Lending of money to members was cited by one per cent of the respondents as
MSEs for WGs in the study area. Those involved in this project lend money to
individual members at an interest. However, the interest charged is not as high as that
charged by formal financial and micro-finance institutions. This encourages members
to borrow and use the money to start individual income generating activities for their
own benefit. This project had a failure rate of 100 per cent implying the inherent
problems encountered when running such a scheme. Among the major problems faced
were: high default rate; political interference; leadership wrangles within the groups;
and lack of proper management skills. These problems were in line with those faced by
other WGs that operate such a scheme country wide (Riria, 1985; Ongile, 1995;
Republic of Kenya, 1993; Duba, 1999).