Effect of Group Lending Approach on the Effectiveness of Youth Enterprise Development Fund in Financing Group Owned Agribased Micro and Small Enterprises in Kisii County, Kenya

Abstract

The purpose of the study was to establish the effect of group lending approach on the effectiveness of the Youth Enterprise Development Fund in financing Group Owned agribased Micro and Small Enterprises in Kisii County, Kenya. A Multistage Sampling Technique was used to sample out 62 MSEs from a target population of 302 Group Owned agribased MSEs. A combined closed and open ended questionnaire was used to obtain primary data. The data was analyzed using both descriptive and inferential statistics. The findings confirmed that group lending reduced the need for loan security and it ensured that the loans were used for the intended purpose. The study thus, recommends that group lending approach be enhanced and improved in terms of streamlining membership numbers to levels minimally conducive for rapid decision making.