Challenges Faced by the Women Enterprise Fund in Kenya A Survey of Hamisi Constituency, Vihiga County- Kenya

Abstract

Access to microcredit has been identified as a principal element for micro entrepreneurs to succeed in their drive to build productive capacity, to create jobs and contribute to poverty alleviation in developing countries. However access to finance for the rural poor especially women has not been easy. This is because women in Kenya experience social and economic discrimination because of the patriarchal nature of the Kenyan society. The Kenyan government acknowledges that women have not been at par with their male counterparts and therefore special provisions have been made for gender mainstreaming. To stimulate economic activity and growth, and to ultimately reduce unemployment, the Kenyan government has placed emphasis in the development and expansion of microenterprise, more specifically the women run enterprises. This has been made possible with the introduction of the women enterprise fund. This study therefore sought to establish the challenges faced by women who access the women enterprise fund. The survey research conducted in Hamisi constituency used interview schedules to collect data from 145 respondents. The data was analyzed both qualitatively and quantitatively and presented through frequency tables and percentages. The study found out that WEF faced numerous challenges both at the lender and borrower level. This affected the effectiveness of the fund. This study concluded that the challenges faced need to be addressed to enhance the effectiveness of the programme. It recommends the WEF should increase loan sizes, improve staffing, work out ways of providing individual loans though group lending and sensitize men to get involved.

Keywords: Constituency women enterprise scheme (C-WES), Microcredit, Microenterprise, Revolving loan fund.