This paper underscores the view that the provision of micro financial services to low income earners remains a pivotal point in the realization of the millennium development goals; hence, it remains the cornerstone for societal socio-economic and political transformative development in Africa.
Microfinance is very important in; creating access to productive capital for the poor who together with human capital addressed through educational training enables people to move out of poverty. It helps very poor households meet basic needs and protect their economic welfare. Micro-finance empowers women by supporting their economic participation and promotes gender equity. However, there has been remarkable performance and significant improvement in the economic and living status of small scale business people and this can be attributed to the existence of the Financial Services Associations. The paper seeks to discuss challenges encountered by micro-financial providers when it comes to loan repayment and the general view of non members. The paper also proposes various strategies employed by the micro financial institutions before dispatching the applied loans by their clients.
This paper concludes that microfinance play a role in the eradication of poverty, promotion of education, improving health and empowering women of Koilot Division Nandi County-KENYA
Keywords: Development, Growth, MDGs, Microfinance