Assessment of Factors Influencing Women’s Access to Microfinance Services in Dar es Salaam, Tanzania: A Case Study of Kinondoni Municipality

Abstract

Purpose: Despite the proliferation of microfinance institutions, many women remain financially excluded due to entrenched socio-cultural and institutional barriers. This study investigates the factors influencing women’s access to microfinance services in Kinondoni Municipality, Dar es Salaam, Tanzania.

Methods: A cross-sectional research design was employed, collecting data from a sample of 100 women. The data were analyzed using a probit regression model to assess the influence of key variables including marital status, income, loan procedures, and perceptions of interest rates on women’s access to microfinance.

Findings: The results show that married women are 28.4 percentage less likely to access microfinance, reflecting the influence of patriarchal norms and spousal consent requirements. Surprisingly, simplified loan procedures are associated with a 15.7 percentage point decrease in access, possibly due to hidden complexities or inconsistent implementation. Women who perceive interest rates as moderate or high are more likely to access microfinance, indicating a preference for institutional reliability over affordability. While income has a statistically significant effect, its practical impact on access is limited.

Originality: This study uniquely studies urban women’s access to microfinance in Kinondoni. The study reveals unexpected barriers which are linked to simplified loan procedures and spousal consent. The study challenges assumptions about affordability by highlighting trust-driven perceptions of interest rates

Practical Implications: These findings highlight the urgent need for targeted policy reforms, including the removal of spousal consent requirements, standardization of loan procedures, introduction of collateral-free lending options, and expansion of community-based financial literacy programs. Such measures are critical to fostering inclusive financial systems and supporting national and international efforts toward gender equality and women’s economic empowerment.