWDs) in Mombasa County, Kenya. The research was conducted to establish the effect of education on credit access from Microfinance Institutions (MFIs) by PWDs in Mombasa County. The study tested the hypothesis on the above objective to enhance the realization of the key factors that constrain credit accessibility by PWDs. The research was anchored on Credit rationing theory, Credit channel theory, and imperfect information theory. The study employed a descriptive survey research design with a target population of 2037. A study sample of 204 PWDs was utilized. The primary data collection method was employed to gather the required information. The information collected from this research was analysed using SPSS V.26. Overall, all respondents agreed that education influenced credit accessibility. Pearson’s correlation results showed a positive relationship between education and credit accessibility. At a 95% confidence level, the null hypothesis was rejected. The study findings concluded that greater adoption of education significantly affects credit accessibility. The study recommends that National Council for Persons with Disabilities (NCPWD) can use study results to advise PWDs on credit accessibility, promote integration between PWDs and the society around them in Kenya by facilitating the implementation of the existing policies and enhancing development to align with the arising needs of disabled persons. To Microfinance institutions, the study recommends they see the untapped market for lending purposes and come up with strategies to expand the market share.