The study was set to investigate Microfinance and Poverty Reduction which was guided by
the following objective; to find out the nature of products and services offered by MFls in
Katikamu Sub-County, to find out the contributions of MFIs in Poverty reduction, and to flnd
out the challenges faced by people when using Microlinance service in Katikamu SubCounty.
The study employed Purposive sampling and simple random sampling techniques to select
291 participants that constituted the sample size of the research.
The research used both primary and secondary data. The primary data was got from clients
and from management. The data was obtained by use of semi structured questionnaire and
interviews. Secondary data was obtained from published materials which included journals.
text books, magazines and newspapers.
The findings of the study revealed that most of clients were male who constituted 64.6% of
the sample size. Significant number of clients 58.42 % acknowledge positive contributions of’
MFIs loans towards poverty reduction like increase in income, improving education and
acquisition of assets. The microfinance loan terms and conditions are stringent with high
interest rate 65.6%, short grace period as well as high demand of collateral security. Yet rural
poor beneficiaries engage in businesses which take long to mature (gestation period).
The study concluded that illiteracy, lack of collateral and inadequate management and
capacity by clients are some of challenges facing microfinance in poverty reduction.
The study yielded the following recommendation; low interest ratio, lengthen the repayment
period, sensitization of clients. Other than the financial support, it is recommended that MFIs
should at all-time give professional advices to clients
ENOCK, K (2021). Micro-Finance And Poverty Reduction A Case Study Of Uganda Advance Microfinance, Katikamu Sub-County, Luwero District. Afribary. Retrieved from https://afribary.com/works/micro-finance-and-poverty-reduction-a-case-study-of-uganda-advance-microfinance-katikamu-sub-county-luwero-district
ENOCK, KASOZI "Micro-Finance And Poverty Reduction A Case Study Of Uganda Advance Microfinance, Katikamu Sub-County, Luwero District" Afribary. Afribary, 11 Jun. 2021, https://afribary.com/works/micro-finance-and-poverty-reduction-a-case-study-of-uganda-advance-microfinance-katikamu-sub-county-luwero-district. Accessed 04 Aug. 2021.
ENOCK, KASOZI . "Micro-Finance And Poverty Reduction A Case Study Of Uganda Advance Microfinance, Katikamu Sub-County, Luwero District". Afribary, Afribary, 11 Jun. 2021. Web. 04 Aug. 2021. < https://afribary.com/works/micro-finance-and-poverty-reduction-a-case-study-of-uganda-advance-microfinance-katikamu-sub-county-luwero-district >.
ENOCK, KASOZI . "Micro-Finance And Poverty Reduction A Case Study Of Uganda Advance Microfinance, Katikamu Sub-County, Luwero District" Afribary (2021). Accessed August 04, 2021. https://afribary.com/works/micro-finance-and-poverty-reduction-a-case-study-of-uganda-advance-microfinance-katikamu-sub-county-luwero-district