Micro-finance institutions appeared to be playing insignificant role in funding WGs
MSEs. This may be due to ineffective outreach programme on their part and relatively
high interest rate charged. In fact most WGs had not sought credit from formal
financial institutions, micro-finance institutions and other lenders due to lack of
collateral, high interest rates, lack of insurance cover for their businesses, and general
fear of prosecution in case of default since these might lead to their properties being
taken away (Wawire, 2008). This fear was gained through experience (Musa, 1999).