The Challenges Facing Poverty Alleviation and Financial Inclusion in North-East Kenyan Province (NEKP)

Poverty alleviation is one of the most compelling challenges facing Kenya today. It is not only widespread, but it is also steadily rising. This highlights the need for sustainable solutions to poverty, particularly through microfinance. This research investigated the case of North-Eastern Kenya Province. The purpose of this paper is to explore the unique micro-level challenges that are faced by poverty alleviation programs adopted by microfinance institutions operating in this region. The study used structured questionnaires to collect primary data. The sample covered 600 respondents randomly selected from three counties, namely, Wajir, Mandera, and Marsabit. Three focus group discussions comprising 24 participants were held to facilitate a deeper understanding of the challenges of poverty among the North-Eastern Province’s communities when alleviated through microfinance. The results reveal that illiteracy due to the weakness of education and the unfavorable basic and financial infrastructures such as roads, telecommunications networks represent the most important challenges that may affect the success of micro-finance programs. These results recommend that both conventional and Islamic micro-finance might contribute positively to poverty alleviation for the poorest Kenyan region if the challenges are mitigated. The study provides policy recommendations for the Kenya Government and the conventional and Islamic banks in Kenya to provide the expected support for the poorest area in the country. The result of this research might help the government, microfinance providers, and donors to assist in alleviating the poverty of the Northern Kenyan community.