May 16, 2008

On May 12th the Gender and Children’s Affairs Minister Ms Esther Mathenge called on women to take loans from the Women Enterprise Fund which “has been lying uncollected a year since President Kibaki launched the project,” said the minister.

The Gender Minister said she was surprised that the money which was meant to assist women to establish or boost their business enterprises was not collected. When the President launched the 2billion fund in June last year he said the Fund was aimed at boosting women to participate fully in development of the country and achievement of the country’s goals.

According to the initiators of the Fund, which was set aside during the 2007/2008 Budget, borrowers were not required to have collateral and 8 percent repayment interest was a requirement. But Kenyan women have observed that there are flaws involved in accessing the Fund, this include a requirement to apply for the Fund in groups of at least ten people, ostensibly to reduce the risk of default.

Another hurdle that has been cited is the requirement that women write a proposal. Notably, joining of women entrepreneurs in the formal sector is still very low, they operate informal businesses; are faced with challenges of accessing capital, business skills, technology and markets. These challenges combine to incapacitate women’s ability to develop hence the lack of capacity for the majority to develop project proposals.

As the minister blames the setback on lack of adequate information to women on how to apply for the monies, there are hurdles, and suggestions have been fronted by a section of Kenyan women that the Gender Ministry should seek opinions from women on how they would like the Fund managed.

A letter to the editor recently in a local daily by Virginia Thara, of Runyenjes proposes that the ministry should seek feedback from women who have tried and failed to access the loans. Virginia’s suggestion opines the feeling of majority of women in the country. She adds, and many agree with her that this way, the government will be in a position to make the lending process “work for women, not just for the funds lenders.”

Usually the government allocates sh1 billion per constituency and sh50, 000 per group. This is good money, however there’s need for an intensive awareness campaign that would sensitise women on the need to borrow money for development.

The Government needs to help women especially the rural poor who need more than money and who are not served by traditional micro-lenders. The ministry should identify this group of people, provide training and mentoring that is needed.

Women need funds, they need adequate capital, but they also need development of skills to mange the funds and the removal of some of those hurdles that stand on their way in accessing for them. This Fund could help break the cycle of poverty in rural Kenya through training, seed capital and mentoring for small and income-generating businesses.