Women in northern Kenya yet to fully embrace loans

Women Enterprise Fund Chairperson Mumina Bonaya (left) and Moyale Deputy County Commissioner John Cheruiyot during funds disbursement on February 6, 2017. Ms Bonaya said women in northern Kenya have not fully embraced the culture of borrowing loans. PHOTO | IRENE MWENDWA | NATION MEDIA GROUP

What you need to know:

  • Northern Kenya has been one of the many regions in the country where uptake of these loans is low.
  • Ms Bonaya WEF disbursement in Marsabit would help residents restock their animals after the current drought ends.
  • Majority of women in the region are also unbanked and they are yet to understand and embrace borrowing.

About 1.3 million Kenyans have benefited from the Women Enterprise Fund (WEF) in the past four years, WEF Chairperson Mumina Bonaya has said.

Speaking in Moyale Town, Ms Bonaya said that since its inception, the fund has disbursed up to Sh9.6 billion, noting that loan uptake has been quite low due to lack of awareness among women.

She added that about 644,162 people have benefited in the past four months as compared to a total of 655, 838 beneficiaries in the past four years.

“Out of the Sh9.6 billion disbursed, only Sh6.7 billion had been disbursed in the past four years and the repayment rate stands at 92 per cent.

“Loan uptake has been low because majority of women in the country had not known its benefit,” said Ms Bonaya.

The chairperson said the fund has disbursed the highest amount in January 2017, since its inception.

She said that Marsabit County has taken up only Sh37.1 million in January with a total of 6, 571 beneficiaries.

“A total of Sh12.1 million has been released to women groups at Laisamis, North Horr, Moyale and Saku constituencies [in] Marsabit County this January. Their repayment rate stands at 81 per cent,” she said.

LOANS UPTAKE LOW

However, northern Kenya has been one of the many regions in the country where uptake of these loans is low.

According to Ms Bonaya, WEF took the initiative to address challenges that hinder loan uptake in the region.

She said that the WEF disbursement in Marsabit was timely as it would help residents restock their animals after the current drought ends.

“The disbursement in northern Kenya [has been made possible by] deliberate interventions undertaken by WEF to address challenges that continue to affect loan uptake in the region.

“Up to 107 groups in Marsabit County have already been registered and benefited from the fund,” added Ms Bonaya.

She added that majority of women in the region are also unbanked and they are yet to understand and embrace borrowing as a way of financing businesses.

She said that every time WEF disburses loans in the region, officials of groups are forced to travel up to 300 kilometres to cash their cheques.

“While many women are unbanked, banking services are also concentrated in town centres thus making it impossible for rural residents to access the services,” said Ms Bonaya.